Cautious Money: Gen Z is obsessed with saving and investment
Last Update Date: 06-10-2026
Published by Business Today
Abhishek Kumar's role: Quoted
Abhishek Kumar said Gen Z is taking a middle path between older generations' caution and global peers' risk-taking, and noted many lack an emergency fund. He suggested building a six-month emergency corpus and clearing costly debt before investing, and putting money in equity only with a horizon of five to seven years.
What Abhishek Kumar said
How does Gen Z's approach to money differ from earlier generations?
I see them walking a middle road between the wariness of their parents' generation and the risk-taking of their peers abroad. The portfolios I come across suggest an attempt to stay ahead of inflation through equity while protecting purchasing power with gold and fixed income alongside it. It is a more balanced instinct than the stereotype of reckless young traders suggests, and it reflects a generation in transition rather than one that has settled on a style.
Where are young investors most likely to be caught out?
Two gaps worry me. First, opening an investment account takes minutes, but most have never lived through a sharp market fall, so limited experience leaves them underprepared for volatility. Second, despite healthy saving rates, most do not keep an emergency fund and route savings straight into equities. Many are also unfamiliar with basics — how compounding works, how a SIP actually operates, what a fixed deposit earns relative to inflation, and which asset classes protect wealth over the long run.
What should a young person do before putting money into equity?
I would set aside an emergency reserve equal to six months or more of spending and pay off any costly debt first; those two steps come before investing, not after. Equity itself I would consider only for money that can stay invested for five to seven years or more, and even then alongside fixed income and an asset such as gold, so that one bad stretch in the market does not derail everything.
In our words, from what he said in the piece. General information, not personal advice.
More of Abhishek's views on money management
The article looks at how India's Gen Z invests, citing a consumer survey that shows many still prefer gold and fixed deposits, with only a small share favouring crypto. It covers differences by city, gender, education, occupation and income, saving habits, and advisers' observations on the questions young investors ask.
Publisher source
Cautious Money: Gen Z is obsessed with saving and investment