Priyadarshi Kumar was 22 and fresh out of IIT Kharagpur when he told his father he wanted to buy an iPhone worth Rs 80,000.
“He genuinely cannot fathom the ‘why’ behind it,” says Kumar, who is now working in metallurgy, in a conversation with indianexpress.com. The same conversation plays out whenever he mentions funding shorter trips with friends instead of waiting for the big family vacation. His father’s is simple, hard-earned, and immovable: save now, spend meaningfully later – on a house, a wedding, a life milestone. Kumar’s is equally clear, just oriented differently: financial security means having enough to “genuinely enjoy life, not just survive it.”
This is not an argument about an iPhone. It is a collision between two entirely different maps of what a good life looks like.
The gap is real, say those who watch money behaviour professionally. But it is more complicated than the headlines suggest.
“Traditionally, financial stability for many Indian parents involved early home ownership, stable employment, no debt, and gradually building savings over many years,” says Rohit Mahajan, founder and CEO of plutos ONE. “Gen Z is now defining success with broader parameters – flexibility, experience, mental health, work-life balance, and independence rather than only property ownership.”
Crucially, Mahajan adds, “They are not necessarily being irresponsible financially; rather, they are defining their aspirations very differently with the current economic and social climate.”
That climate looks fundamentally different from the one their parents navigated. Adhil Shetty, CEO of BankBazaar, notes, “Career paths are less linear, income sources more varied, and the financial products available to a 25-year-old today are more sophisticated than anything their parents had at 45.” He notes that investors under 30 now represent 40 per cent of NSE-registered investors, up from 23 per cent in FY19. “That isn’t a generation avoiding responsibility but one that is engaging with money earlier than any before it.”
Shivam Kumar, a 26-year-old software engineer at Nutanix, embodies this duality. He has both a bank account and a demat account, thinks in terms of inflation-beating investments, and yet also believes that “not spending money is a waste of earnings.” The inheritance from his parents was solid, with the motto: ‘save diligently, avoid frivolity,’ but he has rewritten the terms. The toy bank with the guard dog is gone. The philosophy of security remains; its definition has expanded.
Into this generational negotiation walks an uninvited third party: the algorithm.
Constant exposure to curated success, be it luxury travel, premium gadgets, or aspirational careers, is reshaping the internal calculus young Indians use to measure themselves. Shivam Kumar mentions, “The idea of ‘Sharma ji ka ladka’ has become omnipresent. There is always someone excelling in every possible field, travelling more, earning more, or living a seemingly perfect life online.”
The response, he observes, is often performative spending – concerts, branded goods, travel – as a way of “signalling success, even if they come at the cost of long-term financial stability.”
Priyadarshi Kumar offers an example: social media led him to spend Rs 1,700 on a book simply because a podcaster he followed was reading it. The purchase was not irrational, but it was entirely socially mediated.
Finance experts acknowledge both sides of this equation.
“Financial content online has brought investing vocabulary and basic money habits to people who never had access to a financial advisor, a well-informed family member, or even a branch in their town,” says Adhil Shetty. “For a first-generation investor, a well-made video explaining can be the nudge that changes the entire trajectory of how they handle money.” But, he cautions, “the line between inspiration and instruction has never been thinner – or more consequential.” Much of what circulates online may not clear the bar for sound advice, and aspirational content rarely shows the debt sitting behind the story.
Vishal Bhati, founder of Credit4Sure, a product by Mahavira Finlease Limited, frames the dual nature succinctly, saying, “The influence of social media on finance can lead to both overspending and financial literacy.”
“Money rarely stays in the realm of pure numbers,” says Puja Roy, health psychologist (Gold Medalist) and art therapist at The Empathy Couch. “It tends to carry meaning, safety, sacrifice, love, responsibility, and even identity. What may look like an argument about spending or career choices is often about something deeper – tension around dependence, autonomy, or feeling valued.”
The generational difference in how success is defined, Roy explains, usually reflects different life experiences rather than different values. “Parents who lived through financial uncertainty may associate stability with survival itself, while younger adults may place more weight on meaning and well-being.” The trouble begins when these differences become personalised – “interpreted as disrespect or rejection rather than simply a different lens.”
This is precisely what Shivam Kumar describes when he writes about his “internal conflict between the values I inherited and the life I want to live.” The disagreement is not always a direct argument with his parents. It is a negotiation with himself, watching his parents make frugal choices, and then wondering whether his Sunday dinner with friends is a betrayal of their sacrifice.
For those in careers that deviate from the conventional path, the tension runs deeper. Priyadarshi Kumar points out that Indian parents often struggle to understand “why someone would happily prepare for the defence services and accept a much lower salary just to escape a corporate job they hate.” To them, a high salary is not merely financial; it is proof of a life well-built. Rejecting it can feel like a rejection of everything they worked for.
Roy explains, “Framing wellbeing and financial security as competing goals can create unnecessary conflict; they are not mutually exclusive.”
The good news, say experts across disciplines, is that neither generation is wrong. They simply need better frameworks for the conversation and better frameworks for the money itself.
On the financial side, Krishna Patwari, founder and managing director of Wealth Wisdom India Pvt Ltd, offers a practical structure for young earners: allocate 10 per cent of income to direct equity for long-term wealth creation, 20 per cent to mutual funds for diversified growth, and 20 per cent to cash and emergency reserves – ideally building up to one year’s income. The remaining funds lifestyle, travel, and personal goals. “This approach allows financial flexibility without compromising future security.”
Adhil Shetty’s roadmap is similarly grounded: build an emergency fund covering three to six months of expenses, get health insurance early, and as soon as possible. “Save first, spend from what remains.” For parents, he advises shifting from protection to preparation: “Teaching younger family members how credit works, why starting early matters, and how to take sensible risks will do more than any lump sum.”
Maulii Kulsreshtha, 25, a PR professional who has navigated these tensions herself, reveals, “Over time, we understood each other’s perspectives better and found a balance between saving responsibly and enjoying experiences.” What made that possible, she suggests, was a willingness on both sides to hold their own position without dismissing the other.
That willingness, Roy argues, begins with how conversations are structured. “The way money conversations happen matters just as much – sometimes even more – than the actual topic being discussed,” she says. “A small shift in language can make a big difference. Speaking from personal concern rather than blame often creates more space for connection. ‘I worry about your future’ can feel very different from ‘You are making poor decisions.’ One opens a conversation; the other can feel like an attack.”
For Prachi Kumari, 24, a PR account executive who has lived through these moments, the evolution was gradual and mutual. Her parents began to understand that experiences and mental well-being are not luxuries but necessities; she came to recognise that financial discipline is not their paranoia but their love, expressed in the only language they learned.
“I think both perspectives are important,” she says. “Saving provides stability. But people need to experience meaningful things which help them learn and build confidence – and find happiness in ways that cannot be evaluated through financial means.”
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Individual financial situations vary, and readers are advised to consult a qualified financial planner, advisor, or mental health professional before making financial decisions.
