Based on Tirto's research in July 2019, Gen Z tends to be wasteful, needs help saving, and is less concerned with future investment needs. This is exacerbated by their low financial literacy level, 44.04%, which is 3.94% lower than that of the millennial generation.
This condition is undoubtedly worrying, considering that bad financial management habits can negatively impact their financial future.
So, what's the solution? Relax, no need to panic! Here are four practical tips for managing finances that suit the characteristics of Gen Z:
1. Boost Financial Literacy Through Digital Platforms
As a digital generation, Gen Z must take advantage of easy access to information to increase financial literacy. Take advantage of social media, online education platforms, and trusted websites to learn various financial topics, such as managing finances, investing, using online banking services, and so on.
Financial literacy is critical to healthy financial management habits and achieving financial goals.
2. Adopt a Frugal Lifestyle (Frugal Living)
A frugal lifestyle suits Gen Z people who are just starting their careers and have limited incomes. This concept is not just about reducing expenses but also about building savings habits, managing debt wisely, and focusing on investments for the future.
Avoid a consumer lifestyle that follows trends and focuses on primary needs. Living frugally can build a solid financial foundation and achieve a more stable future.
3. Increase Income by Sharpening New Skills
In this digital era, Gen Z has many opportunities to increase their income by taking advantage of online platforms to learn new skills that are in demand, such as coding, design, virtual assistants, and others.
You can also become a content creator or freelance writer or participate in online projects to earn extra income. By improving your skills and opening up new opportunities, you can achieve financial independence faster.
4. Keep Limiting Expense Increases When Income Rises
When your income increases, don't be tempted to improve your lifestyle immediately. Stay focused on wise financial management and avoid debt traps or excessive consumption.
Remember always to prioritize your long-term financial needs and goals.
Managing finances well is not easy, but it's possible. Be consistent in applying the tips above, and you will be one step closer to achieving the financial freedom you dream of.
Source: Bisnis.com, mediakeuangan.kemenkeu.go.id
Image : Kenston Capital
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