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The development in the economy in the last decade has increased the new rich and the middle class and left them with more money to spend. The increased pocket allowances and employment opportunities to earn and spend make the youth of this country as one of the most important force in spending. Youth referred to in this paper are in the age group of 13-25 which consists of about 30 percent of Indian population of 1.22.Million i.e. about 0.366 million. So the role played by youth is the reckoning force in our economy. Spending habits of these youngsters not only indicates the economic and lifestyle trends, but also larger social trends of the country. This paper is an attempt to find out where and how much the youth is spending their money in the city of Mumbai. Primary data on different spending categories of youth like food, shopping, grooming, movies, alcohol, and tobacco were collected and analyzed by using various statistical tools and techniques. ANOVA and T-Test were used to analyze the significant difference in the spending pattern of gender and different groups such as Junior college, undergraduate, professional and post graduate students. Even though majority of the youth are financially dependent on their parents, there is a huge difference in their spending habits. It is observed that this class spends huge money on clothes and accessories and self grooming. The female youth spend comparatively more on clothes, accessories, grooming, and gifts but surprisingly save more money too. Similarly, the professional and postgraduate students spend more money than the other groups. Friends are the most popular variable that influence purchasing.
Keywords: Youth, Economy, Spending, Savings, Students, Influences.
Introduction
The economy is constantly evolving. The basic factor of economy are saving and spending. The previous generation struck a comfortable balance between both. But the younger generation seems to lean more on the spending side. Spending habits of the youth in India have changed a lot in the recent years. The elders invested on assets to ensure that their off springs enjoy a comfortable lifestyle. But the youth of modern India do not have the same mindset. Young Indians are ready to travel all over the world to earn lucratively. This is reflected in the increase...