JAKARTA - Generation Z, which was born between 1997 and 2012, is now facing a fairly serious financial dilemma. Based on a recent survey by Credit Karma, nearly half of Gen Z's adult members admitted that they had no savings at all.
Even more surprising, 49% of z's genes say that planning a financial future feels useless.
Courtney Alev, a consumer financial expert at Credit Karma, said many young people are currently trapped in the 'YOLO' mindset (You Only Live Once).
"They thought, 'Why save for the future?'" he said, quoted from the CNBC Make It page.
According to Alev, this attitude can be dangerous if left unchecked.
"If they are not controlled, they can get caught in high-interesting debt which is difficult to pay, so they are delayed to achieve important goals such as moving from their parents' homes or preparing pension funds," he explained.
The survey showed that many Gen Z spent money on non-essential, entertainment, and lifestyle shopping. The phenomenon of paylater services, online loans, credit cards or other installment platforms is the cause.
Credit Karma notes 77% of Gen Z users admit this service makes them spend more than they can.
"Now it's never as easy as buying goods. Instant payment technology encourages impulsive shopping behavior," said Alev.
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The 2024 New York Fed report found that the delay in paying Gen Z credit cards increased faster than other generations. About 15% have used credit card limits to the maximum.
According toruly Sun, founder of Sun Group Wealth Partners, many young people do not save because they feel they have been burdened with debt from the start.
"They feel they don't have money and many are in debt," he said.
Around 50% of undergraduate graduates in 2022 2023 have an average student debt of 29,300 US dollars or Rp475 million.
In addition, the unemployment rate for the age of 22'27 years is recorded to be higher than the national average, which is 5.8% for undergraduate graduates and 6.9% for those without titles, based on data from the Central Bank of New York as of March 2025.
"If all of these factors are piled up, namely debt, high cost of living, political and economic uncertainty, it is natural that many have lost their enthusiasm for saving," said Alev.
Although difficult, experts think that young people are actually the best time to start a healthy financial habit.
"If you are still young and spending low, this is an opportunity to start investing," said Sun.
Alev suggests starting from small things, such as saving or investing USD 10 or IDR 162 thousand per month.
Sun added tips for controlling expenses, such as giving a 24-hour gap before buying non-essential goods and paying off interest-bearing debts before the investment focus.
"Instead of being stuck in a bad mindset, turn it into a real plan and start a small step." he said.
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