Exploring Financial Behaviour Among Millennials and Gen Z in India

Abstract

The behaviour in finance of the Millennial and Gen-Z population in India is explored in this research paper with respect to digital adoption, lifestyle spending, and investment patterns. A descriptive research design is adopted, and the analysis is based on secondary data collected from 80 research articles published in reputed journals. The results reveal that both generations are greatly influenced by the digital revolution, with high usership of mobile wallets, investment applications, and online banking sites such as Paytm, Groww, and Zerodha. Impulsive buying behaviour and brand loyalty are shaped mainly by social media, peer networks, and advertisements. While the two generations could be dubbed computer-savvy, behavioural differences are apparent. The Millennials (1981-1996), with greater financial liabilities, favour the generally secure, low-risk avenues of investment such as SIPs, real estate, and retirement funds. Gen Z (1997-2012) prefers the high-risk/high-reward financial instruments of the stock market and cryptocurrencies. The study also mentions the effects of regional disparities, where urban youth have a greater voice in fintech or financial literacy, while rural youth are more comfortable with traditional savings. The pandemic has redefined the financial priorities of both generations, enhanced digital financial practices while urged cautious financial strategies. Millennials were thus inclined to long-term savings and debt reduction, while Gen Z appeared to be dipping its toes into decentralized finance and alternative income streams. The ever-evolving technology trends, imminent socio-economic changes, and financial behaviours that are synonymous with the priorities of a certain life stage are the highlights of the study. It calls for longitudinal research in the near future to measure generational change, while stressing the need for region-based financial education and tools designed for the youth's aspirations in a rapidly changing economy.