‘Gen Zs spend 70% of earnings on groceries essentials’:Youth divert 5% towards travel, claims report

Gen Z (aged 14–29) is often stereotyped as a carefree generation that prioritizes travel, lifestyle, and digital subscriptions over financial planning. However, a new study has debunked this myth, revealing that India’s youngest working generation is highly financially responsible. According to a comprehensive study by fintech platform SalarySe, which analysed the transaction patterns of over 5.2 lakh salaried UPI users, Gen Z allocates more than 70% of their monthly income to daily essentials, including utility bills, groceries, financial services, shopping, and food. Surprisingly, despite travel being widely considered this generation’s top priority, it accounts for a mere 5% of their total monthly expenditure. How Gen Z Spends Their Money: A Category-Wise Breakdown The study highlights that daily survival and financial commitments far outweigh lifestyle spending. Combined, just three essential categories—groceries, financial services, and dining—account for 39.4% of their monthly budget, nearly double of what they spend on bills and subscriptions. Key Insights from the ‘Youth Budget’ Report 1. With Age Comes Greater Responsibility The study observed a clear shift in spending patterns as Gen Z matures. Ages 18–23: Allocate 50% of their budget to essential needs. Ages 24–29: This figure rises to 59% as they take on more independent financial responsibilities. Leisure Spending: Interestingly, discretionary spending on entertainment and leisure remains stable at 32% across both age groups, proving that growing responsibilities do not necessarily mean giving up on fun, but rather managing it more maturely. 2. The Rise of the ‘Single Digital Ecosystem’ Whether it is paying water and electricity bills or renewing digital subscriptions, Gen Z prefers executing all transactions within a single digital payment ecosystem. This integration has blurred the lines between routine utility payments and lifestyle expenses. 3. Entertainment is Popular, but Cheap While entertainment and streaming services are highly visible in Gen Z’s daily lives, they actually constitute a very small fraction of their total spending. In the subscription space, JioHotstar leads the market share among Gen Z users, followed closely by Netflix. JioHotstar: 12.4% share Netflix: 10.7% share Spotify: 5.6% share [Sidebar] The Premiumization Wave: Indians are Upgrading Their Lifestyle While Gen Z manages their budgets responsibly, a broader trend shows that Indian consumers are increasingly spending on premium products, even as demand for entry-level, mass-market goods remains weak. Corporate earnings for the June quarter highlight this shift: Hindustan Unilever (HUL): Recorded a 12% growth in its Beauty Wellbeing category. ITC: Witnessed a 16% growth in its premium, non-staple business. Dairy, Snacks, Noodles: Premium segments in these categories saw a massive surge of over 20%. Varun Beverages (PepsiCo Bottler): Reported a robust 14.4% volume growth, driven by premium beverage consumption.