R Madhavan is a top actor, has electronics degree, but has a big problem with money. He calls himself 'dumb' despite being educated

R Madhavan may be one of India's most recognised actors, but he admits there was a time when his financial knowledge did not match his education or professional success. In a conversation for ACKO's 100 Year Life Project with banker and CA Sarthak Ahuja, Madhavan revealed that he did not even know what a balance sheet meant when he started making money. Despite being academically qualified and having an electronics background, he said he still feels “dumb” when discussing finances with his CA.

R Madhavan admits he was ‘dumb’ about money

Madhavan shared a candid anecdote while discussing the importance of financial education with Ahuja. He recalled choosing science in school, which meant subjects such as chartered accountancy, balance sheets and financial terminology were never part of his academic life. He became familiar with technical and engineering concepts instead.

But when he eventually started making money, he realised there was a major gap in his knowledge. “I didn’t even know what a balance sheet meant,” Madhavan said, explaining that although he was educated and academically qualified, he had to rely entirely on a professional to understand an important aspect of his financial life.


He went on to make an even more self-deprecating admission, saying that despite all his exposure, people are surprised by “how dumb I am” when he speaks to his CA.

Madhavan wishes someone had taught him about money at 24

The conversation began with Madhavan asking Ahuja what someone should do first when a financial windfall arrives. Ahuja said the first step should be to recognise that one day the inflow of money will stop. The focus, therefore, should be on investing enough of that money so that after taxes, the resulting passive income can comfortably cover living expenses.

He also stressed the need to account for inflation, future family responsibilities and major expenses such as children's education, weddings and other important life events. Until someone has accumulated enough wealth to generate that kind of passive income, Ahuja suggested using financial products such as health and life insurance as a safety net.

‘There should be a subject’ on handling money

Madhavan suggested that schools should have a subject teaching young people how to handle their financial lives. His concern is that people can become educated and successful professionally without necessarily learning how to manage the money they eventually earn.

Ahuja agreed, making an unexpected observation from his own professional background. He said that even the chartered accountancy degree does not have a dedicated subject on personal finance. While expressing his respect for the institute that trained him, Ahuja questioned how personal finance could remain outside the formal education of someone becoming a CA.

Sarthak Ahuja says financial education should start early

Ahuja also pointed to a broader cultural reason for the lack of financial education. According to him, Indian parents have traditionally believed that discussing money with children too early could spoil them. Children are often told that their priority should simply be studying. Ahuja suggested that instead of avoiding the subject, financial education could be introduced through an age-appropriate curriculum, allowing children to develop an understanding of money organically as they grow.


The idea, he explained, is not necessarily to teach complex financial concepts to young children but to help them gradually understand how money works and how financial decisions affect their lives. Madhavan strongly supported the idea of introducing personal finance much earlier. He vouched for considering making financial education part of the curriculum because young people in their early 20s are not necessarily prepared for the financial responsibilities that come with suddenly earning substantial amounts of money.

He pointed out that people can become “lakhpatis and crorepatis” at a relatively young age, yet the education system may not have prepared them to understand what to do with that money.