lifestyle

Choose "frugal Living" So That Your Finances Don't Get Out Of Control

In early 2025, we were shocked by a wave of layoffs that rocked the economy and took away the source of income for tens of thousands of workers. 

Based on data from the Confederation of Indonesian Trade Unions (KSPI), as many as 60,000 workers from 50 companies were laid off in the period from January to February 2025. Ironically, 90% of them are at risk of not receiving holiday allowances (THR), which further worsens the economic conditions of workers who have lost their main income. 

On the other hand, data from the Central Statistics Agency (BPS) shows that in 2024, the Open Unemployment Rate (TPT) is dominated by the 15-19 age group at 22.34%, followed by the 20-24 age group at 15.34%. This age group is mostly from Generation Z. 

Generation Z, born between 1997 and 2012, is known for its dynamic, creative, and digital-savvy character. However, in terms of financial management, many of them are still trapped in a consumer culture. 

The 2024 Financial Fitness Index Survey revealed that 4 out of 10 urban youth prefer to save to buy branded goods, go on vacations, and even watch concerts. Not infrequently, they also fulfill these tertiary needs by borrowing from friends or family in order to fulfill a luxurious lifestyle that they consider a form of social validation. This excessive consumption pattern is certainly a threat to financial stability in the future. 

In the midst of the storm of mass layoffs and high unemployment rates dominated by Generation Z, frugal living or a frugal lifestyle is an increasingly relevant strategy to survive amid economic uncertainty. Frugal living is not just about reducing expenses, but about building financial awareness, prioritizing needs, and avoiding an excessively consumerist lifestyle. 

For Gen Z, who are often trapped in a culture of hedonism and flexing on social media, switching to a simpler and more sustainable lifestyle is a smart step to maintain long-term financial stability. 

By adopting the principles of frugal living, Gen Z can start getting used to saving, reducing unnecessary expenses, and being wiser in managing income. Especially in the midst of the momentum of Ramadan which is identical with simplicity and self-control, frugal living is not only a financial strategy, but also a spiritual reflection to build a more peaceful and blessed life balance. 

The month of Ramadan is the right moment, not only for Gen Z, but also for all groups to start implementing a frugal lifestyle. Ramadan teaches the values ??of simplicity, self-control, and sharing with others, which are very much in line with the principles of frugal living to reorganize financial patterns in the future. 

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Tag: Central Statistics Agency Frugal Living KSPI THR