The Role of Financial Literacy, Financial Technology Utilization, and Digital Education in Improving Financial Planning Among Indonesian Millennials

Abstract

The development of financial technology (fintech) and the digitalization of education have changed the way the Indonesian millennial generation manages their finances. Financial literacy is an important factor in improving the quality of individual financial planning, especially in today's digital era. This study aims to analyze the role of financial literacy, the use of financial technology, and digital education in improving the financial planning of the millennial generation in Indonesia. The method used in this study is a literature study with a qualitative approach, which includes the analysis of various previous studies, reports of financial institutions, as well as data from academic sources and government policies related to financial literacy and financial technology. The results show that a high level of financial literacy is positively correlated with an individual's ability to manage income, allocate savings, and avoid unnecessary financial risks. In addition, the use of financial technology, such as digital financial planning applications, technology-based banking services, and digital investment instruments, contributes to increasing the effectiveness of personal financial management. Digital education also has a significant role in improving financial literacy by providing wider access to information and interactive learning about finance. However, challenges such as lack of understanding of fintech risks, low awareness of digital security, and the existence of financial literacy gaps at various levels of society are still obstacles in wider implementation. Therefore, a more comprehensive financial education strategy, the integration of financial literacy in the education curriculum, and the strengthening of fintech regulations are needed to improve consumer protection. This study provides insights for academics, policymakers, and financial practitioners in designing more effective policies to improve the financial well-being of the millennial generation in Indonesia.