In 2025, Gen Z individuals will be roughly between 13 and 28 years old. They grow up with the internet, smartphones, and social media as integral parts of their lives. Gen Z children often face financial challenges as they spend twice as much what they currently saved. Gen Z has spent money mainly on non essential activities such as travel and entertainment and also make impulse purchases on what they seen on social media. Most members of this generation work at beginning positions ,rising cost living with high interest rate and decreased saving leaves young adults financially stressed . So there is need to teach them how to control their spending and saving habits and make them financially stable.
Role of banks in Gen Z to encourage saving habits
Sanchayika scheme in India , aims to encourage habit of saving and financial responsibility from young age. Like Sanchayika scheme, introduce banking in college help to save money. Students can make regular, fixed monthly deposits over a specific period , also earning interest at fixed rate. The banks can collect money from college or they can collect from students digitally or directly. Savings collected are entered into passbook and passbooks are hand over to students. The digital passbook also can be provided. Students can deposit up to their course duration and withdraw after the completion of course. When banks give attractive interest rate on deposit of students will influence and encourage more customers. Banks will benefit in the long-term if they can attract student customers and they will usually stay for a long time. This is excellent tool for teaching students the value of saving, even when they have limited income. By helping young members develop healthy credit habits, you set them up for long term financial success. Encouraging consistent saving and reinforcing the importance of discipline in reaching long-term financial objectives. By learning how to set and meet saving goals early, young savers can develop habits that will benefit them well beyond their college years. After the duration of deposit completed students can deposit their amount in bank for future needs .Banks can offer education loan based on the deposit amount and strong academic mark . Startup loans can be given to students based on their projects .
" Good habits formed at youth make all the difference."
By incorporating habits on early on , they can gain a sense of financial responsibility and see firsthand how small contributions can add up over time. Saving habits for young members but reinforces important financial principles they can carry into adulthood.
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