By: Staff Reporter - IOL

Cash is king, credit is hard to come by and side hustles often bring in more than 9-to-5 jobs. That’s life for many young South Africans. But Gen Zs are not sitting back waiting for a break. They’re making a plan and figuring things out for themselves.

Youth specialists Student Village, in partnership with Futurist, Economist and Business Trends Analyst, Bronwyn Williams of Flux Trends, released The Gen Z Economy Report: Cash, Culture and Clout —  new research unveiling how young people in South Africa earn, spend, save and think about money.

Based on responses from over 900 South Africans aged 18 to 30, the report shows a generation shaped by financial pressure and economic uncertainty, but full of grit. It reveals how Gen Z is rethinking what it means to earn, spend and save, and why brands need to start paying closer attention.

“This generation isn’t broke, they’re building,” said Ronen Aires, CEO 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.” 

Key findings in the report include:

• Underemployed, not idle: Only 16.6% identify as unemployed, with many blending studies, gigs and side hustles to stay afloat. It’s not a job shortage but a redefinition of work.
• The cash conundrum: 80% still use cash regularly, not because they reject digital but because fees, access and trust gaps persist. Debit cards dominate online transactions, while credit remains rare and feared.
• Personal brand over possessions: Spend priorities skew towards clothing, food and cosmetics not for vanity but for value and identity. Self-image translates to social capital, influence and even job opportunities.
• Gen Z spends as much on clothing as they do on rent — image is currency.
• E-Commerce: Young South Africans receive one to three online shopping deliveries a month, while 27.37 percent shop online four times or more each month. Loyal but only to value: 99% are on loyalty programmes yet true brand allegiance is low.
• Deals, not emotions, drive repeat business.
• Community is currency: Income sources are shared from family and friends to NSFAS and romantic partners. Ubuntu isn’t just cultural; it’s financial.
• Looking ahead with fear and hope: A full 90.52% of respondents are saving regularly. The two biggest savings categories, savings for emergencies (25.75%) and savings for education (19.83%), hint at the fears and hopes of this generation.
• Retirement? Not yet: Just 5.5% are saving for their retirement. Retirement is simply not yet a priority for this generation. 

The report also reveals a stark paradox: most Gen Zs earn less than R5,000 a month, yet they are saving over a third of it. And nearly 30% are already dabbling in crypto, showing both caution and curiosity in their approach to money.

“Brands need to stop relying on tired stereotypes and start paying attention to the data. Young South Africans are smart with their money.  They’re saving, spending wisely and looking for real, direct relationships with businesses. What they want most is help figuring out how to earn more in a shrinking economy and how to grow what they do manage to save through smart investing,” said Aires.

For sectors like banking, FMCG, retail and telecoms, The Gen Z Economy Report should be a wake-up call. “This generation doesn’t want gimmicks. They want value, respect and relevance. They expect digital-first convenience, personalised service and ethical alignment. And if brands fail to deliver, Gen Z will scroll past, or worse, speak out.”

SUNDAY TRIBUNE

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