Earning Rs 2 lakh a month but scared to tell your parents about spending Rs 500 on ice cream? Financial advisor says you may have a ‘poverty mindset’. Why?

Earning Rs 2 lakh a month can offer a new level of financial freedom. But, for some young Indians, spending even Rs 500 on ice cream can still come with hesitation, especially when parents are likely to question the expense. Even a thoughful gifts to them, ends up becoming confrontational with them asking about the money spent to buy it. Financial advisor Prem Soni has sparked a debate on this mindset, arguing that constantly hiding the actual cost of gifts, meals or travel may reflect a deeper relationship with money shaped by scarcity.

Why do young Indians hide spending from their parents?

Financial advisor Prem Soni took to X to question why people who earn well still feel compelled to hide their spending from their parents. He pointed to a familiar situation: someone earning Rs 2 lakh a month buys their mother an iPhone, another expensive phone or takes their parents out for a Rs 5,000 dinner, but then tells them it cost much less.

According to Soni, this instinct often comes from wanting to avoid a long lecture about wasting money. He described the behaviour as part of what he called an “incurable poverty mindset”, arguing that the issue is not necessarily the amount being spent but the fear surrounding that spending.

When saving every rupee becomes a lifelong habit

Soni acknowledged that Indian parents often developed their financial habits in a very different economic environment. He pointed out that many parents built their lives by saving “Re 1 at a time”, making frugality a necessity rather than simply a lifestyle preference. Younger generations may respect that struggle, but Soni believes carrying the same extreme scarcity mindset into a completely different economic era can become financially counterproductive. The tension becomes particularly visible when children begin earning significantly more than their parents ever did, while continuing to follow the same spending rules at home.

Higher income does not always change financial behaviour

For Soni, the problem becomes clearer when higher earners continue making decisions based on fear of being judged for spending money. He gave the example of someone earning a substantial income but still being expected to take a 30-hour third AC train journey instead of a two-hour flight because their parents believe that the destination matters more than the mode of travel.

The same thinking, he argued, can extend to everyday purchases. Parents may still believe that a family pack of ice cream should cost around Rs 150, while their children may have no problem spending Rs 500 at Naturals. Yet, instead of explaining the difference, the child may simply hide the actual amount to avoid criticism.

Is hiding spending really protecting parents?

Soni takes a particularly strong view of this behaviour. He argued that when children repeatedly lie about what they spend to protect their parents from discomfort, they may unintentionally reinforce the very scarcity-based beliefs that shaped their parents’ lives. In his view, the younger generation is not necessarily being irresponsible by spending more. The larger issue is whether people who can comfortably afford something are still making financial decisions primarily because they are afraid of a parental reaction. He described this as continuing to validate their parents’ financial trauma rather than allowing the family’s relationship with money to evolve.

Soni says both generations need to change

The financial advisor's argument is not simply about telling young Indians to spend more. Instead, Soni believes Indian parents need to loosen their grip on what he calls “extreme scarcity muscle memory”, while Gen Z should stop feeling financially intimidated within their own homes. The distinction is important.

Being financially responsible does not necessarily mean choosing the cheapest option every time. At the same time, earning Rs 2 lakh a month does not mean every expensive purchase is automatically sensible. The question is whether the spending fits the person's financial position and priorities, rather than whether it matches the money habits of a previous generation.

Can a scarcity mindset hold back wealth creation?

Soni's larger argument goes beyond ice cream, gifts or flights. He believes that people cannot fully scale their wealth if their thinking remains rooted in the financial realities of the 1990s. For someone whose income has grown substantially, continuing to make every decision from a place of extreme scarcity could mean missing out on convenience, experiences and choices they can genuinely afford. His message to young earners is therefore less about abandoning saving and more about recognising when frugality has shifted from a useful financial habit into a fear-driven behaviour.