Personal Financial Sustainability Through Financial Literacy: Emergency Fund and Investment of Young Generation During Covid-19 Pandemic in Indonesia

Abstract

Limited social and economic activities due to the Covid pandemic in Indonesia have caused serious changes in individual financial conditions. In this kind of emergency situations, the low financial resilience in Indonesia has made people experience personal financial problems and they find it difficult to survive. This study examines financial literacy, especially in terms of provision for emergency funds and investment choices of the young generation in Indonesia. The purpose of this research is to find the best strategy to sustain the personal finance of young generation so they will be able to survive and adapt to the condition during and after the pandemic. The primary data are taken directly from respondents, Indonesian young generations 18-40 years old, residing mainly in Java, Sumatra, Kalimantan, and Sulawesi. The results show that the majority of the young generation aged 18 to 40 years do not have sufficient knowledge of emergency funds and do not choose to invest in assets in the capital market. This research recommends more collaboration among the government, ministries, businesspeople, financial services industry higher education institutions through the use of digital platforms and social media to improve financial literacy in Indonesian young generation of Indonesia, especially in the planning and management of emergency funds and investments in emergency conditions.