Behavioural patterns of Indians in financial decisions at different levels of income

Mownitha G Y; Spandana V R; Srujan A; Stalin A

Behavioural patterns of Indians in financial decisions at different levels of income

Author(s)	Ms. Mownitha G Y, Ms. Spandana V R, Mr. Srujan A, Mr. Stalin A
Country	India
Abstract	Financial behaviour in India is different among people who belong to different income levels. These differences mainly rise due to variety in their income level,access to financial resources and financial knowledge and cultural background. This research paper studies how people from low class, middle class and high level income groups in india manage their money and financial decisions with their income. This study examines important aspects like saving habits, spending patterns, investment choice, browning behaviour, and risk taking ability. It finds that people in lower income groups mostly focus on their basic needs like food,water, shelter, clothing and their basic education. These people's financial decisions are usually short term and they depend more on small savings or small borrowing from banks or agencies or credit systems. And their investment options are being limited due to lack of funds or financial awareness for the people.Middle-class people show more balanced and planned financial approaches. And they usually save money through banks or fixed deposits or mutual funds, insurance policies. Basically their financial plan is often goal oriented like focusing on children's education, buying new houses or property, medical insurance and retirement savings and gold purchase in some cases. On the other hand the high income people tent to invest diversity financial products like stocks,real estate,and business ventures. They will be more willing to invest in stocks and take financial risk and focus on long term wealth creation and for professional wealth management strategies of people. This research also helps to explain how psychological factors influencing financial decisions. Behaviours like fear of loss, following others in investment decisions and overconfidence,and preferences for immediate rewards affect people across all income levels. Additionally digital banking growth, government schemes, social values,and changing lifestyles and shaping financial behaviour in modern India. Overall,this study helps in understanding how financial behaviour of individuals changes by their income level. It policymakers, financial institutions,and educators to design it better financial literacy programs and inclusive financial services that supports financial stability and long term growth for factors of the economy.
Keywords	Behavioral Finance, Financial Behavior, Income Levels, Investment Preferences, Risk Appetite
Field	Business Administration
Published In	Volume 8, Issue 5, September-October 2026
Published On	2026-09-29

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Behavioural patterns of Indians in financial decisions at different levels of income

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