Youth rely on YouTube for financial info; prefer investing in stocks

Fin One, a digital-first project by Angel One Limited, has provided insightful information about the changing financial habits of Gen Z and Millennials in India.

`Fin One: Young Indians’ Saving Habits Outlook 2024' offers valuable insights into the evolving financial behaviours of Millennials and Gen Z across India. 

According to data compiled by the research firm Nielsen, 93% of young adults regularly save money, with many reserving 20–30% of their monthly income for future financial objectives. Remarkably, 45% of respondents said that stocks were their preferred investment choice over more conventional options like gold and fixed deposits. The paper examines important topics like saving behavior, investment preferences, financial literacy, and the growing influence of digital platforms on financial habits, using data from more than 1,600 young Indians in 13 locations.

“As India’s youth increasingly turn to the internet for financial guidance, we are witnessing a growing appetite for financial awareness and education among Millennials and Gen Z. YouTube has become central to this shift, with over 62% of young investors relying on it as a primary source of financial learning. In today’s digital age, with rising cyber threats and evolving financial landscapes, it is more important than ever for young adults to build a strong foundation in financial literacy. Saving and investing are essential life skills and key opportunities for long-term wealth creation," Paarth Dhar, vice-president of Angel One, said.

Consistent savers 

A remarkable 93% of respondents identify as consistent savers, with the majority setting aside 20-30% of their monthly income for future financial goals. This reflects a growing culture of financial discipline, especially in the 22-25 age group, as young adults start their financial journey.

About 58% of young Indian investors currently invest in stocks, while 39% favour mutual funds. Safer options like fixed deposits (22%) and recurring deposits (26%) see relatively lower adoption. This indicates a balanced approach between high returns and stable savings among the youth. And, about 72% of 18-21-year-olds prefer stocks over options like fixed deposits, mutual funds, and gold.

With 62%, YouTube is a primary source of education for savings and financial planning among those surveyed. Family and friends remain the secondary source of financial education for 52% of youth, surpassing popular finance influencers.

High cost of living is a big concern

Despite disciplined saving habits, 85% of young Indians cite the high cost of living—particularly food, utilities, and transportation—as the most significant barrier to saving. This indicates rising living costs are a critical challenge for India’s youth. Around 68% of respondents used automated savings features and mobile apps to manage their finances. 

(By arrangement with livemint.com)