A concerning fact is that as many as 61.7% of the current young generation are reported to lack adequate emergency funds. This means that only 38.3% of them have financial protection in the form of an emergency fund. This issue was highlighted during a discussion at BluAcademy held in Jakarta on October 17, 2023.

Gembong Suwito, CEO of PT Jooara Financial Planning and also an AWP Competency Assessor at the Capital Market LSP, revealed that the ease of payment systems like "buy now pay later" and the temptations of discount advertisements on social media have had a significant impact on the spendthrift behavior of young adults. Unfortunately, this has occurred without being balanced by the ability of young adults to manage their cash flow wisely, which should include investment practices for the future.

Data indicating that the majority of young adults, especially those between the ages of 18 and 34, claim to understand basic concepts in financial management (around 61%), but most of them face difficulties in applying effective financial management practices. The results of a survey conducted by blu by BCA Digital in August 2023 also showed that 34% of respondents are still confused about how to manage their finances efficiently.

Gembong Suwito highlights the importance of having a primary motivation in financial management with the SMART principle, which includes (S)pecific, (M)easurable, (A)chievable, (R)elevant, and (T)ime-bound. In setting financial goals, he emphasizes the importance of making specific and measurable goals. For example, buying a house in a specific location with a specific land size within a period of 2 to 5 years. Furthermore, efforts to achieve that goal should be measurable by setting the required amount of money and the time needed.

In the third step, achieving goals that are attainable, Gembong emphasizes that each individual must turn financial goals into a concrete and affordable action plan. This will include specific steps that can be taken to achieve the goal. Finally, to ensure that financial goals are a priority, it is important to ask oneself how important that goal is in one's personal life and how confident one is in achieving it.

In the SMART principle, the last step is setting a time limit, which is how long it will take to achieve the financial goal. This can be a short-term, medium-term, or long-term goal with an appropriate time frame.

In conclusion, it is important for young adults to understand how crucial having an emergency fund is and to manage their finances wisely. By following the SMART principle, they can more easily plan and achieve their financial goals and be better prepared to face financial challenges in the future.