For many young earners, financial literacy begins only after money starts coming in. Salary, rent, savings, EMIs, and the occasional impulse purchase all arrive before any real understanding of how to handle them. In the absence of formal financial education, many youngsters are left to build their own systems through trial, self-learning, and experience.
Among young professionals, financial habits tend to diverge sharply depending on how early structure enters the picture. For some, that structure is deliberate. Aiswarya BR, a 24-year-old sub editor, divides her income evenly between savings and expenses, setting aside 50% of her earnings and using the rest for essentials such as rent, food, and daily needs. While she does not follow a strict long-term plan, she relies on consistent investing through recurring deposits and fixed deposits, treating saving as the base of financial discipline. Budgeting, for her, is less about restriction and more about planning and tracking. Arjun Kumar Ch, a 30-year-old staff nurse, sets aside money for essentials at the start of each month, limits discretionary spending, and avoids borrowing. His primary focus remains saving, with a fixed amount consistently kept aside from his salary.
Others approach money with clearer goals but more flexibility in execution. Adarsh S, a 24-year-old social media executive, prioritises essentials, saves around 20% of his income, and allocates the rest to personal spending. His decisions are guided by specific aims, including buying a vehicle and planning for early retirement, supported by investments in mutual funds, SIPs, and stocks. While he follows a basic budget, he allows room for adjustment, evaluating larger expenses based on quality and value. Like many, his understanding of finance developed through self-learning rather than formal education.
B Padmanaban, a certified financial planner with experience in wealth management, says financial literacy begins with understanding the power of compounding, often described as the “eighth wonder of the world”. According to him, wealth grows over time through consistency, and youngsters should begin investing as soon as they start earning. He advises setting aside at least 10% of income and increasing it gradually as salaries grow, while avoiding the habit of constantly checking investment performance.
He also stresses that financial discipline comes from changing the way one thinks about money. Instead of treating savings as whatever remains at the end of the month, he recommends following a simpler principle: income minus savings equals expenditure. Padmanaban says many youngsters fall into the trap of instant gratification, often driven by social pressure and easy access to loans and EMIs. Credit, he says, should be used only when necessary. Even for those with limited incomes, budgeting matters, and investments should be treated as the first expense, not the last. Over time, he adds, financial security depends on building assets, maintaining insurance, and saving early enough to benefit fully from compounding.
Taken together, these voices show that young people are trying to manage money with varying degrees of structure, caution, and confidence. What separates them is not just income, but exposure.
Some begin with goals and systems, while others begin with habits and learn as they go. In most cases, financial literacy arrives late, after earning has begun and mistakes already carry a cost. That gap makes a strong case for integrating financial literacy into the education system, ensuring that future generations are better equipped to make informed financial decisions and build sustainable wealth.