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| The Illustration of Emergency Fund (Photo : Lailia PR) |
Fresh graduates who have just gotten a job often use their salary without thinking. They buy things they don't need and prioritize their prestige. It makes it difficult for them to save some of their income.
This phenomenon caught the attention of the Management Lecturer at the Faculty of Economics and Business (FEB), University of Muhammadiyah Malang (UMM) Kenny Roz, S.Kom., MM. According to him, one common financial mistake youths make is putting aside budget planning.
"Many of them reasoned that they were too busy with their daily activities. There are also those who think that budget planning has no effect. This is an effective step to map the income obtained. Which ones can be spent and which ones can be saved," he explained.
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Kenny, as he called, continued budget planning is a strong tool in financial management. However, many of them rely on their intuition or rough estimates without actually itemizing their expenses. Thus, they find it difficult before the payday.
"Anyone, especially the youth, should start by taking note of every income and outcome of their money. Then categorize it accurately. This step can help to identify which expenses are unnecessary," he added.
Another common mistake is adopting a lifestyle that does not match our financial capacity. Because our friends or social media circles show us a particular lifestyle, it doesn't mean we should pursue the same without considering the long-term economic impact. However, the opposite phenomenon occurs. The youth are easily swayed by prestige and force themselves to buy branded items or fancy foods that are not important.
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Financial education is of utmost importance in terms of solutions, especially for the youth. The role of educational institutions is very strategic to raise awareness. In addition, the child should actively learn how to manage their finances adequately and appropriately.
"Unfortunately, today many youths learn by trial and error. Therefore, it is rare for them to lose and lose a lot of money from income," he concluded. (Put/Lai/Sil/Wil)
