The pressure to succeed financially, combined with the lingering effects of poverty, creates a toxic cycle of consumption, debt, and financial instability
South Africa’s young professionals, particularly black professionals, are facing an alarming financial crisis. More than 50% struggle with financial management, with only a fraction having a solid monthly budget or a long-term financial plan. A closer look at the underlying causes reveals this situation is not merely a result of financial illiteracy or the much-discussed phenomenon of “black tax.” Rather, it is the product of deep-seated historical factors that stem from colonialism and apartheid, which stripped entire generations of wealth and opportunity, forcing many into a vicious cycle of survival.
Colonialism left a legacy of economic deprivation that has rippled through generations, leaving South Africa’s current youth with not only financial responsibilities but a psychological burden of “catching up” with the material wealth that previous generations were deprived of. Today, in an age dominated by social media and a culture of instant gratification, these young professionals are often driven by a desire to heal their “inner child”, indulging in consumerism to acquire the things they lacked growing up, all while shouldering heavy financial responsibilities.
Colonialism systematically stripped black South Africans of land, wealth and opportunity. Even after the formal end of apartheid, the economic effects linger. Many black parents, who lived through apartheid, were forced to focus on survival, often taking low-wage jobs with little or no savings or investments for retirement. For their children, this meant growing up without the financial safety nets that wealthier families could afford. The burden of providing for basic needs — food, shelter, education — fell on their parents, with little room to save or accumulate wealth for future generations.
This late start in life forced many of these parents to prioritise the bare necessities. As a result, today’s young professionals were often raised in homes where the concept of financial planning was limited to month-to-month survival. Now, having entered the workforce, these young professionals are pressured to provide for themselves, their ageing parents and sometimes siblings, while still attempting to build their own futures. The psychological weight of stepping into this role, often with little preparation or guidance, leaves many feeling overwhelmed and unable to achieve financial stability.
The rise of social media has fuelled a culture of instant gratification that deeply affects young professionals. There is a popular narrative of “healing the inner child”, a concept often shared on social media platforms that encourages individuals to indulge in experiences and purchases that they were deprived of growing up. For many young professionals who grew up in poverty or with limited access to luxuries, this narrative resonates deeply. Buying the latest phone, luxury brands or expensive experiences serves as a form of personal reward — a way to compensate for the sacrifices made in their childhood.
But this culture of consumption is problematic, especially when paired with inadequate financial planning. The need to “treat yourself” and acquire material goods is intensified by the psychological need to compensate for what was lost in childhood. With the constant pressure of social media reinforcing these desires, many young professionals find themselves trapped in a cycle of spending, despite their responsibilities as breadwinners.
In many black families, young professionals are often thrust into the role of primary breadwinner as soon as they enter formal employment. This happens not because their parents are unwilling to support themselves, but because they cannot. Many parents lack retirement funds or savings, having spent their lives focused on immediate needs. As a result, young professionals must step in, helping with household expenses, supporting younger siblings and caring for their ageing parents. This situation, known as “black tax,” is well-documented and discussed, but it fails to fully capture the emotional and psychological toll it takes on young professionals.
Balancing these responsibilities while trying to build personal wealth is a near-impossible task for many. The desire to provide for one’s family often conflicts with the need for personal financial growth. This constant juggling of responsibilities leads to financial instability, with little room for savings or investment. Many young professionals feel compelled to meet the material demands of their families, while also feeling pressured to participate in a lifestyle of consumption that social media glorifies.
Growing up in poverty often creates a scarcity mindset — one in which there is a constant fear of lack and, as a result, a tendency to grab everything one can as quickly as possible. For young professionals who have managed to climb the socioeconomic ladder, this mindset persists. The uncertainty of growing up with little creates an urge to accumulate wealth and possessions rapidly. Unfortunately, this often leads to financial mismanagement, with individuals overextending themselves through credit and loans.
This urgency is compounded by the knowledge that many young professionals are only a paycheck away from financial ruin, as they are often the primary financial support for their families.
The psychological and financial burdens faced by young professionals in South Africa are not just personal issues — they are systemic. Colonialism and apartheid stripped generations of wealth, creating a cycle of economic disadvantage that continues to affect young people today. The desire for instant gratification, driven by a need to heal from past deprivation, combined with the immense responsibility of providing for one’s family, has led to financial instability among many young professionals.
To break this cycle, financial education must become a priority. It is crucial to equip young professionals with the tools they need to manage their money effectively and build wealth for future generations. Moreover, the conversation about financial management must include discussions on mental health, particularly how the trauma of poverty and deprivation shapes spending habits. Offering young professionals financial literacy and psychological support can help them break free from the patterns that keep them trapped in a cycle of debt and financial instability.
Without acknowledging the link between historical dispossession, the culture of instant gratification and the financial responsibilities that weigh on young professionals, any solution will remain incomplete. By addressing both the financial and psychological roots of the issue, young professionals can be better equipped to manage their finances, support their families, and build wealth for future generations.
Sibahle Zuma is a human rights and development practitioner with a focus on civic freedoms, climate activism and youth participation in policy and decision-making.