Smart Comparison, Managing Money in the Past and Present, Which is More Practical?

Kapanlagi.com - How do we manage finances in the past compared to now? This question is important to answer, especially for the younger generation growing up amidst technological advancements.

Understanding this difference is not just about nostalgia, but also about how we can learn from past experiences and utilize current innovations to achieve financial freedom.

In the past, financial management heavily relied on self-discipline, saving habits, and simple planning. Meanwhile, in today's era, technology and information have opened doors for easier and more efficient financial management.

In this article, we will explore the differences and similarities in managing finances between the past and the present. We will see how our ancestors managed their finances with limited information and technology, and how we in the modern era can maximize technology to achieve better financial goals.

Read the full review at Kapanlagi.com, Friday (11/4/2025).

1. Comparison of Money Management Then and Now

In the book "Generations: The History of America's Future" by William Strauss and Neil Howe, it is revealed how diverse the ways different generations manage their finances, reflecting the context of their respective times.

In the past, saving was done with strict discipline even if the amounts were small, with the principle of 'little by little becomes a hill' applied through piggy banks or cooperatives.

Now, technology has transformed the face of saving into something more practical with modern methods like 50/30/20 and digital financial apps that allow us to save automatically.

Meanwhile, the value of money has also changed; in the past, every rupiah was considered valuable and spending was carefully considered, whereas today, the ease of access to credit and online shopping requires us to be more prudent to avoid falling into a consumerist lifestyle.

Financial planning has also evolved from being simple, just recording expenses, to being more complex with a focus on the long term, allowing everyone to plan their financial future in a more structured way.

Thus, even as generations change, the importance of wise financial management remains key to achieving well-being.

2. Comparison of Money Management Methods Then and Now (Continued)

Currently, the comparison of money management methods between the past and now shows a striking change. In the past, information about financial literacy was very limited, only obtainable through stories from others or personal experiences.

Now, with technological advancements, we can easily access a variety of financial information through the internet, books, seminars, and apps. This allows anyone to learn investment strategies, financial planning, and other financial products more effectively.

Moreover, financial products have also undergone significant transformation from just savings in banks or cooperatives; now we are presented with various options ranging from stocks, mutual funds, bonds, to insurance and loans.

With these diverse options, we have greater flexibility in managing finances and achieving our financial goals.

3. The Simple Lifestyle of Our Parents in the Past

Quoting from sunlife.co.id and other sources, the simple lifestyle practiced by our parents in the past is worth emulating. They had a high appreciation for every penny, with the principle of frugality being their main guideline: needs were always prioritized over wants.

They carefully distinguished between what was truly needed and what was merely desired, and recorded every expense even if it was just with a simple notebook.

This habit of frugality not only emphasizes the importance of discipline and thorough financial planning but also shows creativity in utilizing available resources, thus minimizing expenses and maximizing the use of owned items.

Many housewives in the past took the initiative to seek additional income through side businesses, illustrating how important it is to have alternative sources of income to improve family welfare.

Although times have changed, the fundamental principles of financial management applied by previous generations remain relevant to this day.

By studying how they managed money and combining it with modern technology, we can adopt good habits from the past to achieve better financial goals.

Ultimately, good financial planning, regardless of the era, is the key to a safer and more prosperous future.

(kpl/rao)