Think Gen Z is financially careless? Their investing habits say otherwise
Generation Z places a strong emphasis on balancing experiences and career adaptability while ensuring financial security. This generation is becoming increasingly knowledgeable about their financial objectives and is unafraid to express their need...
Though Gen Z has been head lining conversations with their singular work ethic, financial derring-do, and social media savvy, it was the recent protests over the flawed edu cation system that effectively summed up their approach to life—we know what we want, and are not afraid to say it. While these defining traits seem to lend them a larger-than-life image, the feisty generation has remained on the brink of being stereotyped, even ridiculed for their nonchalant attitude to work and finances. Is Gen Z actually trying to break free from traditional financial norms,or is it just trying to adapt to its unique milieu?
“The belief that Gen Z is easygoing and not serious about work or finances is a blanket statement based on a few people’s experiences and not true for the entire generation. We know what we want, how to get it, and are vocal about it,” says the 29-year-old Zoomer, Manjeet Kumar, who is currently working as a senior associ ate with JPMorganChase.
Most experts concur that the generation is more vocal, better informed, and different from previous generations, be it in their fi nancial priorities and goals, investing habits, work culture, or approach to credit. Instead of traditional milestones, they want to give equal importance to experiences, career flexibility, personal growth, and financial security. “Gen Z’s approach to money reflects the environment in which they have grown up. Compared to millennials and Gen X, they have had access to information, digital tools, technology, and financial content from a much earlier age, which has increased their awareness of personal finance,” says Ramesh Vishwanathan, CEO, Financial Planning Standards Board India.
MANJEET KUMAR, 29 Banker Bengaluru Investing: Stocks, mutual fund SIPs. Tried alternative investing, P2P lending, invoice discounting, agri startup, but stopped after losses. Loan & credit card: Has a home loan and credit card. FIRE: Saving to retire before 50 Work ethic: Takes account ability for work; vocal about expectations from leaders and own needs at work. Note:"As Gen Z workers have access to more tools, resources and information, they are more vocal about what they want, and know how to get it.”
TANUSHKA BISHNOI, 25 Chief People Officer Raisinghnagar Investing:Stocks, MF SIPs of Rs 25,000 a month, ETFs. FIRE:Wants to achieve financial freedom to start her own business. Credit card: FD-linked card with Rs 5 lakh limit. Work ethic:Works remotely; prefers flexible work schedule; vocal about her needs at work. Note:"I have been earning since I was 20, and completed my education along with the full-time job.”
HANOZ BHAGAT, 22 Student SuratInvesting:Bought stocks at 11 with pocket money; current worth Rs 1.5 lakh. Started 2 mutual fund SIPs of 1,000 each. Loans: Nil. Never taken debt to fund lifestyle. FIRE: No plan as yet, but wants to achieve it. Work ethic:Prefers flexible, productive work schedule, not a 9-5 job. Note:"The entire point of my education and career is to earn so much that shortage of funds is never the reason for not being able to achieve something in life.”
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Investing behaviour
They are probably the first generation to start investing so early, with the NSE Market Pulse July 2026 report showing that the median age of new investors has fallen from 29 in 2019-20 to 27 now. For 22-year-old Hanoz Bhagat from Surat, the investing journey began at 11, the same age as Warren Buffett when he began investing. “I started buying shares with my pocket money because I would watch business channels on TV along with my mother and thought it was better to get higher returns than fixed deposits,” says Bhagat, who has recently started invest ing in mutual funds, gold and silver too.
Technology is allowing Gen Z to start investing with relatively small amounts, which means they can benefit from compounding much earlier. “The bigger change is in how they consume information. Instead of relying on a sin gle adviser or a single source, they tend to compare perspectives across multi ple platforms before making decisions,” says Saurabh Jain, Co-founder & CEO, Stable Money.
A large section is influenced by social media, but many learn quickly from their mistakes. “As many as 62.4% of investment decisions are directly influenced by social media (YouTube, Instagram) and peer communities. Peer validation in online forums acts as an amplifier, driving higher risk tolerance and thematic stock chasing,” says Ashok Kumar E R, Chief Client Officer, Scripbox.
They are also not afraid to experiment with investing avenues or taking risks. “In mutual funds, many begin with index funds, ETFs, and small-cap and thematic funds, but some also explore cryptocurrencies, F&O trading, and other high-risk avenues. A big reason is that the barriers to getting started are almost non-existent,” says Santosh Joseph, CEO, Germinate Investor Services.
However, not all are taking excessive risk. “I did try to experiment with alternative investments, invoice discounting and start ups, but after suffering losses, have decided to stick to stocks and mutual funds,” says Manjeet.
Gen Z forms the bulk of rise in registered investors & new investor additions
Financial freedom
Financial independence is a must-have goal for many Zoomers, but it doesn’t neces sarily mean retirement. “I want to earn enough by my 40s to be able to follow my passions, such as opening my own restau rant,” says Tanushka Bishnoi, a 25-year-old Chief People Officer at Frantiger Business Consulting.
“Financial freedom is now measured in both financial and life terms. There is an equal weightage given to quality of life, com munity, and lifestyle needs. This is the big shift in this generation’s decision-making. Flexibility and convenience are no longer ig nored, but are considered as important along side wealth creation,” says Joseph.
It’s called the Coast or soft life FIRE (fi nancial independence, retire early). “Gen Z is embracing ‘Coast FIRE’ and work-life integration. They prioritise accumulating an investment base in their 20s and 30s to allow for freelance work, passion projects, and sab baticals, rather than deferring leisure until retirement,” says Kumar of Scripbox.
For Manjeet, it’s almost a necessity. “The employable age is coming down to the 50s. So I want to be financially independent by 45-50,” he says. For Bhagat, it’s simply a mat ter of earning enough to not be impacted by a shortage of funds in any aspect of life. “The sky is the limit for me as far as making money is concerned and is the entire purpose of my education and career,” says the youngster who is pursuing his CFA level 2 (chartered financial analyst).
Debt & loans
While Gen Z is undoubtedly credit-happy, borrowing to build assets and fund a com fortable lifestyle, it has been easy to lure it to debt. “This generation has an unprecedented access to credit. Digital lending platforms, buy now, pay later products, and instant con sumer loans have made borrowing faster and easier than it was for millennials or Gen X at a similar age. As a result, many young adults are using credit products much earlier in their financial lives,” says Vishwanathan.
According to a recent TransUnion CIBIL report, 50% of new-to-credit-card consumers in March 2026 were below 30 years, compared to 43% in March 2022, with 31% Gen Z already holding two or more active credit products, 23% having an outstanding small-ticket per sonal loans and 18% with a consumer durable loans at the time of first card issuance.
However, this trend must be viewed in the context of today’s economic realities, says Vishwanathan. Higher housing costs, inflationary pressures, and rising lifestyle expenses mean that young earners often face financial demands much earlier in their ca reers. “In some cases, borrowing becomes a tool to manage these pressures rather than a sign of financial irresponsibility,” he says.
What is worrying is that Gen Z currently has a stronger presence in unsecured credit products compared to secured lending products. “Their overall portfolio outstanding (POS) has grown by 9.2% over the six months ending June 2026, indicating increasing participation in the formal credit ecosys tem,” says Sachin Seth, Regional Managing Director, CRIF India & South Asia.
However, the data also highlights partici pation in secured asset-backed categories, especially education (66.5%) and two-wheeler financing (38.6%). “Based on CRIF’s analysis, Gen Z customers do not appear to be taking on a disproportionately higher level of credit compared to other generations. The available delinquency trends also do not indicate a ma terial deterioration in repayment behaviour over the last six months,” says Seth.
Work ethic
The perception that Gen Z is not serious about their careers, or is too fixated on work-life balance may not be entirely cor rect. “They change jobs more often, with the average first job lasting just over a year. This does not mean they’re less committed. It means they’re making career moves to learn more and faster. The real challenge is for companies to create career paths that match these changing expectations,” says Neeti Sharma, CEO, TeamLease Digital.
“If I’m spending one-third of my day at work and taking accountability for it, I too have expectations from my leaders to take care of my career and needs,” says Manjeet. Agrees Sharma: “They are clearer and more open about what they expect from an employ er, whether it’s salary, flexibility, learning opportunities or career growth. The earlier generations wanted many of the same things, but they were less likely to say it openly.”
“I’m very vocal about what I want, whether it’s salary negotiations or career growth, because I know what I bring to the table and what it’s worth. So I will ask for the compensa tion it deserves,” says Bishnoi, who has been working since she was 20. With platforms like Glassdoor and other salary websites, compen sation is far more transparent than it used to be. “They’re not necessarily demanding a higher pay, but know what the market is offer ing and negotiate based on it,” says Sharma.
They don’t see flexibility as a special ben efit, but as part of a good job. About half of Gen Z ranks flexibility as a top factor while choos ing an employer, second only to salary, says Sharma. Previous generations also valued work-life balance, but they expected to earn it over time. Gen Z expects it from day one.
