Millennials (born ~1981–1996) and Gen Z (born ~1997–2012) have similar financial objectives, yet tend to have different priorities, approaches, and the challenges they face due to economic and social conditions during their formative years.
Millennials:
- People of this generation, especially in finance related matters, are more keen towards working for stability and longing to work for long hours to get fewer recognition.
- They know how to smoothly manage all the debts and taxes matters and thus are more wealthy.
- They prefer to borrow loans for education for domestic and foreign degrees.
- Millennials mainly spend their incomes on travelling and tech-driven products.
- The survey shows that millennials are driven by a desire to ensure long-term security for themselves and their families, as well as to gain social recognition.
- Interestingly, over 41 per cent of individuals aspiring to own a home are under 30, signalling a sense of urgency among younger generations to secure their own place in the world.
- Rising living costs, limited access to affordable credit and insufficient savings make it harder for many to make meaningful progress toward their objectives.
Gen Z:
- Talking about this generation, they are financially more interested to invest in shares, equity, debt and gold markets and save their money for full-filing their debt if any.
- They do not hustle for 9-5 jobs or for stability rather they work by building their own start-ups free-lancing and businesses.
- They prefer cost-effective study solutions like online courses or explore scholarship opportunities.
- Nowadays through digitalization overall in every sector, they are financially more diverse in earning their money.
- A person starts earning around the age of 19 as they aspire to be financially independent and free.
- However, they face issues in handlining their finances mainly due to social media amplifying spending pressures, encouraging lifestyle standards that can undermine financial security.
- Preferences for flexibility in careers, housing, and travel can also lead to choices that sacrifice financial stability.
- Understanding these cultural shifts is key to developing savings strategies that align with younger generations’ priorities.
In conclusion, Millennials in India paved the path by embracing digital money and aiming for stability during economic downturns. Building on this foundation, Gen Z is more fluid, tech-savvy, and motivated by independence and purpose. For businesses, educators, and financial institutions to interact with each group in a meaningful way, they must be aware of these distinctions.