This study explores the complex relationship between social media influence, aspirational consumption, and financial vulnerability among Indian Gen Z youth. In the digital era, platforms like Instagram and YouTube have significantly shaped young consumers’ lifestyles and spending behaviors, often encouraging credit use to maintain aspirational standards. Using a mixed-method approach with data collected from 800 respondents across eight major Indian cities, this research examines patterns of social media usage, credit dependency, financial literacy, and the psychological impacts of financial strain. Findings reveal that digital peer pressure and influencer-driven lifestyles intensify materialistic desires, leading to increased financial stress among youth. The study highlights the need for targeted financial education and policy interventions to regulate credit access and digital marketing practices. By addressing these challenges, the paper contributes to understanding how consumer culture and digital media intersect to influence financial behaviors and wellbeing among India’s emerging generation.