Kolkata’s 2024 population is now estimated at 99,723,000. In 1950, the population of Kolkata was 4,604,143. Kolkata has grown by 237,993 in the last year, which represents a 1.55% annual change. The total number of millennials found in Kolkata is 25’343’015 compared to the number of Generation Z which accounted for 16’756’231. The study on Behavioural finance compares the financial behaviour, financial awareness, financial preferences, investment patterns in different asset classes, and financial inclusion of Millennials and Gen Z. The purpose of this type of studies is to understand the similarities and differences between these two generations and to identify factors that influence their financial decisions. The findings show that Millennials and Gen Z have different financial behaviours, investment patterns, and financial preferences. Millennials tend to be more risk-averse and have a preference for traditional investment options, while Gen Z is more comfortable with technology and alternative investment options. Financial literacy and financial education play a significant role in shaping the financial behaviour and investment patterns of both generations. Similar studies recommends that policymakers and financial institutions should focus on improving financial literacy and increasing financial inclusion to promote better financial decision-making among both generations. While there has been some economic liberalization in India since the late 1970s, real economic changes didn’t start until July 1991. A large reform package was adopted as a result of an International Monetary Fund (IMF) program that was made possible by a balance of payments crisis at the time.  Post liberalization, India has witnessed a pivotal change in the buying pattern. In the past, wealth accumulation was used to finance spending. Millennials used to have a different purchasing pattern: they were risk averse, but now they are starting to take more risks. Even yet, the transformation is not as great as it would be for Generation Z.

Opinions about the standard and behavioural finance schools of thinking have diverged. According to (Baker and Nofsinger, 2010), standard finance makes the assumption that investors behave rationally and possess sufficient market knowledge throughout the year to enable them to make realistic investment decisions, which maximize profits while minimizing risks to the lowest feasible degree. Additionally, it is believed that each investor is fully accountable for their activities in the financial markets and that the market is not impacted by the decisions they make, only the investors themselves would be affected (either favorably or unfavorably).

Important facets of personal finance that might impact someone’s financial well-being include investing patterns, financial behaviour, financial awareness, and financial preferences. On the other side, financial inclusion refers to the accessibility and availability of financial services to all societal members. In recent years, as governments have worked to advance financial stability and economic expansion, the financial inclusion agenda has gained momentum.

The purpose of this study is to examine the financial literacy of Generation Z and Millennial. According to a working definition, millennial is those who were born between 1981 and 1996. On the other hand, Generation Z is made up of everyone born between 1997 and 2012 (Bhushan & Medury, 2013).  Better decision-making can be accomplished for those who have received financial education because Individuals generally struggle to make confident decisions about personal economic matters and frequently end up making blunders. A significant increase in people’s financial literacy is required. This is achievable with timely and well targeted financial education initiatives for the proper audiences. We need to be aware of the degree of financial behaviour, attitudes, and knowledge in order for financial education to be effective (Bhushan & Medury, 2013).  India lags behind in the use of digital payments due to its cash-intensive economy and lack of understanding (Kumar, 2020).  Financial literacy is defined as the capacity of an individual to make knowledgeable decisions about the use and management of resources (Worthington, 2013).

-Subhadeep Das Assistant Professor,Dinabandhu Andrews Institute of Technology & Management