Despite earning less than R5 000 a month, more than half of South Africa’s Generation Z are somehow saving up to R1 800 a month.
Despite earning less than R5 000 a month, more than half of South Africa’s Generation Z are somehow saving up to R1 800 a month.
This is according to the Gen Z Economy Report by Student Village, which specialises in the youth market, and the trend analysis company, Flux Trends.
Drawing from 932 interviews with 18 to 30-year-olds across the country, the report refutes long-standing myths of Gen Z being financially reckless and idle and instead shows a generation of savvy survivors — balancing food, rent and transport with side hustles, savings goals and digital fluency.
Only 16.6% of the surveyed cohort said they were unemployed — a figure that sharply contrasts with the national youth unemployment rate of 45.5%. The reason for this is many Gen Zers earn additional income by freelancing, tutoring or running side businesses.
The report urges policymakers and brands alike to reframe these youth not as NEETs (not in education, employment or training), but as underemployed strivers blocked from reaching their potential by structural constraints.
“This generation isn’t broke, they’re building,” said Ronen Aires, the chief executive of Student Village. “Despite limited income, Gen Z is navigating the financial system on their own terms. They’re side-hustling, saving, skipping the debt trap and making intentional, values-led purchases. They’re redefining what it means to be a consumer, a customer and a contributor to the economy.”
Food dominates monthly expenses, averaging R2 330 — more than half of the average Gen Z income. In a context where rent and clothing follow close behind, the report found that food has become more than a necessity, but a status symbol.
“Social visibility, often through what you wear and where you eat, is treated as currency — a way to build personal brand and, potentially, attract opportunity,” it said. “In fact, Gen Zers spend almost as much on clothes as on rent, not out of frivolity, but because style is seen as an investment in influence — both online and offline.”
Income, for this generation, is rarely an individual affair. Money is pooled and supplemented by parents (20%), romantic partners or state support such as the National Student Financial Aid Scheme (17.5%). Yet more than any of these, the largest source of income — 21.7% — comes from self-reliance: informal side-hustles, freelance work and digital gigs.
According to the report’s economist and business trend analyst, Bronwen Williams, a blend of community and entrepreneurship reflects a uniquely South African expression of ubuntu, where familial obligation and entrepreneurial spirit coexist.
“This clearly illustrates that South Africa, unlike its northern peers, does not subscribe to
the European idea of independence, but rather lives out the ideal of ubuntu — shared
existence and community support,” she said.
Despite their digital footprint, the report found that Gen Z still prefer shopping at malls (83.6%), not necessarily for retail therapy but as a safe, affordable place to socialise.
“Brands eyeing this market must think beyond commerce — the mall is not just a store, but a third space for identity, belonging and interaction,” the report noted.
Although electronics are popular in e-commerce, they are less of a priority in physical stores, showing a division in shopping behaviour. Generation Z is also overwhelmingly direct-to-consumer, preferring brand websites (71.3%) over third-party platforms such as Takealot and Amazon.
Although about 99% of Gen Z respondents are signed up for loyalty programmes — Shoprite’s Xtra Savings and Pick n Pay’s Smart Shopper among the most popular — brand loyalty itself is scarce.
“These programmes are viewed as transactional tools to get the best deal, not indicators of emotional allegiance,” said the report.
This echoes their banking behaviour: 54% have more than one bank account, often to shield themselves from fees, fraud or debt recovery.
Despite a growing number of financial technology options, cash remains king. Nearly 80% still use it for everyday transactions — not out of resistance to digital tools, but because card fees add up quickly in a low-income context.
According to the report, only 15.8% of those surveyed own a credit card, and fewer than 10% have student or personal loans from formal financial institutions. This reluctance stems from both exclusion and experience — many have seen the damage of debt traps up close. Yet nearly 30% have invested in cryptocurrency, and sports betting is also seen as a viable side hustle.
Regarding Generation Z’s financial goals, 60.9% of the respondents want to be financially prepared for the future, 52.6% dream of living comfortably and 44.5% aspire to be debt-free. Only 11.1% define success as becoming a millionaire. Their aspirations are grounded in survival, not extravagance, the report said.
The report concludes that young people in South Africa need help in making money and banks should consider becoming job creators, side-hustle enablers and digital skills trainers.
“Gen Z is not asking for handouts — they’re asking for tools,”it notes.