Families are the primary recipients of individuals' initial earnings, according to a new study.
A new study from Bharat Lab, titled "My First Salary," delves into the emotional experiences surrounding the receipt of first paychecks among young earners in India's Tier 2 and Tier 3 cities. Findings indicate that the initial salary signifies a cultural milestone, symbolizing not just financial independence but also family traditions and personal development [1][2][3].
Key takeaways from the study highlight the dominant cultural importance of the first salary and some of the predominant spending habits of these young earners:
- Cultural Significance: The first salary often signifies a significant rite of passage and a statement of independence, especially for women [1][2].
- Spending Habits: A majority (38.8%) of respondents prefer to use their first salary on gifts for family members, underscoring the value placed on cultural ties and family relations [3][4].
- Financial Responsibility: Approximately 24.5% of respondents demonstrate financial prudence by saving their income [3][4].
- Donations: Around 20.4% choose to donate to religious or social causes, indicating a strong sense of community [3].
Based on these findings, the study proposes the following recommendations:
- Flexible Investment Options: To cater to the evolving financial requirements of the target audience, fintech platforms should offer versatile investment models [1].
- Financial Literacy for Women: Enhancing financial literacy, particularly for women, is crucial to equipping them with the ability to make informed decisions regarding their finances [1].
In a fascinating turn, the study reveals that 88.5% of women view their salary as a symbol of personal freedom, with a substantial 44.6% choosing to communicate their earnings to their mothers first. This finding underscores the significance of designing tailored financial education programs to empower women financially by enabling them to manage their finances effectively and invest wisely [1].
The study offers a valuable insight into how young earners in India’s semi-urban areas perceive their first salaries, striking a balance between cultural values and financial maturity. The findings suggest that governing bodies and educational institutions should focus on increasing financial literacy and offering accessible investment options to promote financial independence for these young earners, especially women.
[1] “My First Salary” – Bharat Lab Study on Indian Tier 2 and Tier 3 cities[2] Cultural Significance of First Salary in India – IBEF[3] Spending Habits of Indian Millennials – BankBazaar[4] Personal Finance in India – Mint[5] Financial Literacy for Women – Indian Express
- News articles and education-and-self-development resources should highlight the cultural significance of receiving the first salary in India, emphasizing its impact on young earners' personal-finance management and self-development.
- Businesses and fintech companies can extend their advertising campaigns to focus on catering to the financial needs of young earners in Tier 2 and Tier 3 cities in India, offering flexible investment options and increasing financial literacy, particularly for women.
- Education and educational institutions could collaborate with governing bodies and fintech platforms to enhance financial literacy programs, helping young earners, especially women, develop their personal-finance skills and invest wisely for long-term financial security and independence.
