Gen Z About Financial Planning“/>
The Financial Services Authority (OJK) reminds Gen Z regarding financial planning with the main aim of providing education regarding financial literacy, investment planning, and awareness of illegal financial activities.
OJK Community Financial Advisor Viko Hadian, in Jakarta, Tuesday (22/10), said that financial literacy education was carried out so that Gen Z had a good understanding of financial products and services.
“Apart from that, we can protect ourselves from the rise of various frauds under the guise of investment and illegal financial activities in the digital era,” said Viko.
He said there are several things that need to be considered in managing financial planning, including reducing debt, preserving wealth, developing wealth by investing, maintaining wealth security, and managing finances well.
“To maintain this, Gen Z needs to know about financial literacy, so they are able to understand and manage personal finances effectively. Such as saving habits, investing, managing finances and debt, and planning finances for the future,” he said.
He also touched on three phenomena among Gen Z that have 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 opinions (Fopo).
“In addition to understanding risks, friends must also understand their own financial needs. Don’t follow styles and trends where you get a little money and immediately use it for shopping to follow the trend,” he stressed.
Apart from that, the Fomo phenomenon is also common among Gen Z. Fear of missing out on something, such as young people’s decision to use digital financial services just to follow trends without understanding and managing personal finances effectively.
“Discussing the Fopo phenomenon, which refers to young people’s decision to try digital financial services, for fear of being criticized by other people without knowing whether the service has official permission or not,” he said.
Viko also reminded Gen 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 the authorities such as the OJK. (Ant/Z-1)
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Interview with Viko Hadian of OJK on Financial Literacy for Gen Z
Editor: Thank you for joining us today, Viko. The OJK has recently emphasized the importance of financial planning for Gen Z. Can you elaborate on why it’s crucial for this generation to focus on financial literacy?
Viko Hadian: Thank you for having me. Financial literacy is essential for Gen Z as they are entering a complex economic landscape marked by digital innovations and an array of financial products. Understanding finances helps them make informed decisions, protect themselves from fraudulent schemes, and secure their financial future.
Editor: That’s a critical point. What specific challenges do you think Gen Z faces in financial planning today?
Viko Hadian: Many young adults today are not only facing student debt but also the temptation of quick, easy investments that can often lead them to scams. Additionally, the digital era has made it easier for illegal financial activities to proliferate, which makes education about these dangers paramount.
Editor: You mentioned the need for a comprehensive approach to financial planning. Could you summarize the key areas Gen Z should focus on?
Viko Hadian: Definitely. First, they should work on reducing debt – whether that’s student loans or credit card debt. Second, they need to learn wealth preservation techniques. Third, developing wealth through smart investments is crucial. Lastly, it’s about maintaining financial security and managing their finances effectively, which involves budgeting and regular assessments of their financial situation.
Editor: It seems that education is a big part of your initiative. Can you tell us more about how OJK is working to improve financial literacy among Gen Z?
Viko Hadian: The OJK is collaborating with educational institutions to provide workshops, seminars, and resources that focus on financial literacy. We’re also using digital platforms to reach Gen Z, ensuring that the materials are engaging and easily accessible. Our goal is to empower them with the knowledge they need to navigate their finances confidently.
Editor: Thank you, Viko, for shedding light on this important topic. It’s clear that with the right education, Gen Z can build a solid financial foundation for the future.
Viko Hadian: Thank you for the opportunity to discuss this crucial issue! Financial literacy is a stepping stone to a secure and prosperous future for our younger generations.
Editor: You mentioned the need for a comprehensive approach to financial planning. Could you summarize the key areas Gen Z should focus on?
Viko Hadian: Absolutely. There are several fundamental aspects to consider. First, it’s important to reduce debt and avoid unnecessary financial burdens. Second, preserving wealth through smart savings and investment strategies is crucial. Third, Gen Z should develop wealth by exploring various investment options. Additionally, understanding how to manage finances effectively, including budgeting and planning for future needs, is vital. being aware of financial security issues can help them avoid common pitfalls.
Editor: You also highlighted some behavioral phenomena affecting Gen Z, like YOLO, FOMO, and Fopo. Can you explain how these impact their financial decisions?
Viko Hadian: Certainly. The “You Only Live Once” (YOLO) mentality often leads young people to spend impulsively on experiences without considering long-term financial implications. “Fear of Missing Out” (FOMO) drives decisions based on trends rather than personal financial understanding, pushing them to invest without proper research. “Fear of Other People’s Opinions” (Fopo) can result in poor financial choices to avoid judgment from peers, leading them to engage with unverified financial services. It’s essential for Gen Z to be critically aware of these influences and prioritize their financial well-being over social pressures.
Editor: what advice would you give to Gen Z to improve their financial literacy and planning?
Viko Hadian: My key advice is to educate themselves continuously about personal finance. Start with basic concepts—like budgeting, saving, and investing—and gradually explore more complex financial products. Always verify the legitimacy of any financial service or investment opportunity and seek guidance when needed. It’s crucial to cultivate healthy financial habits early on, enabling them to manage their finances effectively and build a secure future. Remember, being informed and cautious is your best defense against fraud and poor financial decisions.
