Gen Z is the biggest trend-shaper across industries. From the economy to the music industry, everyone is measuring their behaviour to predict future trends. Podcaster Raj Shamani revealed in the latest episode of his show, ‘Figuring Out’ that a large share of loans taken by Gen-Z goes towards music concerts. In fact, as per the latest Airbnb report, 62% of the generation is driven to new places only because of music experiences.
Saurabh Mukherjea, an ace investor and economist graced the popular podcast recently and the discussion veered towards how the desire to own the same things has shaped the Gen-Z pattern of debts. Such desires become ‘mimetic’ in nature, a concept derived from René Girard’s theory, which is still applicable in the modern economy and spending habits. “The core philosophy is we all want the same things, and we’re going to fight with each other for it,” explained Mukherjea. Chasing experiences more than checklists, several reports and data suggest that Gen-Z is chasing a typical form of lifestyle, stemming from influencers and the cultural pressure to ‘live well’.
How is Gen-Z spending?
Economists in 2025 predict that the overall salaries are decreasing at nearly 6% a year, since they aren’t increasing at par as the increasing cost of living. However, the desire to live a ‘good life’ will always remain intact. “Second-most common use of a personal loan is to go on a holiday,” shared Mukherjea. Adding to the point of the increasing tendency to depend on buy-now-pay-later schemes for lifestyle-supporting needs, Shamani reiterated the need for Gen-Z to attend concerts.
Mukherjea, commenting on this need for Gen-Z to prioritise concerts, remarked, “Unless Chris Martin is going to pay your personal loan, you will have to pay off your debts.” He also predicted the rise problem of defaulters, leading to an overall state of panic among the generation. Pointing towards this mimetic desire, becoming a leading cause of debts and personal loans, Shamani introduced the trend of selective splurging.
What is selective splurging?
In short, Gen-Z is moving towards selective splurging, which, as per Shamani, is the behavioural tendency to “reduce the big buys and accumulate to facilitate the small buys.” Stemming from the same desire to live a certain lifestyle, Shamani pointed out that Gen-Z would prioritise a premium-priced ticket to a concert or experience, rather than buying a car that would prove beneficial in the long run. “They would much rather take a cab to reach their VIP concert experience,” Shamani discussed.
This also points to the larger trend of even the middle-class adults prioritising renting a house and travelling luxuriously over going the conventional way of taking a home loan to afford a house first. However, Mukherjea opined that it is ‘even more deadly.’ He compares the house to a tangible asset to show to the lender. “You cannot show a VIP ticket to a bank and use your experience as currency,” shared the fund manager.
