How Gen Z has redefined their first ‘Big Splurge’

But for India’s Gen Z, that milestone looks entirely different. Their first big splurge is no longer a possession. It’s a ticket, a group trip, a weekend away, a music festival—in short, a memory.

Instead of delaying gratification, this generation is simply redefining it. And in doing so, they’re reshaping how young India spends, saves and thinks about financial wellness.

A survey of 4,621 respondents by Under25 found that 37% would make their first big splurge on a vacation or trip, compared to 26% for a car/bike, 20% for gadgets and just 14% for branded clothes or sneakers. The first celebration of independence is no longer about ownership.

What pushed Gen Z to spend differently?

This is a generation that grew up in volatility: covid, inflation, layoffs, rising rent, a broken housing market. For their parents, security meant accumulating assets. For Gen Z, it means autonomy. The ability to make a choice when they want, how they want. They have come to associate independence not with ownership, but with mobility. So, they don’t see a vacation as an indulgence.

But Gen Z is not careless with money. In fact, with tighter budgets, they make every spend count. When asked what 'financial freedom’ means to them, 34% of all respondents chose “being able to travel anytime," ahead of saving and investing (27%) or owning assets like cars or homes (21%).

This generation is shaped by its economic context. With unpredictable futures, ownership is seen as a burden, not a safety net. A car loan feels like a heavy commitment, while a weekend trip feels like a quality-of-life enhancement. For this generation, a sense of belonging is the new luxury. They deal in aesthetic, hyperlocal and Instagram-worthy experiences above all.

Increasingly, for Gen Z, their first salary no longer represents security, but freedom instead. And freedom is best exercised in collective ways. Where earlier generations bought things to prove something, Gen Z buys things to feel something instead, ideally shared with close circles. A big purchase now happens on Splitwise—an app for splitting and tracking expenses in a friend group.

These contextual changes have also changed the way Gen Z travels and experiences events. According to Under25’s survey, Gen Z prefers hostels over hotels, all thanks to social media. 42% said they prefer road trips and local experiences and 28% opt for budget hostels and trains compared to just 17% for premium hotels and flights. Yet, nearly 45% cap their domestic trip budgets to around ₹10,000.

They create itineraries with guidance from influencers and inspiration from communities on Instagram and Reddit, rather than through travel agents or booking sites. They travel to create stories, not just memories. And the vibe matters just as much as the view. Festivals and concerts are now status markers too. 29% of Gen Z said festivals and artist events were their preferred travel splurge.

This shift has massive implications for businesses still selling old-school aspirations. For example, tier-II and tier-III cities are becoming youth destinations, driven by affordability and aesthetics. The young are travelling to Lucknow, Jaipur, Visakhapatnam, Vijayawada and Varanasi. In events for the younger generation, hyper-local IPs are outselling imported ones, as cultural capital is built from the ground up. Content-ready, affordable spaces are winning over five-star luxury. And the new luxury is micro, meaningful, and mobile.

For brands, the takeaway is clear: Gen Z has money to spend, but only on products and services that show purpose, personality and shareability. If you’re not designed for group experience or flexible access, you’re not at the top of their list. For businesses, this isn’t a passing trend to tap into. It’s a fundamental reset. And the brands that learn to speak Gen Z’s language early will be the ones that win big.

Jeel Gandhi is chief executive officer of Under25, a Collective Artists Network company.