TEMPO.CO, Jakarta - Millennials often make mistakes in financial planning that cause them difficulties to start investing in early years, said a financial planner Prita Hapsari Ghozie.
“First, they are usually willing to take on debt for non-essential things, although they can save money first. For example, buying a new phone. They can actually save up for it, but they prefer to go into debts,” said Prita in a virtual event of Tokopedia on Wednesday, October 14.
Secondly, she went on, young people do not set aside some of their income for life’s unexpected events. Emergency funds are still not considered vital, Prita added.
“Until suddenly the pandemic came, and we all realized that people who can breathe a bit easier are those having emergency funds,” she remarked.
Prita further highlighted that the youths are likely reluctant to start investing because they think they are still young and have the whole world ahead of them so they prefer to have fun as much as they can, such as spending money for hanging out with friends and traveling.
However, she opined that millennials have an opportunity to change those bad financial habits by maintaining routines during the ongoing pandemic.
“We have succeeded to refrain ourselves from hanging out with friends and traveling for the past seven months. We are still alive and fine. It means, this is a good habit that we can maintain even after the pandemic ends later,” Prita said.