How young South Africans spend their money

Young South Africans are managing a difficult economic environment through various measures, including juggling side hustles, saving despite low incomes, avoiding debt, and spending intentionally on identity-driven purchases.

Youth specialists Student Village, in partnership with Futurist, Economist and Business Trends Analyst, Bronwyn Williams of Flux Trends, recently released The Gen Z Economy Report: Cash, Culture and Clout.

This survey’s results are based on responses from over 900 South Africans aged 18 to 30. The report examined how young people in South Africa earn, spend, save, and think about money.

“This generation isn’t broke, they’re building,” said Student Village CEO Ronen Aires. “Despite limited income, Gen Z is navigating the financial system on their own terms.”

“They’re side hustling, saving, skipping the debt trap and making intentional, values-led purchases. They’re redefining what it means to be a consumer, a customer and a contributor to the economy.”

The survey found that 16.6% of respondents identified as unemployed, a significant deviation from the official youth unemployment data. Stats SA recently reported that 4.8 million (46.1%) youths aged 15 to 34 were unemployed in Q1 2025.

The Gen Z Economy Report results showed that while many young people are unemployed, many are juggling studies and side hustles to stay afloat.

The report also found that the youth are saving almost a third of their income, despite earning an average of R5,000.

In addition, it found that Gen Z is avoiding credit transactions, with 80% of the survey’s respondents using cash and debit cards regularly to avoid fees and falling into a debt trap.

Debit cards also dominate online transactions, while credit cards remain rare and feared. This trend has also been noted by financial institutions.

Standard Bank’s Youth Barometer revealed that young South Africans are engaging with credit more cautiously and selectively than older generations.

Spending and saving

Customers under 35 accounted for just 16% of Standard Bank’s credit card base, with the youngest segment (18-24) making up only 1%. This starts to change for South Africans in the 25 to 29 age bracket, as credit card penetration increases.

According to Standard Bank, low credit usage among young South Africans is unsurprising given their incomes. Just over a third (36%) of youth with Standard Bank credit cards earn less than R5,000 monthly gross income.

Another 43% earn R10,000 or less, meaning that nearly 8 in 10 earn R10,000 or less. This limits both their eligibility for traditional credit and their ability to afford repayments comfortably.

The top spending categories for those under 35 include daily essentials like groceries and personal care, transport, and dining out.

Despite making up nearly 60% of South Africa’s population, people under 35 account for just 17% of the country’s outstanding credit by value.

Their credit portfolios are primarily composed of unsecured products like retail accounts, personal loans, and entry-level credit cards, unlike older generations, who tend to have broader access to secured credit and high-value facilities.

Even when using unsecured credit, South Africa’s youth are more measured. They generally hold fewer credit cards, make smaller purchases, and repay balances more frequently.

While this suggests a responsible mindset, Standard Bank said it may also reflect constrained incomes rather than deliberate financial planning.

The Gen Z Economy report found that young South Africans’ spending priorities were skewed towards clothing, food, and cosmetics. However, the report said their reasons for these purchases were based on value and identity, not vanity.

“Self-image translates to social capital, influence and even job opportunities. Gen Z spends as much on clothing as they do on rent – image is currency,” the report said.

According to Standard Bank, youth spend proportionately less on insurance, loans, transport, and savings and more on clothing, groceries, dining out, entertainment, digital and connectivity, fitness, and self-care.

The Student Village report revealed that 90.52% of respondents are saving regularly. The two biggest savings categories were savings for emergencies (25.75%) and for education (19.83%). Only 5.5% were saving for their retirement.

However, even though most Gen Zs earn less than R5,000 a month, they save over a third. Nearly 30% were also dabbling in crypto.