6 Ways GenZ is Redefining Finances in India: Gadgets Over Garments
FinTech BizNews Service
Mumbai, July 14, 2025: India’s Gen Z is driving a financial revolution, reshaping how the country earns, spends, saves, and aspires. Armed with unparalleled digital savviness, a natural affinity for smarter financial tools, and a bold, aspiration-driven mindset, India’s youngest earners are approaching money matters in ways that sharply differ from their predecessors - Millennials and Gen X.
Home Credit India’s flagship study, The Great Indian Wallet 2025, sheds light on this generational shift, revealing how the country’s lower middle class, especially Gen Z, is reshaping the financial landscape. Through their conscious choices, digital-first behavior, and a relentless focus on future goals, they are setting new benchmarks.
Backed by insights from the study, here’s a look at six financial habits that set Gen Z apart from older Indians.
While the national savings rate has seen a notable dip from 60% in 2024 to 50% this year, India's Gen Z stands out as a beacon of early financial discipline. Despite navigating strained financial limits, with an average monthly income of ₹33,000 against ₹20,000 in expenses, a remarkable 56% of Gen Z report actively saving after covering their essential expenses. This commitment indicates a growing maturity in money management, supported by their adept use of budgeting apps, digital tracking tools.
Gen Z’s spending priorities are evolving and are a signal of a clear shift towards long-term value and personal enrichment over fleeting gratification. Their wallets increasingly reflect allocations towards self-improvement and experiences. They are more inclined to fitness, technology, travel, and learning experiences. With 44% of Gen Z travelling locally each month and an evident increased spending on wellness, this generation is investing in personal growth, skill enhancement and an elevated quality of life.
Unlike earlier generations, who might have focused more on fashion as a primary form of self-expression, Gen Z is driven by functionality, connectivity and upgrades. The study shows that 41% of Gen Z purchase electronics, significantly more than older generations, reflecting a desire to stay digitally connected and tech advanced. This preference is tarkly highlighted by a concurrent 20-point decline in overall fashion spending, reflecting a broader consumer shift towards more need-based, conscious consumption, heavily influenced by Gen Z's pragmatic approach.
Gen Z is unequivocally at the forefront of India's digital finance boom. With UPI usage nearing 80% nationally, this generation stands out as the most digitally engaged in their financial behaviour. From seamlessly managing online loans and mobile wallets to embracing side hustles and freelance gigs, they are leveraging technology to earn, save, and borrow with unprecedented effectiveness. Their inherent trust and reliance on digital platforms is accelerating India’s journey towards a fully digital economy.
Having grown up immersed in the online world, Gen Z is both highly informed and increasingly cautious. The study found that 74% are aware of financial fraud, and they tend to be quicker than older cohorts in adopting privacy-conscious behaviours. However, the digital landscape is complex, and risky practices, such as storing passwords directly on smartphones regrettably persist. This paradoxical behavior underscores the continued, critical need for targeted digital literacy campaigns and robust security education to empower this tech-native generation.
When it comes to seeking financial advice, Gen Z tends to rely more on friends, family, and online communities than on banks or formal financial advisors. This peer-led approach stems from a combination of a perceived trust deficit in traditional institutions and a preference for relatable, real-time insights shared within their networks. This trend offers a vital lesson for financial brands to effectively engage Gen Z, adopting more human, conversational and transparent engagement strategies, which are no longer optional, but essential.
Gen Z isn’t merely adapting to the financial world; they are actively reshaping it, bringing fresh perspectives and digital fluency that will define the economy of tomorrow. However, their journey is not without its unique challenges. From navigating persistent digital risks to ensuring access to affordable credit and dependable financial guidance, there remains considerable scope for education, innovation, and supportive policy framework. Equipping Gen Z with the right tools, safeguards, and opportunities will be paramount to unlocking their full potential and fostering inclusive, dynamic financial growth across the country and making their #ZindagiHit.
