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Nearly 4 in 5 individuals save money to invest for future financial security
58% of young Indian investors currently invest in stocks, while 39% favour mutual funds. (Representative image)
Fin One, a digital platform by Angel One, has released its Fin One: Young Indians’ Saving Habits Outlook 2024, shedding light on the evolving financial behaviours of Millennials and Gen Z across India. The report reveals that 93% of young adults are consistent savers, with the majority saving 20-30% of their monthly income. Additionally, stocks have emerged as the preferred investment choice, with 45% of respondents favouring them over more traditional options such as fixed deposits or gold.
The data for the report was compiled by research firm, Nielsen.
The report draws data from 1600+ young Indians in more than 13 Indian cities, benchmarking four key areas: saving behaviour, investment preferences, financial literacy and the use of technology and financial tools. This first report on saving habits from Fin One also highlights significant regional variations in saving practices.
The report further emphasises the role of digital platforms and technology, noting that 68% of respondents regularly use automated savings tools, underscoring the growing impact of fintech on the financial habits of India’s younger generation.
Key insights from the report include:
1. Consistent Savings Practices:
-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.
2. Investment Preferences:
-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.
-72% of 18-21-year-olds prefer stocks over other 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.
3. Barriers to Savings:
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.
4. Technology:
68% of respondents use automated savings features and mobile apps to manage their finances.
5. Financial Literacy:
71% of respondents consider themselves proficient in financial literacy.
Paarth Dhar, VP, Angel One, said, “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.”
Dhar added, “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 not only essential life skills but also key opportunities for long-term wealth creation.”
