There's Nothing Wrong With Millennials' Thrifty Spending Habits

Indonesia's financial officials are wondering where all the money went. But, they're not talking about the more than $1 billion USD lost somewhere in overseas bank accounts. Indonesian Finance Minister Sri Mulyani wants to know why the country's middle class, one of the fastest rising in all of Asia, isn't spending money like they used to.

There are millions of new jobs out there, Sri told Bloomberg. Average salaries rose by two digits. Inflation rates are under control. To an economist, all signs point to spend.

"All the necessary factors for supporting consumption are there," Sri Mulyani, Indonesia's finance minister, told Bloomberg. "This is something which is puzzling."

Sri isn't alone in her confusion. For years now, foreign consultant groups have been trumpeting the purchasing power of Indonesia's new middle class. In reports with titles like "Indonesia's Rising Middle-Class and Affluent Consumers," they breathlessly wrote about the country as the next China, the next big market for foreign brands to push their products on an eager consumer class. This paragraph from a report by the Boston Consulting Group (BCG) sums up the sentiment nicely:

So what's going on? Financial officials think they know who to blame—Millennials.

"The millennials, they don't really like to change clothes every day," Sri told Bloomberg. "They want to have the same t-shirt, like Steve Jobs, black. Maybe they only have two, I don't know, but they are not buying."

So is that true? Are we the reason there's less money flowing through the economy? Are we really an entire generation of black t-shirt wearing, artisanal coffee drinking, stingy AF snowflakes? Of course not. (Despite what countless hand-wringing "think pieces" say.) So then what's the real reason? Let me tell you.

Here a list of why we don't shop like our parents do—and probably never will:

Worldwide, millennials are significantly poorer than their parents. We are officially the first generation to be doing worse financially compared to the previous generation. Basically the economy just sucks, so we shouldn't be blaming people for wanting to hold on to their money.

This shouldn't be a surprise to anyone, since Indonesian kids have been told to save up since we were toddlers. Remember that Indonesian nursery rhyme about saving up money so we could travel the world and build a castle? The millennial generation didn't come up with that song, Generation X did. It's our parents' generation who puts ideas into our heads that we have to save up so we won't get screwed in the long run. It would be nice if the older generation can be consistent for once. Do you want us to save or not?

When Sri Mulyani said we weren't buying a lot of clothes she was half-right. Sure, we're not all wearing some kind of Silicon Valley uniform, but we're also not chasing insanely expensive Japanese selvage denim either.

My friends and I would rather thrift than buy new clothes from department stores. Fires can break out at Pasar Senen again and again, but we always come back. Maybe every once in a while—if we somehow have extra money—we'll buy a few band t-shirts. It also helps that we've been taught to only expect new clothes when Eid-al Fitr comes around. Thanks mom and dad.

"Sometimes you need to get lost to find yourself." Nobody seems to know who said this first, but it's become a widespread sentiment that has found its way to Instagram captions, pillowcases, and our dreams. I think every millennial who is obsessed with—or who could afford to—travel claims to have "found themselves" in some foreign land. Sure it's a little cliche. It's the kind of quote only our generation could relate to—after all weren't our parents and older siblings all obsessed with working and spending money on a better life. I don't think any of them know how great it feels to just chill and take a break from the routine. We would rather fly to Ubud or sail the sea like Hamish Daud than buy that new car or motorbike.

Based on a report by AirBnB in 2016, millennials in United States, England, and China prioritize traveling over buying a house or anything on credit. More than 80 percent of millennials out there on the road come back saying they found a unique experience. You know the reason why: "The best way to learn about a place is to live like the locals do." Classic. We save up to travel, and then once we're there we live as frugal as possible. And while we're saving, we're content just with scrolling endlessly on Instagram, taking inspiration from well-edited and perfectly-framed snapshots of those who live this enviable lifestyle.

Maybe our obsession with traveling has some people concerned. Our parents are probably anxious with the thought of us not having a house to grow old in. But guess what—we just don't give a shit.

Millennials are hipsters, OK? We're not interested in getting a Mio matic, or an Avanza. We'd rather ride our fixies to work. (Or more realistically, some cheap-as-hell ride share app)

We love to participate in social movements and we believe in global warming! We always want to be a part of a movement, whether it's because we genuinely care or we're doing it for the 'gram. All we know is we hate pollution. Plus, you really want to buy a car and then be stuck sitting in this every single damn day:

We want everything fast and easy. So instead of getting a car that would take a whole space to park at our house or kos, we'd rather get a ride from an ojek app like GO-JEK or Grab. What's the point of owning a car anyway?

Everywhere I go, I keep seeing an ad for Meikarta, some proposed futuristic city that's supposed to be better than Jakarta in every possible way. But it doesn't matter, because millennials are just not interested in settling down in one place. We'd rather move around. My personal goal is to move every five years. And I know I'm not alone in this.

If the our parents generation and Generation X move because of their jobs, we move just because. A report from the American Institute for Economic Research explained that millennials move because of the opportunity a city has to offer. Meanwhile, research from Ipsos Public Affairs for Livability found that although money is still a reason to why millennials move, other factors such as access and friends still contribute to the decision making.

Plus, millennials' average salary increases are not enough for us to catch up with fast-rising home prices in Indonesia. Forty-six percent of millennials here make below Rp 4 million ($296 USD) per month, while most properties in Jakarta go upwards of Rp 480 million ($35,510 USD). Who the hell can afford one of those?

Millennials are struggling to make ends meet as it is—so please stop expecting us to spend our money and be glad that we're keeping what little money we have in the bank. Until the next holiday, of course.