{"id":1333,"date":"2025-01-04T18:04:17","date_gmt":"2025-01-04T18:04:17","guid":{"rendered":"https:\/\/thethinkingplanet.com\/?p=1333"},"modified":"2025-01-04T18:09:31","modified_gmt":"2025-01-04T18:09:31","slug":"why-gen-z-will-have-zero-money-case-study-of-india","status":"publish","type":"post","link":"https:\/\/thethinkingplanet.com\/why-gen-z-will-have-zero-money-case-study-of-india\/","title":{"rendered":"Why GEN-Z will have Zero Money &#8220;case study of India&#8221;"},"content":{"rendered":"\n<p class=\"has-text-align-justify\">IAre you afraid of <strong>zero money<\/strong>? Let me start with my story firstn November, when Feastables and Prime were launched in India, I was really excited too. But then my middle-class wallet reminded me of my reality. If I spent \u20b9400 on a 35-gram chocolate bar or \u20b9350 on a drink with <strong>zero nutritional value<\/strong>, my family would probably hit me with slippers. I\u2019ve never really understood why these products are so expensive, but does my understanding\u2014or lack thereof\u2014really matter? Kids to teenagers, everyone seems obsessed with these products, willing to pay any price, and this attitude will destroy India. Okay, that statement might be a bit extreme\u2014actually, not just a bit, but very extreme. So, let me clarify what I mean.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">Some time ago, when people were spending their entire monthly salaries on Coldplay tickets, a video went viral. In the video, a creator was going around asking people a simple question: &#8220;Can you name the members of Coldplay?&#8221; Unsurprisingly, no one could answer. This blog isn\u2019t about expensive chocolates, overpriced tickets, or frivolous spending; it\u2019s about a virus that has taken over our minds. This disease is called the show-off trap. I guarantee that there\u2019s at least one person in your circle who is a victim of this disease.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"900\" height=\"500\" src=\"https:\/\/thethinkingplanet.com\/wp-content\/uploads\/2025\/01\/4.2-1.jpg\" alt=\"zero money \" class=\"wp-image-1335\" srcset=\"https:\/\/thethinkingplanet.com\/wp-content\/uploads\/2025\/01\/4.2-1.jpg 900w, https:\/\/thethinkingplanet.com\/wp-content\/uploads\/2025\/01\/4.2-1-300x167.jpg 300w, https:\/\/thethinkingplanet.com\/wp-content\/uploads\/2025\/01\/4.2-1-768x427.jpg 768w, https:\/\/thethinkingplanet.com\/wp-content\/uploads\/2025\/01\/4.2-1-600x333.jpg 600w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_62 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/thethinkingplanet.com\/why-gen-z-will-have-zero-money-case-study-of-india\/#Chapter_1_Your_Modern_Neighbours\" title=\"Chapter 1: Your Modern Neighbours \">Chapter 1: Your Modern Neighbours <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/thethinkingplanet.com\/why-gen-z-will-have-zero-money-case-study-of-india\/#Chapter_2_The_Problem_of_Gen_Z_and_Zero_money\" title=\"Chapter 2: The Problem of Gen Z and Zero money \">Chapter 2: The Problem of Gen Z and Zero money <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/thethinkingplanet.com\/why-gen-z-will-have-zero-money-case-study-of-india\/#Chapter_3_Lifestyle_Creep_in_India\" title=\"Chapter 3: Lifestyle Creep in India\">Chapter 3: Lifestyle Creep in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/thethinkingplanet.com\/why-gen-z-will-have-zero-money-case-study-of-india\/#Chapter_4_Solutions\" title=\"Chapter 4: Solutions\">Chapter 4: Solutions<\/a><\/li><\/ul><\/nav><\/div>\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Chapter_1_Your_Modern_Neighbours\"><\/span>Chapter 1: Your Modern Neighbours <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"has-text-align-justify\">What is the show-off trap? Let me explain it through a small story. Imagine there are three families living in three houses in your neighbourhood. One day, Family A brings home a brand-new, bright red, German-made car with automatic features and leather seats. That car becomes the pride of the neighbourhood. Then you, living in one of the other houses, look at your two-year-old car and feel like it\u2019s time for an upgrade. The next day, Family B celebrates a birthday at a five-star restaurant, and suddenly it becomes a trend in your house too: celebrating birthdays at home feels so &#8220;middle class,&#8221; and going to a restaurant now feels like a necessity, not a luxury. You constantly see someone going on a foreign trip, someone else getting a new 4K TV, a home theatre, or a luxury handbag.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">You find yourself stuck in a never-ending cycle, where upgrading your lifestyle feels essential. You feel like you\u2019re falling behind, like you\u2019re not accepted, like you\u2019re a failure. This phenomenon is called keeping up with the Joneses, where your neighbour\u2019s lifestyle becomes a benchmark for your own. And the problem today is that our \u201cneighbours\u201d aren\u2019t just the families next door\u2014they\u2019re the entire country, thanks to social media.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">I don\u2019t have a problem with MrBeast\u2019s chocolates or Prime drinks. My issue is with the fact that people are buying these products not because they\u2019re good but because they want to look \u201ccool.\u201d They\u2019re buying them to showcase a lifestyle that, in reality, most of them can\u2019t even afford.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">Some time ago, I came across a heartbreaking video. In it, a boy, who hadn\u2019t eaten for three days, was blackmailing his mother\u2014a flower seller\u2014to buy him an iPhone. He told her he wouldn\u2019t eat until she got him one. The mother somehow scraped together the money and bought him the phone. The most absurd part was the person who uploaded the video. At the end of it, he proudly said, \u201cThis is the power of an iPhone lover.\u201d<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Chapter_2_The_Problem_of_Gen_Z_and_Zero_money\"><\/span>Chapter 2: The Problem of Gen Z and Zero money <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"has-text-align-justify\">Today, brands are playing with your emotions and heavily leveraging FOMO (Fear of Missing Out). India\u2019s Gen Z population is a staggering 377 million, and every brand targets this demographic. Why? Because of an advertising principle: catch them young. Once a single family member becomes part of the iPhone ecosystem, they inevitably pull the rest of the family into it. That\u2019s why most of Apple\u2019s advertisements primarily target young people.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">India\u2019s Gen Z has a spending capacity of $1.4 trillion, and it\u2019s relatively easy to compel them to spend. If we can understand the psychology behind this, we might find a solution.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"900\" height=\"500\" src=\"https:\/\/thethinkingplanet.com\/wp-content\/uploads\/2025\/01\/4.3-2.jpeg\" alt=\"show off\" class=\"wp-image-1337\" srcset=\"https:\/\/thethinkingplanet.com\/wp-content\/uploads\/2025\/01\/4.3-2.jpeg 900w, https:\/\/thethinkingplanet.com\/wp-content\/uploads\/2025\/01\/4.3-2-300x167.jpeg 300w, https:\/\/thethinkingplanet.com\/wp-content\/uploads\/2025\/01\/4.3-2-768x427.jpeg 768w, https:\/\/thethinkingplanet.com\/wp-content\/uploads\/2025\/01\/4.3-2-600x333.jpeg 600w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-justify\">Those born between 1997 and 2012 are classified as Gen Z. This generation is unique because it is the first-ever to be digital natives. What does this mean? Digital natives are individuals who grew up with digital devices and have learned to think and make decisions at the same fast pace as technological advancements.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">The situation for Generation Alpha\u2014kids born after 2013\u2014is likely to be even worse. These kids are learning the \u201clanguage of Skibidi Toilet\u201d before they even learn the alphabet.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">The generations before Gen Z were different because they were digital immigrants. For example, our parents can use mobile phones, but they still read newspapers and watch serials or movies on TV. They migrated from the world of print and television to the digital realm, and this shift has also influenced how they view money.<\/p>\n\n\n\n<p>But what is money?<\/p>\n\n\n\n<p class=\"has-text-align-justify\">Ten years ago, if you asked an average Indian this question, the answer was simple: cash. Your salary would be deposited into your bank account, and to manage household expenses, you\u2019d withdraw a certain amount in cash. The entire month\u2019s budget would have to run on this limited cash. If, by the 15th of the month, all the money was spent, panic would set in: Where did all the money go?<\/p>\n\n\n\n<p class=\"has-text-align-justify\">The best thing about cash is that spending it gives you a tangible sense of how much is left. A cash economy inherently comes with friction points\u2014moments where you pause and think before spending.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">However, the digital natives\u2014Gen Z\u2014make payments with UPI, credit cards, or a simple tap. Today, whether you spend \u20b910 or \u20b910,000, it takes the same amount of time: just a few seconds. This <strong>zero money friction<\/strong> means the brain doesn\u2019t register that money is running out.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">Don\u2019t get me wrong\u2014this is a great development for businesses, as it boosts sales. But as consumers, it can lead to a significant increase in unnecessary spending.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">The more time we spend scrolling on social media, the stronger our FOMO becomes. A voice inside us says, Look at that influencer\u2019s amazing sneakers, or Wow, the new AirPods version is the best, isn\u2019t it?<\/p>\n\n\n\n<p class=\"has-text-align-justify\">This FOMO has an inverse relationship with your bank balance. As social media increases your FOMO, your savings decrease.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">\u201cNo-cost EMI\u201d and \u201cBuy Now, Pay Later\u201d schemes are nothing but money traps. For example, a phone that costs \u20b960,000 suddenly seems affordable when it\u2019s broken down into \u20b95,000 monthly instalments. A teenager might think, I can\u2019t ask Dad for \u20b960,000 all at once, but I can surely ask for \u20b95,000 a month.<\/p>\n\n\n\n<p>And that\u2019s how the cycle begins.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Chapter_3_Lifestyle_Creep_in_India\"><\/span>Chapter 3: Lifestyle Creep in India<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In India, we often discuss salaries but overlook an important concept:<br><strong>Savings = Income &#8211; Expenses.<\/strong><\/p>\n\n\n\n<p class=\"has-text-align-justify\">You work tirelessly, your salary increases, and your paycheck doubles. Yet, the money left in hand remains the same. Why does this happen? Let\u2019s understand.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">As income rises, our lifestyle tends to become more expensive, often at twice the speed of our income growth. This phenomenon is known as lifestyle inflation.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">Nithin Kamath, the founder of Zerodha, once said: \u201cMost Indians are just one hospitalization away from bankruptcy.\u201d Shockingly, even people with high salaries fall into this category. Why? Because they don\u2019t plan.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">People assume that planning for things like retirement or medical emergencies is important\u2014but it\u2019s \u201cnot cool.\u201d On the other hand, buying a fancy, expensive phone? That\u2019s considered very \u201ccool.\u201d<\/p>\n\n\n\n<p class=\"has-text-align-justify\">However, this problem isn\u2019t solely the fault of Gen Z. Family pressure, social expectations, and social comparisons are all contributing factors.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">It\u2019s worth noting that Gen Z has faced significant challenges over the past few years. This is a generation shaped by the uncertainty of the COVID-19 pandemic, the Russia-Ukraine conflict, and the ongoing Israel-Hamas conflict. Issues like climate change and its potential impact have also created fear and anxiety, affecting mental health.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">As a result, many in this generation have internalised the belief that life is uncertain, making it feel pointless to save for big future goals.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"900\" height=\"500\" src=\"https:\/\/thethinkingplanet.com\/wp-content\/uploads\/2025\/01\/4.4-1.jpg\" alt=\"rich people show off\" class=\"wp-image-1338\" srcset=\"https:\/\/thethinkingplanet.com\/wp-content\/uploads\/2025\/01\/4.4-1.jpg 900w, https:\/\/thethinkingplanet.com\/wp-content\/uploads\/2025\/01\/4.4-1-300x167.jpg 300w, https:\/\/thethinkingplanet.com\/wp-content\/uploads\/2025\/01\/4.4-1-768x427.jpg 768w, https:\/\/thethinkingplanet.com\/wp-content\/uploads\/2025\/01\/4.4-1-600x333.jpg 600w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><a href=\"https:\/\/thethinkingplanet.com\/a-short-article-on-5-most-common-money-traps-that-makes-you-poor\/\" class=\"ek-link\">Also Read -A short article on 5 most common money traps that makes you poor<\/a><\/p>\n\n\n\n<p>And, of course, there\u2019s the emotional side of spending. When we buy something new, we feel good\u2014it gives us a dopamine hit. This is called retail therapy.<\/p>\n\n\n\n<p>While we can\u2019t solve the big problems in our lives with the snap of our fingers, we can order a tub of ice cream with one tap.<\/p>\n\n\n\n<ul>\n<li>We might struggle to make friends, but we can hide our loneliness at a concert.<\/li>\n\n\n\n<li>Our lives might feel monotonous, but we can escape that monotony, at least temporarily, with the excitement of a new gadget.<\/li>\n<\/ul>\n\n\n\n<p>This cycle of spending offers fleeting relief but often comes at the cost of long-term financial security.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Chapter_4_Solutions\"><\/span><strong>Chapter 4: Solutions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>So, what\u2019s the cure for this show-off trap?<\/p>\n\n\n\n<p><strong>Solution 1: Create a &#8220;Fun Fund&#8221;<\/strong><\/p>\n\n\n\n<p class=\"has-text-align-justify\">Tracking expenses and creating a budget sounds easy in theory, but in practice, it often ends up being as short-lived as a New Year\u2019s resolution. Usually, it\u2019s followed diligently for three days, and once it breaks, it\u2019s abandoned for the entire year.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">The solution? Allow yourself to enjoy, but do it smartly. Try this trick:<\/p>\n\n\n\n<p class=\"has-text-align-justify\"><br>At the start of the month, withdraw some cash from your bank and aim to spend only that amount for the entire month. If the cash runs out in just 15 days, your brain will receive a clear signal that your spending is far exceeding expectations.<\/p>\n\n\n\n<p><strong>Solution 2: Pay Yourself First<\/strong><\/p>\n\n\n\n<p class=\"has-text-align-justify\">Think about this: If you have a good job and are earning your own money today, it\u2019s only because of the hard work you put in the past. You spent 15 years in education, cracked exams, attended interviews, and worked tirelessly to achieve where you are today.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">This means you\u2019re in debt to your <em>past self<\/em>. And how will you repay this debt? By saving for your <em>future self<\/em>. Make saving a priority before spending on anything else.<\/p>\n\n\n\n<p><strong>Solution 3: The \u201cCan You Buy It Twice?\u201d Rule<\/strong><\/p>\n\n\n\n<p class=\"has-text-align-justify\">Follow this simple rule in life: <em>If you can\u2019t afford to buy it twice, you can\u2019t afford it.<\/em><\/p>\n\n\n\n<p class=\"has-text-align-justify\">What does this mean? Let\u2019s say you want to buy a new car, and the monthly EMI is \u20b950,000, but your income is \u20b960,000. This should be a clear indicator that the car is beyond your budget.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">In essence, living within your means and prioritising savings over unnecessary expenses will keep you out of the show-off trap and help secure a stable financial future.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>IAre you afraid of zero money? Let me start with my story firstn November, when Feastables and Prime were launched [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":1334,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_editorskit_title_hidden":false,"_editorskit_reading_time":0,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","_EventAllDay":false,"_EventTimezone":"","_EventStartDate":"","_EventEndDate":"","_EventStartDateUTC":"","_EventEndDateUTC":"","_EventShowMap":false,"_EventShowMapLink":false,"_EventURL":"","_EventCost":"","_EventCostDescription":"","_EventCurrencySymbol":"","_EventCurrencyCode":"","_EventCurrencyPosition":"","_EventDateTimeSeparator":"","_EventTimeRangeSeparator":"","_EventOrganizerID":[],"_EventVenueID":[],"_OrganizerEmail":"","_OrganizerPhone":"","_OrganizerWebsite":"","_VenueAddress":"","_VenueCity":"","_VenueCountry":"","_VenueProvince":"","_VenueState":"","_VenueZip":"","_VenuePhone":"","_VenueURL":"","_VenueStateProvince":"","_VenueLat":"","_VenueLng":"","_VenueShowMap":false,"_VenueShowMapLink":false,"two_page_speed":[],"footnotes":"","_rishi_post_view_count":41},"categories":[1],"tags":[],"rishi__cb_customizer_meta":"","comments_count":"1","_links":{"self":[{"href":"https:\/\/thethinkingplanet.com\/wp-json\/wp\/v2\/posts\/1333"}],"collection":[{"href":"https:\/\/thethinkingplanet.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thethinkingplanet.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thethinkingplanet.com\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/thethinkingplanet.com\/wp-json\/wp\/v2\/comments?post=1333"}],"version-history":[{"count":2,"href":"https:\/\/thethinkingplanet.com\/wp-json\/wp\/v2\/posts\/1333\/revisions"}],"predecessor-version":[{"id":1341,"href":"https:\/\/thethinkingplanet.com\/wp-json\/wp\/v2\/posts\/1333\/revisions\/1341"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thethinkingplanet.com\/wp-json\/wp\/v2\/media\/1334"}],"wp:attachment":[{"href":"https:\/\/thethinkingplanet.com\/wp-json\/wp\/v2\/media?parent=1333"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thethinkingplanet.com\/wp-json\/wp\/v2\/categories?post=1333"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thethinkingplanet.com\/wp-json\/wp\/v2\/tags?post=1333"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}