💸 The Difference Between Paylater and Saving First

For many Gen Z individuals, paylater feels like a hero: the ability to own something now and pay it off later. But in reality, using paylater versus saving first brings very different impacts:

Research from the Financial Planning Standards Board Indonesia (FPSB) found that impulsive purchases via paylater often occur due to emotional urges rather than actual needs. This increases the potential for overspending and regret later on.

Psychological & Financial Risks of Paylater

1. The Psychological Domino Effect

A study from Harvard Business Review revealed that small consumer debts, including from paylater, can lead to anxiety, prolonged stress, and guilt—especially as payment due dates approach. Even small amounts, when accumulated, can impact mental health.

2. Addiction to Instant Gratification

Millway friends are likely familiar with “0% interest” or “easy installment” promos. These offers can encourage instant gratification — the desire to immediately own something without assessing financial capacity.

3. Vulnerable Financial Health

When used continuously without control, paylater can disrupt monthly budgeting. According to a Katadata Insight Center (2023) survey, over 60% of paylater users aged 18–25 admitted to having missed a payment at least once.

How to Use Paylater Wisely

This doesn’t mean paylater should be completely avoided. If used wisely, it can still serve as a financial tool. Here are some healthy tips for Millway friends:

• 📍 Use Only for Essential Needs: Such as work equipment, education, or other critical needs — not for impulsive shopping or lifestyle upgrades.
• 📍 Review and Understand Additional Fees: Always check interest rates, late fees, and admin costs. Don’t be swayed by promos without transparency.
• 📍 Ensure Ability to Pay On Time: Ideally, total monthly paylater installments should not exceed 30% of monthly income.
• 📍 Avoid Using Multiple Platforms: Stick to one paylater service to stay on top of all due payments.
• 📍 Use Paylater as Backup, Not Habit: If something can be paid in full, it’s better to avoid paylater altogether.

Conclusion

For Millway friends working on building financial independence, it's important to understand that paylater isn’t the enemy — but it’s also not a long-term solution. Like a knife, it can be useful if used wisely, but dangerous if misused. The choice is in every friend's hands: be a smart user, or fall into the trap of instant habits.