Gen Z Finances India : 6 Ways Young Indians Are Changing Money for Good

Lucknow | 24, July 2025 : India’s young earners are setting the pace for a new era in personal finance. The Gen Z finances India trend is reshaping how people earn, save, spend, and plan for tomorrow. Backed by sharp digital skills and bold goals, Gen Z is rewriting the country’s money rules.

A new report — The Great Indian Wallet 2025 by Home Credit India — highlights how this generation is changing the financial landscape, especially among India’s lower middle class. Here’s how.

Saving Smart, Saving Early

The national savings rate fell from 60% in 2024 to 50% this year. But Gen Z bucks this trend. Despite tight budgets, 56% of Gen Z still save money each month. Their average income is ₹33,000, while average expenses are ₹20,000. By using budgeting apps and digital tools, they show strong money discipline. Clearly, Gen Z finances India differently — they save first and spend wisely.

Spending on Growth, Not Just Glamour

Unlike older generations, Gen Z spends more on growth and self-improvement. Travel, tech, fitness, and learning top their list. Nearly 44% travel locally every month. Wellness and skill upgrades matter more than instant gratification. This focus proves that Gen Z finances India with a long-term mindset, seeking gains beyond material things.

Gadgets Over Garments

For Gen Z, functionality beats fashion. Today, 41% buy electronics often — more than any other age group. Meanwhile, spending on clothes has dropped by 20 points. This shift shows they want better gadgets for better connectivity and productivity. They pick what they really need, not just what looks good.

Leaders of India’s Digital Finance Boom

The Gen Z finances India story would be incomplete without their love for digital payments. Over 80% use UPI and digital wallets. They also take online loans and run side hustles. From freelancing to gig work, they earn and manage money through screens. This generation’s trust in technology is pushing India closer to a fully digital economy.

Cyber-Aware and Learning

Growing up online, Gen Z knows the risks. About 74% understand the dangers of online fraud. Many adopt safe habits — though some still store passwords carelessly on phones. This mix of awareness and risky behaviour means more digital safety lessons are needed. Schools, brands, and policymakers must help them stay safe.

Peer Power Over Bank Branches

Gen Z prefers advice from peers over banks. They trust friends, family, and online groups more than financial advisors. They want honest tips in real time, not stale rules from formal institutions. For brands, this means it’s time to ditch stiff messages. Relatable, clear, and human conversations win Gen Z’s trust.

The Road Ahead

India’s youth isn’t just adapting to money trends — they’re driving them. Their digital habits, peer trust, and saving discipline show they will shape tomorrow’s economy. But challenges remain: from cyber safety to access to credit and good advice. Equipping Gen Z with tools, knowledge, and fair access is vital. That’s how the Gen Z finances India revolution will succeed — by helping them make their #ZindagiHit.

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