How is Gen Z Rewriting the Rules of Personal Finance? – FinTech Weekly

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Let’s be honest—if there’s one generation that can turn budgeting into a way to make budgeting look good on Instagram, it’s Gen Z. Born between the late 90s and early 2010s, these people do things their own way, and that includes how they spend, save, and manage money. They do not follow the same path as their parents. They use apps instead of ledgers, scan QR codes like pros, and choose “Buy Now, Pay Later” like second nature.

On this blog, we dive into everything from who Gen Z is and how they spend money, to what sets them apart. Without further ado, let’s begin.

Who Is Gen Z and How Are They Spending in 2025?

Gen Z includes anyone born between 1996 and 2012. They grew up with the internet, smartphones, and social media from the get-go. For them, everything from shopping to socializing happens online. When they want to buy something, they often look to social media first. Whether it’s product reviews, online ads, or persuasive offers, they trust what they see online more than traditional ads.

They want products that are reliable, durable, and relevant. Flashy ads just won’t work anymore. Gen Z wants to know what a brand stands for. They also like to use flexible payment methods. You can think of something like Apple Pay, UPI, or “buy now, pay later”. These payment methods are quick and easy, and that’s what Gen Z wants. If the payment method is too slow or they don’t have a payment option, they may abandon the purchase altogether. In fact, nearly two-thirds won’t complete a payment if their preferred method isn’t available.

What makes Gen Z so different?

What sets Gen Z apart is not just their love of technology. That’s how they use it to shape everything they do. They don’t follow the old systems. They question things, compare, and expect more—whether it’s from a business, a job, or a bank. They want speed, convenience, and reliability. And if they don’t get it, they won’t stick.

What Gen Z Really Spends on Paying

Here’s a look at the most popular options that Gen Z uses every day:

1. Debit Cards Are Still Their First Choice

Most Gen Z users prefer to pay with debit cards. About 69% use it a day or a week. The reason is simple. They want to use only what they have. Credit cards often come with additional fees and charges, which are not sitting well with this generation. Only 39% use credit cards regularly, indicating that they prefer a safe, guilt-free option.

2. Digital Wallets and UPI Apps Continue

Gen Z is quick to embrace anything that makes payments quick and easy. That’s why apps like Google Pay, PhonePe, and Paytm are popular on their phones. These digital wallets and UPI apps allow them to pay instantly without carrying cash or cards.

Want to know which UPI apps work best in India? Understanding the top options can help you streamline your payments or create a business that Gen Z can easily afford.

3. Buy Now, Pay Later (BNPL) feels safer

Now here’s where it gets interesting. You may wonder if Gen Z is avoiding credit cards, why are so many people using Buy Now, Pay Later services? The answer is balance. They don’t like long-term debt, but they still want payment flexibility.

Apps like LazyPay, Amazon Pay Later, and Cashfree offer just that. There’s usually no interest, no big credit checks, and no pressure to pay it all off at once. It feels more comfortable.

Almost 70% of Gen Z use BNPL for purchases below ₹7000. Clothes, phones, small gadgets – they work for their regular spending. So yes, they are being careful with money. They simply choose tools that give them control without the burden of credit card debt.

How Gen Z Spends Money with UPI

If you look at how Gen Z manages money today, UPI plays a big role. Most of them don’t take money. They scan a QR code, split bills with friends, track spending through apps, and pay instantly without a second thought. It’s fast, easy, and fits perfectly into their fast-paced lifestyle. Be it buying coffee or paying rent, UPI has become their choice.

Want to know how you can use UPI to better plan your daily expenses? Look at this. It has simple tips that will help you manage your spending.

Want Gen Z to Get to Know You? Here’s What You Should Do

If you’re trying to connect with Gen Z, forget the usual tactics. You need to keep things simple, quick and real. Here’s what actually works:

1. Speak Like a Person

Skip the fancy talk. Gen Z wants to know exactly what they are getting. If you offer a reward or refund, state it clearly. There are no hidden positions. No small print games. Keep your message clean, short, and easy to follow.

2. Make it Smooth

Every additional step in the checkout process is a reason for them to leave. Gen Z expects things to move quickly. If your payment flow has too many taps or asks for too many details, they will abandon it. Cut the clutter. Keep the journey simple.

3. Be Where They Are

Ads won’t cut it. Gen Z scrolls, swipes, and laughs at memes. If your name isn’t on their feed, it’s invisible. Use humor. Be friendly. Show them what your brand stands for. They care about values, but they also care about the way you speak.

Keep your message honest. Keep the experience simple. And speak their language. That’s how you get their attention.

Closed Minds

Gen Z is not only spending money differently, but thinking about it in a new way. They want speed, clarity, and integrity in every transaction. If brands want to keep up, they will need to match that dynamic. The rules have changed, and Gen Z is setting them.

About the author

Naina Rajgopalan has a thing for math and a deep interest in learning about all things finance. He has been using money from a young age and has always shared his knowledge and tips with those around him. As part of Freo’s news team, Naina keeps up to date with the latest happenings in the banking and fintech industry.