Gen Z is the generation born after 1996 and before 2010. Lying between these revolutionary years, they are younger than Google but older than artificial intelligence. Carrying with themselves the entire personality of their siblings who grew up in the 90s, they also bring with them the power to change corporate culture. Often the cause for criticism, ‘Generation Zee’ is no longer the origin of jokes. Why? They are probably making jokes about their competitors, the Gen Alpha. More about the little post-2010 individuals later, let’s dive into Gen Z’s newfound superpower – financial independence and awareness.
As per a survey conducted by Under25, a large community for Gen Z and millennials, in collaboration with a shopping app, found some interesting insights into consumer behaviour, especially after the GST 2.0 rate cuts. Speaking to financialexpress.com, Under25 CEO Jeel revealed that Gen Z is overall “more aware” of their finances. Echoing the findings of the survey, Jeel revealed that increased financial literacy has contributed to Gen Z’s preference to remain price conscious, despite focus on style.
Drawing a Gen Z vs millennial comparison, she shared from her experience that Gen Z started working early. At the age of 21, they enter the corporate world, “their first job when they graduate,” Jeel described. In fact, increased financial literacy has led several financially independent Gen Z to develop a positive attitude towards investing. “At 18 years old, the first thing they do is open their demat account. They start investing in their own name,” added Jeel.
Has GST 2.0 affected the lifestyle of Gen-Z?
Gen-Z has kept their style statement close, but they keep their identity closer. However dynamic, they want to reflect it in their personal style. Jeel identified the four pillars of a statement. “Authenticity, value, belief, and co-creation are the four pillars,” she remarked and explained how taxes and price tags weren’t the only determining factors that justify a purchase for a Gen-Z budget.
An ideal and strategic purchase of a Gen-Z consumer would rely heavily on their and the brand’s values and beliefs. As it quickly turned into a lesson in marketing, her comments provided insight that led the survey. However, it pointed out a larger customer behaviour pattern about the preference towards discounts and sales. Affordability and relatability go hand-in-hand for Gen-Z buyers. “Any brand that you see that has been co-created or where the Gen Z are made to believe that they’re part of the journey, has always worked well,” Jeel told financialexpress.com. “It’s not tax that’s leading, but mathematics,” she added, but personal style, she believes, plays an equally important role in the decision.
Finances enter the chat (literally)
As established above, Gen-Z today is a much more financially aware generation than perhaps most millennials were when they were 16 or 21. As several millennial group chats are flooded with major life updates, everything from marriage to kids to a new startup, Gen-Z chats have changed, too. “Tax, finance, investing, any kind of that topic,” Jeel shared, has crept into daily conversations between these young adults now.
Earning a disposable income today to invest in equity is a statement in itself. Backed by the Under25 survey, it found that nearly 40% of the respondents talked about taxes occasionally among their peers. In fact, there was even a large share of respondents who were unaware of the GST cuts and didn’t bother to discuss it with their clique.
Blending personal finance and personal style
Financial Express had previously reported that a designer felt, “Gen Z had no personal style.” Since Under25 conducted an entire study on the fashion and spending habits of Gen-Z, who better than Jeel to reply to the same?
One of the findings of the survey showed that both style and price were equal determinants of impulse purchases like fashion. In fact, it confirmed the designer’s bias against the generation as it often identified with an aesthetic and not their personal style. 61% of respondents prioritised personal satisfaction over price while buying clothes. While fashion just remains a piece in the bigger picture, Jeel feels, “There’ll always be Gen-Z who will know how to make the best use of their money.” Speaking to financialexpress.com, she revealed that it applied to fashion, technology, and even learning opportunities with a “long-term gain.”
Driven by discounts, affordability was never left out of the discussion. However, the clashing take on sustainability, fast-fashion, including affordable products might throw off some parameters into a frenzy. But, to keep up with trends, as opposed to the dying trend of actually posting on social media, is another dilemma the consumer market is yet to crack. However, when it comes to budgeting, Gen-Z surely seems to be a strategic buyer – be it the stock market to high-street fashion displays.