No matter whatever we think about the development in the country but everyone needs to observe that we are not saving enough despite the income is increasing. Here are the reasons why India’s saving culture is dying.
You may think that it is not a major issue to discuss. India has more than 1.3 billion population and more than 60% of the population is under 35 years of age.
We as Indians are famous in the world, especially for Savings. It is being said that Indians are three-time richer than average Americans.
Such things happen because we know how to manage money better than the people of any other country.
In developed countries like the USA and the UK, the schools and colleges are taking lectures on “the importance of saving money” and “how to save money“.
They don’t have a culture of saving. Hence, they need to arrange such lectures for students.
On the other hand, as soon as we start earning money, we first plan “how much money should I save“.
But, things have been changing from the last decade and it is being observed that the saving habit is continuous decreasing.
6 Reasons Why India’s Money Saving Culture is Dying:
1. Income, Expense and Saving:
When income increases, the expense also increases. That’s the simple philosophy of economics. And there is no problem with it.
People love buying materialistic things.
But, when the income and expense are increasing, at the same time savings should also be increased.
2. Social Media:
Social media has started exposing us. As we love to “showoff” our fancy and rich lifestyle to everyone, we tend to spend money. Not because we have the need for that particular product or service.
Whenever we buy new things, we go for a vacation or something anything like that, we share photos, videos and stories on social media platforms like Facebook, Instagram and WhatsApp.
Also read: Elon Musk’s Thought on Social Media
3. Ecommerce Websites:
Amazon India, Flipkart and PayTM Mall have been giving so much discount since the beginning of data revolution by Reliance Jio.
These companies are giving discounts even after they make losses because they want our daily attention and eventually we purchase from their platform.
Also read: Why Indian Startup Ecosystem is Flooded with Funding
4. Ola and Uber:
Still, in small cities, these companies are not delivering their service. But from medium to large cities, Ola and Uber have become a social status trend!
We could have used public transportation many times, but we prefer to use Ola/Uber most of the time.
5. OTT Platforms:
Oh!!! There are so many OTT(Over the top) platforms in the market offering a bunch of content.
We never needed to watch web series or we never wanted to buy a subscription plan for Hotstar, Netflix, Amazon Prime Videos and many more.
Media streaming platforms are literally wasting our time and money!
But, as discussed, it has become a trend nowadays.
Also read: 5 Reasons Why Netflix is Struggling in India
6. Zomato and Swiggy:
Just look back in 2010 and think, how many time you were going to the restaurant in a month? May be 5-6 times maximum!
Zomato and Swiggy have successfully made a huge negative impact. No matter these two companies have been giving discounts for years, but the habit of eating outside food has increased a lot.
The frequency of ordering food online has been increasing a lot as people have easy access to the internet.
Also read: How Zomato and Swiggy are Playing a Monopoly Game with Restaurants
Conclusion:
The young generation is being influenced by a western culture where there is almost no concept of saving.
Everyone should understand the basic difference between ‘needs and wants’.
Drinking water is our need and mineral water is our want!
Also read: Why Schools and Colleges DON’T Teach Us About Personal Finance
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