SPENDING AND SAVING: Gen Zs and millennials are taking a different path to wealth
Younger consumers are embracing smarter money habits despite economic uncertainty.
Younger South Africans are adopting innovative financial habits despite economic instability, according to data from Satrix. Seventy-seven percent of inflows to the SatrixNOW platform between 2022 and 2023 came from account holders under 40, while 56% of Satrix tax-free savings accounts and 48% of Satrix ZAR accounts were also held by this age group. Similarly, 44% of retirement annuity accounts on the platform belonged to investors under 40.
The traditional path to adulthood, which included finishing school, obtaining a job, moving out, buying a car, purchasing a house, and saving for retirement, has been altered for Gen Z and millennials. Higher rent costs have led to young adults living with their parents for longer periods, and they are both building their own futures and supporting their families.
Despite these challenges, Standard Bank's 2026 Youth Barometer reveals that this generation still aspires to financial independence, home ownership, career success, and long-term security.
Younger South Africans are engaging with credit, savings, investments, and insurance earlier and more deliberately than previous generations anticipated. Credit cards are often used to manage cash flow and earn rewards, while personal loans help consolidate debt and free up monthly cash flow for those in their early thirties. Satrix data indicates that 57% of investments were made by account holders under 40, but 59% also withdrew funds over a three-year period.
This means that while young investors are actively investing, a portion of their money is not being held long enough to grow.
This behavior can be attributed to the need for emergency savings, investments, and retirement funds, which are sometimes used when life becomes expensive. However, building wealth requires allowing money to stay invested long enough to grow. Young people are utilizing various tools, including tax-free savings accounts, retirement annuities, investment apps, digital banking, side hustles, stokvels, and smarter debt management.
Although they may reach traditional milestones later, they understand that wealth is not just about earning more but also about keeping more, investing sooner, and not allowing short-term pressures to erode their future.
Written by urgent.news from Daily Maverick's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
