Gen Z wallet decoded: Bills, groceries and food eat up over 70% of spending

India’s salaried Gen Z may have a reputation for prioritising experiences, subscriptions and lifestyle spending, but their wallets tell a rather different story.

More than 70% of the monthly spending of salaried Gen Z workers goes towards everyday living expenses and recurring financial commitments, with bills, groceries, financial services, shopping and food accounting for the bulk of their outgo, according to a SalarySe study based on millions of UPI transactions involving more than 5.2 lakh salaried Gen Z users.

Where is Gen Z spending its money?

Bill payments and subscriptions are the biggest spending category, accounting for 20.1% of monthly spending, followed by groceries at 15.7%.

Financial services account for another 12.2%, while shopping contributes 11.9% and food 11.5%.

Together, these five categories account for more than 70% of monthly spending.

The breakdown is significant because it shows that a large chunk of Gen Z’s wallet is being absorbed by expenses that are part of everyday financial life — from household bills and groceries to food, shopping and financial commitments.

Travel, often associated with younger consumers’ lifestyle preferences, accounts for only 5% of monthly spending in the study.

Digital payments are becoming part of everyday money management

The prominence of bills, subscriptions and financial services also reflects how deeply digital payments have become embedded in the financial lives of young professionals.

For Gen Z, paying utility bills, managing subscriptions and making other recurring payments can happen through the same digital ecosystem used for everyday purchases.

Piyush Bagaria, Co-founder, SalarySe, said India’s Gen Z is the first generation to manage almost every aspect of its financial life through a digital-first ecosystem.

“Our analysis suggests that India’s youngest salaried workforce is building more structured financial habits, where everyday responsibilities, digital payments and lifestyle choices coexist seamlessly,” Bagaria said.

He added that the scale of UPI has fundamentally changed how young professionals spend and manage their financial decisions.

Entertainment subscriptions are a smaller part of the bigger picture

Even within recurring entertainment payments, spending is spread across multiple digital services.

Among observable recurring entertainment subscriptions in the SalarySe analysis, JioHotstar accounts for 12.4%, followed by Netflix at 10.7% and Spotify at 5.6%.

However, the study does not suggest that entertainment subscriptions dominate overall Gen Z spending. Instead, they form part of the wider recurring-payment ecosystem that includes utilities, financial services and other digital subscriptions.

This distinction is important because the headline perception of Gen Z as a generation of subscription-heavy consumers can obscure the larger share of spending going towards everyday necessities.

Younger Gen Z isn’t necessarily more discretionary

The study also compares spending behaviour across two Gen Z age groups: 18–23 and 24–29.

Interestingly, discretionary spending remains unchanged at 32% for both groups.

What changes is the share devoted to essentials.

For those aged 18–23, essential spending accounts for 50% of spending. This rises to 59% among those aged 24–29.

The shift suggests that spending priorities change as young people move through different stages of their working lives.

As Gen Z professionals get older, their incomes and financial responsibilities may change, with a larger proportion of their spending being directed towards essential expenses.

At the same time, discretionary spending does not disappear. It remains at 32% for both age groups in the SalarySe analysis.

The Gen Z wallet is not just about ‘experiences’

The findings challenge one of the more common stereotypes about younger consumers — that they are willing to spend disproportionately on travel, entertainment and experiences while paying less attention to traditional financial priorities.

The SalarySe data presents a more nuanced picture.

Travel represents just 5% of monthly spending, while bills and subscriptions alone account for 20.1%.

Groceries, financial services and food together add another 39.4%.

That means the majority of spending is directed towards categories that are either essential or closely connected to everyday financial management.

This does not mean Gen Z is not spending on lifestyle choices. Shopping accounts for 11.9%, while entertainment subscriptions remain part of recurring consumption.

Instead, the data suggests that discretionary consumption sits alongside — rather than replacing — everyday financial obligations.