Saving Tips Practically For Gen Z, For The Sake Of A More Prosperous Old Age

JAKARTA - Consumptive lifestyles and various trends that appear on social media have caused hedonism to increase among Generation Z or Gen Z. This makes it difficult for Gen Z to manage their finances.

It was also complicated with a third of gen Z not feeling confident in managing finances, quoted from Synchrony, on Friday, January 17, 2025. Even 82 percent said they were not in the conditions they wanted financially.

This situation certainly has to be changed, with Gen Z managing finances and saving, so that life in old age is more prosperous. Here are some practical savings tips for gen Z.

1. Regulate the budget

Budget is very important so that the savings process is more proactive. By regulating the budget, you will be helped to manage income and expenses, which can be categorized as a necessity, desire, and savings.

The most important thing to regulate in the budget is the need and savings. After taking into account your needs and savings, you can set the category of desire to be sufficient.

2. Overcome debt

Debt will burden your life, including in the old age, especially if those with high interest rates. Therefore, it is important to manage and pay off debts.

One of the best methods to remove debt in the most cost-effective way is to use the principle of debt avalanche or debt avalanche. In this principle, pay off the debt with the highest interest rate first.

3. Determine various financial goals

Clear financial goals make it easier for you to manage money and save it. You can start and set goals in several time categories, as well as invest money in interest-bearing savings accounts, which suit your needs.

For example, investing in long-term goals such as retirement, savings for the medium term, short-term goals such as entertainment and holiday funds. This will make your savings process more practical and easy.