BTN Partners with Unpad to Boost Student Financial Literacy and Open Career Opportunities
PT Bank Tabungan Negara (Persero) Tbk (BTN) is encouraging the younger generation, particularly university students, to be wiser in managing their finances amidst lifestyle changes and digital developments. BTN President Director Nixon LP Napitupulu conveyed this during a public lecture at Universitas Padjadjaran (Unpad).
On the same occasion, a Memorandum of Understanding was signed between BTN and Unpad regarding the utilisation and provision of banking products and/or services. The partnership was established to strengthen collaboration between the banking industry and the education sector.
Nixon stated that today’s youth have a growing financial awareness but still face challenges in building long-term financial capabilities. “Many Gen Z individuals are already financially aware, but the challenge lies in how to increase economic capacity and make sound financial decisions,” Nixon said at the Unpad Rectorate Building in Jatinangor.
According to Nixon, lifestyle phenomena such as doom spending, fear of missing out (FOMO), fear of other people’s opinions (FOPO), and you only live once (YOLO) must be balanced with proper financial understanding. He also cautioned that young people need to be wary of the risks of negative activities like online gambling, which can harm financial health.
Nixon emphasised that a key aspect of financial management is understanding the difference between good debt and consumer debt. He explained that appropriate debt can help a person build assets and improve long-term welfare. “Debt must be calculated carefully. The right kind of debt is when, after it is fully repaid, you feel wealthier because you own an asset whose value has increased. Do not take on debt for something that is quickly consumed while the repayment obligation lasts for years. For example, borrowing for a one-week holiday but paying instalments for five years,” he said.
He cited home ownership as an example of a long-term financial decision that the younger generation can prepare for early on, given that housing needs continue to rise along with population growth and increasing asset prices. “Inflation is inevitable. Therefore, young people need to start planning their financial future, including owning assets that appreciate in value, such as a house,” he added.