Along with the development of technology, especially in the financial and banking sectors, various fintechs are competing to offer digital-based financial service products targeting Gen Z. On the other hand, according to data from the Financial Services Authority (OJK) National Survey of Financial Literacy and Inclusion (SNLIK) in 2022, the level of financial literacy in Indonesia is still at 49.68%. Thus, there needs to be a financial literacy program that targets the community, especially Gen Z, which has the largest population of around 74.93 million people.
Therefore, Universitas Indonesia (UI), through the Digital Financial Center (DFC), Vocational Education Program together with the Center for Indonesia Policy Studies (CIPS) held the seminar “CIPS Learning Hub Goes to Campus,” on Thursday, September 12, at the UI Vocational Campus. This activity, which is aimed at Gen Z entrepreneurs and students in general, raised a topic entitled “Wirausaha Muda yang Bijak Finansial” (Young Entrepreneurs Who Are Financially Wise).
The seminar presented several business actors, such as Zaki Jauhar, Finance Director of Nibras Corp; Muhammad Nidhal, CIPS researcher; and Dede Suryanto, an academic and digital finance observer, who managed to identify several important issues of financial literacy among Gen Z entrepreneurs. Starting from the implementation of financial literacy in entrepreneurship which is considered still low to Micro, Small, and Medium Enterprises (MSMEs) who do not separate business and personal financial records.
On that occasion, Zaki said that knowledge of financial management is important for entrepreneurs, one of which is to make funding decisions. “Utilization of funding sources through fintech must be done with precise calculations so as not to pose a financial risk to their business. MSME actors are very vulnerable to being trapped by offers of loans from fintech with high interest that they are not aware of,” said Zaki.
In addition, responding to the rampant online product offerings on various e-commerce platforms, Nidhal said that facing the many promo offers on marketplace platforms and social media often makes Gen Z behave consumptively. Nidhal said that self-control through financial management is very necessary to prevent impulsive buying behavior.
“My advice is to restrain yourself from the desire to shop and create a special social media account for shopping separately from your private account so that you are not overshadowed by the algorithm from e-commerce. The key to self-control in financial management is to make good financial planning in accordance with the financial goals to be achieved,” said Nidhal.
In line with Zaki and Nidhal’s presentation, Dede said that financial literacy begins with the process of understanding the financial products offered, knowing the functions and benefits of the product, and paying attention to the security aspects in its use. “No less important, we need to ensure that the financial products offered have official permission from the Financial Services Authority to avoid unwanted risks in the future. After being assessed as safe and deemed useful, the financial product can be used for daily needs,” said Dede.
Closing the interactive discussion session with the audience, Dede, who is also the Chair of the UI Vocational Digital Financial Center, emphasized that financial literacy is a shared responsibility, both the government, the world of education, financial industry players, and all elements of society in the form of collaboration and synergy from all parties.
“Financial literacy among Gen Z must be carried out intelligently and intelligently. In other words, Gen Z must have financial intelligence, be careful, and wise in using various digital financial products in everyday life,” said Dede.
