A majority of India’s Generation Z, whose oldest members are in their early 20s, are leaning toward saving money as they enter the workforce in a world rife with pandemic-induced uncertainty, new research shows.
The generation born from 1997 to 2012 is inclined to rather save than spend, with about 32% of them surveyed choosing savings, according to the study by Viral Fission, a youth community platform. About 23% of respondents favored the safety of fixed deposits, which was almost double the number who said they would invest in cryptocurrencies.
The findings come at a time when the Indian economy is climbing out of a pandemic-induced downturn, with unemployment still high and inflationary pressures persistent. Spending by Gen-Zers, who already make up one of the biggest chunks of the nation of 1.3 billion people, will be key to sustaining growth in an economy, where consumption accounts for some 60% of growth.
“The pandemic played an important role in Gen-Z attitude toward personal finance,” said Aditya Anand, chief revenue officer at Viral Fission. “The post- pandemic uncertainty instilled a sense of responsible spending in the minds of the youth making them cautious with their spending choices.”
As far as spending was concerned, about a quarter of the over 5,800 people surveyed said they would use their money on travel, while less than 13% chose shopping, according to Viral Fission.
Subscriptions, fitness and leisure activities accounted for the least spending priority for the group, with most saying they would spend little or no money, the study said.