From Pennywise to Plastic Peril: Vivek Law Tracks India’s Financial Journey Across Generations

 

Veteran journalist and personal finance expert Vivek Law has crafted an insightful piece reflecting on the dramatic changes in India’s financial habits. He takes us on a journey from the days of piggy banks and saving to the current landscape of easy credit and rising debt. In his latest column, Law draws from his extensive experience in reporting to showcase how rapid economic growth, the rise of digital banking, and evolving aspirations have reshaped the financial world for young Indians.  

 

Key Highlights 

 

•⁠  ⁠Generational Shift: Law points out that previous generations placed a high value on saving, with piggy banks and recurring deposits representing financial wisdom. In contrast, today’s youth are tempted by the allure of instant gratification—credit cards, Buy Now, Pay Later (BNPL) schemes, and personal loans. 

•⁠  ⁠Debt Dangers: The rise of unsecured lending and digital finance apps has led to a significant increase in consumer debt, with many young earners falling into debt traps due to a lack of financial literacy. 

•⁠  ⁠Cultural Change: Law notes a shift from the mindset of “save first, spend later” to “spend now, pay later,” driven by aspirations fueled by social media and aggressive marketing tactics. 

•⁠  ⁠Call for Education: He stresses the urgent need for comprehensive financial education to empower the next generation to make informed decisions and steer clear of financial pitfalls.  

 

Outlook

 

 As India’s financial landscape becomes increasingly intricate, Law’s observations act as a crucial wake-up call. The challenge moving forward is to find a balance between ambition and awareness, ensuring that the pursuit of prosperity doesn’t compromise financial well-being.

 

Source: Vivek Law’s Financial Column, Mint, Economic Times