Gen Z is seen as living in the moment. Is it thinking further ahead with money?

“I wanted to start investing at the earliest because I understand the power of compounding and want to give my invested sum as much time as possible to grow.”At 21, law student Kartikay Sawariya is already thinking about something that many people associate with much later in life: giving his money decades to grow. He has built most of his portfolio around equities, particularly small-cap stocks, and for him, investing is less about chasing a quick return than making the most of the one advantage he has that older investors cannot buy back: time.Kartikay's approach challenges one of the persistent stereotypes about Gen Z: that it is a generation living in the present, going with the flow and unwilling to think too far ahead.The World Economic Forum's 2024 Global Retail Investor Outlook found that about a third of Gen Z investors started investing in university or early adulthood, roughly twice the rate at which Millennials started investing at the same age. More than half of Gen Z respondents said they had begun learning about investing before entering the workforce, compared with around one in five Baby Boomers. The numbers suggest that while Gen Z may be approaching life differently from Millennials, Gen X and Baby Boomers, its relationship with money is worth a closer look. It is entering the investment journey earlier, with greater access to financial products and a higher willingness to experiment with different asset classes.The median age of new investors in India has also fallen from 29 in 2019-20 to 27 now, according to the NSE Market Pulse July 2026 report. So what is driving this early start? Is it simply easier access to markets, or is financial security itself beginning to mean something different for Gen Z?INVESTING BEFORE THE BIG LIFE MILESTONESFor 26-year-old Air Force personnel Archi Agrawal, investing is already tied to two goals that are traditionally associated with a much later stage of life: retirement and financial emergencies.“I began investing to plan for my post-retirement and to ensure that I maintain sufficient emergency funds in my account,” she said.Archi began exploring investments after realising that keeping money idle in a bank account may not be enough for her long-term goals. She now looks at avenues including SIPs, mutual funds, commodities, PFs and FDs.Her approach is different from the old idea of waiting until incomes rise, major family responsibilities are taken care of and there is a larger surplus available to invest. She is starting while she is still in the early stages of her working life.That early start could itself become an advantage, says Nilesh D Naik, Head of Mutual Funds at PhonePe.“Most Gen Z investors are generally more aware and willing to take risks. They have had easier access to investment products compared with previous generations, which helps them gain valuable investing experience early on - a big advantage when they eventually have larger portfolios,” Naik said.Digital platforms have made it possible for young investors to begin with small amounts rather than waiting until they have accumulated a substantial surplus. That means they can gain experience while their portfolios are still relatively small, potentially learning how markets work before they have larger sums at stake.For Kartikay, the logic is even simpler: start early because time itself has value.His portfolio is largely built around equities, particularly small-cap stocks, but his stated objective is not simply to chase quick gains. He wants to give his investments as much time as possible to compound.That is perhaps the first important distinction in understanding Gen Z's relationship with money. The generation may be less certain about where it wants to live, which job it wants to hold or when it wants to settle down. But some of its members are already thinking about what they want their money to do over the next two or three decades.FINANCIAL SECURITY IS STARTING TO MEAN FINANCIAL FREEDOMThe definition of financial security is also changing.For previous generations, financial stability was often closely associated with traditional milestones such as a stable career, home ownership, family responsibilities and a retirement corpus. For Gen Z, those milestones may still matter, but they are not necessarily the only markers of being financially secure.Having enough savings and investments to handle an emergency, change jobs, move cities or eventually stop working earlier can be equally important.The growing interest in the FIRE, Financial Independence, Retire Early, movement is one example.Naik says FIRE is increasingly popular among young investors who want to achieve financial independence in their 40s rather than waiting until their 60s, as previous generations did.That is not necessarily a rejection of long-term planning. If anything, it could represent a more aggressive version of it: plan and invest early enough so that work becomes a choice sooner.The distinction is important because Gen Z is often described through the things it is supposedly unwilling to commit to — a single employer, a home, a fixed career path or even a conventional timeline for marriage and family.But financial independence can provide the flexibility to keep those choices open.THEY ARE WILLING TO TAKE MORE RISKSThe same generation that is starting earlier is also more comfortable experimenting.That makes the picture more complicated.The World Economic Forum found that Gen Z is more likely than older generations to invest in complex products such as crypto and alternative asset classes. Its findings also show that crypto makes up more than a third of the portfolio for 71% of Gen Z investors surveyed.Starting early, therefore, does not automatically mean investing better.A young investor may have more time to benefit from compounding, but also more time to experiment with assets that carry significantly higher risks.Yudhajit Baul, Founder of Yudhajit Financial Services Pvt Ltd, describes Gen Z investors as more experimental, cost-sensitive and prone to taking higher risks.“Gen Z is more experimentative, cost sensitive and prone to take higher risks. They are hustlers and quick learners,” Baul said.He contrasts them with Millennials, whom he describes as relatively more conservative after learning from their own earlier experimentation, while older generations tend to be more conservative because their financial behaviour was shaped by a period when choices were more limited.Naik also says Gen Z is willing to experiment, not just in investing but in several aspects of life. The difference, he says, is that digital platforms allow them to start investing with small amounts and gain confidence and experience before they manage larger portfolios.That could explain why risk-taking and long-term planning can exist together.A 21-year-old who puts money into equities, crypto or another high-risk asset is not necessarily planning for the short term. The question is whether the risk is understood, affordable and part of a broader financial strategy.GAURAV WANTS THE UPSIDE, EVEN IF THE RISKS ARE HIGHERFor 21-year-old Gaurav, a second-generation business owner, taking that risk is part of the appeal.“Gen Z has a higher risk appetite than other generations because we believe in disproportionate returns and contrarian bets, which are more risky but more rewarding if they play out right,” he said.His approach reflects another side of Gen Z's financial thinking. Young investors have entered adulthood in an environment of high living costs and expensive urban housing, where traditional wealth-building routes can appear increasingly difficult to reach early in life.That can make markets and newer investment products attractive as possible routes to building wealth.But it also means that financial anxiety can push investors towards chasing higher returns.This is where Gen Z's reputation for risk-taking needs to be separated from the idea that it does not plan.The evidence so far points to something more complicated: they are starting earlier, but they are also experimenting earlier.EVEN REAL ESTATE IS BEING APPROACHED DIFFERENTLYThe shift is not restricted to stocks or digital assets.Real estate has traditionally been one of the biggest wealth-building avenues for Indian households, but high property prices can make direct ownership difficult for young investors.Pratyush Pandey, Founder of AARE Consulting, says Gen Z could increasingly participate in real estate through more accessible and flexible investment models.“I believe the next phase of real estate investing will therefore be driven by accessibility, technology and flexibility. As digital platforms and innovative ownership models evolve, Gen Z is likely to become an increasingly important participant in India's real estate investment ecosystem,” Pandey said.Rather than immediately buying a traditional home, young investors are exploring fractional ownership, REITs, commercial real estate and smaller-ticket investment opportunities, he said.The significance here is not simply the choice of product. It is the possibility of separating exposure to an asset from owning the entire asset.For a generation that values flexibility and may not want to lock itself into one city or one financial commitment early in life, that distinction can matter.It also shows why comparing Gen Z's financial behaviour with that of Millennials, Gen X or Baby Boomers purely through traditional milestones may not capture the full picture.THE PHONE HAS CHANGED WHO THEY LISTEN TOThere is another reason Gen Z's financial behaviour looks different: the investment education ecosystem has moved onto the phone.Young investors can access market information, investment platforms and financial content almost instantly. But the same accessibility that makes investing easier also exposes them to a huge amount of advice, much of it coming from people they encounter online.Naik says many Gen Z investors primarily consume financial content online, making online content creators an important influence on their investment decisions.Baul also says young investors can initially be influenced by influencers, friends and family before eventually recognising the value of professional advice.“Young investors tend to trust financial advisers after experimenting and realising the value a trained and experienced professional like financial advisers bring to the table but they are often influenced by influencers, friends and family members,” Baul said.That means the Gen Z investor may be entering the market earlier than previous generations, but the learning curve is also happening in public, through social media, online communities and peer groups.Some of those lessons can be expensive.Yet Baul believes Gen Z is also quick to learn and adapt from its experiences.That could be another important generational difference. Earlier access does not guarantee better decisions, but it can mean that the process of learning about money begins much sooner.SO, IS GEN Z ACTUALLY BETTER AT INVESTING?Not necessarily.The evidence makes a stronger and more interesting point.Gen Z appears to be starting earlier. It is learning about investing before entering the workforce at much higher rates than Baby Boomers did. It is also entering investment products earlier than Millennials did at the same age.But it is simultaneously more willing to experiment, take risks and explore assets such as crypto and other alternatives.That means the generation's advantage may not be that it has already mastered investing. Its advantage may be that it has started learning earlier, when the amounts involved are still relatively small and the time available for compounding is much longer.Kartikay's approach captures that mindset. At 21, he is not waiting until he has a house, family or decades of earnings behind him to think about wealth creation.Archi, at 26, is already thinking about retirement and emergency savings.Gaurav, also 21, is willing to accept greater risk because he sees the potential for higher returns.Their goals and strategies are different. But all three demonstrate something that complicates the popular image of Gen Z as a generation simply going with the flow.GENZ ARE STARTING TO BUILD FINANCIAL OPTIONSPerhaps the biggest shift is not that Gen Z has abandoned long-term planning. It is that long-term planning no longer necessarily means following one fixed sequence.The old financial conversation could revolve around accumulating enough money to buy a house, support a family and eventually retire.The new one can include building an investment portfolio early, maintaining an emergency fund, pursuing FIRE, taking exposure to real estate without directly buying a house, or simply having enough financial independence to leave a job that no longer works.That does not make every Gen Z investor disciplined or financially savvy. Some will make speculative bets. Some will follow poor advice from social media. Some will take risks they do not fully understand.But the evidence challenges the idea that the generation is indifferent to its financial future.The World Economic Forum's finding that more than half of Gen Z respondents began learning about investing before entering the workforce, compared with around one in five Baby Boomers, perhaps captures the change most clearly.Gen Z may not be planning its life according to the same milestones as Millennials, Gen X or Baby Boomers did.But when it comes to money, it appears to be starting the conversation much earlier.And perhaps that is the real shift: not a generation that has stopped planning for the future, but one that wants financial security early enough to have more choices about what that future looks like.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)- EndsPublished On: Aug 17, 2026 08:01 IST