Why-Most-Indians-Fail-at-Managing-Money
                     WHY MOST INDIANS 
FAIL AT MANAGING 
MONEY
Data-backed insights into India's financial challenges — and the path forward
ARTH NIRMITI FINANCIAL EDUCATION
FINANCIAL EDUCATION
THE FINANCIAL LITERACY 
CRISIS IN INDIA
27% 73% 85%
LITERACY RATE KNOWLEDGE NO PLANNING
GAP
Only 27% of Indian Most families operate 
adults are financially Three out of four without any formal 
literate, ranking Indians lack basic financial plan or 
among the lowest understanding of budget system
globally savings, investments, 
and debt 
Despite being one of the worldm'sa nfaasgteemst-egnrtowing economies, India faces 
a critical financial education gap that affects millions of households.
THE EMERGENCY FUND PROBLEM
LIVING ON THE EDGE
Most Indian households are just one crisis away from financial distress. 
Without adequate emergency savings, unexpected expenses can spiral into 
debt traps.
62%
ZERO SAFETY NET
Cannot cover 3 months of expenses
45%
NO SAVINGS
Have less than ₹10,000 in emergency funds
Medical emergencies, job loss, or family crises often force families to 
borrow at high interest rates, creating long-term financial stress.
TRAPPED IN THE DEBT CYCLE
CREDIT CARD DEBT THE EMI CULTURE
EXPLOSION
Easy access to personal loans and 
Outstanding credit card debt in "Buy Now, Pay Later" schemes 
India has grown 30% year-over- have normalized debt. Many 
year, with average interest rates Indians now spend 40-50% of 
hovering around 36-42% annually. their income on EMI payments 
alone.
HIDDEN COSTS
Processing fees, late payment 
charges, and compound interest 
turn small loans into major 
financial burdens. The true cost of 
borrowing often goes unnoticed.
WHERE DOES THE MONEY GO?
THE BUDGETING BLIND SPOT
Without tracking expenses, money mysteriously disappears each month. Most Indians have no clear picture of their spending patterns.
Track Expenses No Tracking
COMMON CONSEQUENCES THE FIX
• Month-end cash crunches Simple budgeting habits can reveal hidden spending patterns 
• Impulse purchases eating into savings and unlock savings potential. The 50-30-20 rule offers a 
practical starting point for most families.
• Unable to identify spending leaks
• No data for financial decisions
STARTING TOO LATE, CHOOSING WRONG
AGE 22-28 AGE 36-45
Delaying Start: Most Indians begin investing only after Catching Up: Realizing retirement goals seem distant, 
marriage or major life events, missing crucial compounding people take excessive risks or stick with underperforming 
years. traditional schemes.
1 2 3
AGE 29-35
Fear of Markets: Lack of knowledge drives many toward 
low-return FDs and savings accounts instead of equity 
investments.
The Cost of Waiting: Starting investments at 25 versus 35 can mean a difference of ₹50 lakhs or more at retirement, 
due to the power of compounding.
BEHAVIORAL MONEY MISTAKES
LIFESTYLE INFLATION
As income grows, expenses grow faster. Every salary hike leads to upgraded lifestyle 
choices, leaving savings stagnant despite higher earnings.
SOCIAL PRESSURE
Keeping up with friends, family expectations, and social media comparisons drives 
unnecessary spending on weddings, gadgets, and status symbols.
IMPULSE BUYING
Online shopping festivals, limited-time offers, and one-click purchases make it easier 
than ever to spend without thinking. FOMO drives poor decisions.
EMOTIONAL SPENDING
Using shopping as therapy, gifting beyond means during festivals, and succumbing 
to sales create a cycle of regret and financial strain.
WHY WEREN'T WE TAUGHT THIS?
THE EDUCATION SYSTEM GAP
From primary school through college, Indian education focuses on 
academic subjects but completely ignores practical money 
management skills.
01
NO CURRICULUM
Financial literacy is not part of standard school syllabus across India
02
PARENTS UNPREPARED
Previous generations lack knowledge to teach children about modern finance
03
LEARNING BY MISTAKES
Most people learn about money only after making costly errors in adulthood
The result? Generations of Indians entering the workforce with degrees but no understanding of budgets, investments, taxes, or wealth building.
OUR SOLUTION
HOW ARTH NIRMITI EMPOWERS YOU
FINANCIAL EDUCATION PERSONALIZED PLANNING
Clear, practical content in simple language Guidance tailored to your income, goals, and 
that demystifies money management for every life stage — not one-size-fits-all advice
Indian
ONGOING SUPPORT
Continuous learning resources, tools, and community to keep you on track toward financial freedom
WHAT WE COVER OUR APPROACH
• Budgeting and expense management We bridge the gap between where you are and 
• Emergency fund building where you want to be financially. Through 
education, awareness, and practical tools, we 
• Debt elimination strategies
help you take control of your money story.
• Smart investing for beginners
• Tax planning and optimization
• Retirement and goal planning
START YOUR 
FINANCIAL JOURNEY 
TODAY
Don't let another month pass without taking control of your financial future. Join thousands of Indians who are building 
wealth, eliminating debt, and achieving their money goals with confidence.
ARTH NIRMITI Website: www.arthnirmiti.com
Your trusted partner in financial education FINANCIAL LITERACY WEALTH BUILDING SMART PLANNING