Jubilee Post News & Views
India is amidst a socio-economic evolution, and at the heart of this transformation are its young citizens—digitally connected, financially aware, and increasingly confident about their future. Backed by stronger financial literacy and widespread digital access, they are reimagining the traditional ways of earning, spending, and saving.
At the center of this shift are Millennials (born 1981–1996) and Gen Z (born 1997–2012)—two powerful generational cohorts who, while united by their optimism, are charting distinctly different financial paths. Our latest study, The Great Indian Wallet 2025, offers a close look at how their perspectives and behaviors are reshaping India’s financial narrative.
Two Generations, Two Approaches
Millennials tend to be cautious, and stability focused. Many grew up through India’s digital transition and lean toward long-term financial instruments like PPFs and life insurance. They prioritize structured planning and long-term goals.
In contrast, Gen Z takes a more dynamic and immediate view of money. They’re more inclined to take calculated risks, invest early, and chase faster returns. Nearly 84% of Gen Z respondents believe their financial situation will improve, compared to 76% of Millennials. They are also slightly more confident about achieving key goals within five years.
Despite their differences, both generations face a shared challenge—managing aspirations within tight financial bandwidths. With an average income of ₹33,000 and expenses at ₹20,000 per month, saving remains a balancing act. Alarmingly, only 50% reported being able to save in 2025, down from 60% in 2024.
Digital Ambition, Digital Reality
Digital tools are becoming essential for financial planning. The smartphone has truly become the modern wallet. Around 80% of young consumers now use UPI for daily transactions, a sharp rise from 72% last year. Gen Z especially leverages technology—from budgeting apps to instant loan platforms—to manage money smartly. Seventy-two percent of Gen Z and 64% of Millennials believe digital tools have made financial goals more achievable.
Digital adoption has also influenced how they earn and spend. Gen Z is actively exploring alternate income streams such as content creation and freelancing, with 26% prioritizing better job opportunities. Millennials still prefer traditional roles, but both are embracing a digital-first financial lifestyle.
Shifts in Spending and Priorities
Spending habits are evolving. Gen Z, for instance, is investing in experiences—44% travel locally at least once a month. Meanwhile, education has emerged as a priority, now taking up 19% of the average monthly spend, indicating long-term thinking across both generations. Interestingly, there’s been a 20-point drop in fashion-related spending, reflecting a broader shift towards conscious consumption.
Credit, Responsibility, and Risks
When it comes to credit, Gen Z is more open-minded. Seventy-three percent believe affordable loans
accelerate life goals, versus 64% of Millennials. They’re also quicker to recover and adapt from financial missteps. However, the study also reveals that 12% borrow for basic needs—an indicator of why access to affordable credit remains critical.
Both generations are stepping up in terms of household responsibility, with Gen Z increasing their contributions by 8% and Millennials by 7% year-on-year—signaling maturity and shared financial accountability.
Digital risks, however, loom large. Around three-fourths of respondents have encountered or witnessed online fraud. Hoax calls and scam messages are widespread, and 18% of Gen Z and 22% of Millennials have been victims. This highlights the urgent need for ongoing digital literacy and fraud prevention efforts.
The Rise of a Hybrid Financial Culture
We are witnessing the rise of a hybrid financial culture in India. Millennials bring steadiness; Gen Z brings agility. Together, they are redefining money—not just as a necessity, but as an enabler of freedom, empowerment, and ambition. While Gen Z seeks advice more frequently, Millennials build consistency. Both are fueling a culture where traditional goals like home ownership coexist with modern dreams like digital entrepreneurship.
A new financial culture is emerging—where the discipline of Millennials meets the drive of Gen Z. Together, they are reshaping how India thinks about money, blending long-term security with a desire for meaningful, experience-rich lives.
Today’s youth are ambitious, informed, and in control. They’re not just planning for the future—they’re actively building it. From side hustles to smart investments, they’re turning aspirations into action and redefining success on their own terms.
