From Bank Balance To Death: Spend, Invest And Live Smart

How much do you love money? Enough to die with money in your bank? India’s relationship with money is complex. Every year, billions of rupees remain untouched in banks savings accumulated through years of discipline, sacrifice, and restraint, yet never utilised. As of 2025, approximately ₹67,000 crore lay unclaimed in Indian bank accounts, belonging to individuals who have not accessed their funds for over a decade or whose legal heirs are unaware of their existence.

This shows a clear paradox: Indians save carefully, yet much of that money just sits idle, helping neither their lives nor the economy.

A 2024 survey found that many people keep saving even after retirement. About 40% said they do it to handle unexpected expenses, while others said having money in the bank makes them feel better, and a significant handful admitted they were simply too afraid they might run out of money if they started spending. Yet, Around 20% said they avoid spending because they believe “once money is spent, it’s gone forever.”

So here’s the unpopular question: why earn money if you cannot enjoy it?

The Literacy And Savings Contradiction

India’s overall literacy rate stands at roughly 75%, but when it comes to financial literacy, understanding saving, investment, credit, insurance, and budgeting; the figure drops sharply. As of 2025, only 27% of Indian adults are considered financially literate.

This gap shows up in two extremes: about half of Indians save less than 20% of their income because they don’t plan their finances well, while others save too much, missing out on life and leaving their money unused.

The imbalance reveals a larger truth: India struggles not with earning, but with managing money effectively. They either spend too much, save too much, or just don’t know how to manage money well.

The education system provides mathematical tools to find cost price, selling price, and simple interest but rarely addresses real-life financial decisions such as managing debt, evaluating insurance, or planning long-term investments. Students graduate knowing how to calculate interest but not how to apply those concepts to their personal finances.

Regional disparities further highlight the divide. Financial literacy is estimated at 19.20%in Goa, 26.50% in Maharashtra, 40% in Delhi, 17% in West Bengal, and 17% in Assam. Globally, the picture is not encouraging either: only 27% of adults worldwide are financially literate as of 2025.

Why this matters, now more than ever

The expansion of digital finance has increased both opportunities and risks. Credit cards, buy-now-pay-later schemes, online trading, and digital wallets have transformed access to money but without adequate understanding, they also expose individuals to debt traps and financial mismanagement.

Low financial literacy contributes to high borrowing costs, poor investment choices, and insufficient retirement savings. Many individuals are unaware of their credit scores or the impact of debt on long-term wealth.

People who understand money plan their spending around clear goals like short-term ones such as travel or home upgrades, and long-term ones like retirement, education, or buying a house. Being wise with money doesn’t mean being stingy; it means using it smartly to live better and stay secure.

Estimates suggest that to live comfortably for 30 years after retirement, an individual may need savings equivalent to at least 3-4 crores for a moderate lifestyle. Effective planning, diversification, and appropriate insurance coverage allow individuals to meet such goals without extreme austerity.

Charting a Personal Financial Strategy

Bridging the financial literacy gap begins with small, consistent actions:

1. Start Early: Compounding rewards time more than the initial amount invested.
2. Diversify Investments: Spread risk across different assets and timelines.
3. Set Clear Goals: Distinguish between immediate and future priorities.
4. Budget and Track: Record income, expenses, and savings regularly to maintain clarity.
5. Invest in Knowledge: consult a professional, take advice from the right people.
6. Adopt Digital Tools Wisely: in the digital era with 87% digital payment adoption in India, understanding online banking, UPI, digital wallets, credit and their risks is essential.
7. Secure the Base: Insurance, emergency funds, and manageable debt form the foundation of stability.

The Bottom Line

India does not face a shortage of savers; it faces a shortage of informed savers. Financial literacy transforms money from a static possession into a dynamic tool, one that safeguards the present and the other that secures the future. Financial planning is not about hoarding wealth, but about using it purposefully. It prevents the scenario in which individuals die with unspent money while their families remain uncertain of their financial standing. As India deepens its digital and economic transformation, empowering citizens with financial knowledge is as critical as improving infrastructure or industry. The ability to earn, manage, and multiply money will define not only personal well-being but also national resilience. Money, ultimately, is not meant to be preserved untouched but it is meant to be used wisely, live meaningfully, and grow responsibly.