Why Gen Z has Stopped Saving

It’s late at night. You’ve just finished a long shift at a software house in Gulberg or an office in I.I. Chundrigar Road. You’re lying in bed, scrolling through your phone. You graduated from a top engineering university and you’re making Rs. 100,000 a month. By Pakistani standards, for a first job, that’s not bad at all. Your parents are proud.

Then, you open Zameen.com. Look at the price of a modest 5-marla house or a small apartment in a decent area like Bahria Town or Gulshan-e-Iqbal. You realize the starting price is 1.5 to 2 Crore Rupees.

You do the math. Even if you save every single rupee and don’t spend anything on food or rent, it would take you 15-20 years to buy that house. But in 20 years, that 2 Crore house will probably cost 10 Crore.

At this point, you feel like you’ll never own a home. Suddenly, a Foodpanda notification pops up. You’ve already had dinner, but you think, “What’s the point of saving anyway?” You spend Rs. 1,500 on a dessert because you want to feel happy now.

This is Financial Nihilism. It’s a “give-up” mode where saving and investing feel pointless because the big goals are completely out of reach.

The Reality: Salaries vs. Inflation in Pakistan

If you joined the workforce in 2012, a decent starting salary might have been Rs. 35,000. Today, entry-level salaries in many sectors are still stuck around Rs. 45,000 to Rs. 60,000.

But look at what has changed in those 12 years:

Real Estate: Plots in areas like DHA or E-11 Islamabad that were affordable for the upper-middle class are now priced in the hundreds of millions.

Cost of Living: In 2012, petrol was under Rs. 100. Today, it fluctuates at historic highs. Electricity bills that used to be Rs. 3,000 are now Rs. 15,000 for the same usage.

The Ratio: The gap between the average Pakistani salary and the price of a basic home has widened so much that for most Gen Z-ers, the “American Dream” (or the Pakistani version of it) is dead.

Where is the Money Going?

Since buying a house feels impossible, young Pakistanis are spending on “experiences” and immediate gratification:

Food Culture: Pakistanis spend billions annually on dining out and delivery. If we can’t own a roof, we might as well eat well.

Travel & Northern Areas: There is a massive surge in young people traveling to Hunza, Skardu, or Turkey. They are allocating a huge chunk of their income to travel because “memories last, but the economy won’t.”

The Ease of Digital Payments: With Easypaisa, JazzCash, and banking apps, spending small amounts—Rs. 200 here, Rs. 500 there—is too easy. We don’t feel the “pain” of handing over physical cash anymore.

The “Phupoo ka Beta” has become “Instagram”.

In our parents’ time, the comparison was only with the neighbor’s son. Today, the comparison is with the entire world. You scroll through Instagram and see a 22-year-old “Freelancing Virtuoso” buying a Mustang or a 20-year-old influencer on a beach in Dubai.

Psychologically, this tells you that you are a failure. If you haven’t made millions by age 23, you feel like you’ve lost the race.

Stable Job in Pakistan – Should You Still Go Abroad?

The High-Risk Gamble

Because “boring” saving doesn’t work, this generation is taking massive risks. This is why Pakistan has seen a huge interest in:

Crypto & Forex: Hoping for a “100x” return to escape the middle-class trap.

Binance & Trading Apps: Young people are using their small savings to trade, often losing it all because they are desperate for a shortcut.

Scams: Falling for “Double Shah” style online schemes because the legal path to wealth seems blocked.

What Should You Do? (Advice for the Pakistani Gen Z)

If you’re in your 20s in Pakistan, the pressure is literally out of control. Inflation is eating your dreams, and the political/economic instability makes the future look dark. But here is how you survive:

Believe in Financial Discipline: Start a small “SIP” or a monthly saving habit in a Mutual Fund or a Shariah-compliant income fund. Even if it’s just Rs. 5,000 a month. This isn’t about getting rich today; it’s about building the habit. When your income grows to Rs. 5 Lakh, you will already have the discipline to save Rs. 1 Lakh.

Don’t be “Penny Wise and Pound Foolish”: Skipping a Rs. 600 coffee once a week won’t buy you a house in DHA. Don’t deprive yourself of every small joy. Use the 70/30 rule: Save/Invest 70%, and use 30% for “Guilt-Free” spending. You earned it.

Avoid Bad Debt: In your 20s, do not take loans for a car or a fancy wedding. The only “good” debt is for education or a business that earns money. Don’t tie yourself to loans or heavy installment plans when your career is just starting.

Stop the Comparison: Your parents bought houses because land was cheap and the population was smaller. Your friend on Instagram might be faking it or has “generational wealth.”

Live for yourself. Use your money to build a life that you enjoy, not a life that looks good to others.