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International Journal of Management (IJM)

Volume 11, Issue 4, April 2020, pp. 657-672, Article ID: IJM_11_04_063

Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=11&IType=4

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ISSN Print: 0976-6502 and ISSN Online: 0976-6510

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MONEY AND GENERATIONS: FINANCIAL

CHOICES MADE BY GEN X AND GEN Y

Kanchan Tolani

Assistant Professor, Shri Ramdeobaba College of Engineering and Management,

Nagpur, India

Ruchi Sao


Nagpur, India

Pritam Bhadade


Nagpur, India

Shravan Chandak


Nagpur, India

ABSTRACT

When it comes to financial choices and investment behavior, Generational

differences have always been important subjects of research. The leading two

generations influencing the market the most today, are Generation X and Generation

Y. These two generations are distinctly different in several behaviors (Pesquera,

2005). There are several studies that have focused on understanding the different

characteristics of Generation X and Generation Y such as shopping behaviors,

workplace behaviors and lifestyle (Bakewell & Mitchell, 2003); (Martin & Turley,

2004); (Bush, Martin, & Bush, 2004).

There is not much research done on understanding how these generations manage

their money. Thus this study aims at developing a broader understanding of how these

generations make their financial choices. Findings reveal that there is a significant

difference in the ways Gen X and Gen Y spends their money, make investments and do

payments. Also, both the generations have very dissimilar financial goals, thus the

policymakers and marketers should cater to these two groups differently.

Keywords: Generation X, Generation Y, financial choices, financial goals, investment

behavior, spending.

Money and Generations: Financial Choices Made by Gen X and Gen Y


Cite this Article: Kanchan Tolani, Ruchi Sao, Pritam Bhadade and Shravan Chandak,

Money and Generations: Financial Choices Made by Gen X and Gen Y, International

Journal of Management, 11 (4), 2020, pp. 657-672.

http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=11&IType=4

1. INTRODUCTION

The Generation Y or Millennials is the largest consumer generation to date. They have lived

through the period of eco-system which is changing radically and faster both in terms of

economically and technologically. Hence the purchasing pattern of generation Y is different

from the previous generations. Generation X is among the most educated and sophisticated

consumers today (Richardson, 2018).

When it comes to financial choices and investment behavior, each generation has its own

set of challenges. Every generation exhibits different characteristics, attitudes and values. The

leading two generations influencing the market the most today, are Generation X and

Generation Y. These two generations are distinctly different in several behaviors. (Pesquera,

2005).Each generation has its own set of advantages hence the Generation X and Generation

Y exhibits lots of differences in respect of saving patterns and investment habits. The

retirement benefits, job security are some of the few advantages which are available to

Generation X but are missing in today‟s world for Generation Y. The Generation X is more

secure than Generation Y in terms of financial stability. Hence there are few differences in

investment styles of these two Generations (Parthasarathy, 2016).

Generational differences have, always been important subjects of research. One reason

why it is important to study the investment behavior of Generation Y is because these

generations has more income and thus have more money to spend than any other previous

generation. According to literature the Generation X has higher disposable income and more

free time than Generation Y.

There are several studies that have focused on understanding the different characteristics

of Generation X and Generation Y such as shopping behaviors, workplace behaviors and

lifestyle (Bakewell & Mitchell, 2003);(Martin & Turley, 2004);(Bush, Martin, & Bush, 2004).

There is not much research done on understanding the decision making process of these

generation. Thus it is essential that we understand the ways businesses can market to this

Generation. This study aims at developing a broader understanding of how these generations

makes their financial choices.

2. LITERATURE REVIEW

2.1. Generation X and Generation Y

The Generation X is individuals who born between 1961-1979 (Gurau, 2012). The Generation

Y also called as Millennials are born between 1980-2000 (Richard K. Miller & Associates,

2011), (Gurau, 2012). However there is no one consent about the time interval of birth for

Generation X and Generation Y. There are other time intervals of birth for Generation X and

generation Y indicating slightly different time interval: 1961-1980, 1981-2000(Sema & Kadir,

2015), 1965–1981, 1982-2000(Rogers, 2018)1982-2000(Rich, 2008), 1967-1980, 1980-

2000(Parthasarathy, 2016), 1982-2002(Littman, 2008), 1966-1976, 1977-1994 (Schroer) or

1982-2005(Howe & Strauss, The next 20 years: how customer and workforce attitudes will

evolve, 2007). In this study the time interval taken for Generation X is 1961 to 1979 and for

Generation Y is 1980 to 2000.

Kanchan Tolani, Ruchi Sao, Pritam Bhadade and Shravan Chandak


The Generation X has different behavior, values and characteristics then generation Y as

they born in different time frame and different economic conditions. The macro

environmental factors affect their behavior (Gurau, 2012).

2.2. Unique Characteristics Making Generation X and Generation Y Different

Generation X (born from 1961 to 1979) is a hardworking and self-reliant generation (Gursoy,

Maier, & Chi, 2008). This generation is more adaptive to changes and is willing to learn new

ways of doing things (FGI, 2004). These individuals are more focused and result oriented. But

Generation X is a very dubious generation (Crumpacker & Crumpacker, 2007). Generation X

has witnessed various economic downturns and financial crises such as dotcom bust and great

recession. Thus they make any financial choice very cautiously.

Also Generation X has different orientation towards work (Smith, 2000). They consider a

job decision as a lifestyle decision and like to take up a job which gives them a feeling of

fulfillment (Tulgan, 2000).

Generation X was the first generation to use technology such as computers on a regular

basis. Thus they are more willing to learn new technologies than the previous generations. But

when it comes to technology, Generation Y is more technologically savy as they have always

been familiar with Computers, Internet, Mobile phones. The use of Internet is higher in case

of Generation Y.

As per a report by Morgan Stanley, India will soon become the youngest country in the

world with more than 400 million Generation Y populations. This generation being the largest

demographic group of India, becomes an important matter of study for marketers and policy

makers.

Generation Y is the most technologically urbane generation. Unlike Generation X, they

are less outcome focused. Generation Y also known as Millennials (Howe & Strauss,

Millennials go to college - Strategies for a new generation on campus, 2003) are high energy

individuals who are optimistic, confident, and multitaskers (Kim, 2008), (Bucuta, 2015).

It is a unique generation whose behavior has always been a matter of discussion (Taken

Smith, 2012) . As consumers they are very hard to understand and it is a challenging task for

marketers to target this group. Social media and mass media has a great influence on the

choices of Generation Y as Generation Y has been brought up in the age of strong emergence

of social media and reality shows(Morrison & Phelps, 1999). This generation‟s consumers are

very brand and trend conscious and also are ready to switch brands to meet the trends

(Morton, 2002). Though their brand knowledge is very high, they are usually not as brand

loyal as Generation X (Noble, Haytko, & Phillips, 2009). Generation Y has high spending

power, believes in amusement, has high aspirations and desires (Jain & Pant, 2012)

Also the way Generation Y looks at work is different from that of Generation X. This

generation is highly success driven and constantly upgrades their skills. This generation gives

high regard to education but they are not very stable when it comes to careers. They tend to

change their jobs more frequently as compared to Generation X whereas, Generation X prefer

more stable careers.

Generation Y individuals are mostly known as impulsive buyers. Their buying behaviour

is majorly influenced by their network of friends and social media. Generation Y loves to

explore new things and are known for their impatient behavior as they wish to achieve

societal, professional and personal goals quickly. When it comes to making and evaluating

important decisions, Generation Y highly rely upon their family and friends and this habit of

this Generation many times makes them risk averse. The social media plays an important role

in the life of Generation Y as like to remain connected with friends and family. They are



carefree as they discuss and share various ideas on social media platform with friends and

family. This Generation makes most of their decision considering short term perspective and

do not think about the long term consequences. They often take decision considering only a

few parameters of any situation and thus look at any problem from a narrow perspective

(Viswanathan, 2013)

The technology is changing every day. Generations have experienced this change in

technology in different ways. Hence different generations exhibit different digital behavior.

The level of adoption of technology is different in Generation X and Generation Y.

Generation X and Generation Y both are using internet in their daily routine. Generation Y

spend 8 hours a day online and love to remain connected to people online. On the other hand,

Generation X does not like complex technology and use mobile app and internet only to make

their life simple and convenient. This Generation is skeptical in nature and are mostly

cautious while using technology and are not very experimental while using internet like

Generation Y (Labs, 2018).

The summary of characteristics of Generation X and Generation Y is shown in given

below table.

Table 1 Summary Characteristics of Generation X and Generation Y

Generation X Generation Y

Self Reliant Technologically Savy

Willing to learn New Things Impatient

Skeptical Casual

Result oriented Less Outcome Focused

Long Term Perspective Short Term Perspective

Broad Framework Narrow Framework

Brand loyal Trend Conscious

Like Stable Careers Job Hoppers

Cautios Experimenting

Sources: (Yusoff & Kian, 2013)(Yusoff & Kian, 2013)(Acar, 2014).

2.3. Financial Behavior of Generation X and Generation Y

Generation Y are observed as a generation with very high purchasing power as their annual

incomes are pretty high as compared to the previous generations (Nowak, Thach, & Olsen,

2006).

According to Martin and Turley (2014) Generation Y will emerge as more financially

aware generation, they will have knowledge about various investments and will make more

wise investment decisions (Martin & Turley, 2004). As they have easy access to various

information about various financial avenues. This generation is an open minded group who

tend to have higher expectations than their previous generations thus they always look for

investment options which are attractive in terms of returns and convenience. As this

generation has witnessed a period of economic growth, they are less risk averse like the

previous generations when it comes to financial choices. When it comes to spending,

Generation Y spends more than Generation X. As Generation Y is highly inclined to western

culture, they tend to spend more (Curtin, 2009). They always like to live life king size and are

most willing to spend money on things they like and work hard to fulfill and satisfy all their

wishes and desires.

Generation Y is clever then the earlier generations. The people from this generation

always look for better options whether it is career, investment, commodity, insurance or

spending. They are constantly exploring and scrutinizing. As Generation Y is young



population of the country they have fewer responsibilities hence they spend more and make

decisions from a short term perspective. Generation X prefer to save than spending as they

are thinking from long term perspective and have more responsibilities than Generation Y.

The Generation Y love to use credit card but Generation X do not prefer to buy things on

credit they would buy things in cash. Generation X have a conservative approach and they

don't like to experiment and mostly choose to go with traditional instrument for savings (like

Bank Fixed Deposit, Pubic Provident Funds, Post Office Instruments)(Parthasarathy, 2016).

Generation Y in contrast is more open to experimenting and ready to invest in new

instruments such as equity, mutual fund along with traditional debt instruments (Mehta &

Dirchi, 2018).

Generation X and Generation Y have different priorities in their life as they grown in

totally different Environment. Most of the people from Generation X have lived in a joint

family. This this Generation prefers stability. Generation X want to save money for a good

future rather than spend on the present. They usually prefer stable returns and are risk averse.

They like to avoid taking loans, unnecessary spending and make large investment decision

only after a thorough analysis. They out for major investment decision only when other

responsibilities fulfilled and they have surplus funds available with them. Like, they will not

invest on buying a car when they don't have own house. They first prefer to invest on buying

a house (basic necessity) than buying a car (luxury) On the contrary the Generation Y has

different set of goals than their previous Generations. The Generation Y known for their

optimism, social media craziness and impatience may invest on a car when they even do not

have their own house. As per a study done by ICICI Lombard in 2015, it is found that

Generation Y spends about 69% of income every month. Linkedin found out in their study on

„The Affluent Millennial Opportunity‟ that 40% of Indian millennials have brokerage account

and 60% of millennials have not started saving for retirement. 87% of Generation Y like to

travel abroad once in a year and 90% of them save majority of their income for travelling

abroad whereas 88% of Generation X have barely travelled overseas as per a study done by

ICICI (Parthasarathy, 2016).

On a contrary view, Andrea Coombes expressed in her article that the Generation Y are

good at saving for their future but are not good in Investing. According to a survey conducted

by Harris poll , 71 percent of the Generation Y is saving money for the retirement and the

average at which Generation Y have started saving is 24 years. The Generation X started

saving for retirement at an age of 30 (Coombes, 2018).

The financial beliefs and attitudes of these two generations i.e. Generation X and

generation Y have been greatly affected by the economic patterns of the country. There are

found to be some similarities in the investment preferences and financial goals of Generation

X and Generation. The top investment goal among Generation Y and Generation X is saving

for retirement which is saving for the future. The adoption of technology for monitoring their

investment is found to be same among Generation Y and Generation X. (Rogers, 2018)

Min et al (2014) investigated the investment behavior of Generation Y in Malaysia. After

analyzing the data collected from 482 respondents‟ it was observed that the saving behavior,

spending behavior, risk behavior and demographic profile are closely related to the

investment behavior of this generation. Other factors which influence the investment decision

are gender, education, and risk appetite (Min, Gee, & Kian, 2014).

The equity is more preferred option for investment by Generation X. As per You Gov-

Mint Millenial survey54% older generation i.e. Generation X made investment in equity. The

You-Gov-Mint conducted a survey among 5,000 online respondents spread across180 cities.

As per the findings of this survey the difference in investment behavior of Generation X and

Generation Y are majorly due to lower earnings of Generation Y as compared to Generation



X. As Generation Y is young and do not earn as much Generation X. Also the Generation Y

has tendency to consume more and save less and very well explains the reason for this

difference (Kwatra, 2018).

Generation X and Generation Y are grown up in very different economic situations and

circumstances. When Generation X was stepping into the professional world the rate at which

the economy was growing was very slow. On the contrary the Millennials were born in the era

of rapid economical and technological growth and upgradation. Generation X and Generation

Y both of them aspire for a balanced personal and professional life. The only way difference

occurs is how they want it. Generation X love to work for fixed time office hours and doesn‟t

like to work for extra hours. Generation Y like to have flexible working hours and relaxation

opportunities in the premises of office. Generation X is hard working whereas generation Y is

restless, impatient (Mirza, 2018).

It is time that marketers and policy makers embrace these changes in behaviours of these

two generations to better cater to their needs and to prepare themselves for the future

requirements now. It is better to make changes in present to prepare for a better future.

3. RESEARCH METHODOLOGY

3.1. Aim of the Study

This study aims to determine whether there are difference in financial choices made by

Generation X and generation Y.

3.2. Importance of the Study

This study helps to understand the financial choices made by Generation X and Generation Y

which will help policy maker and marketers to cater this group differently. In this study an

attempt is made to understand how Generation X and Y make their financial choices. The

leading two generations which are influencing the market the most today, are Generation X

and Generation Y. These two generations are distinctly different in several behaviors.

(Pesquera, 2005).One more reason as to why it is important to study the investment behavior

of Generation Y is that this generation has more money to spend than any other previous

generation. Thus it is essential that we understand the ways businesses can market to this

Generation. This study will help the policy makers in better understanding the spending

behaviors of these two generations and, will allow them to make suitable strategies.

3.3. Data Collection Method

The primary data for the study has been collected by using a structured questionnaire via

online mode. As the study focuses on understanding the financial choices of Generation X and

Y the questionnaire for the study is designed on the following parameters.

Financial Goals

Investment Behavior

Spending Behavior

Use of Technology.

3.4. Sample Size

The data for the study has been collected by using a structured questionnaire. For collection of

data a total of 750 respondents have been reached. Out of 350, 311 respondents have filled the

questionnaire and 24 have been rejected due to incomplete information. Hence a sample size

consists of 287 valid respondents is considered under study. The random sampling technique



is used to sample from population. The sample comprised of 57.5% i.e. 165 respondents from

Generation Y and 42.5% i.e.122 respondents from Generation X.

3.5. Methodology of Analysis

The data collected was analyzed using independent sample t Test and ANOVA.

4. DATA ANALYSIS

The data collected was analyzed using independent sample t Test and ANOVA. The

independent sample t Test and ANOVA is run to test significance difference between two

Generations and the findings are listed below in Table from 2 to 22.

There is no significance difference among respondents of Gen X and Gen Y in satisfaction

of current financial situation with respect to Profession as shown in given below Table 2.

Table 2 Current financial situation and Profession

ANOVA

Are_you_satisfied_with_the_current_financial_situation_due_ to_ Profession

Sum of

Squares df Mean Square F Sig.

Between Groups 5.516 2 2.758 2.689 .070

Within Groups 291.348 284 1.026

Total 296.864 286

There is no significance difference among respondents of Gen X and Gen Y in satisfaction

of current financial situation with respect to Gender as shown in given below Table 3

Table 3 Current financial situation and Gender

Independent Samples Test

Levene's

Test for

Equality of

Variances

t-test for Equality of

Means


Means

F Sig. t df

Sig.

(2-

tailed)

Mean

Difference

Std. Error

Difference

Are_you_satisfied_with_the_

current_financial_situation

Equal

variances

assumed

7.597 0.006 -

0.142 285 0.887 -0.0172 0.12087

Equal

variances

not

assumed

-0.14 255.784 0.889 -0.0172 0.12263

There is a significance difference between choices of Gen X and Gen Y in satisfaction of

current financial situation as shown in given below Table 4



Table 4 Current financial situation and Generation X and Generation Y


Levene's

Test for

Equality of

Variances


Means


Means

F Sig. t df

Sig.

(2-

tailed)

Mean

Difference

Std. Error

Difference

Are_you_satisfied_with_the_

current_financial_situation

Equal

variances

assumed

0.06 0.806 6.445 285 0.000 0.73378 0.11385

Equal

variances

not

assumed

6.53 272.189 0.000 0.73378 0.11237

There is a no significance difference among Gen X and Gen Y in consultation of financial

advisor as shown in given below Table 5

Table 5 Consultation professional financial adviser and Gen X and Gen Y

Levene's Test

for Equality

of Variances t-test for Equality of Means

F Sig. t df

Sig. (2-

tailed)

Mean

Differe

nce

Std.

Error

Differenc

e

95% Confidence

Interval of the

Difference

Lower Upper

Do_you_ever_

consult_a_prof

essional_financ

ial_adviser

Equal

variances

assumed

2.572 .110 2.830 285 .005 .42360 .14968 .12898 .71821

Equal

variances not

assumed

2.873 273.591 .004 .42360 .14745 .13331 .71388

There is a significance difference among respondents of Gen X and Gen Y in consultation

of financial advisor with respect to annual income as shown in given below Table 6.

Table 6 Annual income and Consultation of Financial Advisor

ANOVA

Annual_income and Consultation of Financial Advisor

Sum of


Between Groups 29.803 4 7.451 7.438 .000

Within Groups 282.490 282 1.002

Total 312.293 286

There is a significance difference among respondents of Gen X and Gen Y in consultation

of financial advisor with respect to Occupation as shown in given below Table 7.



Table 7 Occupation and Consultation of Financial Advisor

ANOVA

Occupation and Consultation of Financial Advisor

Sum of


Between Groups 5.424 4 1.356 2.426 .048

Within Groups 157.593 282 .559

Total 163.017 286

There is a no significance difference among Gen X and Gen Y in deduction from their

Gross salary as shown in given below Table 8.

Table 8 Gross Salary and Deduction


Levene's Test

for Equality


F Sig. t Df

Sig. (2-

tailed)

Mean

Differen

ce

Std.

Error

Differen

ce

95% Confidence

Interval of the

Difference

Lower Upper

Out_of_your_Gross

_Salary_please_spe

cify_the_following

Equal variances

assumed

3.343 .069 -2.532 285 .012 -.284 .112 -.504 -.063

Equal variances

not assumed

-2.613 282.7

39

.009 -.284 .109 -.497 -.070

There is a significance difference in investment made by Gen X and Gen Y from their

Gross salary as shown in given below Table 9.

Table 9 Investment and Gross Salary


Levene's Test for

Equality of

Variances t-test for Equality of Means

F Sig. t df

Sig. (2-

tailed)

Mean

Differen

ce

Std.

Error

Differen

ce

95% Confidence

Interval of the

Difference

Lower Upper

Out_of_your_G

ross_Salary_ple

ase_specify_the

_following_Inv

estment

Equal variances

assumed

6.782 .010 4.014 272 .000 .464 .115 .236 .691

Equal variances

not assumed 4.102 271.8

97

.000 .464 .113 .241 .686

There is a significance difference between choices of Gen X and Gen Y in consultation of

financial advisor as shown in given below Table 10.



Table 10 Gen X and Gen Y and Consultation of Financial Advisor


Levene's

Test for

Equality of

Variances


Means


Means

F Sig. t df

Sig.

(2-

tailed)

Mean

Difference

Std.

Error

Difference

Do_you_ever_consult_a_financial_adviser

Equal

variances

assumed

2.572 0.11 2.83 285 0.005 0.42360 0.14968

Equal

variances

not

assumed

2.873 273.591 0.004 0.42360 0.14745

There is a significance difference in return expected by Gen X and Gen Y from as shown

in given below Table 11.

Table 11 Return expectation and Gen X and Gen Y


Levene's

Test for

Equality of


F Sig. T Df

Sig. (2-

tailed)

Mean

Difference

Std. Error

Difference

95% Confidence

Interval of the

Difference

Lower Upper

Expectat

ion

Equal variances

assumed

7.287 .007 2.823 285 .005 .278 .099 .084 .472

Equal variances

not assumed

2.862 272.8

35

.005 .278 .097 .087 .469

Gen X and Gen Y monitor their investment at same frequency. There is a no significance

difference between Gen X and Gen Y as shown in given below Table 12.

Table 12 Frequency of Investment Monitoring


Levene's Test for

Equality of


F Sig. t df

Sig. (2-

tailed)

Mean

Differenc

e

Std.

Error

Differenc

e

95% Confidence

Interval of the

Difference

Lower Upper

moniteri

ng

Equal variances

assumed

1.606 .206 1.394 285 .164 .19419 .13929 -.07997 .46835

Equal variances

not assumed

1.393 260.00

4

.165 .19419 .13941 -.08033 .46871



There is a significance difference in spending habits of Gen X and Gen Y as shown in

given below Table 13

Table 13 Spending habits of Generation X and Generation Y


Levene's Test

for Equality of


F Sig. t df

Sig.

(2-

tailed)

Mean

Differenc

e

Std.

Error

Differenc

e

95%

Confidence

Interval of the

Difference

Lower Upper

Spending Equal variances

assumed

40.375 .000 -3.583 285 .000 -.263 .073 -.408 -.119

Equal variances not

assumed

-3.773 284.203 .000 -.263 .070 -.401 -.126

There is a significance difference in travelling habits of Gen X and Gen Y as shown in

given below Table 14

Table 14 Travelling habits of Gen X and Gen Y


Levene's Test for

Equality of


F Sig. t df

Sig. (2-

tailed)

Mean

Differenc

e

Std.

Error

Differenc

e

95% Confidence

Interval of the

Difference

Lower Upper

Travelli

ng

Equal variances

assumed

2.635 .106 5.411 285 .000 .72151 .13334 .45905 .98397

Equal variances

not assumed

5.450 267.34

9

.000 .72151 .13240 .46084 .98218

There is a significance difference between choices of Gen X and Gen Y in frequency of

spending on clothing and accessories as shown in given below Table 15

Table 15 Spending on Clothing and accessories of Gen X and Gen Y


Levene's Test for

Equality of


F Sig. t df

Sig. (2-

tailed)

Mean

Differen

ce

Std.

Error

Differen

ce

95% Confidence

Interval of the

Difference

Lower Upper

Clothing_and_a

ccessories

Equal variances

assumed

1.465 .227 -2.894 285 .004 -.37864 .13083 -.63616 -.12112

Equal variances

not assumed

-2.905 264.3

09

.004 -.37864 .13035 -.63530 -.12198




spending on Electronic Gadgets as shown in given below Table 16

Table 16 Spending on electronic gadgets of Gen X and Gen Y


Levene's Test for

Equality of


F Sig. t df

Sig. (2-

tailed)

Mean

Differenc

e

Std.

Error

Differenc

e

95% Confidence

Interval of the

Difference

Lower Upper

Electronic_g

adgets

Equal variances

assumed

1.662 .198 5.305 285 .000 .68932 .12995 .43354 .94509

Equal variances

not assumed

5.234 247.09

7

.000 .68932 .13171 .42990 .94873

There is a no significance difference between choices of Gen X and Gen Y in frequency

of spending on Personal Care and Grooming as shown in given below Table 17

Table 17 Spending on personal care and grooming of Gen X and Gen Y


Levene's Test for

Equality of


F Sig. t df

Sig. (2-

tailed)

Mean

Differen

ce

Std.

Error

Differen

ce

95% Confidence

Interval of the

Difference

Lower Upper

Personal_care_a

nd_grooming

Equal variances

assumed

4.878 .028 -1.723 285 .086 -.24362 .14137 -.52188 .03465

Equal variances

not assumed

-1.695 243.7

11

.091 -.24362 .14374 -.52675 .03951


spending on Weekends as shown in given below Table 18

Table 18 Spending on weekends of Gen X and Gen Y


Levene's Test for

Equality of


F Sig. t df

Sig. (2-

tailed)

Mean

Differenc

e

Std.

Error

Differenc

e

95% Confidence

Interval of the

Difference

Lower Upper

Weeke

nd

Equal variances

assumed

.773 .380 4.287 285 .000 .63626 .14843 .34410 .92843

Equal variances

not assumed

4.264 255.70

8

.000 .63626 .14921 .34242 .93011



There is a significance difference between job changing frequency of Gen X and Gen Y as

shown in given below Table 19

Table 19 Job changing frequency of Gen X and Gen Y


Levene's Test

for Equality of


F Sig. t Df

Sig. (2-

tailed)

Mean

Differen

ce

Std.

Error

Differen

ce

95% Confidence

Interval of the

Difference

Lower Upper

Job_Change

_freq

Equal

variances

assumed

10.929 .001 -3.482 285 .001 -.45420 .13044 -.71094 -.19746

Equal

variances not

assumed

-3.572 280.106 .000 -.45420 .12715 -.70450 -.20390

There is a significance difference in mode of investment choices of Gen X and Gen Y as

shown in given below Table 20

Table 20 Mode of investment choices of Gen X and Gen Y


Levene's Test

for Equality


F Sig. t df

Sig. (2-

tailed)

Mean

Differenc

e

Std.

Error

Differenc

e

95% Confidence

Interval of the

Difference

Lower Upper

Mode_of

_investm

ent

Equal

variances

assumed

24.810 .000 .761 285 .448 .063 .083 -.100 .227

Equal

variances not

assumed

.723 206.364 .470 .063 .087 -.109 .236

There is a significance difference in use of financial software for making investment of

Gen X and Gen Y as shown in given below Table 21

Table 21 Use of financial software for making investment by Gen X and Gen Y


Levene's Test

for Equality of


F Sig. t df

Sig. (2-

tailed)

Mean

Differe

nce

Std.

Error

Differenc

e

95% Confidence

Interval of the

Difference

Lower Upper

Softwar

e

Equal variances

assumed

12.988 .000 2.142 285 .033 .124 .058 .010 .237

Equal variances

not assumed

2.122 251.869 .035 .124 .058 .009 .238



There is a significance difference in choices of Gen X and Gen Y with respect to taking

part in Kitty as shown in given below Table 22

Table 22 Taking part in Kitty by Gen X and Gen Y


Levene's Test

for Equality


F Sig. t df

Sig. (2-

tailed)

Mean

Differenc

e

Std.

Error

Differenc

e

95% Confidence

Interval of the

Difference

Lower Upper

Kitty Equal variances

assumed

13.339 .000 1.766 285 .079 .092 .052 -.011 .195

Equal variances

not assumed

1.799 275.96

0

.073 .092 .051 -.009 .193

5. FINDINGS AND CONCLUSION

It was observed that Gen X is more satisfied with their current financial situation as compared

to Gen Y. As literature supports that Gen Y has high expectations in general and thus they

constantly aspire for higher incomes. Out of the total gross salary, the percentage of

investments made by Gen X is more than Gen Y.

As we know that Generation X is a very skeptical generation (Crumpacker &

Crumpacker, 2007) and they take any financial decision very cautiously. Thus Gen X prefer

consulting financial advisor before taking any investment decision whereas Gen Y doesn‟t not

consult financial advisors very frequently.

When we talk about financial goal, Gen Y saves majority of their income for Travelling,

Buying a car and Buying Electronic items whereas the Gen X is more concerned for children

carrier and future security. Gen Y spends more money on Travelling, Electronic Gadgets and

Weekending whereas Gen X spends more on Clothing and accessories and food products.

When it comes to mode of financial payments or transactions, Gen X is comfortable with

both online and offline modes of payment and uses both alternatively. Whereas Gen Y prefers

online mode more than the offline mode. As Gen Y is more tech savvy they use e-wallets for

making payments more frequently than Gen X.

Majority of Gen Y make payments using credit card for more than 10% of their total

monthly expenses. While the credit use of Gen X is very less. Thus it can be concluded that

there is a significant difference in the ways Gen X and Gen Y spends their money, make

investments and do payments. Also both the generations have very dissimilar financial goals,

thus the policy makers and marketers should cater to these two groups differently. Thus it can

be said that financial choices made by Gen Y are different from that of Gen X.

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