Money Rules Followed By Your Parents That No Longer Work In 2025

Your parents were born, brought up and lived in times which were drastically different from ours. It was a completely different financial landscape. Before the liberalisation of the Indian economy in the 1990s, economic opportunities and financial options in the country were severely limited.

Accordingly, this environment moulded the previous generations in a particular manner. For example, in those days, traditional investment options like fixed deposits (FDs) were the most popular choices. While they are still popular, today you can also invest in mutual funds to compound your wealth.

Here are some of the financial rules that your parents followed that you must review in 2025.

Buying a home was non-negotiable for your parents. It stood for success, security and a guaranteed appreciating asset.

However, today, buying a house in a metropolitan area can lead to a tremendous EMI burden. Meanwhile, renting offers flexibility, especially for young professionals who move frequently for career opportunities.

Gold was a safe haven for Indian households. Parents viewed it as a hedge against uncertainty, a status symbol and an investment for weddings or emergencies.

While gold is still a popular investment, it is important to diversify your portfolio. You can prioritise assets like equity mutual funds or real estate investment trusts (REITs) to build long-term wealth.

FDs, post office savings schemes and Public Provident Funds (PPFs) were the most important investment options in your parents’ days.

However, nowadays, the returns from such investments are not enough to beat inflation. That’s why you need a balanced approach. You can allocate funds to high-return investments like mutual funds, stocks or index funds to beat inflation.

Buying a car was a matter of prestige and status for your parents. While vehicles undoubtedly carry weight as status symbols, it is important to remember that it is a depreciating asset. Think about how much you would need to spend on fuel and maintenance.

On the other hand, you can save significantly by using public transport. Similarly, taking a cab and ride-sharing services are more affordable alternatives.

A government job was the holy grail for your parents. It promised a stable salary, pension, and benefits like housing and medical coverage. Private sector jobs were considered risky and less prestigious.

In 2025, government jobs are still secure, but they’re no longer the only path to financial stability. The private sector, especially in tech and finance, offers higher salaries and faster career growth. By learning skills that are in high demand, you can significantly bolster your finances.

To conclude, the evolution of technology and globalisation has rendered many of the financial principles from your parents’ generation outdated. In a dynamic world, you need a dynamic approach. The ideal scenario is to blend the best of your parents’ financial wisdom with modern financial practices and needs.