Gen Z in investing

Key Points:

  • Gen Z in Indonesia is more financially aware and open to new financial products and services compared to previous generations
  • Gen Z has different financial habits than previous generations.
  • Gen Z faces different financial challenges and opportunities than previous generations.

Generation Z (Gen Z) in Indonesia, defined as those born between 1997 and 2012, are entering adulthood and entering the financial world. Compared to previous generations, Gen Z has a different approach to money and investing.

What are the difference with previous generation in financial attitude?

According to a 2023 Financial Services Authority (OJK) study, Gen Z in Indonesia are more financially aware than previous generations. They are more likely to save and invest early, and they understand the importance of financial planning.

Gen Z is also more open to new financial products and services. They are comfortable using fintech apps and online platforms to manage their finances. This is likely because they have been accustomed to technology and the internet since childhood.

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What are the factors that influence Gen Z in investing?

Some of the factors driving the difference in financial approaches between Gen Z and previous generations in Indonesia include:

  • The 1997-1998 global financial crisis: Many Gen Z parents experienced this financial crisis, which made them more cautious about managing their finances.
  • Ease of access to information: Gen Z has easy access to financial information through the internet and social media. This helps them make better financial decisions.
  • The high cost of living: The cost of living in Indonesia, especially in big cities, is getting higher. This is driving Gen Z to be more frugal and find ways to increase their income.

What the main Challenge and Opportunities?

Despite having many advantages in terms of finance, Gen Z also faces some challenges. One of the biggest challenges is the high level of student loan debt.

In addition, Gen Z also faces global economic uncertainty. However, Gen Z also has many opportunities to achieve financial success. They have a lot of time to save and invest, and they have access to technology and information that can help them achieve their financial goals.

Conclusion

Gen Z in Indonesia has a different approach to finance compared to previous generations. They are more financially aware, open to new financial products and services, and have many opportunities to achieve financial success.

However, Gen Z also faces some challenges, such as high student loan debt and global economic uncertainty. It is important for Gen Z to develop a solid financial strategy to achieve their goals.