A gift to family: How Gen Z spends its first salary

Time of India

22-05-2025

Lucknow: Receiving one's first salary is a milestone moment, filled with a mix of emotions and a sense of accomplishment. But have you ever stopped to think about how you spent your first paycheck? A recent study, 'My First Salary', conducted by Lucknow University and Bharat Lab, sheds light on this question, revealing the deeply emotional, often ceremonial, and culturally significant nature of this significant moment.
Bharat Lab, a think tank jointly launched by Rediffusion and LU, focuses on understanding consumer behaviour in India's tier 2 and 3 cities. Based on a survey of 2,125 individuals across semi-urban India, the study found that the first salary is more than just a financial milestone. For many, it's an opportunity to express gratitude and share their success with loved ones. A significant 38.8% of respondents used their first salary to buy gifts for their family, highlighting the importance of family ties and cultural values in Indian society.
The report, released on Thursday, offers a compelling look into how young earners in India's Tier 2 and Tier 3 cities — collectively referred to as Bharat — experience and express the moment of receiving their first paycheck. "The report reveals that 38.8% of respondents used their first salary to buy gifts for family, emphasising a culture of gratitude. Around 24.5% saved their income, indicating increasing financial responsibility, and 20.4% donated to religious or social causes, reflecting a strong sense of community," the report said.
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The report further stated that 88.5% of women saw their first income as a symbol of personal freedom, and 44.6% informed their mothers first, highlighting the emotional depth of the milestone.
"The study also delves into gender dynamics, generational shifts, and the blending of traditional and modern financial behaviour. For instance, despite rising digital literacy, one in three women still invests in gold with their first salary, maintaining a time-honoured practice," said the chairman of Rediffusion, Sandeep Goyal.
The report also highlighted a new financial culture among Bharat's Gen Z. A striking insight from the report is the youth's preference for flexible and personalised investment practices. Around 76% of young earners now favour 'invest when you can' model over rigid SIPs. Many are tagging these investments with personal goals such as "Goa 2026" or a "dream bike" —a clear shift towards emotionally driven financial planning.
"They want to save, but without being shackled. This is personal finance made personal — not passive," said Goyal.
The report captures the emotional, cultural and financial significance of receiving a first salary among young Indians — highlighting it not just as a financial transaction, but a rite of passage tied deeply to family, independence and values.
"At Lucknow University, we believe research must reflect the heartbeat of the nation.
The Bharat Lab is a living testament to that belief. This report doesn't just speak to economists — it speaks to parents, policymakers, and every young adult standing at the threshold of financial independence," said LU Vice-Chancellor Prof Alok Kumar Rai.
He said the report highlights key behavioural insights on how India's young professionals relate to their first income, whether through spending, saving, or sharing. It underscores the university's commitment to research that goes beyond academia to influence policy, business, and social understanding.