Erasing the Consumptive Stigma: Understanding the Financial Strategies of Gen Z and Millennials in 2026

Amid the dynamics of hustle culture and social media exposure, financial anxiety is becoming an increasingly real phenomenon for young Indonesians. The question “is my money enough?” is no longer just about numbers, but is closely tied to mental stability and the search for identity.

The latest data shows a major shift in how the younger generation views well-being. Based on the ‘Indonesian Millennial & Gen Z 2026’ report from IDN Research Institute, both generations are beginning to abandon traditional success parameters such as home ownership or long-term savings, moving towards more personal and value-based financial management.

This change is driven by challenging economic realities. Currently, only 29% of Indonesians aged 25-34 own a home due to high down payments and wage stagnation.

Additionally, the shrinkage of the middle class by 10 million people from 2019-2024 emphasises that conventional financial discipline no longer guarantees upward mobility.

This phenomenon has given birth to a new adaptation called ‘soft saving’.

Unlike Millennials (69%) who still prioritise a three-month emergency fund, only 23% of Gen Z do the same. Rather than being irresponsible, Gen Z tends to blend emotional spending goals with technology-based financial habits.

For young Indonesians, saving now becomes a way to gain control in an unpredictable world. Spending priorities have shifted to self-care aspects, from mental health, skincare, to collective experiences like concerts.

The report identifies this spending as emotional infrastructure to prevent burnout. In fact, 49% of urban Gen Z deliberately limit spending not just to save, but to maintain mental health or for mental cleansing.

This trend is also being responded to by the fintech industry. One of them, Elev8, a global broker, is starting to focus its trading ecosystem on reducing users’ psychological burden in wealth management, so that investing no longer feels mentally exhausting.

Job instability and rising prices are now seen as part of the new economic structure. Instead of chasing rigid portfolio growth, the younger generation chooses alignment between financial conditions and quality of life.

In practice, financial peace is achieved through small, sustainable steps. The use of interactive budgeting apps (gamification) and smart investment platforms become key instruments.

Ultimately, financial success for Millennials and Gen Z is no longer about what is owned, but how that money can support life balance and peace of mind.