Cause for Concern, Contradictory Phenomenon
Young Indonesians’ consumer behavior has really risen in the face of the growing economic uncertainty. The prevalence of digital financial services like paylater, the rising purchase of non-essential products, and the instant lifestyle frequently promoted on social media—particularly on YouTube, Instagram, and TikTok—all reflect this trend.
Paradoxically, this trend is prospering at a time when Indonesia is experiencing a number of economic challenges, including increasing inflation, rising prices for essential goods, and fewer employment prospects. Considering the disparity between economic realities and the purchasing habits of young people, the question arises: why do young people continue to live a consumer way of life despite the fact that the economy is not favorable?
Factors Influencing Young People’s Consumerism
The primary variables impacting young people’s consumption habits today are changing times, technological breakthroughs, and social trends. The impact of social media is one of the most influential variables. The notion that consumption is a component of social identity is produced by material showcasing high-end items, the newest fashion trends, and hedonistic lifestyles. One’s perceived competence trumps one’s real financial state.
The second aspect is the convenience with which one may use digital financial services. Online loans, paylater, and payment options without a credit card are just a few of the features that make it simpler to spend money without cash. In reality, this frequently creates a false impression that users have significant buying power.
The younger generation’s lack of financial literacy is just as important. Many students still need to learn how to create a personal budget, tell the difference between needs and wants, and comprehend the dangers of debt. Consequently, consumption is now done as a means of escaping the demands of daily life or seeking social approval, rather than logically.
Difference Between Needs and Wants: How Consumerism Creates a Gap
How Islam Views Consumption: It’s About Responsibility and How We Live
Islam teaches us to live a balanced life, and this includes how we consume things. In the Quran, Al-A’raf verse 31, Allah says:
“Eat and drink, and do not be excessive. Indeed, Allah does not like those who are excessive”
This verse shows that consuming too much (israf) is not just bad for the economy, but also displeases God. A lifestyle of consumption that only seeks immediate pleasure can make a person forget to be thankful and responsible for what they have. The Prophet Muhammad SAW also taught us to live simply, even though he could have lived in luxury. This shows us that living moderately is not about being deprived, but about being wise.
If young people use religious values as a guide for handling money, they can avoid getting into debt. They will also have a better life, balancing their worldly needs with their spiritual well-being.
Read more: Pengaruh Financial Management terhadap Lifestyle Spending Mahasiswa
Many young people today struggle to tell the difference between what they need and what they want. Needs are things that are essential for living and being productive, like food, housing, education, and proper clothing. Wants, on the other hand, are extra things that people desire, often because of what they see around them, on social media, or in current trends.
Sadly, many people act as if their desires are the same as their needs. They might want the newest cellphone, the latest clothes, or to spend time at popular cafes, and they make these things a priority. This happens even if it means giving up things that matter more. This is how consumerism grows: when people care more about what they want than what they need, and when style matters more than sense.
Lastly, pressure from society and popular culture is a significant factor as well. Young people are encouraged to buy things they don’t actually need by a digital lifestyle that requires them to always appear current, fashionable, and successful. Nowadays, consumption is no longer merely an economic endeavor; it has also become a component of the development of one’s sense of self and social life.
Conclusion: Financial Literacy and Greater Regulation
A preventive and educational strategy is necessary to counteract the tendency of consumers in an uncertain economic climate.
The first step is to make financial literacy a top priority. Through financial management training, budget management simulations, or basic investment courses, formal and informal education may be quite helpful. Financial literacy information should be included in the curriculum and extracurricular activities of higher education institutions.
Second, social media and influencers play a strategic role. They may serve as agents of change by creating instructional material, such as the value of saving, avoiding impulsive purchases, or how to use debt wisely. If the message is presented in a straightforward, approachable, and non-condescending way, this campaign will be more successful.
Third, the government and digital financial service providers should strengthen regulations covering consumer credit products, particularly those aimed at youth. We need a more stringent method of determining financial eligibility, credit limits, and openness about interest rates and risks. Additionally, it is necessary to promote education about rights and risks as consumers.
However, personal awareness is ultimately essential. The younger generation must be taught to understand that life is not always about appearing attractive to others. Being frugal is not the same as managing one’s finances; rather, it’s a way of taking care of oneself in the future. Because, in reality, it is never as important to be perceived as capable as it is to be truly financially capable.
So, it’s very important to understand yourself, know the difference between what you want and what you need, and make religion a part of your daily life. In the end, life is not about impressing others, but about how we are responsible to God and future generations for every rupiah we spend.
Aut: Yuzki Abdikha
Arabic Education Department, Faculty of Islamic Studies, Universitas Muhammadiyah Prof. Dr. Hamka
Supuervisor: Muhammad Imam Sastra Mihajat,Ph.D
Editor: Salwa Alifah Yusrina
Bahasa: Rahmat Al Kafi
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