SPENDING AND SAVING: Gen Zs and millennials are taking a different path to wealth

Young South Africans may be moving into adulthood later these days, but that does not mean they are sitting out the money game.

Data cited by Siyabulela Nomoyi, quantitative portfolio manager at Satrix, shows that 57% of inflows to the SatrixNOW platform in 2022 and 2023 came from account holders under the age of 40, based on figures available as of April 2024. Investors under 40 also accounted for 56% of Satrix tax-free savings accounts, 48% of Satrix ZAR (local investment) accounts and 44% of retirement annuity accounts on the platform.

The old route into adulthood was easier to understand, even if it was never easy for everyone. You finished school, studied, got a job, moved out, bought a car, bought a house and saved for retirement.

For many Gen Zs and millennials, this route has changed somewhat. Getting a qualification is not a guarantee of a job, let alone a stable job. Rent is expensive, so this generation is staying at home with their parents until later in adulthood. And in many homes, young earners are not only building their own future, but are also helping to keep the family afloat.

Standard Bank’s 2026 Youth Barometer, developed in conjunction with Youth Dynamix and Liberty, makes a similar point: young South Africans still want financial independence, home ownership, career success and long-term security. The difference is that they are pursuing those goals in an economy where the path to stability is more expensive, more uncertain and less linear than it had been for previous generations.

The report says people under 35 are engaging with credit, savings, investments and insurance earlier and more intentionally than many people assume. Credit cards are often being used to manage cash flow and earn rewards, rather than only to fund lifestyle spending. Personal loans are increasingly used by people in their early thirties to consolidate debt and free up monthly cash flow.

Saving, but not for long

Satrix’s data shows the promise and the problem. Young investors are opening accounts and putting money into the market, but many are also withdrawing.

Nomoyi notes that people under 40 made 57% of deposits in 2022 and 2023, but 59% of that cohort also made withdrawals over three years. In rand terms, however, they accounted for only 20% of total withdrawals. In plain English: they are investing, but some of the money is not staying invested for long.

This is understandable. Emergency savings, investments and retirement money can become tempting to use when life gets expensive. But early wealth is built when money is allowed to stay put long enough to grow teeth.

The encouraging part is that young people are already using the tools: tax-free savings accounts, retirement annuities, investing apps, digital banking, side hustles, stokvels and smarter debt management.

They may be reaching traditional milestones later. But many are learning earlier that wealth is not only about earning more. It is about keeping more, investing sooner and not letting short-term pressure eat the future whole. DM

This story first appeared in our weekly DM168 newspaper, available countrywide for R35.