Those under 35 years old prioritise self-care and entertainment over insurance and savings
It is no secret that South Africans’ finances are under-pressure due to the high cost of living.
Research has shown that 18 to 35 year olds in the country are struggling the most to make their money stretch beyond the basics, leaving little room for saving or long-term planning.
The latest Standard Bank Youth Barometer revealed that the youth spend less on insurance, loans, transport and savings, but more on clothing, groceries, dining out, entertainment, digital and connectivity and fitness and self-care.
Victor Bucarizza, executive partner at GIB Private Clients, says some of the youth do not know how and where to start to save as they do not make enough, leaving them overwhelmed. He advises starting small.
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Where under 35 year olds spend their money
The Standard Bank report shows that youths aged 18 to 24 allocate 58% of their salary to essentials, while 25 to 29 year olds allocate 53% with 30 to 35s allocating an even split between essentials and discretionary spending.
The bank said this trend is often seen among those over 35 years old, citing higher salaries reducing pressure to cover basic needs.
Essential spending includes groceries, transport, housing, utilities, digital connectivity, clothing, healthcare and education. Discretionary spending is restaurant bills, fast food, fitness and self-care, entertainment, travel, holidays, money sent to family, loans, savings, insurance, fees and interest.
Youths under 35 make up 37.7% of Standard Bank’s vehicle finance customer base, a substantial portion that highlights the growing demand for mobility and independence among younger consumers.
Around 40% of all new home loan inquiries at Standard Bank between January 2023 to April 2025 came from clients under the age of 35. This suggests a strong and growing interest in property ownership among younger South Africans, despite broader affordability challenges and rising living costs.
A culture of spending for under 35 year-olds
Bucarizza said influences that surround young people, whether in real life and family groups or online, often amplify the pressure to spend. He describes this as “peer-moulding”, where young people mirror the spending habits of those around them.
“When everyone around you is spending, it feels natural to do the same, potentially subconsciously to project success,” he adds. “Unfortunately, we don’t show off our investment portfolios, we show off through consumption. The reality is that a big spender is rarely a big saver.”
However, he notes that influence by those around you can work both ways and the same social forces driving overspending can be redirected towards saving and investing.
“The solution isn’t to isolate people from their social networks, but to create positive reinforcement through them. Imagine if financial conversations were normalised within friend groups, families or schools, if we made saving socially visible and aspirational?”
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A cycle of working to survive
Bucarizza notes that financial stress has a compounding effect. The fourth annual DebtBusters Money-Stress Tracker survey revealed that 70% of their respondents worry about money on a daily basis, showing that many young adults are stuck in a cycle of working to survive rather than planning to build wealth, often relying on short-term fixes like credit or buy-now-pay-later schemes that deepen debt.
In 2024, 70% of the survey’s respondents said they stress daily about money. Psychologist Andrea Kellerman notes that a 5% drop in stress in 2025 has led to people sleeping and coping “a bit better,” suggesting a profound impact of small improvements on resilience and perception.
This shift is attributed to reduced inflation, fewer national crises such as load shedding and a growing sense of agency in managing finances, allowing people to reframe their financial situations and look beyond short-term survival.
The report showed that women continue to bear a higher burden of financial stress. Nearly three out of four female respondents reported stress and they are approximately 10% more stressed about finances and 20% more stressed about work life, home life and health compared to men.
How to avoid debt spirals
“The two steps that an individual should take to avoid debt spirals are first to build a simple budget to understand what expenses are required and second, to identify where flexibility exists within that framework. Choose what is most important to spend on and pull back on expenditure that doesn’t align with personal values,” says Bucarizza.
He believes it is important to reframe how young people see money. Earning an income is a means to contribute towards your community, gain a sense of personal purpose and earn a living to buy the things we need.
“One of the important yet often overlooked things that we need to buy with that income is assets, which are investments that continue to earn more income for us without us having to work for it.”
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Balancing immediate needs with long-term planning
Bucarizza adds that the limited incomes and rising living costs make it difficult for young people to take that first step.
The real challenge lies in balancing immediate needs with long-term planning, which is why small, achievable goals are essential. Even the smallest wins can build confidence and there is no need to overhaul your finances overnight.
“Rather start by automating something manageable.”
The advice to “save 20% of your income” often feels unrealistic when there is barely enough to meet basic needs, but Bucarizza suggests starting with what is possible, even if it is small. “Saving a portion of whatever earnings you do have from any income and budgeting to understand how you spend your money are practical first steps.”
Ways to save
He says a savings account remains a simple entry point. “Most South African banks offer accessible products with low minimum deposits and fair interest rates,” he says.
“For those ready to take a further step, RSA Retail Bonds offer a government-backed option for medium-term savings, while digital investment platforms allow small, low-cost entry points into investment products.
“Community-based savings models like stokvels also offer a powerful route to financial stability, especially for those without consistent income.”
Bucarizza says it is important for South Africans to have a better view and relationship with money.
“One must spend less than they earn and use the difference to buy assets. A generation that lives by this principle can become self-sufficient and break the cycle of dependency.”
What’s more, he adds, financial literacy should be embedded early, taught practically in schools and reinforced at home.
“Even small, consistent habits matter,” he says. “Start with what you have, automate it and let time do the work.”
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