At the recent BT India Summit, leaders from finance and fintech flagged a clear change in the way young Indians spend: Gen Z wants everything now—enabled by easy EMIs. As Ahuja mentioned, a striking 70% of iPhones in India are bought on monthly instalments. This trend goes beyond gadgets: nearly 27% of today’s vacations are also financed by EMIs, turning debt into part of everyday life.
The Problem:
Unlimited access to credit, driven by peer pressure and Instagram-fueled lifestyles, is making carefree spending the new normal—sometimes at the cost of long-term stability.
The Risks: Trading Without Knowledge
Asset Yogi’s Mukul Malik highlighted another challenge: inexperienced youth jumping into stock market trading. He revealed, “93% of individuals lose money in futures and options,” warning that flashy success stories on social media hide the far more common reality—losses, regret, and financial setbacks.
Loans for Luxury—Not Necessity
Recent reports show travel loans now exceed those used for medical needs or home repairs. In fact, Gen Z borrowing for holidays has doubled—from 14% in 2023 to 29% in the first half of 2025. The result: essential expenses are taking a back seat to experiences, all funded with borrowed money.
Purposeful Spending and Planet-Friendly Choices
On the plus side, Gen Z is also smart with money. Many invest in ETFs, avoid hidden fees, and prefer brands with genuine environmental responsibility—86% say this matters when making purchases. They value transparency, savings, and meaning in their spending, not just consumption for its own sake.
Contrasts With Millennials
While Gen Z borrows to enjoy life upfront, Millennials take a more conservative route, preferring saving and cautious planning over instant gratification. As Millennials aim for long-term wealth, Gen Z prioritizes experiences here and now.
The Role of Banks and Fintechs
Seeing these trends, fintechs and neobanks are building budgeting tools, digital notifications, and smart reward systems to encourage smarter spending. But many traditional banks still focus on fixed deposits and long-term products that fail to resonate with younger, digital-first users.
The Verdict: Balance Needed
India’s young generation is ambitious, creative, and technologically savvy. But rising debt, if unchecked, risks undermining their future—and broader economic growth. The answer isn’t just more credit or more saving, but better education and tools that encourage spending with purpose, while building lasting financial discipline.
