New Delhi, Nov. 2 -- The festive season traditionally brings the highest consumer spending among Indian households. A recent report by YouGov and Rukam Capital found that 60% of Gen Z shoppers increase their spending during major festivals, with 25% spending significantly more and 35% somewhat more.

But the world around us is changing. News of layoffs in the IT sector, muted salary hikes and inflation inching up again warrant a closer look at how households spend and splurge. We spoke to individuals to gauge the mood and to experts on how households should respond.

Diwali is usually when families want to celebrate, buy something new and gift friends and relatives. The festive spirit makes spending part of the occasion. Preeti Zende, a S...