- India's salaried Gen Z spends most on bills, groceries, financial services, shopping, food
- Travel accounts for only 5% of monthly spending among Gen Z salaried workers
- Bills and subscriptions form the largest spending category at 20.1% of monthly expenses
India's Gen Z may be known for its love of experiences, travel and all things digital. But when it comes to actually spending money, the picture looks quite different.
A new study by SalarySe shows that India's salaried Gen Z is putting most of its monthly spending towards everyday needs and recurring financial commitments. Travel, meanwhile, accounts for just 5 per cent of monthly spending.
The findings come from an analysis of millions of UPI transactions involving more than 5.2 lakh salaried Gen Z users.
The study challenges the popular image of Gen Z as a lifestyle-first generation. Instead, much of their money is going towards bills, groceries, financial services, shopping and food.
Where Is Gen Z Spending Its Money?
Bills and subscriptions take the biggest share of Gen Z's monthly spending, accounting for 20.1 per cent. Groceries come next at 15.7 per cent. Financial services make up another 12.2 per cent, followed by shopping at 11.9 per cent and food at 11.5 per cent.
Put together, these five categories account for more than 70 per cent of monthly spending. That is a significant chunk of the wallet going towards things that are less glamorous but far more regular.
The study says the prominence of bills, subscriptions and financial services also reflects how deeply digital payments have become part of everyday life for young professionals.
Travel Gets Just 5% Of The Wallet
Travel, often seen as a major Gen Z priority, accounts for only 5 per cent of monthly spending in the study. This suggests that while young professionals may want to travel and spend on experiences, such expenses are not dominating their monthly budgets. Instead, recurring payments and everyday necessities continue to take priority.
Entertainment subscriptions do have a place in Gen Z's spending habits. Among observable recurring entertainment subscriptions, JioHotstar has the largest share at 12.4 per cent. Netflix follows at 10.7 per cent, while Spotify accounts for 5.6 per cent.
The study also points to the growing use of UPI and AutoPay for managing utilities, financial services and digital subscriptions. For Gen Z, payments are increasingly happening in the background. Bills get paid automatically. Subscriptions renew digitally. Financial services can be accessed through apps.
Gen Z's Spending Doesn't Change Much With Age
The SalarySe study also looked at two Gen Z age groups -- those aged 18-23 and those aged 24-29. Interestingly, discretionary spending remained unchanged at 32 per cent for both groups.
But essential spending increased as Gen Z got older. For those aged 18-23, essential spending accounted for 50 per cent. This rose to 59 per cent among the 24-29 age group. The shift points to changing financial priorities as young people move through different stages of their working lives.
As responsibilities grow, essentials take up more of the wallet. Yet discretionary spending does not disappear.
Gen Z Is Building A Digital-First Financial Life
Piyush Bagaria, Co-founder of SalarySe, said the generation is developing financial habits around digital payments and everyday responsibilities. "India's Gen Z is the first generation to manage almost every aspect of its financial life through a digital-first ecosystem," Bagaria told NDTV.
He added that the scale of UPI has changed how young professionals spend and manage their finances. For India's young salaried workforce, the monthly budget is still largely about the basics -- paying bills, buying groceries, managing finances and putting food on the table. Travel and lifestyle spending are there. They just aren't taking up as much space as the stereotypes suggest.
