Gen Z's Digital Money Habits Challenge Old Financial Norms
Research shows India's Gen Z prefers digital banking, spends heavily on essentials, and is beginning to invest, but many still make avoidable financial mistakes.
India hosts one in five global Gen Z members, and a recent EY study shows 83% of them gravitate toward digital banking, with 48% maintaining several accounts and 44% actively testing new features. SalarySe's analysis of millions of UPI transactions indicates that more than 70% of their monthly spending is devoted to bills, groceries, financial services, shopping and food, with essential costs rising as they age. While 66% recognize at least one securities-market product, only 9% participate, and most learning preferences lean toward short video tutorials.
Financial planners such as Rohit Shah highlight three common pitfalls: chasing rapid returns, ignoring diversification, and skipping foundational steps like emergency savings and insurance. Nirav Karkera adds that over-reliance on credit and premature speculative investing can erode financial resilience. The recommended roadmap emphasizes securing basic expenses, building a contingency fund, obtaining adequate protection, then gradually moving into systematic long-term investments and personal development.
Why it matters
Understanding Gen Z's money habits helps firms and policymakers tailor services to a growing, digitally-savvy consumer base.
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