Ramadan Strains Finances: How Gen Z and Millennials Cope

REPUBLIKA.CO.ID, JAKARTA – Ramadan not only brings an atmosphere of worship but also pressure on household finances. Daily needs continue as usual, compounded by seasonal expenses such as travelling home for Eid, gift hampers, and iftar gatherings, forcing many residents to manage their money more carefully.

A survey by Amar Bank of more than 1,600 respondents in several major cities shows that 87% of the public feel an increase in spending during Ramadan. However, only about 16.9% feel their financial condition remains comfortable.

Interestingly, the biggest burden does not come from lifestyle. Spending is dominated by household needs at 86%, followed by Eid needs such as clothing and hampers at 67.6%, and the cost of travelling home at 26.4%.

Amid this pressure, the way young generations cope with their financial situation differs. Gen Z tends to be more cautious. As many as 46% choose to use emergency funds when unexpected expenses arise, while others combine this with loans.

This group also feels more pressure at the end of Ramadan. Around 42% of Gen Z admit that their financial condition becomes increasingly tight approaching Eid.

In contrast, the millennial generation appears more flexible in devising strategies. They tend to combine emergency funds and loans to keep cash flow running. Around 36% of millennials even admit that their financial condition fluctuates from week to week.

This phenomenon shows that for some people, loans are not merely for consumption but a way to maintain short-term financial stability. Overall, more than half of the respondents use loans, either fully or as a complement to emergency funds.

The main reason is simple. Some are waiting for salaries or Eid bonuses (THR) to be disbursed, while others cover needs that are not met by monthly income.