Understanding the financial habits of youth

THE financial landscape for young South Africans is rapidly evolving, shaped by economic pressures, shifting priorities, and a growing reliance on digital financial tools.

- DIEKETSENG MALEKE

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.