Youth charge lifestyle splurges to credit cards

The Standard Bank Youth Barometer shows the youth have a clear appetite for entertainment. / x

- By Boitumelo Kgobotlo

Young South Africans are showing a clear appetite for entertainment, fast food and fashionable brands, and some use credit cards to fund much of it.

This is according to Standard Bank Youth Barometer report released on Wednesday.

Shené Mothilal, Solution Owner of Digital Money Manager, said the spending habits of the youth reveal a notable focus on lifestyle-driven choices, particularly among those aged 18 to 24.

While essentials such as groceries, transport and housing still make up the majority of youth spending, the report shows that a significant portion of their income is allocated to “discretionary” expenses.

These include restaurant bills, fitness and self-care, travel, entertainment and high-end clothing.

"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,” said Mothilal.

Standard Bank data show that youth between 18 and 24 years of age spend more on fast food, fitness, digital connectivity and clothing than their elder peers.