Lifestyle inflation, FOMO is the new default in youth money mindset, says Dhirendra Kumar of Value Research

Dhirendra Kumar, Founder of Value Research

Instant gratification has become the new default among the younger generation, said Dhirendra Kumar, founder of Value Research, during a panel discussion titled "Young and Wealthy: Instilling a Savings Mindset Among the Youth", held on the sidelines of Network18’s Rising Bharat Summit. Dhirendra underlined that financial literacy for young individuals should begin in a more visual and intuitive manner, grounded in the mindset of “what could go wrong” in the future.

He pointed out a stark shift in the savings mindset among today’s youth compared to what it was two to three decades ago. “When I was growing up, I had no idea whether my parents were rich, poor, or somewhere in between—I simply didn’t know,” he said. “Today, lifestyle inflation has become normalised. The fear of missing out is real and deeply affects the confidence of young people when they feel they haven't matched their peers’ achievements.”

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Highlighting a key gap in early education, Dhirendra remarked, “Schools teach algebra, but they don’t teach affordability.” He added, “Today’s youth aren’t reckless; they’re simply untrained in understanding and managing risk.”

Speaking on the topic of credit and the increasing tendency to accumulate EMIs, Dhirendra clarified that credit is not inherently harmful, but unnecessary borrowing can be risky.

“It’s not that credit is bad in itself, but taking on credit without need can become dangerous,” he said. “It’s not about viewing the world with cynicism or believing everyone is out to cheat you—but starting with a mindset that considers potential risks is a healthier approach.”

He recommended that for young investors, the early years of their financial journey are when the magic of compounding can work most effectively—provided they adopt the right mindset from the start.

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