As we gear up for the next financial year, there is no better time to speak about the habit of saving and investing than now. Gen Z is making the stock market world a lot younger. But is this true for Chennai’s younger crowd?

As the older segment of Gen Z in the city begins to enter the workforce in full swing and attain their financial independence, the chatter about this generation has always been about how most of them are sophisticated and seemingly careless about savings.

Gowtham Reddy A., an investment planner in Chennai, says that he has around 30 clients in the Gen Z demographic. “Most of them are not into the old school way of investing. They prefer new-age apps and go towards discounted brokerage. And they don’t care about customer service as much as the older generation does,” he says.

Online advisors

Girijesh Kumar, a 20-year-old B. Tech student of VIT, explains why they go towards new-age apps. “A lot of financial advice is already out there on podcasts and social media. Online financial advisors teach you how to manage money smartly and trade better,” he says. Madhu Bala T., a B. Com student, adds that Gen Z is more inclined to take financial risks than the older generations.

But the reality is not always about the ‘You only live once’ concept. According to a study by Computer Age Management Services (CAMS), 54% of the first-time investors in mutual funds are Gen Z, and 41% of them are investing in individual stocks. This has been similar to what the older generations did.

Keeping up with trends

Has the younger crowd of Chennai started investing for long-term savings and increasing their wealth? Mr. Gowtham says it does not look like that, since only the older generation had retirement plans while investing. “Many of my newer, younger clients say they want to adapt themselves to what is in the trend, be it attending the Lollapalooza music festival or the latest iPhone, and most look for that kind of plans as they don’t usually speak about the long-term ones,” he says.

So, you ask, is Gen Z comfortable taking substantial financial risks? Well, personal financial situations become a factor, but one thing has been clear. Those who do invest realise they are rookies and are super-focused on learning. “I track the market — that is when BSE and NSE go down. I keep a close watch on it, and I have been doing it for the past two years,” says Girijesh Kumar.

Financial literacy

For many, financial concepts are abstract. Hence, some Gen Z students believe financial literacy should be introduced in the school curriculum. “Most of what we know about saving money smartly is through social media, but financial literacy should be accessible for everyone from the school level,” says Madhu Bala. “How to budget, save, and invest is the need of the hour, and I think not many learn this early on. This concept would also reduce impulse-spending as well as the excessive debts in future,” adds Girijesh Kumar.

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