NEW DELHI (CU)_The economic downturn brought about by the pandemic underscored the need to save for an emergency situation. With hundreds of thousands of people losing their source of income, while others were struggling with large hospital bills amid the global health crisis, the risks associated with living payday to payday became quite apparent.
Fortunately, saving money has been one of the few silver linings of the pandemic, as consumers saw their spending habits change naturally during nationwide lockdowns. For instance, the closure of clothing stores and bakeries hit the brakes on impulse purchasing, while social life was forced onto the back burner, as cultural outings, dinners and after-work drinks were no longer possible amid travel restrictions.
This was the case for many young Indians who have moved away from their reckless spending habits. In a recent survey conducted by Dinero, a Hyderabad-based neobank, of the 500 young Indian participants, 51 per cent said they set aside a specific amount from their earnings every month. However, they also said that given their limited financial knowledge, together with jargons and an overload of information makes it difficult for them to handle their savings. 64 per cent of the respondents revealed that they were unsure of what to trust when it comes to investing in financial instruments, highlighting the apprehension of younger generations seeking a way to attain control over their finances.
The study was aimed at understanding the major challenges faced by young Indians when handling their personal finances and savings and when setting monetary goals for themselves. Contrary to popular belief, 59 per cent of the participants said they would opt for mutual funds as an investment option instead of cryptocurrencies. 35 per cent of the respondents revealed they find it difficult to find a financial instrument that is trustable, while 33 per cent said they tend to save whatever amount possible without a set plan.
