You have to think in terms of "character graphic data" vs "text data"
The Arial true type font is 756kb, and has data for 3,988 characters: that's about 194 bytes per character
PC standard ASCII text files = 1 byte per character = any 1 of 128 total characters (the 8th bit is unused). The text file doesn't store the actual characters themselves, just a reference to them.
c64 uses a character set called PETSCII which is derived from ASCII and has two modes: upper & lower case, and upper & graphical characters. They're only 128 characters each plus 128 reversed versions. So 255 characters for each set/mode, so PETSCII text files (if there is such a thing?) would be 1byte per character too (and I guess you could use the 8th bit for defining reverse on/off? Not sure about that!). The characters themselves are defined in memory using 8 bytes for a raster 8x8 graphic: a lot less data than a PC font.