A COMPARATIVE STUDY ON INVESTMENT PREFERENCE AND FINANCIAL BEHAVIOR OF GENERATION Y AND Z (KEY IJP************726)

• Melbin Mathew,Mohan Kumar R

Abstract

This study compares the investment preferences and financial behaviors of Generation Y and Generation Z, focusing on psychological, social, and technological influences. Millennials, shaped by economic downturns, prefer stable, long-term investments like mutual funds and real estate, whereas Gen Z, raised in a digital era, Favors high-risk options such as cryptocurrencies and fintech investments. Despite extensive research on investment behavior, limited studies compare both generations, particularly regarding the impact of financial literacy and digital adaptation. Using correlation analysis and Chi-Square tests, the study examines the relationship between investment choices, technological exposure, and financial knowledge. Data is collected through structured questionnaires and secondary sources, focusing on a sample from Bangalore. Findings indicate that while Millennials prioritize financial security, Gen Z's investment decisions are driven by digital trends and social influence. The study emphasizes the need for tailored financial education and investment products to address the distinct financial behaviors of both generations.