You might think that India’s younger generation is rewriting its own rules in a time of stock market apps, cryptocurrency and FIRE goals. But, if you look closely, you’ll realise that the old cultural norms continue to underscore their investment and spending choices.
Expectations of deep-rooted customs, such as investing in gold and spending on weddings, financial dependence on parents at the time of buying large assets, still shape the financial behaviours of millennials and Gen Z despite India’s economy being rapidly modernised.
The pressure to conform to social expectations has not disappeared, it has changed. It is now only dressed up with expensive wedding costs, diamond-inlayed “gifts” and gorgeous lehengas.
“I believe we must follow the middle path from Buddha’s teaching that is diversifying the spending spectrum in the latest tech to get the benefits out of it, while also investing in gold which has traditionally proved to be a proverbial wooden log in a flood. We should not put all our eggs in one basket. Therefore, if someone is smitten by the bug of consumption, s/he will be vulnerable during the rough weather. On the other hand, if we follow into the footsteps of our elders, we will be insulated from the new age, which is shaping the future goal of India being a developed nation,” says Mansi Tirthani, UPSC aspirant.
The weight of wealth—and weddings
Between 1991-92 and 2019-20, India’s per capita income jumped from ₹6,835 to ₹1,34,186—a CAGR of 11.2%. This unprecedented rise in income has catapulted many families into the upper middle class and beyond. But with great wealth came… not great savings, but bigger, fatter weddings’.
“Despite the increased quantum of wealth, the old mindset, which is rooted in centuries-old cultural norms, continues to influence financial decisions, even among millennials and Gen Z,” says Atul Shinghal, Founder and CEO of Scripbox.
This “mindset” isn’t limited to the formal exchange of dowry—which, while illegal, still persists in subtler forms—but spills over into how Indian families view marriage and status. Wedding gold remains non-negotiable. Lavish functions aren’t just celebrations—they’re social currency. And while financial planning is trending, it often takes a backseat to fulfilling these deep-seated expectations.
The inheritance trap: A modern problem with ancient roots
Concentration of wealth is one particular challenge facing today’s youth. One child may inherit from both families in a large number of single-parent households. The wealth of four families land in two individuals by inheritance if that child marries another only child.
Despite sounding like a windfall, it can be a quite burden to uphold the lifestyle that wealth actually implies. Often it results in spending too much, saving too little, and internal family conflict about tradition versus financial independence.
Parental dependence: A gift or a guilt trip?
In India, it is very common that parents will contribute financially for important life events such as weddings, down payments, and possibly business aspirations. While this financial cushion is great to have, it also prevents individuals from becoming financially independent. While Gen Z and millennials will proclaim that they are “self-made”, many of them are still relying on their parents’ savings when the larger bills come.
This financial reliance, all under the auspice of familial love, could constructively help (or hurt) personal financial goals. The younger generation in India is fueling the growing FIRE (Financially, Independent, and Retire Early) movement which seems to push against some of the cultural norms which results in cognitive dissonance: Should I spend money on a gold set for my sister’s wedding or save for my future?
Breaking the cycle: Tradition vs transformation
Cultural values aren’t always negative. Things like wedding gifts, family support, and community celebrations are some of the things that enrich and enliven Indian experiences.
However, we must reconsider the cultural values of long-standing practices when they lead to financial hardship, increase in debt, or delay the creation of wealth.
Generation Z and millennials in India are at crossroads. They have more money, education, and earning power than any previous generation. But, they also have the weight of expectations from centuries of regimes.
Instead of outright rejection of tradition, the present challenge is to intentionally and sustainably disrupt it. It’s time to scrap guilt-driven gifting for inter-generational financial success. Moving from status to stability and from social signalling to careful savings.
Key takeaway
Old habits die hard—especially when they’re wrapped in silk and sealed with 24-carat gold. But India’s young earners have the power to redefine legacy—not just in terms of wealth, but also in wisdom.