Young professionals today are prioritizing experiences over traditional tangible assets in their financial planning. According to the Mastercard Economics Institute's Travel Trends 2025 report, consumers globally continue to prioritize spending on travel and experiences despite broader economic uncertainty, with experiential spending remaining resilient as people increasingly choose to spend on memories rather than material possessions. As reported by The Economic Times, experiences have moved from the margins of household budgets to the centre of financial planning, with aspirations now centering on overseas concerts, Himalayan treks, culinary tours, Formula One races, destination weddings, and family holidays.
Financial institutions are responding to this shift by designing products around lifestyles and travel utility rather than simply retail transactions. The FD-backed FIRST WOW! Black Credit Card by IDFC FIRST Bank exemplifies this evolution, combining travel-oriented features like airport lounge access, zero forex mark-up, rewards on daily spends, and bonus reward points on travel bookings via the IDFC FIRST Bank app, while providing UPI payment convenience. As reported by The Economic Times, this represents a move from facilitating purchases towards enabling lifestyles, with financial value increasingly measured by what consumers can experience rather than what they own.
Despite the resilience of experiential spending, recent market volatility has prompted consumers to reassess their financial priorities. According to PwC's 2026 Market Volatility Survey, consumers are focusing on practical measures with 51% reporting renewed focus on budgeting, 39% cutting discretionary spending, and 29% increasing savings. The survey of 1,004 consumers reveals that 75% say the financial behavior changes they've made reflect lasting shifts, while 94% of executives agree that client behavior changes reflect lasting structural shifts. However, consumers continue to prioritize experiences, with aspirations centered on travel and lifestyle experiences that contribute to personal well-being and relationship building.
While executives increasingly rely on AI tools for financial decision-making, consumers maintain strong preferences for human financial guidance. According to PwC's 2026 Market Volatility Survey, 91% of financial services executives say tech and AI tools are becoming more important, but only 53% of consumers trust AI-powered financial tools during market volatility. The survey of 204 FS executives found that 42% of clients increased focus on budgeting or financial planning, 44% delayed major financial decisions, and 39% shifted investments toward lower-risk options. Despite AI advancement, 87% of consumers say they'll continue to value human financial guidance even as AI tools become more sophisticated, with 93% of executives confirming human expertise remains essential.
The experience economy continues to shape consumer finance amid broader economic challenges, with persistent inflation concerns and market volatility influencing financial planning strategies. Recent economic data shows retail sales increased 0.9% in May, beating expectations, while online retailers remained especially strong with nonstore sales rising more than 12% year-over-year. However, annual consumer inflation climbed to 4.2% in May, marking its highest level in three years. The Atlanta Federal Reserve's GDPNow model estimates the economy will expand at an annualized rate of 3% during the second quarter, supported largely by healthy consumer spending. As reported by The Economic Times, new-age banks are redesigning credit card portfolios around travel utility, lifestyle access, and long-term value, with the future of consumer finance increasingly focused on enabling experiences that consumers regard as meaningful parts of their financial lives.
