Big Dreams, Financial Reality: Why Young People Need to Plan for the Future Early

JAKARTA - Many young Indonesians, especially Gen Z and millennials, have big dreams for the future, ranging from building their own businesses, having financial freedom, to living more independently economically. However, behind this optimism, not a few feel anxious: are their financial conditions today strong enough to realize their dreams for the future?

The YouGov survey found that, by 2025, 46 percent of the sandwich generation said their income had not increased. Meanwhile, the cost of living continues to rise and makes this generation face financial challenges, including inflation (47 percent) and a decrease in income from business (31 percent).

Based on data from the Central Statistics Agency (BPS) in 2020, there are around 71 million Indonesian people who fall into the sandwich generation category, who have to bear the cost of living for parents and children. This fact shows how the sandwich generation faces very diverse dynamics and financial challenges.

The challenge is felt in everyday life. Many Gen Z and millennials postpone important financial decisions because they feel they are not ready to face future risks. The pressure of living costs, changes in the labor market, to family responsibilities - especially for those in the sandwich generation position - make young people more aware that optimism alone is not enough without careful and sustainable planning.

Based on an internal survey also conducted by Human8 from Prudential on "Financial Mindset of Young Adults in Asia", in 2025 noted that 82 percent of Indonesian young people began to think about financial planning, and 88 percent of them want to have protection and can be established in old age so as not to become a burden on the family.

In line with this, the Indonesia Millennial and Gen Z Report 2026 by IDN Research Institute also shows that 63 percent of young people have side jobs to help their families, and 60 percent do it to prepare personal savings. This fact reflects the spirit of the younger generation to be more independent, productive, and responsible for their future.

This is where financial planning from an early age is crucial. Awareness to prepare and manage expenses has begun to grow, but it needs to be complemented by a more comprehensive strategy, starting from understanding the risks when starting to invest, preparing emergency funds, to building financial protection.

Choosing a protection service that can provide certainty in cash value in the form of Mapan Fund, can be one of the efforts to avoid losses due to investments caused by market volatility that can occur at any time. This plays an important role in protecting income and providing peace of mind, so that life plans do not stop when unexpected risks come.

For more than 30 years in Indonesia, Prudential Indonesia is committed to being a trusted partner and protector for the current and future generations through various educational initiatives and adaptive protection solutions. This commitment aims to help young people build a financial foundation that is not only strong to realize a stable future, but also flexible in facing changing needs at every stage of life through every innovation of protection products available to the public.

4 Practical Steps for Financial Planning for Young People In order for financial planning to be more effective and relevant, here are some practical steps that can be applied early on:

1. Determine your life and financial goals clearly Starting from short-term to long-term goals, such as building a business or protecting your family, so that financial management has a concrete direction. For example, for young people who want to build a business in the future, they can start setting aside special funds from now on regularly so that they can #MapanTerkendali.

2. Discipline regulates cash flow from the beginning of your career. Get used to recording income and expenses, and consistently set aside funds. This can make spending more controllable and prevent the habit of living beyond your means. For example, set a monthly spending limit for hanging out or online shopping, then allocate a portion of your income to automatic savings.

3. Build financial protection by having protection Life insurance serves as a safety net when unexpected risks occur, so that life plans continue. For young people who have families or become the backbone of the family, having this protection can give peace of mind because the closest people are financially secure so that they can avoid unexpected risks. PRUMapan from Prudential Indonesia can be one option to answer this need with the Mapan Fund Benefit that can be paid annually starting at the age of 55 to 75 years, while ensuring the certainty of life protection for families in the event of unexpected risks.

4. Increase financial literacy and take advantage of flexible solutions Good financial understanding makes young people more confident in choosing products that suit their needs. With flexible solutions, financial planning can be adjusted as career, income, and life goals change.

Financial literacy from a young age is an important foundation so that young people are not only brave to dream, but also ready to make it happen. Financial planning is not about delaying pleasure today. With proper planning, young people can step more calmly, protect the people they love, and focus on building the future according to their dreams.

In the end, financial planning from a young age is not just a strategy for managing money, but an investment for security and freedom in living a stable life. With the right foundation and adequate protection, young Indonesians can step forward with more confidence, independence, and consistency in realizing their dreams for the future, without sacrificing their own or their family's peace of mind.