Discover how Indian Gen Z are steering their finances towards a positive path

Personal Finance

In this article you will read about

  • Shift in India’s demographics
  • Gen Z becoming the focus and driving the economy
  • How Gen Z is taking positive steps towards their money management

Over the last few years, India has experienced a significant demographic shift. In the last one decade, the number of Indians belonging to Gen Z - Individuals born between 1997 and 2012 - has increased substantially and since the pandemic began, the percentage of young investors has shot up. In the last two years, 17 million new investors were added to the National Stock Exchange (NSE). Since April 2021, NSE saw five million new investors who accounted for 62.5% of all additions this year; and this change has been instrumental in driving the country’s financial markets as well as the overall economy. Young investors want a quick return and they take risks; they don’t stay in a stock, they churn their portfolio rapidly for quick returns.

From all-cash transactions to simplified investment tools, to technology-driven investment vehicles to complete online transactions — India has been through a sea-change in terms of investment landscape. In the present time, India’s investment landscape calls for informed financial decisions rather than just parking money in traditional investment avenues; and the young, vibrant Gen Z or have been a driving force behind the same. Fintechs and UPI payment have the maximum growth in userbase within the Gen Z age group.

Most of this generation currently falls within the age group of early 20s. Needless to say, their lifestyle is highly driven by the choices that they make. Their personal financial habits are also highly influenced by how they choose to lead their lives.

When it comes to managing money or to be more precise, matters of personal finance — the Centennials have turned out to be somewhat cautious than their predecessors — the millennials.

A majority of India’s Gen Z has been reviewing their money habits especially since the pandemic hit a year back. They are saving money as they step into the workforce in a world full of uncertainties owing to the pandemic.

Several studies and surveys have concluded that Gen Z-ers expect more from their money than their predecessors — the millennials, born between 1981 -1996. When it comes to their lifestyle that influences their spending habits—they are far from being brand-crazy.

On a final note, it can be said that while Gen Z still like to live their lives to the fullest, they are way more cautious in terms of their money management than all of their predecessors.


Gen Z Develops Better Money Habits Coming Out of Pandemic - Bloomberg
Gen-Z in India more inclined to save than spend, survey shows | India News,The Indian Express
The Young Finfluencers: The Young Finfluencers: New-age experts guide Gen-Z with financial planning- The New Indian Express

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