{"id":94969,"date":"2025-08-25T04:04:11","date_gmt":"2025-08-25T04:04:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/94969\/"},"modified":"2025-08-25T04:04:11","modified_gmt":"2025-08-25T04:04:11","slug":"gen-z-savvy-investors-but-55-living-paycheck-to-paycheck-can-they-achieve-financial-security-with-these-money-habits","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/94969\/","title":{"rendered":"Gen Z savvy investors but 55% living paycheck to paycheck: Can they achieve financial security with these money habits?"},"content":{"rendered":"

Bingeing on a heady cocktail of Instagram reels, K-pop and Boba tea, the Gen Z cohort\u2014 those born between 1997 and 2012\u2014has emerged as India\u2019s largest demographic group. Now aged between 13 and 28, a rising number of this generation is spilling into the mainstream, with supersized Stanley cups in tow. One in four Gen Z is already a part of the workforce, according to a joint study by BCG and Snapchat.
Even as their acronym-riddled internet slang may leave you guessing\u2014 IYKYK\u2014Gen Z has its priorities straight. Fresh into their working years, these digital natives aren\u2019t afraid to splash the cash, indulging in the latest fads and fashions. At the same time, they are actively investing<\/a> their money in various avenues.<\/p>\n

What sets them truly apart from previous generations? They splurge on Korean ramen and Ed Sheeran concerts while simultaneously building investment portfolios through Systematic Investment Plan (SIP) via apps on their phones, often starting with their first internship stipends..<\/p>\n

\u201cA quiet but compelling shift is underway in India\u2019s financial ecosystem,\u201d observes Ajay Kumar Yadav, CEO and CIO of Wise Finserv. \u201cIt\u2019s not happening in boardrooms or stock exchanges, but on the smartphones of students, freelancers, and first-jobbers. At the heart of this transformation is Gen Z, India\u2019s youngest and most digitally connected generation.\u201d<\/p>\n

In this story, we delve into the quirky money habits of the free-spirited Gen Z. We identify what they are doing differently, the proclivities that will push them towards financial security and the foibles that could put their financial well-being at risk.<\/p>\n

\"Image
\n Vanshika Kumar,24, New Delhi, runs home decor business
SPENDING HABITS<\/p>\n

Prefers spending liberallyDoesn\u2019t consciously monitor everything, but keeps track of where money goesMajor spending is on food and experiencesSAVING\/INVESTING HABITS
Started investing in 2021 after getting first job at age 20Prefers long-term investments (mutual funds<\/a> and stocks) over shortterm or day tradingResearches on her own or takes advice from familyLiving the Instagram lifeUnlike their predecessors\u2014the more circumspect millennials\u2014Gen Z prefer living in the moment. This reflects in their attitudes towards spending. Aspirational spending, or the Instagram lifestyle, is this generation\u2019s \u201cflex.\u201d Running her own home d\u00e9cor business in New Delhi, Vanshika Kumar, 24, prefers spending liberally, often overlooking the price tag. \u201cMy major spending is on food and experiences. Those are the areas I value the most and try to save for,\u201d shares Vanshika.<\/p>\n

For some who have just started earning, it\u2019s as if the handcuffs have come off. No wonder then that 43% of India\u2019s total consumption spending is led by Gen Z, according to the BCG Snapchat study. Mumbai resident Sawnee Jogdand, 17, got her first gig only three months ago, making reels for small business owners. Her spending has already increased since. \u201cI would hesitate to ask for pocket money from my parents, as my lifestyle expenses were quite high. Now that I have started earning, I feel independent and confident enough to spend on myself,\u201d she says. Her indulgences include frequenting premium cafes, arcade gaming parlours, among other outings.<\/p>\n

Gen Z spends generously on food, with eclectic tastes spanning Korean ramen, kimchi, kombucha, oat-milk lattes, and bubble tea. They aren\u2019t stingy about \u2018experiences\u2019 either. Instagram-friendly travel ranks high on their list, offering both lasting memories and self-discovery. In India, Gen Z averages two to three trips a year, according to Hilton\u2019s 2025 report. Outings tied to sports events like the Cricket or Football World Cup, or music festivals such as Sunburn, Lollapalooza, and concerts by Coldplay, are especially popular. Many don\u2019t think twice before shelling out Rs.20,000-25,000 to watch Ed Sheeran or Dua Lipa live.<\/p>\n

They love to flaunt their \u201cdrip\u201d\u2014appearing stylish through clothing and accessories. Girls stay on top of glam trends via social media posts tagged #OOTD (Outfit of the Day) and #GRWM (Get Ready with Me). The latest drops from Zara or H&M, tote bags from Zouk, and cosmetics from Juice or Nykaa are all the rage. Boys, meanwhile, are hooked on the newest smartphones, gaming gear, and sneakers. Nike Air Jordans or official merchandise from The Souled Store aren\u2019t just cool style statements\u2014they also make for eye-catching unboxing content. \u201cMy peers are instantly drawn to hype around anything new. They will rush to buy it just to look cool or keep up with the trend, however heavy on the wallet,\u201d Sawnee says. This FOMO (fear of missing out) is what drives the hysteria around collectables like Labubu dolls.<\/p>\n

These young consumers are bingeing on the good life. To be sure, many are acutely aware of their spendthrift ways. They rationalise purchases to make them seem like worthy expenses: \u201cI saved Rs.1,200 in the Big Billion Days sale, so I basically earned Rs.1,200.\u201d Or, \u201cRs.1.5 lakh for an iPhone is fine because I\u2019ll use it for 3 years\u2014only Rs.137 a day, cheaper than a latte.\u201d<\/p>\n

But loose purse strings are also chafing their finances. A Deloitte study shows that 55% of Indian youth report living paycheck to paycheck\u2014higher than the global average. Easy access to loans via fintech apps has put many on the credit treadmill. Those in their early 20s account for 20-25% of loans disbursed through digital platforms\u2014a significant share, given their recent entry into the credit market. A chunk of these borrowings is now turning sour, with recent RBI reports flagging high stress in fintech loans, particularly among individuals under 25.<\/p>\n

A significant portion of these young adults needs to come to terms with reality soon. Ironically, unemployment is the most critical concern for Indian Gen Z, according to the Deloitte survey. Layoffs and retrenchment are affecting thousands as AI advances rapidly. Yet, the cost of living (topmost concern for millennials) comes in at a distant fourth for Gen Z.<\/p>\n

Financial pitfalls: Falling into the debt trap so early is hazardous. If your credit scores tank, it will dent your ability to access loans for critical expenses in the future. Discretionary expenses must be curtailed to align with income. Krishan Mishra, CEO, FPSB India, insists, \u201cStriking a balance between present enjoyment and future security is key. By maintaining an aversion to unnecessary debt and reinforcing savings habits, Gen Z can future-proof their finances in an increasingly unpredictable economic environment.\u201d<\/p>\n

If you find yourself giving into FOMO and impulse buying, reflect on the purchase: Wait 24 hours before buying anything trending. Ask yourself if you will still use the item a year from now?<\/p>\n

Investing \u2013 To The Moon!Soon after she got her first job at age 20, Vanshika identified her first investment in the Nifty100 index fund. She doesn\u2019t invest regularly yet, but prefers long-term investments over short-term or day trading. \u201cMy preferred choices are mostly index funds or mutual funds, because I find them safer. I\u2019m not deeply involved in investing, so I feel more comfortable with lower-risk options,\u201d she says.<\/p>\n

New Delhi-based Prerit Singhania, 26, a credit officer at a prominent foreign bank, started investing four years ago. His first investments were in a Nifty50 index fund and Parag Parikh Flexi Cap Fund. Prerit has already formed a disciplined investing habit. He allocates a generous 50%-60% of his income toward savings and investments. Around 40% of his salary is invested in equities, and another 20% in fixed deposits (FD) or bonds. He transfers approximately 10% to a separate bank account linked to his UPI (United Payments Interface), which helps him track and control his monthly spending. He stashes the remaining 30% in liquid funds for any emergencies or spontaneous opportunities. \u201cSince I don\u2019t have dependents so far, I prefer an aggressive approach: a larger allocation to equities for longterm growth,\u201d says Prerit. He mainly prefers SIPs in equities as it instils a habit of saving before spending. Additionally, he occasionally deploys some of his liquid funds to capitalise on market dips.<\/p>\n

Prerit and Vanshika are among many other Gen Zers who have started investing early. \u201cEarlier, investment was something people started after getting a stable job. But Gen Z begins earlier. Many invest from their pocket money or internship stipends,\u201d avers Yadav.<\/p>\n

\"Image
\n Sawnee Jogdand, 17, Mumbai, makes reels for small business owners
SPENDING HABITS<\/p>\n

Secured first gig few months ago, spends have jumped sinceMajor spending on outings, arcade activities, cafesSAVING\/INVESTING HABITS
Yet to start investing formallyUses Fampay account for spends (where fixed percentage of money credited gets locked into savings).Where young consumers spend
Gen Z is impacting $860 billion of consumer spends – 43% of total.
Gen Z drives a big share of consumption
48% Eating out and ordering in
47% Fashion and lifestyle
47% Travel and vacation
47% Video OTT
45% Consumer tech devices
44% Beauty and personal care
72% of Zoomers search on creator pages while purchasing products
Living in the moment
55% of Gen Zs in India living paycheck to paycheck, higher than the global average.
Share of Gen Z agreeing with these statements on financial security:
\"Image
\n
A recent Share.Market analysis of over 6 lakh mutual fund investors between 1 August 2024 and 31 July 2025 reveals that approximately 48% of mutual fund investors is in the age bracket of 18 to 30 years. The research indicates a substantial shift in young people\u2019s mindset towards investing and long-term wealth creation. Furthermore, the data highlights that nearly 95% of Gen Zers begin their investment journey in mutual funds through equities. Almost 92% of the young investors invest through SIPs on the platform.<\/p>\n

\"Image
\n Note:\u201cBy maintaining aversion to unnecessary debt and reinforcing savings habits, Gen Z can future-proof their finances.\u201d
KRISHAN MISHRA,CEO, FPSB INDIA<\/p>\n

\u201cI believe this is an extremely healthy trend, as it helps young investors gain valuable experience early on, which can go a long way in making them confident investors by the time they enter their 30s and have more substantial sums to invest,\u201d says Nilesh D Naik, Head of Investment Products, Share.Market. Particularly encouraging is Gen Z\u2019s affinity for financial assets over physical assets, such as real estate. \u201cTheir focus on investment before asset ownership and early retirement planning is commendable,\u201d says Mishra.<\/p>\n

The preference for DIY (do-it-yourself) investing is evident among this generation. More than half of Gen Z learns about investing from YouTube, Instagram, or finance creators, according to a 2024 Groww Insights report. \u201cJust like elsewhere globally, Gen Z investors in India find unprecedented access to financial information through digital platforms and from sources such as finfluencers,\u201d remarks Pankaj Sharma, Director \u2013 Capital Markets Policy, India at CFA Institute. This has led to some cultural shifts in investing habits. \u201cTo say Gen Z is different is an understatement. They\u2019re not just learning about money earlier; they\u2019re taking action\u2014early, digitally, and intentionally. They\u2019ve made UPI their first financial language, SIPs their first commitment, and ETFs their first equity exposure,\u201d Yadav remarks. \u201cArmed with mobile apps, YouTube explainers, and trialand-error investing, they\u2019ve built their own curriculum. It\u2019s not always perfect, but it\u2019s proactive,\u201d he adds.<\/p>\n

\"Image
\n Prerit Singhania, 26, New Delhi, Credit Officer at foreign bank
SPENDING HABITS<\/p>\n

Prioritises essential expenses firstAllows for discretionary spends after allocating towards savingsMajor spends on gadgets such as mobile phones, smartwatches, stand-up comedyTransfers fixed sum to separate bank account every month for online spendsSAVING\/INVESTING HABITS
Allocates 50-60% towards savings and investmentsPrefers SIP in equity and FDs or Bonds for fixed incomeHas experimented with cryptocurrenciesRelies on own analysis rather than any advice on social mediaHowever, this affinity for self-education also exposes Gen Z to misleading advice and investment scams that can ruin finances. Naik cautions, \u201cAlthough there is now an abundance of educational content available on social media, young investors must perform due diligence to ensure they choose genuine educational material from educators and content creators who possess the necessary knowledge and experience in the investment domain.\u201d Some are already cautious about taking unverified financial advice on social media platforms with a grain of salt. Prerit insists, \u201cWhen it comes to making decisions, I rely on my analysis and fundamentals. Platforms like YouTube and Instagram are good for awareness, but I always do my due diligence.\u201d<\/p>\n

Gen Z relies more on social media to learn about money, investing
Parents and family remain the most trusted resource.
\"Image
\n
Some among Gen Z also exhibit adventurism in their choice of investments. The pursuit of higher returns has driven many towards speculative bets on cryptocurrencies, F&O, as well as high-yield bonds. These are hazardous investments. A Securities and Exchange Board of India (Sebi) study shows that nine out of 10 retail investors end up making losses in F&O. The recent default in TruCap bonds, where retail investors chased a 13% yield, reveals the inherent risks of high-yield bonds. CFA Institute\u2019s Sharma cautions, \u201cGen Z\u2019s strong focus on higher returns without sufficiently analysing the associated risks, frequent investment decisions based on unverified recommendations and preference for engaging content over its quality, heighten vulnerability to misinformation and ill-informed financial decisions.\u201d Prerit has recently started investing in bonds, attracted by 3-4% higher yield over FDs. He has also experimented with cryptocurrencies. However, these pursuits may have to be tempered. Naik of Share. Market asserts, \u201cWhile Gen Z investors\u2019 openness to exploring newer investment products is commendable, they should be cautious not to fall for false claims from unregulated or extremely high-risk products.\u201d<\/p>\n

Unemployment is the biggest concern for Zoomers
Millennials are most concerned with the cost of living, Gen Z have other worries.
\"Image
\n
Digital apps have powered Gen Z investing habits
67% of young users say app nudges influence investments. \"Image
\n
Experts maintain that Gen Z must lay the foundation for their finances. Mishra of FPSB India remarks, \u201cWhile Gen Z often embraces a \u2018live in the moment\u2019 mindset, building a strong emergency fund should remain a top financial priority\u2014alongside managing debt and investing wisely.\u201d Mrin Agarwal, Founder, Finsafe India, asserts that Gen Z remain vulnerable if they don\u2019t work on making a habit of savings and investing and tone down returns expectations. \u201cDo not get swayed by trending products. Remember that wealth building takes time.<\/p>\n","protected":false},"excerpt":{"rendered":"Bingeing on a heady cocktail of Instagram reels, K-pop and Boba tea, the Gen Z cohort\u2014 those born…\n","protected":false},"author":2,"featured_media":94970,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[45,49,48,133,55456,1829,55457,5973,55455,8123,131,132],"class_list":{"0":"post-94969","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-ca","10":"tag-canada","11":"tag-finance","12":"tag-gen-z-spending-habits","13":"tag-investing","14":"tag-long-term-investment","15":"tag-money-management","16":"tag-mutual-fund-investment","17":"tag-mutual-funds","18":"tag-personal-finance","19":"tag-personalfinance"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/94969","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=94969"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/94969\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/94970"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=94969"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=94969"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=94969"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}