The Hard Truth: Is India’s Middle Class Financially Blind?
Thank you for reading this post, don't forget to subscribe!An unsettling observation from analyst Hardik Joshi is sparking a crucial conversation about India’s middle-class financial habits. His blunt take? We’re teaching our kids to ace the IIT entrance exam, but not how to file their income tax returns. We’re buying gold by the kilo and throwing lavish weddings, yet sidestepping essential health insurance and retirement planning.
Joshi didn’t mince words in his LinkedIn post, ripping into what he calls “warped money priorities.” The common refrain, “beta job lag jaaye toh sab thik ho jaayega” (once my son gets a job, everything will be fine), has seemingly become the extent of financial planning for millions. Budgeting, risk management, building passive income—these are often afterthoughts, if they’re considered at all.
“No budgeting. No risk management. No financial literacy. Just vibes and blind faith,” Joshi declared. And the data paints a stark picture:
- Only 27% of Indian adults are financially literate.
- Fewer than 10% of households have retirement plans.
- Just 20% have health insurance.
Most families remain dangerously unprepared for emergencies, lacking term coverage or a savings buffer. As Joshi puts it, “Generational trauma gets passed down, but not generational financial wisdom.”
This isn’t just poor planning; it’s a perilous gamble. Low financial literacy often traps families in cycles of debt, pushes them toward informal lenders, and leaves them devastated when a crisis hits. Even in urban centers, awareness of basic financial tools falls short of global standards.
The issue runs deep, particularly in economically weaker states and among women. Without a fundamental cultural shift, India’s middle class risks measuring success in glittering gold and grand ceremonies, all while remaining one crisis away from potential collapse.
Joshi’s stark warning resonates: “Finance isn’t just for the rich. It’s for every middle-class family that wants to stop living paycheck to paycheck.” It’s time for a reality check and a serious re-evaluation of what truly constitutes financial security.
