Gen Z spends 70% of salary on essentials, study finds

A study by SalarySe, based on millions of UPI transactions from over 5.2 lakh salaried Gen Z users in India, found that 70% of their monthly spending goes to five core categories: bills and subscriptions (20.1%), groceries (15.7%), financial services (12.2%), shopping (11.9%), and food (11.5%).

The findings challenge the perception of Gen Z as a lifestyle-first generation. Travel accounts for only 5% of spending, while digital entertainment subscriptions are prominent, with JioHotstar (12.4%), Netflix (10.7%), and Spotify (5.6%) leading. Discretionary spending remains steady at 32% across both age groups (18-23 and 24-29), though essential spending rises from 50% to 59% as users age.

Piyush Bagaria, co-founder of SalarySe, said Gen Z is the first generation to manage its financial life through a digital-first ecosystem, with UPI and AutoPay making everyday payments seamless. The study suggests that structured financial habits, essential responsibilities, and lifestyle choices coexist among young Indian professionals.