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Young adults consider investing important; 39% save a quarter of their salaries: Survey

Those in the 18-25 age group believe in living in the moment but are also extremely conscious about securing their future, finds a Tata Capital survey. Keeping in mind these findings, it would be safe to say that GenZ displays keen financial acumen.

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Last Updated: Dec 23, 2019, 06.30 AM IST
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Young adults mostly borrow money for higher education of self or a relative.
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Young people and saving? Are they thinking of securing a financial future for themselves at such a young age? Well, according to a survey by Tata Capital, those in the 18-25 age group (or GenZ) believe in living in the moment, but are also extremely conscious about securing their future. That is right. The survey found that 39 percent are saving a quarter of their salaries and 14 percent salt away more than half. GenZ is looking beyond bank deposits to invest money in.

The Tata Capital survey was conducted by Innovative Research Services (India), by interviewing 1,010 respondents. Here are more findings from the survey.

1. GenZ spends only a small portion of income on non-essentials like gadgets, entertainment and clothes

  • 34% spend about 15% of their pay
  • 33% spend up to 25%
  • 22% of respondents spend only a tenth of their pay on non-essentials
  • 9% spend half their salary on non-essentials
  • 2% spend up to 60%

2. Saving and investing are important for this age group


  • 39% are saving a quarter of their salaries
  • 30% are saving up to 15%
  • 17% are saving up to 10% of their earnings
  • 9% are saving half their salaries
  • 4% are saving 60% of their pay
  • 1% is keeping away 80% of their pay

3. Family, friends and colleagues are those GenZ turns to the most for financial advice

  • 40% of respondents turn to family for honest investment advice
  • 26% approach friends and colleagues
  • 9% listen to social media experts
  • 8% heed other banks and advisers
  • 8% turn to their banks and financial advisers
  • 4% follow celebrity advice
  • 4% listen to their social media friends

4. GenZ is looking beyond bank deposits to invest money in

  • Bank deposits: 34%
  • Mutual funds: 19%
  • Gold and real estate: 17%
  • Insurance policies: 17%
  • Equity shares: 8%
  • Company bonds: 6%

5. They mostly borrow money for higher education of self or a relative

  • 25% borrow money for higher education
  • 21% for vacations
  • 19% to buy a new gadget
  • 17% to build a house
  • 10% borrow for the marriage of a family member
  • 8% for emergencies

6. Banks and NBFCs are the preferred lenders

  • 30% tend to borrow from family
  • 29% borrow from banks
  • 22% take money from friends and colleagues
  • 10% opt for nonbanking financial institutions
  • 10% turn to local money lenders

7. Most think it is a good idea to borrow from established lenders

  • 31% say borrowing is a good way to build assets
  • 31% think borrowing is ok in case of emergencies
  • 20% say it’s not wrong to borrow to lead a good lifestyle as long as one can pay back loan
  • 18% find interest rates exorbitant and do not approve of borrowing

8. During festival sales and discounts, GenZ spends the most buying for family

  • 70% buys gifts for family
  • 44% buys for friends
  • 42% purchases gifts for self
  • 19% spends on colleagues
  • 14% on business contacts

Source: Tata Capital. The research was conducted by Innovative Research Services (India), by interviewing 1,010 respondents.
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(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)

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