LPS Urges Young Generation to Manage Finances Wisely in the Digital Era

Wakil Ketua Dewan Komisioner Lembaga Penjamin Simpanan (LPS), Farid Azhar Nasution, has urged the younger generation to be wise in managing their finances, particularly in the midst of digital development. He stated that low literacy levels directly influence the financial behaviour of society, especially young people. Various social phenomena, such as fear of missing out (FOMO), you only live once (YOLO), and fear of other people’s opinion (FOPO), often influence individuals in making irrational financial decisions. “The urge to follow trends, maintain prestige, or adopt certain lifestyles often causes someone to neglect their financial capabilities. As a result, various consumer financing instruments become instant choices to fulfil short-term desires without considering the long-term impact,” he said. This fact indicates the need to strengthen financial literacy and awareness from an early age, so that the public does not easily fall into various financial risks. According to him, the biggest challenge is often not the amount of money one has, but rather how one manages their desires. “Discounts, paylater facilities, and various instalment options available today require the public to have the ability to control themselves and determine priorities,” he explained during a public lecture themed “Financial Awareness: The Foundation of Integrity and Independence for the Young Generation” at Hasanuddin University (Unhas).