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They are often called
the ‘instalment generation’, a new class of job
holders who spend voraciously, even by taking loans. Ritusmita
Biswas takes a look at this emerging trend
The young and unabated spending spree: Do they go together
these days? Perhaps, looking at these instances.
Soma and Shantanu wanted a break. She is a busy airhostess
and he an ad executive and both with on-the-edge work schedules.
Their last break was their honeymoon three years ago and now
they believed they had earned a well deserved holiday. The
only problem was that despite their plush job they right now
had no money as they had just bought a flat and their second
car. But then it was not really a matter of concern as there
were more than one financial agency willing to lend a buck
in need to this hi-fi working couple.
Poorvi Jain wanted that dress badly. She was just 16-year-old
and looking good at the happening party next day was a must.
Her parents were out of town but what the heck, she always
had the visa credit card to fall back on.
Ritu knew that she was indulging herself to much in her shopping
spree and the next few months of debt would be hard on her
budget. But she could not check the temptation. After all
she need not need to pay now.
Gone are the days when being in debt was a bad word and a
concept that middle class people dreaded. It’s the in-thing
now and the instalment generation seems to be living merrily
doling out monthly instalment payments for the several ‘essential’
(that’s how it’s seen) luxuries that they definitely
need to go alomg
Save and then spend seems to be an outdated concept right
now. Even Buntys and Bablis from small town India are big
spenders these days whatever be their means of finance. And
if you thought ‘shop till you drop’ was related
only for women, think again. Surveys show that men today are
equally great spenders on personal items. Be it wheels, boom
boxes, laptop or latest mobiles and even clothes, men are
neck to neck with women in spending budgets. From cell phones
to branded footwear they are ‘must- haves’ for them.
The new generation is not hesitant to buy on loan money. A
recent survey across the metros done by a reputed publication
group points out that not only for major purchases like houses
or vehicles but people in urban India also take loans to meet
personal expenses like vacations, consumer durable, jewellery
or even clothes. For instance, six per cent of those surveyed
said that they would finance a vacation on loan or buy clothes
and eight per cent agreed to take a loan to buy a consumer
durable.
Says 60-year old Gyanendra Prasad, “Our generation couldn’t
even dream of it. We abhorred the concept of credit and due
to financial compulsions even if we took one our only aim
was to pay it as fast as we could But not any more. I see
my son and daughter spending a fortune on credit. It shocks
and puzzles me. There’s a total change of moral values.”
Agrees his wife, homemaker and entrepreneur Shukla: “This
generation loves to live a fast life and so no amount of cash
is enough for their sustenance. Therefore compulsorily they
need to borrow.”
But his son Naresh counters, “It has nothing to do with
moral values. In fact, there’s nothing wrong in taking
a loan if you can pay it back. I have a good job and am confident
of paying back a loan. So why shouldn’t I take one?”
Says Subha Munshi, a software executive working in the IT
hub Sector V in Kolkata: “You need to live life when
you are young. We are earning well. This is the prime time
of our life and so we like to enjoy and spend even though
on credit. We are having everything that we want and are working
to get them. Our generation doesn’t believe in abstinence
and sacrifice.”
Young India is bombarded with choices today. The choice of
brands to wear, cars to drive, places to study in, holidays
and boosted a huge job market throwing up careers that the
previous generations only dreamt of. A reason why they are
confident spenders. The same survey shows that 32 per cent
youth differ with their parents in money matters. It also
points out that every second youth or 55 percent in urban
India owns a personal cell phone. They are just about getting
used to good things in life be it branded goods or conveniences.
Says psychologist Paramita Deb, “Young people today are
confident and epicurean in belief. They live life confidently
and for the moment. They are sure of their earning potential
and hence confidently function on credit unlike their previous
generations.”
However, these needs are often based on a false sense of social
prestige or keeping up with peers. “The social pressure
often forces a man to over spend and the monthly EMI becomes
too much of a strain and then there is a breakdown. We deal
with several such cases of nervous breakdown on a routine
basis.”
Agrees call centre executive Sonali Sharma: “I have been
feeling so dejected for the last few months. My monthly pay
packet seems to be spent even before I see it. Everything
is distributed to pay the EMIs that I need to. Working is
no fun at all as I do not even now look forward to my pay.”
But then there is always the next thing to buy; the next dream
that young urban India looks forward to.
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