Tangerang Selatan, 5 August 2024 - PT Bank Jago Tbk collaborated with the international youth organization AIESEC to gather hundreds of young people at Syarif Hidayatullah State Islamic University (UIN) Jakarta to discuss global leadership challenges in achieving sustainable development goals, one of which is financial management. This discussion was part of the Local Project event organized by AIESEC UIN Syarif Hidayatullah from 5 to 30 August, 2024.
In the event's opening, Bank Jago's Consumer Business Community Manager, Edo Velandika, revealed that most financial problems faced by young people stem from a consumerist lifestyle not balanced with healthy financial management. “Therefore, the younger generation must become financially literate and learn to manage their finances well. This can start with introspecting on lifestyle, then saving or creating budget allocations based on priorities, and finally, start investing early,” said Dika.
During the event, Dika introduced the basic concept of financial management known as 3F: fix, fun, and future, referring to the three budget criteria that must be understood when making financial plans. Fix refers to separating fixed costs, such as food expenses, rent or mortgage payments, and other mandatory expenses, usually around 50% of the total monthly income.
Next is fun, which refers to the allocation of funds for leisure activities such as watching movies or concerts, hobbies, sports, or traveling. “This budget is meant for enjoyment but is not essential. For the fun budget, aim to keep it under 30% of total income,” advised Dika.
Finally, there is future, which refers to funds allocated early on to meet unexpected needs and long-term goals, such as emergency funds, retirement savings, or education costs. The future budget should ideally allocate 20% of total income.
According to Dika, the most important aspect of financial management is not how much money one can accumulate but rather building good financial habits. Therefore, it's crucial to set personal financial goals carefully and realistically, detail and calculate fixed or routine expenses, and create budget allocations based on priorities and long-term goals.
He continued by stating that there are now many apps or methods that make it easier to separate budgets. One such method is using the Jago App with its Pocket feature. Users of the Jago App can separate their money into different pockets based on needs and wants, up to 60 pockets, each with its own account number.
If monthly income is insufficient to meet needs, Dika recommended finding additional income sources, such as a side job or starting a business. Then, if monthly income is more than enough, start investing early, even in small amounts, consistently and regularly.
“First, learn the basics of investing so that you're not just following trends or experiencing FOMO (fear of missing out). If someone is hyping or promising unrealistic returns, there's a high chance it's a scam,” Dika cautioned.
As a technology-based bank, Bank Jago developed the Jago App to integrate with various digital ecosystems, making it easier for customers to manage their lives, including financial management and investing. To support investments, Bank Jago collaborates with online investment platforms Bibit and Stockbit, allowing Jago App users to invest easily and seamlessly.
“Everyone has their own problems, life needs, and ways of managing finances. That's why the Jago App is designed to allow customers to flexibly design their financial solutions,” Dika explained.
Daffa Putra Rabbani, Local Committee Vice President of Local Project AIESEC UIN Syarif Hidayatullah, appreciated Bank Jago's concern for the various leadership challenges faced by young people, including financial issues. “We hope that with Bank Jago's support, the Local Project AIESEC UIN Syarif Hidayatullah can increase the awareness and understanding of the younger generation to create positive impacts in society through better financial management,” he said.
AIESEC UIN Syarif Hidayatullah, as part of AIESEC Indonesia and Global, organized the Local Project, an annual agenda for developing youth leadership through three programs related to youth entrepreneurship (Global Youthpreneur), education and literacy (Bright Future), and mental health (Global Healer). This year, the Local Project AIESEC UIN Syarif Hidayatullah is attended by 120 participants, mostly from Generation Z. They will receive leadership training from August 5 to 30, 2024.
AIESEC is the world's largest international youth organization with members in more than 110 countries, including Indonesia. This independent non-profit organization was established in 1984 as a platform for young people to explore and develop their leadership potential through programs that support the Sustainable Development Goals (SDGs).
