As Indonesia’s economy faces rising living costs and stagnant wages, Millennials and Gen Z are navigating financial independence with distinct strategies tailored to their life stages.

Priorities Shaped by Life Stages

Millennials, typically balancing family responsibilities, focus heavily on financial planning and budgeting. For them, saving for children’s education emerges as a top priority (47%), highlighting their desire to create a stable foundation for their families. This generation often adopts a more conservative approach, prioritizing long-term financial stability over short-term indulgences.

Conversely, Gen Z, in their early career stages, places emphasis on building emergency funds (36%) and investing in property (22%). While this younger generation values experiences such as travel and leisure, they also show a keen interest in exploring financial opportunities. Their strategies reflect a balance between caution and experimentation, driven by a mix of youthful optimism and practical necessity.

Finding New Avenues for Income

Both Millennials and Gen Z are adapting to financial challenges by diversifying their income streams. Millennials favor side jobs, with 50% engaging in freelance work or part-time gigs to supplement their earnings and meet immediate financial needs. Meanwhile, Gen Z is leveraging technology to embrace online selling (32%) and investing (28%) as pathways to build long-term wealth.

Despite their efforts, rising living costs continue to be a significant obstacle. For Millennials, insufficient income is a pressing issue (45%), forcing them to stretch their resources further. Gen Z, on the other hand, faces challenges in building savings, with 41% reporting difficulty in setting aside money for the future.

A Shared Goal

Despite their generational differences, Millennials and Gen Z share a determination to overcome financial pressures. Whether by adhering to traditional roles or embracing modern solutions, both groups remain focused on achieving financial independence.

As one Millennial respondent from the Indonesia Millennial and Gen Z Report 2025 aptly put it, “We may have different paths, but we share the same goal: a secure future.”

Credit: Based on findings from the Indonesia Millennial and Gen Z Report 2025 by IDN Research Institute.