The Financial Services Authority (OJK) is intensifying financial literacy programs for the younger generation to increase understanding of financial services sector products and services, including investing in financial products.
“Many are tempted by tempting offers, without realizing that these investments do not have clear legality and are registered with the relevant regulator,” said OJK Chief Executive of Capital Market, Derivative Finance and Carbon Exchange Supervision Inarno Djajadi in Jakarta, Saturday (5/10) .
Inarno conveyed this in the OJK Teaching activity at Kuningan University (Uniku), Cirebon, West Java, Friday (4/10), with the theme Smart Investment for the Young Generation, as a series of commemorations of the 13th anniversary of the Financial Services Authority (OJK). and Financial Inclusion Month (BIK) 2024.
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On that occasion, Inarno encouraged students to better understand and utilize various products and services in the financial services sector which are increasingly easily accessible as part of financial planning.
He appealed to all students and academics to be careful, study and understand the various characteristics of financial products and services, starting from benefits, risks, technical transactions, to problem complaint mechanisms.
He advised students not to get trapped in illegal investments that promise high returns and risk harming consumers.
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On a different occasion, Bank Jago’s Consumer Business Community Manager, Edo Velandika, said that most of young people’s financial problems arise from consumer behavior that is not balanced with sound financial management.
“For this reason, the younger generation must be financially literate and learn to manage finances well. You can start by introspecting your lifestyle, then saving or creating budget items based on a priority scale, and finally starting to invest early,” said Dika in a statement in Jakarta, Sunday.
Dika put forward the basic concept of 3F financial management, namely fix, fun, and future, which refers to three budget criteria that must be understood when making financial plans. Fix means separating expenses that are definite or fixed costs, such as food costs, installments or renting a residence, and other expenses that are mandatory. That’s usually around 50% of your total monthly income.
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Then, fun, which is an allocation of funds for fun activities, such as watching films or music concerts, hobbies, sports or holidays.
Lastly is future, namely the allocation of funds prepared early on to meet unexpected needs and something that is long term or for the future.
For example, emergency funds, retirement funds, or costs for continuing education. The future budget has at least an allocation of 20% of total income. (Ant/Z-11)
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