The pocket money spending behavior of the students is similar to that of any other customer group. The general tendency of the students is to spend as much they get as they do not understand the pain of earning money except those who are doing part time jobs. As are proven in many studies, students are normally irrational and impulsive customers who spend their income without much thinking and evaluation. The increase in the disposable income of middle and lower income groups of people and the nuclear family system have caused the purse of the students to become bulky nowadays. This research is an attempt to find out the spending pattern of students and the differences between male and female students in spending and saving. The study also explores the relationship between academic performance and pocket money. This study finds that students are fascinated towards mobile phones, two wheelers and fashion clothes and they spend their pocket money mostly for the above purposes. It could also be seen that the pocket money does not affect the academic performance of the students. But there is a gender difference in the relationship between pocket money and the extent of savings.