Why young South Africans need to prioritise insurance in their financial journey

With more young adults making bold financial decisions, buying homes, financing cars, and stepping into ownership, insurance must become a priority conversation for this age group, according to Standard Bank.

- STAFF REPORTER

The group says it recently released its youth barometer, which reveals that 40% of all new home loan enquiries between January 2023 and April 2025 came from clients under 35, signalling a shift toward younger first-time homebuyers. Similarly, 37.7% of the bank’s vehicle finance customers fall within the 18 to 35 age group, demonstrating a strong demand for mobility and independence.

Yet, while these financial strides are commendable, the report shows that many young South Africans are stretching their budgets to afford these assets. The bank’s vehicle ownership data revealed that this age group has an instalment-to-income (ITI) ratio of 16.7%, significantly higher than the 11.4% average for customers over 35, it says.

According to the group, this financial strain makes it even more crucial for young people to protect their assets through insurance, seeing it as the first step in their wealth-building journey.