Topic: Saving and Spending Habit of Young Generation
Authors: Pranav Zope – 110
Umaid Khan – 81
Umar Shaikh – 102
Introduction: The spending and saving habits of the young generation have become an important area of study in personal finance and consumer behavior. With the rise of digital payments and online shopping platforms such as Paytm and Google Pay, young people are spending money more frequently and conveniently. Social media influence and changing lifestyles also affect how youth manage their finances. At the same time, awareness about financial planning and investments is slowly increasing among young adults. Understanding these habits helps researchers and policymakers develop better financial education and saving strategies for the younger generation.
Objective: Many young people today spend money easily because of online shopping, lifestyle changes, and digital payments. Due to this, some young individuals find it difficult to manage their savings properly. This research aims to understand the saving and spending behaviour of the young generation.
Literature Review:
1. A Study on the Young Students’ Spending Pattern: A Structured Literature Review
According to Dr. Satyajit Ghorai (2025) students spending habits are shaped by family, peers, culture, technology, and financial knowledge. It recommends targeted financial education and behavioural support to improve healthy saving and spending habits.
2. Spending Habits of youth in India with wpecial reference to Mumbai City: (Kamalanathan, 2015) analyzes the spending patterns of youth aged 13–25 in Mumbai using primary data and statistical tools such as ANOVA and T-test. It finds that young people spend most on clothes, accessories, and grooming, with females spending more but also saving more, and friends strongly influencing purchasing decisions.
Data Collection: For our problem, we framed following questions to be asked on Likert scale.
1) I saved money from my income or pocket money.
2) I spent most of my money on things I liked.
3) I believed saving money was important.
4) I planned my spending.
5) I spent money online.
The Google form was frame with linear option 1 as strongly disagree and option 5 strongly agree for each question. The google form was personally share with our classmate and colleagues in confidence after surveying 100 person, responses was downloaded in excel sheet for each question Mean, S.D (standard deviation), S.E (standard error) and Z. (T-Stats) were calculated.
Data Analysis:
|
mean |
3.46 |
3.77 |
4.30 |
3.75 |
3.30 |
|
SD |
1.14 |
0.96 |
0.97 |
0.96 |
1.27 |
|
SE |
0.11 |
0.10 |
0.10 |
0.10 |
0.13 |
|
t stats |
4.06 |
8.09 |
13.41 |
7.83 |
2.37 |
|
|
|
|
|
|
|
|
Results |
Accepts Positively |
Accepts Positively |
Accepts Positively |
Accepts Positively |
Accepts Positively |
Conclusion:
1) young generation save money from their income or pocket money.
2) young generation spend most of their money on things they like.
3) young generation believe that saving money is important.
4) young generation plan their spending.
5) young generationspend money online.
References:
Ghorai, D. S. (2025). A study on the young students’ spending pattern: A structured literature review. Journal of Academic Advancement, 4(02), 14–22. https://doi.org/10.58574/jaa.2025.v4.i2.02
Kamalanathan, V. S. K. (2015). Spending habits of youths in India with special reference to Mumbai city. International Journal of Management and Social Science Research Review.
