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

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