Gen Z And The Money Mindset: Why Young Indians Are Rethinking Saving, Spending And Investing

For Gen Z, money is no longer a matter of saving up for the future. The young population of India is now more balanced in its approach towards living in the now and securing the future. As members of the new generation grew up in a digitally empowered environment, they created their own methods of managing finances, including investment, saving, and spending. The idea of saving up for the future and delaying gratification is gradually shifting as the new generation sets financial responsibility against enjoying life in the present.

Saving, spending, and investing have become extremely appealing to the young population. As per the India Gen Z Study 2025, 93 per cent of Indian Gen Z respondents save a portion of their income; however, only 37 per cent save on a regular basis. Despite the overall tendency to put money aside, Indians continue to seek a balance between living in the moment and putting some cash aside for the future. This generation’s attitude toward finance is strongly influenced by social media. These platforms, which were once solely a source of entertainment, now drive consumer behaviour and purchasing decisions among the young Indian population, in addition to influencing their knowledge of financial management.

Products and services are frequently chosen by Gen Z based on their ability to provide post-purchase experiences that reflect their values and personalities, as well as create lasting memories. Music-driven travel and experiences, such as sporting events and festivals, are examples of unique experiences that let customers express themselves. According to an Airbnb survey, six out of ten young Indians would be willing to spend 21-40 per cent of their income on music-centric travel and experiences. These data highlight the desire of Gen Z for memorable experiences that assist them in discovering their interests, entertaining themselves, and connecting with like-minded individuals.

Siddharth Maurya, Managing Director of Vibhavangal Anukulkara Pvt Ltd., is of the view that Gen Z Indians are not really against the idea of financial prudence; they just don't want to follow the tried-and-tested formulae as espoused by their parents.

“For them, the events of the last decade or so that have been etched in their minds via their screens are an important lesson. Witnessing the meltdown of the markets and their livelihoods during the pandemic and the resultant job losses have made Indians conscious of the need to save more. However, the younger generation is far more fluid in their approach than their forebears, who saved religiously in fixed deposits and opted for pension funds.”

Ar. Ayush Gulati, Principal Architect and Founder at Resonate Designs, added, “From a real estate perspective, what I find interesting about Gen Z and younger millennials is that the aspiration to own property is still very much there, but buying a home is no longer the default financial goal it once was.”

“Younger buyers today have access to far more investment options and are more comfortable renting for longer, which means their savings are not necessarily being built around purchasing real estate. As a result, when this generation does invest in a home, the decision tends to be more considered.”

“There is a certain perception that Gen Z is irresponsible with money, but it’s not accurate in my view. I believe Social media has completely changed the way young Indians think about managing their finances. It has become the new compass guiding them through their savings, spending, and investment decisions, and it determines their everyday purchasing habits. In addition, Gen Z tends to invest in memorable experiences such as concerts and other unique events that provide a sense of exclusivity and are everlasting. This generation wants to spend money on a powerful personal statement while having a great experience. They look to trustworthy social media personalities for guidance and are more empowered to spend directly on the recommended items,” said Rishabh Agrawal, Talent Manager, Live Events. IP & Artist Growth Consultant, Founder, Toasty Tales Management.

While social media has had a tremendous impact on the financial habits of young Indians, it has also had some drawbacks. With the prevalence of social media, influencers, limited-time offers, and exposure to unattainable standards, impulsive buying might be encouraged by Indians’ aspirations and FOMO (the fear of missing out). Thus, the rise of social media allowed financial institutions and brands to engage with young Indians in a more authentic and accessible way. Compared to conventional financial management advice, young Indians are more receptive to and trusting of straight, simple communication from financial institutions.

Therefore, the dynamic between spending and saving is not the most crucial aspect of a young Indian person’s financial conduct. The emphasis is on finding a balance between the two while also considering investment options. For this generation, financial well-being entails having the most fulfilling experiences while still putting something aside for the future.