Expenditure, Saving and Investment Behaviour of Generation Z And Millennials

With rapid digitization and changing economic dynamics, the financial behaviour of younger generations has become a critical area of study. This research investigates how financial literacy, usage of FinTech and digital platforms, and behavioural biases influence the expenditure, saving, and investment behaviour of Generation Z and Millennials. For this study data was collected from 300 respondents using a structured questionnaire and analysed through Simple Linear Regression using SPSS and MS Excel. Findings reveal that financial literacy has a strong and significant influence on the expenditure, saving, and investment behaviour of Generation Z and Millennials, explaining 79.9% of the variance in financial behaviour, indicating that individuals with higher financial literacy are more likely to make sound financial decisions. FinTech and digital platforms also have a significant influence, though their influence is relatively moderate, explaining 6.3% of the variation in financial behaviour among Gen Z and Millennials. On the other hand, behavioural biases showed an insignificant influence, suggesting only 1.1% of the variation in expenditure, saving, and investment behaviour could be explained by behavioural biases. This indicates that financially literate individuals are less likely to be influenced by such biases. Thus, these findings highlight the importance of promoting financial education to encourage sound financial behaviour among youth.