Heaptalk, Jakarta — The dynamics of people’s behavior in the archipelago in investing have undergone a significant transformation in the last five years amid rapid technological developments, the impact of social media, and the digital acceleration that occurred during the pandemic and post-pandemic era.
The latest report of Populix revealed that the financial priorities of millennials and Gen Z indicated an exciting picture of their life stages, attitudes, and aspirations. The millennial generation considers their financial planning centered on responsibility for family requisites and long-term financial preparation.
Based on the research, their main focus is ensuring the stability and comfort of the family. Meanwhile, Gen Z’s financial planning is determined by their youth and current situation, with an economic focus on lifestyle, hobbies, and recreation.
The data demonstrated that millennials and Gen Z agree that saving (78%) and long-term investing (58%) are the most important financial goals, followed by retirement savings (45%), saving to buy a home (45%), starting a business (40%), buying a new car (26%), holiday abroad (21%), and saving for children’s education (21%).
Millennials and Gen Z also show better financial management literacy in the current technological era. The data recorded that around 60% of respondents claimed that they had arranged their financial budget, approximately 54% of respondents recognized that they tracked their expenses regularly, about 38% of respondents utilized financial applications to manage their costs, as well as various investment efforts in different instruments which male dominates.
In terms of investment, this rising generation considers investment to guarantee future financial security. However, data indicated the differences in investment goals between millennials and GenZ. In more detail, the Millennials generally possessed a more profound comprehension of economic potential and strategy through investment activity.
Millennials prioritize obtaining high profits with as little risk as possible from their investments. Despite showing an increased interest in investing for the future, Gen Z’s investment behavior still needs to be improved due to the limited budget and knowledge about investment instrument options.
