Tier 3 cities, women, Gen Z lead savings & investment trends

A recent report by Fin One, the digital initiative of Angel One, provides a comprehensive analysis of the savings and investment behaviours of young Indians.

NEW DELHI: Based on data collected by Nielsen Media, the report highlights significant regional, gender, and age-based disparities in financial habits, offering insights that could influence financial planning strategies in the country.

The study challenges traditional notions of financial prudence, particularly in urban versus rural areas. It reveals that 42 per cent of respondents from Tier 3 cities save over 30 per cent of their income, outpacing their counterparts in Tier 1 (35 per cent) and Tier 2 (37 per cent) cities. This finding underscores a remarkable trend of disciplined financial behaviour in smaller towns, traditionally seen as less financially forward.

Regionally, the South emerges as a leader in disciplined savings, with 48 per cent of respondents allocating 20-30 per cent of their income towards savings.

A noteworthy generational shift is also apparent. Among 18-21-year-olds, 59 per cent save 20-30 per cent of their income, compared to just 39 per cent in the 22-25 age groups. This suggests that younger Indians are adopting savings habits at an earlier stage, emphasizing the growing awareness of financial stability among the youngest demographics.