Point of view: understanding the financial habits of South Africa's youth
Explore how South Africa's youth, aged 18 to 35, are navigating their financial journeys amidst economic pressures, balancing essential expenses with aspirations, and embracing digital financial tools.
The financial landscape for young South Africans is rapidly evolving, shaped by economic pressures, shifting priorities, and a growing reliance on digital financial tools.
The Youth Barometer, which harnesses data from Standard Bank's Personal and Private Banking and Liberty, offers a revealing snapshot of how South Africans aged 18 to 35 are navigating their financial journeys—balancing essential expenses with discretionary spending, financing their first assets, supporting their families, and planning for their long-term futures.
The inaugural Youth Barometer was launched this week in Rosebank.
According to the head of youth and mass market segments at Standard Bank, Tshiamo Molanda, these insights are more than data points; they are a call to action.
"They challenge us to design solutions that are relevant, inclusive, and forward-looking. Solutions that not only respond to where young South Africans are now but also anticipate where they aspire to go. Because when we understand youth better, we can partner with them more meaningfully, enabling them to grow as we grow," she says.
But where are young South Africans today, financially? The Barometer's findings provide answers.
Data from three million youth customers reveals a shifting pattern in spending habits. Young South Africans aged 18–24 allocate the highest proportion of their income to essential expenses (58%), followed by those aged 25–29 at 53%. Only the 30–35 group shows an even split between essentials and discretionary spending—a trend mirrored among those over 35, likely due to higher earnings reducing the strain of covering necessities.
However, younger generations spend proportionately less than their elders on insurance, loans, transport, and savings, while prioritising categories such as clothing, groceries, dining out, entertainment, digital connectivity, and self-care. Meanwhile, spending on education, healthcare, holidays, utilities, and family support remains fairly consistent across all age groups.
The data reveals that while the digital economy is expanding, cash withdrawals remain a common habit for youth aged 18 to 24, making it harder to track their exact spending patterns. Still, the data that remains within banking systems points to top spending categories such as digital connectivity, groceries, and fast food.
Interestingly, despite a decline in clothing spending from 2021 to 2024, younger customers still allocate more income to clothing than older youth, frequently shopping at brands like Mr Price, Pep, Ackermans, Sportscene, Pick n Pay Clothing, Shein, H&M, Cotton On, and Markham. Luxury brands also feature strongly, with spending patterns reflecting preferences for Farfetch, Louis Vuitton, Timberland, Steve Madden, Piccadilly, G-Star Raw, and Hugo Boss.
'This tells us that younger age groups have a higher brand affinity to luxury brands, because while we see some of this behaviour among older age bands, more reasonably priced brands feature among older youth,' says Shené Mothilal, solution owner for Digital Money Manager.
Young adults aged 18–24 allocate the highest proportion of their income to groceries among under-35s, alongside the highest spend on takeouts—indicating that while older customers increasingly cook at home, younger customers prefer a balance between eating in and dining out.
Among 25–29s, spending remains focused on essentials such as groceries, digital connectivity, and clothing. However, insurance and loan repayments begin rising, suggesting that many in this age group are establishing financial stability and working towards formal credit histories.
Meanwhile, those aged 30–35 start exhibiting spending behaviours akin to over-35s, allocating more of their income to insurance, loans, and healthcare. With incomes rising due to career advancement, their spending shifts away from essentials such as groceries, clothing, and digital connectivity. This trend is compounded by demographic factors—many are not yet supporting children, with South Africa's median age for first-time mothers now sitting at 28.3 years.
In a climate where the cost of living continues to rise and incomes remain under pressure, savings aren't optional—they're essential.
To address this, Standard Bank provides tailored guidance for different age groups:
18–24: Start small, but start now. Redirecting just R50 to R100 a month from takeouts, self-care, or entertainment into an emergency fund can create momentum. Using financial tools like Standard Bank's Digital Money Manager to track spending habits can help build consistency before scaling up savings contributions.
25–29: Rebalance discretionary splurges. This group is showing increasing financial maturity through higher contributions toward insurance and loans. However, they still rank second in clothing and takeout spend, suggesting an opportunity to fine-tune their budgets further.
30–35: Leverage career gains to build a cushion. With a more balanced split between essentials and discretionary spending, this group is well-positioned to accelerate their savings toward property, education, and retirement. Redirecting even a small portion of entertainment or takeout spending into interest-bearing financial products could significantly bolster long-term security.
The data reveals that despite making up nearly 60% of South Africa's population, those under 35 account for just 17% of the country's outstanding credit value. Their credit portfolios consist largely of unsecured products such as retail accounts, personal loans, and entry-level credit cards, unlike older generations, who have broader access to secured credit lines.
Once credit becomes available to them, young South Africans tend to use it extensively. For example, the average credit limit for 18–24-year-olds is approximately R20,000, with utilisation rates above 70%, suggesting many rely on credit for both necessities and lifestyle expenses. Additionally, youth in this age bracket make more credit card payments per month than any other segment, averaging three payments per month.
Encouragingly, youth under 35 are showing a strong and growing interest in property ownership, despite broader affordability concerns and rising living costs, the data shows. Approximately 40% of all new home loan enquiries at Standard Bank from January 2023 to April 2025 have come from this demographic, demonstrating a clear ambition to secure long-term financial assets.
Similarly, insights from Standard Bank's Vehicle and Asset Finance division indicate that youth aged 18–35 remain a vital segment in the car finance ecosystem, accounting for just under 40% of vehicle finance customers. However, limited incomes shape their decisions—from car brands to deposit sizes and repayment structures.
* Maleke is the editor of Personal Finance.
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