Think your parents’ money advice still works? CA warns it may be costing you lakhs

Financial prudence has always been a cornerstone of Indian family culture, passed down through generations with love, care, and the belief that tried-and-tested rules ensure stability. But in today’s radically transformed economic landscape, those age-old principles are beginning to falter — and could even hurt long-term financial health if followed blindly. 

Highlighting this shift, CA Nitin Kaushik took to X (formerly Twitter) to break down why much of the money advice parents gave with the best intentions no longer holds up. “Love doesn’t always equal accuracy — especially when the world has changed faster than the advice did,” he wrote. 

Traditional wisdom meets new economy 

For decades, the formula for financial security in Indian households sounded familiar: “Buy a house as soon as possible.” “A car loan is normal — everyone takes one.” “Use credit cards only in emergencies.” 

Kaushik argues that this advice came from a time when salaries, home prices, loan costs, and lifestyle expectations moved at a similar pace. That world is gone. 

Housing: From attainable dream to high-stakes burden 

What earlier required a few years of income now demands a decade or more of earnings. Kaushik points to soaring price-to-income ratios across Indian metros: 

• 9-12x in many major cities 
• 15x or more in Mumbai, making homeownership “far beyond reach for most middle-class families unless planned with care” 

At the same time, salaries haven’t kept up. In big cities, home loan EMIs often swallow more than 50% of a household’s monthly income, leaving families squeezed and financially vulnerable. 

Cars: The fastest-depreciating ‘asset’ 

The cultural importance of owning a car hasn’t changed — but the economics certainly have. 

Kaushik notes that a car: 

• Loses 15-20% of value the moment it leaves the showroom 
• Depreciates 40-50% within five years 
• Carries rising maintenance, insurance, and fuel costs 
• Still demands multi-year EMIs that strain cash flow 

“Cars once symbolised pride and progress,” he says. “Today, they often symbolise unnecessary financial pressure.” 

Credit cards: Hidden debt avalanche 

The earlier generations’ advice to “avoid credit cards” was oversimplified, Kaushik explains. 

The real danger isn’t the card — it’s the 36-45% APR that kicks in if payments slip. Paying only the minimum? That can double your outstanding debt in just 2-3 years. 

“It’s not the tool — it’s the trap behind missed payments,” he warns. 

A new financial playbook 

Kaushik suggests replacing outdated advice with strategies that reflect present-day financial realities: 

• Renting is not failure — especially when buying means over-leveraging. Investing the surplus can yield far better long-term gains. 
• Cars shouldn’t be status symbols — delaying the purchase or choosing a reliable pre-owned car can save years of income. 
• An emergency fund is non-negotiable — even 3–6 months of savings can prevent a temporary setback from becoming a crisis. 
• Consumer debt must be treated as a danger zone, not a convenience. 

Kaushik ends on an emotional note: Parents want their children to be safe — that instinct hasn’t changed. What has changed is the world their children now live and work in. 

“Love doesn’t have to mean agreeing blindly,” he writes. “Sometimes love means learning, adapting, and doing better because they once couldn’t.”