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Exploring Financial Posts of Gen Z, Millennials, & Gen X: From Installments to Investments

Talking about finance can be tricky. People like to discuss buying things on credit, but not how to pay for them. However, when it comes to important things like education or retirement, many admit that money is still a problem.

Jakpat and Lintar Financial surveyed to find out the level of financial literacy. The report, which involved 1295 respondents, shows what credit they had, financial class participation, and future plans.

Installments, financial allocation, and future-readiness

In general, most respondents do not have credit, dominated by Gen Z (70%) and Gen X (60%). Meanwhile, 45% of Millennials have credit cards such as credit cards (CC), Non-Collateral Financing (KTA), and vehicle loans. More specifically, 3 out of 10 people have CC/KTA installments below IDR 500 thousand per month. As many as 32% of men and 14% of women have CC/KTA installments of IDR 1-1.25 million.

Meanwhile, 40% of respondents have vehicle installments of IDR 500 thousand-1 million, which are dominated by Gen Z and Gen X. Most Millennials have vehicle installments of IDR 1-1.25 million.

In addition to installments, other financial posts are also considered. As many as 63% of respondents allocate income per month to saving. Meanwhile, 27% made investments and 17% set aside money for insurance. In more detail, 4 out of 10 people save a nominal amount of less than IDR 500 thousand per month. Only 10% can save above IDR 2.5 million.

Then, as many as 70% of respondents invest below IDR 1 million per month. As many as 9% of respondents admitted to investing in an amount above IDR 5 million.

“Based on our study, Gen Z’s awareness of allocating money for investment, savings, and insurance is still lower than other groups. This may be due to lower income and lack of experience in managing finances. Moreover, they also have installments such as vehicle installments, so education about financial allocation needs to be improved,” said Jakpat Lead Researcher, Farida Hasna.

When it comes to preparing for the future, the percentage of getting married (59%) and having a family (64%) is almost double that of pursuing higher education (28%) and funding retirement (37%). This is applied to both genders.

In detail, 2 out of 3 men are ready to start a family and only a quarter of women are financially ready to pursue higher education.

Financial literacy

Three out of 10 people claimed to be skillful in managing their finances, meaning they can set aside funds for certain expenses. This figure is in line with participation in finance classes. Only 19% of respondents admitted to having taken finance classes. This means that there are still many Indonesian people who have not been educated about the importance of financial planning in their daily lives, which has a big impact if they are not ready to face bad financial conditions.

“One of the important financial plans is the preparation of pension funds. Although the majority of Gen Z and Millennials admit that they are not ready to retire, the fact is that as many as 56% of Generation X who are more mature also feel that they are not ready to retire. This shows the need for more intensive financial education,” said Hasna.