Is Gen Z getting carried away by ‘YOLO’?

Recent transaction data paints a more practical picture. An analysis by SalarySe of millions of UPI transactions involving more than 5.2 lakh salaried Gen Z users found that more than 70% of monthly spending goes into five broad categories: bills and subscriptions, groceries, financial services, shopping and food

hema singuluri I hyderabad : A majority of Gen Z lives by the adage ‘You Only Live Once’ (YOLO) resulting in constantly travelling, eating out, attending concerts and spending with gay abandon. Is this going to cost them in the long run is a question uppermost especially among parents. Their social media accounts liven up with posts of swanky restaurants, exotic food, breathtaking locations and fashionable clothes. On the flip side, their bank balance may not look that rosy.

Sample this: Deloitte’s India survey found that 55% of Gen Z respondents reported living paycheck to paycheck, while 54% said financial circumstances had caused them to delay major life decisions. More than 60% said housing affordability influences career decisions. However, few are taking decisions on purchasing houses. Yashwanth Kumar, a 24-year-old IT employee at NTT DATA Business Solutions says, “I spend on travel, food and going out but keep my expenses under control. I reject the idea that Gen Z cannot afford homes simply because young people r attend concerts. To me, it seems an exaggeration.”

Recent transaction data paints a more practical picture. An analysis by SalarySe of millions of UPI transactions involving more than 5.2 lakh salaried Gen Z users found that more than 70% of monthly spending goes into five broad categories: bills and subscriptions, groceries, financial services, shopping and food. Bills and subscriptions account for 20.1%, groceries 15.7%, financial services 12.2%, shopping 11.9% and food 11.5%. Travel, despite its strong presence on Instagram feeds, accounts for only 5% of monthly spending.

In Hyderabad, the contrast is particularly visible. Madhapur, Gachibowli and Hitech City may be filled with trendy cafés, microbreweries, restaurants and premium retail, but the lifestyle visible on the streets does not necessarily represent the financial reality of every young professional.

High rents in the city’s major IT corridors, rising utility bills, everyday groceries and other financial commitments can consume a substantial portion of a young employee’s income. Their bank statements, in many cases, tell a quieter story than their Instagram profiles.

In his view, the bigger problem is the rapidly rising cost of living, particularly housing.

Rupesh Reddy, a 26-year-old software employee, believes Gen Z does spend more on travel, concerts, food and entertainment because young people also want to enjoy life and create memories. But he says not every expense should automatically be labelled irresponsible. For him, the important distinction is between spending on things that genuinely bring happiness and spending simply for the sake of consumption.

Ronica Rudhira Douglas, a first-year BA Psychology student from St. Mary’s, also feels the stereotype is exaggerated. She acknowledges that Gen Z spends on food, concerts and travel but says awareness of rising prices is widespread. “If my bank statement could talk,” she says, “it would say ‘she’s financially anxious but she knows what she’s doing.”

Housing costs, stagnant incomes, inflation, education expenses and job insecurity are therefore difficult to ignore. The YOLO label may describe what is visible. The transactions reveal what is necessary.