Anti Bokek! Here's An Easy Way To Regulate Finance For Gen Z

Illustration of Gen Z managing finances (Freepic)

JAKARTA - Managing finance is a very important skill in the modern era, especially for Generation Z which is growing amidst the development of digital technology and a fast lifestyle.

As a generation known for adaptive and creative, Gen Z faces unique financial challenges such as the "you only live once" (YOLO) and "fear of missing out" (FOMO) lifestyles. This habit often makes financial management a big challenge.

To that end, understanding smart strategies in managing finances can be the key to long-term financial success.

Financial expert and Director of Finance and Risk Management of LKBN ANTARA, Dr. Nina Kurnia Dewi, invites Generation Z to understand the importance of distinguishing between needs and desires.

The desire is different from the need. If you want something (the tertiary need), the mindset (of the mindset) that you have to build is saving, not debt. There are two approaches here, namely a saving and debt mindset. I suggest strengthening a saving mindset," Nina said as quoted by ANTARA.

Dr. Nina explained that the first step in managing finances is to set financial goals early on. This includes various aspects, such as investing in health through exercise and a healthy diet, to developing skills to improve self-capacity.

With a clear goal, Generation Z can focus more on managing their financial priorities. In addition, noting spending is an effective way to understand consumption patterns. By making budgets and financial reports, Gen Z can evaluate their spending habits and find ways to be more economical. For example, by recording daily expenses, they can find out which posts require savings.

Saving for emergency funds is also very important in ensuring financial stability. Dr. Nina recommends that each individual has sufficient funds to meet the needs of life over the next six months. This provides financial protection when dealing with unexpected situations, such as job loss or other emergency conditions.

One of the biggest challenges faced by Generation Z is the temptation to buy items that are not needed, especially because they are influenced by FOMO or YOLO. Dr. Nina emphasized the importance of distinguishing between need and desire not to be complacent with consumptive debt.

"Avoid buying goods that are not really needed just because they are pushed by FOMO or YOLO. This can make you complacent and thwart the financial plans that have been made," he added.

Dr. Nina also encourages Generation Z to continue learning about finances through various educational platforms. In addition, finding an experienced mentor in financial planning is also a wise step to manage long-term finances. Mentors can come from those closest to them who have knowledge and experience in the financial field.

As part of self-introspection, Dr. Nina invites young people to evaluate their consumption patterns, including spending on trending things. For example, spending on buying contemporary coffee. Try introspection, will we have difficulty if we reduce spending, such as for contemporary coffee? Otherwise, it is better to allocate these funds to save or invest. That way, our quality of life will be better maintained," he explained.

By implementing these steps, Generation Z can build a strong financial foundation to face a brighter future. Wise financial management from an early age is the best investment that can be made to achieve financial freedom and quality life.