Gen Z versus Millennials? This is probably one of the most talked-about topics of comparison today. Ranging from work decisions to lifestyle preferences, dating habits to trends, the two generations seem to be living in two completely opposite worlds.
However, when it comes down to something as universal as money, the debate gets even more thrilling. So the question we dive into today is: Who is better at spending money? Gen Z or Millennials?
The Gap Between Generations
Millennials, also known as Gen Y, are the demographic group born between 1980 to 1996. A recent article by The Economic Times aptly captures that “Millennials tend to be cautious, and stability focused. Many grew up through India’s digital transition and lean toward long-term financial instruments like PPF and life insurance. They prioritise structured planning and long-term goals.”
Which means they are now at life stages where homes, kids, parental responsibilities, and major loans dominate.
Gen Z, on the other hand, is the generation of children born between 1997-2012. This generation has been born into an age where smartphones, financial technology or fintech, and UPI are already the norm.
The people of this generation tend to follow less traditional career paths and have a unique and more outgoing expectation towards life. They often juggle between side hustles, small startups, and the pressure of keeping up a highly polished professional personality.
Career Paths And Their Influence
Career influence and aspirations play a key role in determining financial behaviour. Millennials’ careers were shaped during the pre- and early digital era.
They have traditional jobs that are full-time and often specialised in particular established sectors such as IT, banking, or management. Their goals are often long-term, such as fetching promotions, buying houses, and building wealth steadily.
Gen Z, however, values flexibility, personal growth, and skill development along with multiple streams of income. Their career choices are often non-traditional and include creative jobs as well as entrepreneurship.
Abhishek Kumar, Securities and Exchange Board of India, Registered Investment Advisor (SEBI RIA) and founder of SahajMoney, explains: “While Gen Z, influenced by social media financial content, focuses more on investments and immediate spend on travel or gadgets, the Millennials, due to their life stage, typically are saving for major purchases like homes, weddings, or paying down existing debt.”
According to The Economic Times, Gen Z are pretty optimistic about their money, with nearly 84% believing things will get better financially, compared to 76% of Millennials. They’re also a bit more confident that they’ll hit their big goals in the next five years.
Read More: ResearchED: Are There More Entrepreneurs Than Employees? How Will Companies Run?
Gen Z-Millennial Take On Digital Financing
In today’s modern era, digital tools are very important for financial planning, with smartphones now serving as wallets. The use of UPI has increased extensively among youth, rising from 72% in the previous year to 80% currently.
Gen Z, as well as Millennials, are using digital financing to meet their needs, with 72% of Gen Z and 64% of Millennials reporting success. Gen Z, however, stands out owing to their familiarity with the extensive use of technology in every field.
How these generations use fintech is yet another determinant of how and where the money goes. Gen Z is actively exploring various income streams, including freelancing and content creation, with almost 26% prioritising improved job opportunities. Ultimately, both generations resort to a digital-first approach to their finances.
Where Does The Money Go?
As per a study analysing 113 respondents published in Kuey Educational Research, Millennials save a comparatively higher percentage of their incomes as compared to Gen Z, with scores of 2.83 and 2.09, respectively.
According to a report by Deccan Herald, “Gen Z is already driving 43 per cent of India’s consumer spending. Their influence is not limited to select categories; it cuts across categories ranging from fashion, eating out, to automobiles and consumer durables,” said Nimisha Jain, Senior Partner and Managing Director, BCG India.
As stated by another report by The Times of India, Millennials in India are at the top when it comes to spending on travel, with their expense averaging $6,031 annually. Gen Z, on the other hand, spends $2,622 (₹2,30,305.99) per annum on travel, as per a report by Collinson International: 2024 Travel Benefits and Customer Engagement Report. Millennials in India are the top spenders on travel, averaging.
While Gen Z shows enthusiasm for faster returns and digital investments, some data show that Millennials save a higher portion of their income. This shows that Millennials are more responsible as far as savings are concerned.
As per a recent report by Bankrate, the 2025 Emergency Savings Report, a concerning trend in terms of emergency savings has been highlighted. It was found that 34% of Gen Z lack any emergency savings, as against 28% of Millennials. Further, only 10% of Gen Z have enough savings to cover six months of expenses, compared to 25% of Millennials who meet the benchmark.
As reported by The Economic Times, both generations face challenges when it comes to managing finances. Having an average salary of Rs. 33,000 with expenses reaching Rs. 20,000, savings remain a challenge. Shockingly, only about 50% of these Gen Z and Millennials reported not being able to save at all in 2025.
Who Wins The Money Game?
When it comes to money, the comparison is based on more parameters than it appears. Both generations face similar economic situations, including rising costs of living, fluctuations in job security, and an ever-evolving digital scenario. However, their money-management skills depend more on the worlds they’ve grown up in.
For Millennials, money is more about security. They are the generation that has witnessed the transitions from traditional ways to digital methods. They prioritise savings and loans, considering their family responsibilities. Millennials focus more on PPF, life insurance, and SIPs. Their financial behaviour is shaped by responsibilities and caution.
For Gen Z, however, money is more about freedom. They are open to risks, experimenting with stocks, crypto, or other digital investments. For them, money and financial independence are more than just a medium of exchange; they’re their form of personal identity.
While Millennials save for the future, Gen Z spends to live in the moment. Somewhere between savings and spending lies the face of India’s financial future. At the end of the day, it’s not about who’s better; it’s about how the two generations balance each other out in this ever-evolving financial setup.
Images: Google Images
Sources: The Economic Times, The Times Of India, Deccan Herald
Find the blogger: @shubhangichoudhary_29
This post is tagged under: Gen Z, Millennials, spending habits, financial behaviour, savings, digital financing, fintech, India, money management, financial planning, career goals, lifestyle, consumer spending, Gen Z money, Millennial finance
Disclaimer: We do not hold any right or copyright over any of the images used; these have been taken from Google. In case of credits or removal, the owner may kindly email us.
Other Recommendations:
Not Stocks, Not Crypto, Not Gold; This Investment Gave The Highest Returns
