OJK Reminds Gen Z About Financial Planning

Illustration (Photo: Doc Antara)

JAKARTA - The Financial Services Authority (OJK) reminded Generation Z regarding financial planning with the main aim of providing education on financial literacy, investment planning, and awareness of illegal financial activities.

Financial Advisor of OJK Community, Viko Hadian, in Jakarta, Tuesday, said that financial literacy education was carried out so that Generation Z had a good understanding of financial products and services.

"In addition, it can fortify itself from the rise of various frauds under the guise of illegal investment and financial activities in the digital era," he said as quoted by ANTARA, Wednesday, October 23.

He said there are several things that need to be considered to regulate financial planning, including having to reduce debt, preserve wealth, develop wealth by investing, maintaining wealth security and managing finances properly.

"To maintain this, Generation Z needs to know about financial literacy, in order to be able to understand and manage personal finances effectively. Such as the habit of saving, investing, managing finances and debt, as well as planning finances for the future," he said.

He also mentioned three phenomena among Generation Z which had a negative impact when using digital financial services. The three are you only live once (Yolo), fear of missing out (Fomo), and fear of other people's opinion (Fopo).

"In addition to understanding about risks, friends must also understand their own financial needs. Do not join the style and trend that can be used a little money directly for shopping to follow the trend," he said.

In addition, the phenomenon of Fomo is also common among Generation Z.

Fear of missing something, such as the decision of young people to use digital financial services just to participate in the trend without understanding and managing personal finances effectively.

"And alluding to the Fopo phenomenon which refers to the decisions of young people by trying digital financial services, for fear of being criticized by others without knowing whether the service has an official permit or not," he said.

He also reminded Generation Z to continue to understand the mode of offering digital financial services. He advised to always be careful and not easily believe the various offers circulating by ensuring that the service has official permission from authorities such as the OJK.