Soft Saving, A Trend among Generation Z

Dr. Tantan Hermansah
Lecturer, Faculty of Da'wah and Communication Sciences, UIN Syarif Hidayatullah Jakarta

A report in Kompas.com (July 27) stated that the majority of Indonesians Gen Z do not have savings.

For some parents, this fact might be disturbing. But for me, it's actually interesting to delve deeper—as a symptom of a shift in generational thinking.

What we call "savings" has long been associated narrowly with money kept in a bank, gold bullion, static property, or long-term investments that have a fixed or growing value in the future.

This is an old habit rooted in our culture; saving becomes the key to wealth. It is considered as a symbol of prudence, stability, and even maturity.

However, Gen Z does not seem to share this practice. They do not really care whether there is enough or zero balance remaining in their bank account. They ere more concerned with saving other things—visible, yet less valuable.

Ontologically, savings is more than just a collection of money locked in an account. In the study of economic assets, we recognize two types: tangible assets such as houses, vehicles, and money; and intangible assets such as trust, reputation, experience, and social networks.

And herein lies the difference between Gen Z and others. They are more interested in saving the secondary one than the primary things they must acquire first.

For Gen Z, savings mean data, digital credibility, and social impressions. They believe in the form of influence such as an Instagram followers with its track record of contents that is constantly reshared and reposted.

They store energy in the form of engagement, not stagnation. And this is not just a matter of lifestyles, but a brilliant strategy for surviving in a volatile era.

This generation does not agree with the fact that they were born as a heir. In fact, many of them want to distance themselves from their parents, starting their life as a pathfinder.

They want to be success because of their authentic achievements, truly earned by their own hands.

Therefore, they choose a new path: investing in experiences, not savings. They are stepping out of the comfort zone and taking a rocky way by increasing their social capital in a unique way.

For example, we can find a husband and wife as content creators who went viral for their travels exploring the interior and new places in Indonesia, all on their own budget.

Of course, it seems devouring their savings. However, they had hundreds of thousands of loyal viewers who followed their stories.

They converted more of what they gained from the internet to share their diverse stories and experiences. In fact, it seems they now have a special obligation to 'serve' the needs of their followers for stories.

Of course, this fact can make us think for a moment. It seems to confirm the assumption that "they aren't saving (money/goods); they're just saving in other forms."

We are ingrained to measuring the future by how much we can save today, but they assume that the larger savings translate to better life.

However, for Gen Z, the future is built on the breadth of experiences they enjoy now. They will not wait until the retirement day to enjoy life because of YOLO (You Only Live Once) mindset.

Is this a wise perspective? It is certainly debatable. However, we cannot deny that today's work system no longer promises a guaranteed retirement.

Therefore, Gen Z chooses a path that is more fluid, more flexible, but still logical in their way of thinking.

We may disagree, but we cannot deny that they have found other ways to survive.

They have learned that the world is too quick to simply sit back and take a time. They want to move, experiment, fight, while shaping themselves through real-life experiences.

But of course, there are limits that must be maintained. Without the ability to manage, a life that is too fluid risks becoming unfounded.

Therefore, the task of previous generations is not to force Gen Z to follow the old path, but to help them develop a new awareness of the meaning of saving. It is not about holding back from life, but about preparing for life so that it can continue to be enjoyed longer.

So, if they do not have any savings for today, of course, they migt have prepared for tomorrow—no need to panic. Instead, we can observe them closely, because they may be saving in a form we do not yet understand. Just wait and see.

We may disagree, but we have to accept that they have found other ways to survive—and, in some cases, thrive.

(This article was published on kompas.id on Wednesday, July 30, 2025)