A new study uncovers how India’s young salaried population prioritises recurring expenses like bills and groceries over spontaneous lifestyle spending, driven by widespread UPI adoption.
Gen Z’s online image may suggest a generation splashing out on cafés, travel and impulse buys, but a new study from SalarySe points to a far more ordinary reality for young salaried Indians. The firm analysed millions of UPI transactions from more than 520,000 Gen Z users and found that 70% of monthly budgets goes on five core categories: bills and subscriptions, groceries, financial services, shopping and food. Bills and subscriptions alone took 20.1%, followed by groceries at 15.7%, financial services at 12.2%, shopping at 11.9% and food at 11.5%.
The findings suggest that digital payments have become embedded in day-to-day life, especially for recurring commitments such as utilities, subscriptions and financial products. A separate Mint report on India’s UPI economy said the system has transformed routine spending, with small-value transactions for groceries and dining out now a major driver of usage. That broader shift helps explain why the study found less room for the kind of spontaneous, lifestyle-led spending often associated with younger consumers.
Travel, despite its popularity on social media, accounted for only 5% of Gen Z’s monthly spending in the SalarySe analysis. By contrast, entertainment subscriptions held a firmer place in wallets, with JioHotstar, Netflix and Spotify standing out among recurring digital services. Another report on Gen Z money habits in India said the cohort is highly digitally fluent, with strong use of UPI and a tendency to blend convenience spending with saving and investing.
The study also split Gen Z into younger and older adults, showing that essential spending rises with age, from 50% to 59% of the monthly budget. Yet discretionary spending remains unchanged at 32%, suggesting that even as responsibilities grow, leisure still keeps a protected share. Piyush Bagaria, co-founder of SalarySe, said in comments to NDTV that India’s Gen Z is the first generation to manage almost every part of its financial life through a digital-first system, underscoring how UPI and AutoPay have changed everyday money management.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
