Profile:

Name: Swastik Jayraj Poojari

Class: TYBMS

DIV: B

Roll No.: 881

Subject: Field Project

Topic: “Spending vs Saving: A Study of Financial Discipline in Gen Z”

 Index
SR NO. CONTENT PAGE NO.
1. Introduction 3 TO 9

A] Background of the Study

B] Significance of Financial Discipline in Contemporary Times

C] Why Target Generation Gen Z

D] Statement of the problem

E] Significance of the study

F] Objective of the study

G] Scope of the study

H] Study limitation

2. Literature Review 10 TO 12

A] Introduction

B] Literature Summary

3. Research Methodology 12 TO 14

A] Introduction of Research

B] Research objective

C] Scope of Research

D] Research Design

E] Study Limitation

4. Field Work – Description, Observations & Analysis 14 TO 21

A] Field Project Description

B] Observation

C] Analysis

5. Conclusion and Recommendation 21 TO 25

A] Conclusion

B] Leason Learned

C] Recommendation

D] Final Thoughts
 Field Project Report

Chapter 1 – Introduction

1.1 Background of the Study

Money management is a fundamental life skill that significantly influences the quality of life of individuals,
families, and societies. In the past, financial decisions were relatively straightforward income was allocated
to basic needs, and savings were stored in traditional instruments such as bank accounts, fixed deposits, or
gold. However, in the 21st century, financial behaviour has undergone a dramatic shift. With increasing
globalization, digitalization, and consumerism, buying and saving behaviour has grown more complex and
varied.

Within various generational groups, Generation Z (Gen Z) loosely defined as people born between 1997 and
2012 has become the latest economic force. They are natives to digital technology, social media, and
immediate access to goods and services from an early age. They make their financial choices based on
lifestyle desires, peer pressure, and online platforms. Unlike older generations, they place greater emphasis
on experiences, brand identity, and convenience than on historical markers of financial prudence.

This shifting financial perspective provokes a crucial question: Is Gen Z financially more disciplined than
previous generations, or does their lifestyle promote reckless spending at the expense of long-term saving?
The current research tries to respond to this question by examining Gen Z's saving versus spending
behaviour.

1.2 Significance of Financial Discipline in Contemporary Times

Financial discipline is the capability to manage income, spending, and savings in a calculated and
sustainable way. In today's world of economic uncertainty, inflation, and career uncertainty, financial
discipline is not an optional characteristic, but a survival skill.
A few important reasons financial discipline is essential today: Rising cost of living: Spending on living,
education, health, and lifestyle is escalating at a faster rate than growth in incomes.
● Economic uncertainty: Employment markets are unstable, particularly for new graduates and young
professionals.
● Consumerism: Aggressive promotions and ready availability of credit cards/EMIs induce people to
over-spend.
● Ease of technology: With UPI, e-wallets, and one-click payments, spending is easy but saving entails
effort.
1 Security for the future: Savings provide financial autonomy, emergency funds, and long-term objectives
such as education, buying a home, or retirement.
Therefore, it is imperative to study how Gen Z spends and saves to evaluate their preparation for upcoming
financial crises.

1.3 Why target Generation Z?

1.3.1 Who is Gen Z — speedy rundown

Generation Z (traditionally referred to as individuals born around 1997 and 2012) are the first authentic
digital natives: they grew up alongside smartphones, high-speed internet, social media, and e-commerce.
This group consists of late teens and young adults who are just starting or in the initial stages of their
working years — students, interns, beginning professionals, freelancers and young entrepreneurs. Due to
this life-stage mix of increasing economic activity and foundation-level financial behavior, Gen Z is
particularly relevant for a spending vs. saving study.

1.3.2 Demographic & economic relevance

Even in the absence of exact percentages, it is obvious that Gen Z is a very large and increasing proportion
of consumers in most nations. As they come of age and enter the labor market, their collective buying power
increases rapidly. Companies, banks, fintech companies, civic planners and educators all track their
spending and saving habits because those habits shape markets (consumption of products and financial
services), household stability, and long-term economic outcomes.

1.3.3 Digital behaviour and context

Main characteristics of Gen Z that influence finances:

● Instant frictionless spending: UPI, mobile wallets, one-click e-commerce, BNPL (Buy Now Pay
Later) — all decrease spend [Link] to high levels of marketing and influencers: Influencer
culture and sponsored posts make frequent buying and trends acceptable.
● Availability of financial apps: Robo-advisors, micro-invest platforms, budgeting and savings apps
render saving and investing easier — if they are used.
● Peer-to-peer comparison on social media: Public lifestyles raise expectations and can lead to impulse
buying.
1.3.4 Work modes and income patterns

Gen Z tends to have non-traditional income streams: part-time work, internships, gig economy, freelancing,
content creating or early entrepreneurship. Unpredictable income streams can make old-school monthly
budgeting more difficult but can also prompt creative saving/earning strategies (side hustles, multiple
streams of income).

1.3.5 Values & consumption

Experiences (travel, eating out, events) and identity signaling (fashion, brands, devices) are prized by many
from Gen Z. Sustainability and ethical purchasing also drive some segments to make different choices. This
combination of spending on experiences and targeted value-purchase buying leads to diverse
saving/spending trade-offs.

1.3.6 Financial knowledge & product adoption

Gen Z absorbs new products quicker than prior generations, but speed of adoption isn't necessarily
equivalent to intelligent financial choices. They might sign up for investment accounts or digital wallets, but
long-term investment habits (retirement saving, systematic investment plans) are frequently curtailed due to
horizon problems that result in short-term thinking.

1.3.7 Why this is important for research

Since Gen Z blends tech savvy, shifting earning habits, and foundational money habits, researching them
provides real-world insights:

● It assists teachers in planning focused financial literacy.

● It assists banks and fintechs in creating youth-centric saving and investing products.
● It assists policymakers and NGOs in planning interventions to develop strong money habits early.

1.4 Statement of the problem

1.4.1 Core problem statement

While Gen Z is financially aware and confronted with financial information and tools, it is feared awareness
is not always converting to consistent, future-looking financial restraint. The study inquires: To what degree
do Gen Z individuals balance spending and saving, and what explains differences in financial restraint
within the cohort?
1.4.2 Operational definitions

Financial discipline: Ongoing habit of planning, controlling and giving priority to spending and saving to
satisfy short-term requirements and long-run objectives. Operationally defined by budgeting conduct, rate of
saving (percentage of monthly allowance/income saved), and employment of savings/investment vehicles.
Expenditure: Spending on consumption (clothing, fashion, entertainment, gadgets, travel etc.).
Saving: Percentage of income saved in bank deposits, wallets, fixed deposit accounts, investment vehicles,
or stored as emergency cash amounts.
Gen Z: People of about 18–25 for the context of this research.

1.4.3 Theoretical perspectives (short)

Behavioral economics: Current bias, hyperbolic discounting and impulsivity account for why short-term
consumption tends to beat delayed saving.
Social comparison theory: Public consumption on social media triggers expenditure to equal peer status.
Life-cycle hypothesis (modified): Young people can logically under-save for the future but invest in human
capital in the present — but this has to be separated from haphazard, wanton expenditure.

1.4.4 Research questions

⮚ What are the common spend categories and their relative proportions in Gen Z month-on-month
spending?
⮚ What percentage of month-on-month income/allowance do Gen Z save on average?
⮚ What are the preferred saving instruments? (bank account, e-wallets, SIP, cash savings)
⮚ How many have a monthly budget and how strict is the compliance?
⮚ What socio-demographic, behavioral and digital characteristics predict saving rates that are higher?
⮚ Do Gen Z see themselves as financially more responsible than previous generations?

1.4.5 Hypotheses (proposed)

● H1: Higher levels of social media exposure are associated with non-essential expenditure that is
higher.
● H2: Budgeting/saving app use is positively correlated with saving rates that are higher.
● H3: Irregular income earners (gig/freelance) are less likely to adhere to a formal monthly budget.
● H4: Greater financial literacy scores are associated with greater saving ratios.

1.4.6 Measurement & variables

Dependent variable: Saving conduct (binary: saves on a regular basis / does not; continuous: proportion
saved).
Independent variables: Age, gender, student/working status, monthly earnings/allowance, utilization of
digital payment mechanisms, self-assessed financial literacy, time spent using social media, peer influence
scale.
Control variables: Urban/rural residence, family earnings category, educational attainment.

1.5 Significance of the study

1.5.1 Practical significance

● For youth & young adults: The findings of the study can be used to inform individuals how to best
avoid common mistakes and real-world tips (budgeting templates, saving tricks, app
recommendations) towards enhancing personal finances.
● For teachers: Educational curricula can incorporate evidence-driven modules that target actual
challenges Gen Z experiences—i.e., controlling impulses, having emergency funds, setting up
automatic savings.
● For parents & households: Lessons learned about how to encourage kids into responsible financial
habits without stripping away autonomy.

1.5.2 Policy & institutional importance

● For public agencies & policymakers: Evidence can underpin youth-focused financial literacy
initiatives, subsidy planning, or long-term saving incentives.
● For fintechs & banks: Actual user-behaviour insights guide product development — gamified
savings, round-up micro-investing, locked savings with flexible withdrawal, youth RD/SIP schemes.
● For universities & employers: Could be used to guide employee/student benefit plan design: payroll
saving, financial guidance, matched saving schemes.

1.5.3 Academic & research importance

o Filled a gap by delivering current primary data particularly on Gen Z in the chosen geography.
o Facilitates comparative analysis across cohorts and can serve as baseline for longitudinal research.
o Permits testing of behavior theories (e.g., present bias) on a digital native population.

1.5.4 Social & developmental significance

Fostering disciplined saving among young people enhances household resilience, alleviates exposure to
debt, and promotes improved mental wellbeing regarding money stress.

1.6 Objectives of the study

1.6.1 Main objective

To analyze the saving and spending balance among Gen Z and understand the behavioural and socio-
demographic drivers of financial discipline.

1.6.2 Detailed objectives (SMART format)

● Specific: To measure average monthly saving ratio among respondents aged 18–25 in the study area.
● Measurable: To categorize spending into broad categories and approximate percentage share of each
category.
● Achievable: To calculate the percentage of respondents who keep a monthly budget and how often
they stick to it.
● Relevant: To determine the relationship between digital payment and saving instruments and saving
behaviour.
● Time-bound: To have collected and analyzed survey data in [Month Year → Month Year] and be
able to provide recommendations appropriate for near-instantaneous education or fintech
interventions.

1.6.3 Research sub-questions linked to objectives

⮚ What is the percentage of respondents with a formal budget?

⮚ Which categories of expenditures account for the largest proportion of monthly spending?
⮚ Which vehicles of saving are most frequently employed?
⮚ Is there a statistically significant correlation between financial literacy score and savings percentage?

1.7 Scope of the study

1.7.1 Geographic & temporal scope

The research will draw the Gen Z sample of participants from [your city/region — i.e., urban and semi-
urban regions of X city/state]. Data collection is to be carried out within a specified duration (for instance,
6–8 weeks) in order to enable breadth without compromising the project's timeliness.
1.7.2 Population & sample

Target population: People aged between 18–25.

Sample strategy: A mixed convenience + purposive sample approach is manageable for student projects;
where feasible, stratify by student vs. employed status and gender to achieve balanced representation.
(Suggested sample size: 200–400 responses for adequate descriptive power; adjust according to resources.)

1.7.3 Thematic scope

Looks at expenditure (food, clothing, entertainment, travel, gadgets), saving (amount, approach, frequency),
and behavioural dimensions (budgeting practice, social influences, app usage).
Uses mainly quantitative survey data with possible qualitative follow-up interviews to investigate
explanations for patterns.

1.7.4 Methods & tools

● Main instrument: Structured questionnaire (online questionnaire + offline where possible). Analysis
methods: Descriptive statistics, cross-tabulations, simple inferential tests (chi-
● square, t-tests) and simple regression if sample and variables allow. Visuals in Excel/Word: bar
charts, pie charts, trend tables.
● Ethics & consent: Replies will be anonymous and voluntary. Clear consent statement included at
beginning of questionnaire.

1.7.5 What is not included

Advanced financial counseling, tax consequences, sophisticated investment strategy analysis, or

sophisticated debt structuring are beyond the scope of this study. Additionally, older cohorts are not sampled
directly (comparisons to earlier generations will be drawn from self-perception questions or secondary
sources).

1.8 Study limitations

1.8.1 Sampling limitations

● Risk of non-probability sampling: If convenience sampling is applied (common in student

assignments), results cannot be strictly generalized to the whole Gen Z population.
 ● Geographic concentration: Urban samples can overestimate some behaviour (greater digital take-up)
and may not generalize to rural.

1.8.2 Measurement & response bias

● Self-reporting bias: Participants might misreport income, savings amounts, or budget conduct
because of social desirability or recall error.
● Social desirability: Individuals might overstate saving conduct to seem responsible.
● Recall bias: Monthly costs can be approximated, not followed; this lowers accuracy.

1.8.3 Cross-sectional design

The research reflects behaviour at a moment (or brief time) in time. It can't measure long-term trends or
causation (only associations).

1.8.4 Resource & time limits

Short time and resources can restrict sample size, qualitative follow-up depth, and analyses number.
Institutional respondent access (e.g., through colleges) could be limited.

1.8.5 Technology & instrument limitations

Online surveys lose those who do not have smartphones/internet. Phrasing of questions can unintentionally
skew answers; piloting is necessary.

1.8.6 Cultural & contextual variability

Family culture, local living costs, and economic shocks (e.g., pandemic impacts) influence financial
behavior. All contextual factors cannot be captured by the study.

1.8.7 Mitigation strategies (recommended)

o Test the questionnaire (10–20 respondents) to word hone.

o Maintain anonymity to minimize social desirability bias.
o Have a "don't know / prefer not to answer" on sensitive questions.
o Triangulate with some qualitative interviews for richness.
o Report limitations clearly in final write-up and do not generalize too much.
 Chapter 2: Literature Review

2.1 Introduction

Literature review is an organized investigation of past research, academic literature, and reports that address
the topic under study. For this study—"Spending vs Saving: A Study of Financial Discipline in Gen Z"—the
literature review has tried to investigate the academic and practical experience existing on the money culture
of Gen Z, their consumption behavior, saving ethos, and how digitalization is affecting them.

The primary aim of literature reviewing is not merely to sum up what has been previously stated but also to
critically examine the strengths and weaknesses of current knowledge. It also assists in determining the
research gap—what has not yet been researched—and situates the current study within the wider academic
discourse.

Gen Z, typically born between 1997 and 2012, is now a generation that commands scholarly attention in
finance due to their twin status: they are the most technologically advanced and networked generation but
also the most prone to acting on impulse and peer pressure. Their attitude toward money is fundamentally
distinct from Millennials or Gen X, and therefore it is necessary to critically review scholarly evidence on
their financial restraint.

Literature review gives the theoretical underpinnings to the research on Spending vs Saving: A Study of
Financial Discipline in Gen Z. It points out current studies on consumerism, saving habits, differences
between generations, and financial knowledge.

2.1 Previous Studies Review

1. Lusardi & Mitchell (2014)

Lusardi and Mitchell performed a wide-ranging study of financial literacy within various age groups. They
established that younger generations tend to have lower financial literacy than older groups, influencing
their saving decisions and long-term financial planning. The study highlighted the importance of financial
education as a factor in influencing prudent behavior. This is of particular interest for the current study since
Gen Z's financial prudence is perhaps closely correlated with awareness levels.

2. Jain & Aggarwal (2021)

Jain and Aggarwal examined the saving and spending behavior of Indian youth. According to their evidence,
the majority of young adults show favor towards short-term and instant gratification goals and have less
concern for disciplined savings. Digital payment systems have, however, facilitated easier budgeting for
some. The research concludes that urban youth demonstrate impulsive consumption behavior, and there is a
need for early intervention.

3. Deloitte (2019)
A Deloitte global survey analyzed Gen Z's spending habits and money attitudes. It found that Gen Z favors
experiences over material goods and is most affected by social media influencers. Gen Z is more willing to
save through flexible means such as digital wallets and investment apps than fixed instruments. This
research confirms the hypothesis that technology plays a major role in Gen Z's financial responsibility.

4. OECD (2020)
The OECD's financial literacy report highlighted the fact that young adults are unable to differentiate
between wants and needs. Gen Z's use of credit facilities, like Buy Now Pay Later (BNPL), tends to result in
short-term debt. Financial education through schools and online platforms has to be encouraged for
enhancing discipline, concludes the report.

5. Kapoor & Ramesh (2022)

Kapoor and Ramesh studied how peer pressure and expenditure behaviors of Indian university students are
connected. They learned that peer influence is a major influencer of spending choices, particularly in areas
such as fashion, gadgets, and lifestyle. This is significant because the identity and money management of
Gen Z are commonly linked with their social network.

6. PwC (2021)
PwC's Youth Finance Survey examined early professionals' financial management habits. According to the
report, Gen Z exhibits awareness of saving but lacks consistency. Though numerous begin to save, they
withdraw money for everyday spending. It implies that while Gen Z is aware of financial prudence
theoretically, actual implementation remains poor.

7. Singh & Mehta (2020)

Singh and Mehta compared Millennials and Gen Z across India. Their research indicated that Gen Z is more
adaptable with regard to financial technology but not patient enough for long-term investments. Millennials
are more committed to conventional savings such as fixed deposits. These contrasts reflect generational
differences in money matters.

8. McKinsey & Company (2018)

McKinsey's worldwide Gen Z report found them to be "True Digital Natives." Their financial prudence is
greatly influenced by virtual influences, side hustles, and entrepreneurial opportunities, as per the research.
Though ambitious, their savings habits are irregular. The report found that Gen Z needs innovative financial
solutions catering to their fast-paced lives.
2.2 Literature Summary

From the above researches, it is evident that:

o Low financial literacy among Gen Z influences their financial prudence (Lusardi & Mitchell, 2014;
OECD, 2020).
o Digital finance and technology are core for spending and saving (Deloitte, 2019; McKinsey, 2018)
o Young Indians are more likely to make spontaneous and peer-directed purchases (Jain & Aggarwal,
2021; Kapoor & Ramesh, 2022).
o Gen Z demonstrates sensitivity towards saving but there is a lack of adherence (PwC, 2021; Singh &
Mehta, 2020).

This review creates a research gap: while international studies give us insight into Gen Z's fiscal prudence,
there is no India-specific, primary research available on how youth juggle spending and saving in the digital
economy. The current study aims to fill this gap.

Chapter 3: Research Methodology

3.1 Introduction of Research

Methodology guides the research approach under which the study is conducted. It outlines the method,
instrument, and process used to achieve the research goals. In the case of a subject such as Spending vs
Saving: A Study of Financial Discipline in Gen Z, methodology serves a vital function in determining
whether the findings are credible, accurate, and representative of actual financial conduct.

The current research employs a mixed-method design, which unites quantitative (questionnaire data) with
qualitative (observation, open-ended comments) methods. This way, the research is not only able to record
statistical trends but also uncover reasons why Gen Z consumes and saves the way it does.

3.2 Research Objectives

The study is informed by the following objectives:

● To look into the consumption patterns of Gen Z against the backdrop of contemporary financial
instruments and lifestyle determinants.
 ● To compare the saving habits, preferences, and sentiments towards long-term financial security of
Gen Z.
● To determine the psychological, social, and technological determinants influencing financial
prudence in this generation.
● To determine the balance between savings and expenditure, and to identify areas of indiscipline and
discipline.
● To recommend ways for enhancing financial awareness and discipline among young people.

3.3 Scope of Research

Scope establishes limits with which this study will function:

● Target Group: Generation Z people (born between 1997–2012) with a greater focus on those
belonging to the age group of 18–25 years, being at an age where they are stepping into adulthood
and are actively handling money.
● Geographical Area: The research will focus on the Indian scenario, with greater emphasis on urban
and semi-urban youth.
● Behavioral Focus: Expenditure habits on a daily basis, saving practices, adoption of digital
wallets/UPI/BNPL, and investment attitudes.
● Time Frame: The research captures behavior seen in 2024–2025, after COVID and during rising
digital financial penetration.
This scope guarantees that results are specific, pertinent, and applicable to today's Gen Z.

3.4 Research Design

The research adopts a descriptive research design. Descriptive research is most appropriate as the objective
is to watch, describe, and make sense of current financial behaviors without intervening with variables. It
enables the researcher to examine "what is" and not "what should be."

● Type of Study: Quantitative (primary surveys) supplemented by qualitative (open-ended answers,

secondary analysis).
● Approach: Cross-sectional survey at one time point.

3.5 Study Limitations

Each study has its limitations; this study recognizes the following:

● Sample Size Limitation: The study encompasses approximately 150 respondents, who might not be
representative of India's total Gen Z population.
 ● Sampling Bias: Convenience sampling could lead to higher responses from urban, digitally
connected youth.
● Time Constraint: As a short-term study, it does not observe time-based change in habits.
● Self-Reporting Bias: The respondents are likely to overreport savings or underreport expenditure
because of social desirability.
● Exclusion of Other Generations: The comparison with Millennials or Gen X is not primary data but
secondary data.

Chapter 4: Field Work – Description, Observations & Analysis

4.1 Field Work Description

The fieldwork was carried out by a formal online survey questionnaire sent out via Formester. The survey
was active from September 2025 and was aimed at Gen Z participants mainly in India. There were 81 views,
and 68 valid responses were obtained, resulting in a high submission rate of 83.95%.

The survey had 10 close-ended questions that spanned areas like age group, spending habits, budgeting
tendencies, priorities of spending, saving tendencies, and goals. The majority of the replies came from India
(over 95%), with a minor percentage from the United States.

Gadgets used to complete the survey were mostly mobile phones (≈70%), with desktops/laptops (≈30%).
4.2 Observations
1. Demographics
● The survey mostly targeted Gen Z respondents, and the age distribution comprehensively supports
the focus. An astonishing 90% of the respondents were 18–22 years old, affirming that most
participants fall under the younger end of Gen Z. This guarantees that the results truly represent the
attitudes and behaviors of the generation in question.
● In occupational or status, the information indicated that 85% of participants were students, about
10% were employed workers, and the rest were included in categories like self-employed or others.
This breakdown indicates that a majority of participants are still financially dependent in some way,
either on family or on allowances, and only a minority are producing their own income. This element
plays a significant role in how Gen Z views saving, budgeting, and spending.

2. Budgeting Habits
● Budgeting tends to be thought of as the cornerstone of financial responsibility, yet the survey brought
to light a fairly confused picture. Just 33% of interviewees claimed to keep a regular budget. A
greater percentage, 46%, confessed to budgeting every now and then, with 21% saying they did not
keep any type of budget whatsoever.
● This indicates that while Gen Z has exposure to budgeting as a tool of finance, this practice is not
regular. Most students tend to adopt budgets in a situational or short-term strategy instead of
financial discipline in the long run. Irregular income patterns, low levels of financial literacy, or
more emphasis on short-run consumption can also be associated with inconsistent budgeting.
3. Patterns of Consumption
● Spending priorities analysis reflects a strong bias towards lifestyle-driven expenses. Food and drink
led spending categories at 44%, as socializing, convenience dining, and leisure consumption are
highly valued by Gen Z in their everyday lives. Fashion and lifestyle buys made up 22%, indicating
their desire for self-expression and trend awareness. At the same time, 20% of expenditure went to
education and skills enhancement, indicating that while Gen Z cares about personal development and
future preparation, the latter is not the leading category in real expenditure.
● Surprisingly, entertainment costs (15%) ranked lower than the other groups. This may be because the
common accessibility of low or no-cost digital entertainment options (e.g., social networking sites,
shared streaming sites between friends) lessen the requirement for a large investment.

4. Saving Habits
● Perhaps most worrying is the result on saving habits. A high percentage, 38% of those questioned,
claimed to save less than 10% of their allowance or income. Another 32% admitted not saving
anything at all, revealing a huge shortcoming in financial readiness. This contrasts with 22% saving
between 10–20%, while only 7% saved between 20–40%.
● This suggests that while a minority are developing moderate saving practices, the majority are
inclined to little or no saving. This pattern might be indicative of difficulties with spare income
constraints for students, combined with a cultural disposition towards instant consumption and
gratification rather than postponed rewards.
5. Preferred Saving Methods
The saving methods selected further indicate Gen Z's preferences for convenience and liquidity. Cash in
hand (33%) and bank savings accounts (30%) were the most frequent saving methods. This indicates that
Gen Z prefers forms of saving that are easy and risk-free and where money can be easily withdrawn or
spent.
At the same time, UPI-based savings (21%) and digital wallets indicate an increasing dependence on tech-
based savings instruments, which is in line with Gen Z being a digitally native generation. Yet, more
structured and long-term savings vehicles like fixed deposits (9%) and mutual funds/stocks (8%) were less
favored, an indication of reluctance to invest money in funds whose returns are postponed. Such reluctance
could be due to poor financial literacy, perceived risks, or insufficient surplus income.

6. Financial Goals and Attitudes

In response to financial goals, the answers showed a high priority for education (45%). This suggests that
Gen Z understands the need to invest in themselves and views education as a stepping stone toward future
financial success. Travel (25%) was the second most frequent goal and aligns with the generation's
appreciation for experiences, exploration, and lifestyle fulfillment. Creating a emergency fund (22%) was
the third answer, indicating a sense of increasing awareness of financial security, although not as prevailing
as personal ambition.
Respondents were asked what they did with extra money, and 42% put it away towards short-term goals,
33% applied it to emergency funds, and merely 15% invested it for long-term purposes. This trend indicates
Gen Z's short-term financial thinking, where near-future or immediate objectives take precedence over long-
term growth strategies.
7. Decision-Making Before Spending
Gen Z doesn't seem completely impulsive in terms of spending. Most, 44%, said they compare prices in-
store and online before making a purchase, indicating a deliberate effort to extract the most value. Another
38% took the advice of friends or family into consideration prior to making big-ticket purchases, indicating
that peer influence still has a significant role to play in financial choices.
Yet 6% confessed to buying instantly with little contemplation, though small, being the portion of Gen Z
that values instant satisfaction. In aggregate, the answers point toward cautious decision-making among Gen
Z but ending up depending on outside opinions instead of formal financial reasoning.

8. Gen Z's Financial Discipline Perception

When questioned if they think Gen Z is more financially responsible than earlier generations, the answers
were split. Half, 51%, took a neutral answer, reflecting uncertainty or lack of faith to make that judgment.
Approximately 22% agreed, and 8% strongly agreed, inferring that a minority view Gen Z as fiscally
responsible. On the other hand, 19% disagreed, showing skepticism about the generation's capability to
spend money responsibly.
This general neutrality leans toward an identity struggle — whereas Gen Z is conservative in a few ways
(e.g., price comparisons), their irregular budgeting and poor long-term savings stop them from fully seeing
themselves as being financially disciplined.
4.3 Analysis

⮚ Spend vs Save Gap: The survey also points to a worrying spend vs save gap, wherein most spend
more on short-term expenditure (lifestyle, entertainment, food) than save or invest.
⮚ Low Long-term Investments: Gen Z is also hesitant to invest in stocks, mutual funds, or fixed
deposits, and prefers liquid bank accounts and cash, indicating a short-term financial approach.
⮚ Priority on Education: In spite of poor saving behavior, high priority on education and skill
development as money goals (45%) reflects Gen Z's consciousness towards personal development.
⮚ Discipline in Budgeting: With just 1/3rd having regular budgets, financial discipline is intermittent.
This reflects the need for financial literacy programs to enhance money handling capabilities.
⮚ Awareness of Decision-making: The behavior of price comparison or reference from peers prior to
buying reflects prudence, yet there is absence of long-term planning.
⮚ Generational Self-Perception: Gen Z doesn't highly see itself as more financially disciplined than
past generations, indicating uncertainty in their money management strategy.
 Chapter 4: Conclusion and Recommendation

1. Conclusion

The aim of this project was to examine the financial responsibility of Gen Z by observing their saving versus
spending behavior based on primary survey data. The evidence showed that Gen Z is at a crossroads
between financial knowledge and financial action. They are aware of value-based decision-making
(comparing prices, taking advice from peers, valuing education), but their behavior shows inconsistency in
budgeting, saving, and long-term investing.

● Budgeting: Just one-third of Gen Z have a budget consistently, with the rest budgeting seldom or not
at all. This indicates poor budgeting habits.

● Spending: Spending is highly inclined towards eating out, clothing, and lifestyles with comparatively
lesser spending on education and self-improvement. This indicates consumption-oriented spending.

● Saving: Staggeringly, nearly one-third had no savings, and another huge fraction saved less than 10%
of their income. Long-term saving and investment products such as mutual funds, stocks, or fixed
deposits are hardly used.

● Financial Goals: Education turned out to be the most important financial goal, even though saving is
not strong, reflecting awareness to invest in the future. Travel and lifestyle experience also ranked
high, reflecting a balance between desires and obligations.

● Decision Making: Gen Z is not as impulsive. They are strongly price-comparison-oriented and like to
ask peers before spending. But taking external advice more than using financial calculators indicates
dependence and not independent planning.

● Self-Perception: The generation remains undecided about its own financial discipline. More than half
were neutral about whether they are more disciplined than previous generations, reflecting both self-
doubt and uncertainty about how discipline is defined in today’s digital economy.

Finally, Gen Z has a hybrid financial personality: cautious in many ways but without steady discipline. They
are tech-savvy, aspirational, and experience-oriented, yet they require systematic financial literacy and
planning to close the gap between awareness and action.
2. Lessons Learned

From the research, some lessons about Gen Z's money habits are as follows:

● Financial Literacy is Restricted: Gen Z knows about managing money but not with sustained action.
Budgeting and long-term saving are domains that need to be looked into.

● Technology is a Double-Edged Blade: Technology makes everything easier with digital means (UPI,
e-wallets, apps), but it also breeds instant expenditure. Gen Z needs to be guided to utilize fintech for
planning in the long run, rather than transactions.

● Consumption Culture is Robust: Food, lifestyle, and travel preferences reveal a consumerist
mentality. This constrains saving potential and long-term wealth generation.

● Education is Prioritized but Underinvested: While education ranks as the leading objective,
expenditure on true skill acquisition remains low relative to lifestyle categories, implying a
disconnect between behavior and desire.

● Peer Influence Over Financial Tools: Friend and family influence far more than objective tools such
as expense trackers or investment calculators, revealing the potential for improvement in
autonomous decision-making.

● Generational Shift in Defining Discipline: Saving and investing represented discipline in prior
generations. In Gen Z, discipline is merely balancing experiences with responsibilities — a less
concrete but expanded definition.

3. Recommendations

On the basis of the findings and takeaways, the following recommendations are made:

A. For Gen Zers

o Embrace Regular Budgeting: Utilize apps such as Walnut, Moneyfy, or simple Excel spreadsheets to
monitor expenditure and assign fixed amounts to savings.
o Adhere to the 50-30-20 Rule: Allocate 50% of expenditure towards requirements, 30% to desires,
and save/invest 20%. This will ensure equilibrium between lifestyle and future security.

o Start Early Investments: Small investments in SIPs (Systematic Investment Plans), mutual funds, or
digital gold can create financial discipline and accumulate wealth in the long run.
 o Establish Emergency Funds: Save a minimum of 3–6 months of expenses in a liquid format to
manage unforeseen emergencies.

o Control Impulse Spending: Apply a "24-hour rule" — delay buying unnecessary things for a day.
This suppresses wasteful expenses.

B. For Educational Institutions

o Implement Financial Literacy Courses: College students should be exposed to workshops and
courses on personal finance, budgeting, and investment.

o Hands-on Training: Rather than theory alone, colleges can make students practice budgets, expenses,
and even investments in dummy portfolios.

o Information Campaigns: Get in financial professionals, alumni, or fintech firms to teach them about
tools and avenues for well-disciplined money handling.

C. For Policymakers and Financial Institutions

o Youth-Focused Financial Products: Banks and fintech players can create micro-SIPs, mini savings
accounts, or low-barrier investment plans specifically for students and young working professionals.

o Gamify Savings: Platforms can implement reward-based platforms wherein regular saving unlocks
benefits (cashback, discounts, or virtual rewards).

o Improved Awareness Campaigns: Financial regulators should partner with universities and social
media influencers to create awareness about early financial planning.

4. Final Thoughts

The study points out that Gen Z is in the process of a transformational phase of financial maturity. They are
not completely undisciplined, but their behavior shows inconsistency and lack of long-term orientation.
With the right combination of financial know-how, available tools, and cultural support, this generation can
be transformed from spenders for the short term to financially responsible adults who can reconcile desire
with security.
Therefore, the project not only enlightens us about the existing financial discipline deficit but also
illuminates the doors to enabling Gen Z to become more intelligent, future-oriented financial decision-
makers.

References & Links

1. The Mediation of Financial Behavior to Financial Literacy and Spending Habits of Gen Z: An
Exploratory Factor Analysis — Joel Mark Rodriguez, Del Carmen Labong, Lourdes Palallos (2024).
Explores how financial literacy influences spending habits via financial behavior.
Link: [Link]

2. Generation Z’s Financial Landscape: An Extensive Study of Their Saving, Spending, and Financial
Decision-Making Attitudes — from Andhra Pradesh, India. Examines financial literacy, attitudes, and
behavior among Gen Z.
Link (pdf): [Link]

3. Exploring Financial Behaviour Among Millennials and Gen Z in India — Singh, Nagar, Singh (2025).
Looks at digital adoption, lifestyle spending, investment patterns in India.
Link (pdf): [Link]

4. The Influencing Factors for Financial Behaviour of Gen Z — TR Pamikatsih et al. (2022). Focus on how
personal income, attitudes & financial literacy affect Gen Z’s financial behavior (Indonesia context).

5. Spending and Saving Behaviours of Gen Z: A Review-based Comparison Between Urban and Rural
Youth — Amrit Horo (2025). A review about differences in spending vs saving among urban vs rural Gen Z
in India.

6. How Gen Z is Redefining Personal Finance in India: Trends, Tools, and Investment Habits — Boston
Institute of Analytics (2025). Blog/report style, but has useful current data from India on how Gen Z uses
tools, invests, saves.

7. Financial Behavior of Generation Z and Millennials — Pokharel & Maharjan (2024). Comparative study
exploring behavior, decisions, influences between Gen Z & Millennials.

8. Applying AHP and Fuzzy AHP Management Methods to Assess the Level of Financial and Digital
Inclusion — Bogdan Marza et al. (2025). While not exclusively Gen Z, this paper looks at financial &
digital inclusion, which ties into financial discipline.

Thank You!