Fundamentals of Healthy Life: Financial Literacy

Understanding proper financial literacy can make you live longer than the others

It is well known that the COVID-19 pandemic has brought about many changes. This time, various new virus variant had emerged – making the bright spots and the hopes to end this situation seems out of our reach.


One of the most noticeable changes is the economic impact received by the middle and lower classes of Indonesian society. Many of them have lost their jobs, businesses are getting smaller, and unemployment rises.


These various impacts make them have to change their strategy to manage finances. However, Indonesian people, especially young people or the Gen Z – do they really understand financial literacy?


During the pandemic period, some the world’s citizen, including some Indonesians, followed the trend of investing in cryptocurrencies. Some are lucky and some are stumped.


Like our previous articles about youth and cryptocurrencies – they are not FOMO. Most of them have calculation and they do their own research. They do not want to lose at this investment. But, trying to make an investment, is it a sign that they understand financial literacy?


This concern needs to be looked at more deeply by brands, marketers, and other parties as an opportunity to get closer to their target audience.


The common benefit of understanding how to do financial literacy properly are to prevent individuals from financial conflicts, not being trapped in dept, to successful in entrepreneurship. Things like this are a common knowledge in brands communication.


It is possible that brands need to know another perspective on the benefits of understanding the right financial literacy. Therefore, StratX KG Media conducted desk research on this matter and found some interesting insights to discuss in more detail.



Understanding Financial Literacy: Long Life


Stevanus Pangestu, assistant professor from Atma Jaya Catholic University of Indonesia at the – revealed that understanding proper financial literacy can save human lives.


Several findings from Stevanus such as a study in Iran found cancer patients with high financial literacy had a high quality of life. The quality of life in question is that the patient does not care about his economic status so that the financial stress he experiences is lower that the others who does not know proper financial literacy.


The cancer patient does not have a problem when he has to pay dearly for various facilities that can make him better and healthier.


Then, other findings, such as a study in the United States, with an average age of 83 respondents, showed that high financial literacy led to better physical and mental health status.


Still from the United States, another study showed that elder people with high financial literacy had a lower risk of being hospitalized. This is because the understanding of financial literacy encourages them to have a healthy lifestyle.


From some of the findings above, it shows that an understanding of proper financial literacy as well as a qualified life experience makes a person more careful in managing their life behavior so they will live a long life.



Then, What About Indonesian?


In 2019, the Financial Services Authority (OJK) conducted a National Survey of Financial Literacy and Inclusion, showing that the financial literacy index reached 38.03% and the financial inclusion index 76.19%. This figure shows an increase compared to the results of the 2016 OJK survey.


In the past 3 years, there has been an increment in the understanding of financial literacy in Indonesian society. This should continue to increase until this year.



Insights for Brands


  • From the various studies described above, it shows that a good understanding of financial literacy can make a person live longer and their quality of life is better than the others.
  • Understanding financial literacy can make someone adopt a healthy lifestyle.
  • Indonesian has an increasing number of understanding financial literacy from year to year.



So, What Brands Can Do?


Instead of rising awareness or getting sales targets, the fundamental thing that brands must remember is the passion to help the Indonesian, especially young people and the Gen Z understand proper financial literacy.


Brands can help Indonesians, including young people and the Gen Z, to understand more about financial literacy. This assistance can be in the form of digital content on various social media platforms.


To make this step right on target, brands need to do research for their target audience. Such as on which social media the brands’ target audience is mostly active, what kind of digital content they like, and many other interesting insights that brands can find out from this step: research.


As mentioned earlier, brands can create new perspectives from their communication regarding the understanding that financial literacy is good for physical and mental health. This can be developed into many interesting points.


When the brand already knows various interesting insights that are ready to be the foundation of its communication to the target audience – the brand can consider how to make the communication massive and large.


Massive and large communication makes the potential for the brand to gain awareness, and even increase sales even higher. As a brand, this value is an important one.


Apart from brands, other related parties such as The Ministry of Education, can take part in this line. Financial literacy can be a lesson that is applied in the education syllabus. The hope is that by understanding financial literacy earlier – young people or the Gen Z can have a better standard of living than the previous generation.


There are many other interesting things that can be done related to making communication about financial literacy to improve physical and mental health. Therefore, brands, marketers, and other parties can contact us at for a sharper discussion.