Business
8 Most Expensive Mistakes Young People Make With Money
Managing money is one of the biggest challenges young people face, especially when freedom meets a limited budget. While earning and spending may seem simple, small mistakes can quickly snowball into costly consequences. Recognizing these common pitfalls can help teens and young adults build smarter habits, avoid debt, and make their money work for them.
Relying Too Much On Credit Cards: Many young adults treat credit cards as “free money,” ignoring interest rates. High balances can quickly spiral into debt, damaging credit scores. Misusing credit also reduces financial flexibility for emergencies. Using credit responsibly, paying the full balance each month is essential to avoid paying hundreds or even thousands in unnecessary interest. (Image: AI-generated)
Not Tracking Spending: Without monitoring daily expenses, it’s easy to overspend on small purchases that add up. Late fees, impulsive buys, and unnecessary subscriptions can drain accounts. Tracking spending helps identify patterns, set budgets, and prioritize savings. Simple apps or spreadsheets can prevent financial leaks and keep money working toward real goals. (Image: AI-generated)
Skipping An Emergency Fund: Unexpected events car repairs, medical bills, or tech emergencies can hit hard without a financial safety net. Without an emergency fund, young people often rely on credit cards or loans, accumulating debt. Saving even a small portion of income monthly creates a buffer, preventing minor setbacks from becoming expensive financial disasters. (Image: AI-generated)
Overspending On Lifestyle Upgrades: Buying a luxury car, expensive clothes, or high-end electronics early in life can quickly drain finances. Young people often chase appearances rather than stability. Prioritizing needs over wants and saving for big purchases ensures lifestyle choices don’t compromise future financial goals or lead to unnecessary debt. (Image: AI-generated)
Not Saving For Early Retirement: Starting retirement savings in your 20s may seem premature, but compound interest is a powerful tool. Delaying contributions means missing years of growth that could amount to thousands or millions later. Even small monthly deposits in a retirement account or IRA can make a significant difference over time. (Image: AI-generated)
Falling For “Get Rich Quick” Schemes: Young adults are often tempted by schemes promising rapid wealth—cryptocurrency fads, shady investments, or multi-level marketing. These can result in severe financial loss. Research, patience, and understanding risk are crucial. Long-term growth through safe, proven investment strategies is far more reliable than chasing instant riches. (Image: AI-generated)
Neglecting Insurance: Skipping health, car, or renter’s insurance might save money short-term but can be financially catastrophic during accidents or emergencies. Unexpected medical bills or damages can wipe out savings. Even basic insurance coverage is an affordable safety net that protects against losses far greater than the premium. (Image: AI-generated)
Failing To Educate Themselves About Money: Financial literacy is crucial, yet often overlooked. Not understanding budgeting, investing, or taxes can lead to repeated mistakes and missed opportunities. Reading books, attending workshops, or following credible financial resources equips young people with the knowledge to make informed decisions and avoid costly errors throughout life. (Image: AI-generated)
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A Forbes ’30 Under 30′ entrepreneur sold a startup on the promise of millions of users, until investigators said much of the data was fake, triggering a major fraud scandal
The bank launched an internal probe, which concluded that the user database supplied during the acquisition process had been largely fabricated.
In 2021, amid the gleaming towers of the global financial capital, a blockbuster business deal was quietly taking shape. On one side was 28-year-old entrepreneur Charlie Javice, founder of a college-aid startup named Frank. On the other was JPMorgan Chase, the world’s largest bank, eager to tap into a new generation of young customers.
The bank believed it had discovered a rising star. Javice claimed her platform was simplifying the complex process of applying for US federal student aid and had already attracted more than 42 lakh users. Convinced by the numbers and the promise of instant access to millions of potential future customers, JPMorgan agreed to acquire Frank for $175 million (roughly Rs 1,400 crore).
Javice’s credentials only strengthened the bank’s confidence. Raised in an affluent New York neighbourhood and educated at the prestigious Wharton School, she was widely profiled as a visionary young founder. She had already been featured on Forbes’ “30 Under 30″ list, celebrated as a champion of students struggling with tuition costs.
But beneath the glossy image, Frank was reportedly not performing at the level Javice projected. According to later investigations, the user base she claimed simply did not exist.
When JPMorgan sought verification of the 42 lakh users, Javice allegedly turned to a data science professor and commissioned a synthetic database containing millions of fabricated names, email addresses and birth dates. Investigators say this falsified data was then presented to the bank as genuine.
The acquisition went through, and Javice received a senior role and significant financial benefits as part of the deal. However, doubts surfaced soon after. When JPMorgan’s marketing team emailed what they believed were Frank’s millions of users, only about 1% of recipients engaged. A vast majority of the messages reportedly bounced back, indicating that the accounts were non-existent.
The bank launched an internal probe, which concluded that the user database supplied during the acquisition process had been largely fabricated. JPMorgan subsequently terminated Javice’s employment and filed a lawsuit, accusing her of fraud and misleading the bank.
Javice denied wrongdoing and countersued, alleging the bank was attempting to avoid contractual payments. The dispute quickly escalated into a global headline-maker, casting a harsh spotlight on the pressures and ethical lapses within the startup ecosystem.
The case has fuelled debate around the “fake it till you make it” culture that often rewards hype over fundamentals. Prosecutors allege that in the pursuit of rapid success and investor confidence, basic trust between companies, investors and the public was compromised.
Javice now faces multiple fraud-related charges in US courts. If convicted, she could face significant prison time.
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January 07, 2026, 19:32 IST
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Unlisted shares of Victory Electric Vehicles International are trading at Rs 41 apiece in the grey market, which is zero premium over IPO price of Rs 41, indicating weak listing.
Victory Electric Vehicles IPO.
Victory Electric Vehicles IPO GMP: The initial public offering (IPO) of Victory Electric Vehicles International Ltd opened for public subscription today, Wednesday, January 7. The price band of the Rs 34.56-crore IPO has been fixed at Rs 41. Till 5:20 pm on the first day of bidding on Wednesday, the IPO received a total of 0.28x times subscription, garnering bids for 22,35,000 shares as against 80,07,000 shares on offer.
Its retail category got a 0.38x subscription, while its non-institutional investor (NII) quota got a 0.18x subscription.
Victory Electric Vehicles International Limited, incorporated in October 2018, designs, manufactures, and distributes electric vehicles. The company provides sustainable and eco-friendly mobility solutions by offering a wide range of electric two-wheelers, three-wheelers, and commercial vehicles.
Victory Electric Vehicles IPO GMP Today
According to market observers, unlisted shares of Victory Electric Vehicles International Ltd are currently trading at Rs 41 apiece in the grey market, which is a zero premium over the IPO price of Rs 41. It indicates a flat or negative listing. Its listing will take place on January 14, Wednesday.
The GMP is based on market sentiments and keeps changing. ‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Victory Electric Vehicles IPO: More Details
Victory Electric Vehicles has entered the primary market with a fixed-price IPO of Rs 34.56 crore, consisting entirely of a fresh issue of 0.84 crore equity shares.
The public issue opened for subscription on January 7, 2026, and will close on January 9, 2026. The basis of allotment is expected to be finalised on January 12, 2026, while the company’s shares are proposed to be listed on the NSE SME platform, with a tentative listing date of January 14, 2026.
The IPO has been priced at ₹41 per share. Investors can apply in lots of 3,000 shares each. At this price, retail investors are required to invest a minimum of Rs 2.46 lakh for two lots, or 6,000 shares, while high net-worth investors need to apply for at least three lots, or 9,000 shares, involving an investment of Rs 3.69 lakh.
Corpwis Advisors Pvt Ltd is acting as the book-running lead manager for the issue, while Maashitla Securities Pvt Ltd has been appointed as the registrar. Alacrity Securities Ltd will serve as the market maker for the IPO.
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January 07, 2026, 15:13 IST
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Two former finance directors of collapsed firm Carillion have been fined by the City watchdog after acting “recklessly” and playing a part in misleading statements issued by the outsourcing giant before its high-profile demise eight years ago.
The Financial Conduct Authority (FCA) said Richard Adam and Zafar Khan were “both aware of serious financial troubles in Carillion’s UK construction business but failed to reflect this in company announcements or alert the board and audit committee”.
The regulator said it had fined Mr Adam and Mr Khan £232,800 and £138,900 respectively, after the pair withdrew their challenges to the FCA’s findings.
It comes six years since the outsourcing giant, which employed 12,000 people, collapsed in January 2018 with massive debts.
Before its failure, Carillion had been one of the UK’s biggest construction and facilities management companies, with several major government contracts.
The FCA said it found the ex-finance directors at Carillion “acted recklessly and were knowingly concerned in breaches by Carillion of the Market Abuse Regulation and the Listing Rules”.
Mr Adam was Carillion’s group finance director from April 2007 to the end of 2016 and was succeeded by Mr Khan, who acted in the role from January 2017 until September of that year.
The FCA said the pair had responsibility for Carillion’s procedures, systems and controls relating to financial reporting.
“These were not sufficient to ensure that contract accounting judgments made in its UK construction business were made, recorded and reported appropriately,” it added.
Steve Smart, joint executive director of enforcement and market oversight at the FCA, said: “Those in positions of responsibility have a duty to keep the market accurately and adequately informed.
“With Carillion, we have seen the serious impact it can have when they don’t.
“The action taken against Mr Adam and Mr Khan demonstrates our commitment to preventing market abuse and upholding the standards we expect.”
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