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India’s Gen Z has long been painted as a generation chasing experiences, travel and lifestyle indulgences over anything practical. A fresh study by fintech platform SalarySe suggests otherwise. Drawing on millions of UPI transactions from over 5.2 lakh salaried Gen Z users, the report finds that most of this generation’s monthly spending is going toward routine, recurring commitments rather than getaways or indulgent lifestyle choices.
Bills, Groceries And Finance Dominate The Wallet
According to the findings, bills and subscriptions eat up the largest portion of monthly spending at 20.1 per cent, followed by groceries at 15.7 per cent. Financial services account for 12.2 per cent, shopping for 11.9 per cent, and food for 11.5 per cent. Combined, these five categories swallow over 70 per cent of what young professionals spend each month, painting a picture far removed from the carefree, experience-chasing image often attached to this age group.
Travel Barely Makes The Cut
Despite being widely regarded as a Gen Z priority, travel accounts for a mere 5 per cent of monthly spending in the study. The numbers indicate that while young earners may aspire to travel often, day-to-day budgets are dictated far more by necessities and fixed obligations than by wanderlust. Streaming subscriptions, meanwhile, hold a modest but notable place, with JioHotstar leading at 12.4 per cent, Netflix at 10.7 per cent, and Spotify at 5.6 per cent.
A Life Run On Autopay
The report also highlights how UPI and AutoPay have quietly taken over financial management for this generation, with bills settling automatically and subscriptions renewing without a second thought.
Spending Patterns Shift With Age
Comparing two age bands within Gen Z, 18 to 23 and 24 to 29, the study found discretionary spending held steady at 32 per cent across both groups. Essential spending, however, climbed from 50 per cent among the younger cohort to 59 per cent among the older one, reflecting how responsibilities grow with age even as room for discretionary spending persists.
A Digital-First Generation
SalarySe co-founder Piyush Bagaria described this cohort as the first to manage nearly every financial task through a digital-first system, crediting UPI’s scale for reshaping how young professionals handle money. For India’s salaried Gen Z, the study suggests, the monthly budget still revolves around the basics, even as lifestyle spending finds its own smaller corner.
Khushi Patel is a Senior Sub Editor at NewsX, covering automotive, technology, Lifestyle, entertainment, and mainstream news. She previously worked as a Copy Editor at Times Network and has written automotive editorial content, including comparison pieces, for TimesDrive.
