Young, digital, and debt-averse: Gen Z's new money mantra
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Gen Z is often seen as impulsive, trend-driven consumers. However, ET Snapchat Gen Z Index tells a different story about Indian Gen Zers. It shows that young Indians today are saving early, investing with a plan, and focusing on long-term financial stability rather than quick rewards.The study, powered by Kantar, reveals that Gen Z in India is building financial habits earlier than previous generations. Saving regularly, preferring long-term investments, and showing caution when considering high-risk options, Gen Z is quietly laying strong financial foundations for the future.According to the study, 73% of Gen Z respondents are saving at least 30% of their income every month.This figure shows a strong culture of financial discipline among young adults. Saving is not an occasional practice for Gen Z — it has become a regular part of managing their personal finances.By starting to save early, this generation is preparing for financial independence much sooner than Millennials did at the same life stage.The GenZ index report also reveals that 72% of Gen Z are investing up to half of their saved income.However, there is still some room for growth: about 18% of Gen Z respondents are not investing yet. This suggests that while saving is strong, investing habits are still evolving.Among those who invest, the majority prefer safer options over risky bets. This trend challenges the stereotype that young investors are reckless with their money.When it comes to investment goals, 46% of Gen Z respondents prioritise long-term financial security.Only 14% said they are willing to take high risks for high returns, and 18% indicated a preference for passive income streams such as dividends or rental income.This approach shows that Gen Z values wealth stability over speculative gains. They are planning ahead for milestones like home ownership, education, travel, and early retirement, rather than aiming for quick wins.According to the study, traditional instruments like Fixed Deposits (FDs) and Savings Accounts still hold strong appeal. About 40% of Gen Z investors prefer to park their savings in these low-risk avenues.This conservative approach contrasts with the growing noise around cryptocurrencies, NFTs, and aggressive stock trading — fields where only a minority of Gen Z is actively participating.In daily money management, Gen Z shows a strong tilt toward digital payments.About 56% of Gen Z prefer using UPI and mobile wallets over cash. However, their use of credit cards remains lower than that of Millennials, reflecting a cautious attitude towards debt.At the same time, 17% of Gen Z still rely primarily on cash, showing that despite rapid digital adoption, traditional modes of payment remain relevant for a section of young consumers.Looking ahead, Gen Z's next major planned expenditures include gadgets (25%), higher education (17%), and investment in financial assets.Interestingly, 45% of respondents plan to fund big purchases primarily through personal savings, rather than loans or family support.This independence in financial planning indicates a generation that prefers to live within its means while still prioritizing personal growth and access to technology.The ET Snapchat Gen Z Index clearly shows that Gen Z is quietly but steadily building wealth. Their emphasis on saving, cautious investing, and long-term financial planning marks a significant shift from older assumptions about youth spending patterns.For financial service providers, fintech brands, and wealth managers, the message is clear: Gen Z is ready to engage — but on their own terms, with transparency, security, and tools that match their cautious optimism.
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