South African Gen Zs – who are now in their 20s – are stepping into adulthood on different terms than previous generations. As they delay traditional adulthood milestones, they are creating one of the biggest wealth-building opportunities of our time by ticking off traditional life milestones later (or not at all) while investing now.
According to Stats SA, the median age of South African brides rose from 31 in 2015 to 33 in 2021, while that of bridegrooms increased from 36 to 37 over the same period. Meanwhile, BetterBond data indicates that the average age of first-time homebuyers is climbing to 37, up from 33 just a few years ago. Along with marriage and property, Gen Z is also delaying starting families: South African household sizes have shrunk from 4.5 people in 1996 to 3.5 in 2022, with more women choosing to have children later in life (34% of births today are to women over 30, projected to rise to 48% by 2100).
It’s a global trend, but in South Africa it’s very clear: young people are delaying traditional life milestones – and that’s freeing up capital for other purposes.
Those major life events come at a cost. Weddings cost anything from R70,000 to over R250,000. Raising a child now averages about R100,000 per year, while schooling costs between R650,000 and R1.9m across a child’s school career. Those numbers matter. If you put the equivalent savings into an ETF – whether you decide on marriage, a house or children later – the investment gives you options.
Lifestyle first, commitments later
So, how are Gen Zs spending their money? Today’s young adults are prioritising lifestyle and experiences over traditional commitments. Research by Student Village and Youth Dynamix shows that South African youth (aged 15-34) control a potential spending pool of R303bn per year, with their biggest spending categories being groceries, mobile data and beauty products. Currently, 71% still live at home, though 30% of working youth contribute financially to their families.
Travel is also a rising priority: 38% of 18- to 34-year-olds reported travelling most recently, compared to 36% of those aged 35+. Social media is central to these choices – as many as 60% of South Africans find travel inspiration on Instagram and TikTok, while almost 40% say influencers and celebrities guide their decisions on where to go, what to eat and what to do.
These choices point to a generation that values autonomy and experiences. We need to frame investing as the way to secure more choices later.
Putting that extra capital to work
What if young people invested the “extra” money instead? Even though lifestyles are changing, the maths of wealth-building stays the same. What changes is where the money goes.
Consider, for example, a 25‑year‑old deciding whether to buy a starter home or rent for a few more years. Buying might cost R15,000 per month (factoring in bond, rates and home maintenance), while renting a similar property might cost R10,000 per month. That’s a R5,000 monthly difference.
Instead of letting that saving disappear into lifestyle spending, imagine investing it into a diversified ETF portfolio: R5,000 per month invested into a combination of Satrix Top 40 ETF (which offers local equity growth) and Satrix MSCI World ETF (for global equity exposure).
Assuming a long‑term return of 13% per year (before fees, not guaranteed), after five years of investing that R5,000 a month, their R300,000 total contributions would have an approximate value of R420,000. After 10 years, their R600,000 in contributions would be worth about R1.22m.
The point isn’t that renting is “better” than buying. It’s that if you delay one milestone, you can redirect the cash flow into investments that compound in the background, giving you more flexibility later – whether that’s for a home deposit, a career break or starting a family.
The same applies to a wedding. Weddings are meaningful – but they’re also expensive. In South Africa, a wedding can easily cost R100,000 or more for a single day. Now consider an alternative: instead of spending R100,000 upfront, what if our 25‑year‑old invested that same amount gradually over a year? That’s R8,300 per month for 12 months, invested into a growth‑oriented ETF such as the Satrix Balanced unit trust (for smoother ups and downs). Assume the investment is then left untouched. After 10 years at 10% per year, R100,000 becomes approximately R260,000. After 20 years, the same investment grows to about R670,000.
That’s the power of time and compounding. The decision isn’t “wedding or no wedding”. It’s about understanding the long‑term trade‑offs and making conscious choices.
The principles don’t change
Even as lifestyles shift, the rules of wealth-building remain the same. Every generation behaves differently, but the principles of investing don’t change. Young people may get distracted by current investment trends, but the fundamentals of investing have been around for decades. Don’t get caught up in the noise, as the formula that works is still the same: consistent contributions to a diverse investment portfolio over time, with low fees.
As Gen Z embraces new ways of living, they stand at a unique inflexion point. In choosing to live differently, they have the chance to redirect resources into long-term wealth.
Freedom equals options. And the only way to buy yourself options – in love, in lifestyle, in family – is to invest. The message to today’s 20-somethings is: don’t invest later; start today to secure more freedom for your future self.
Duma Mxenge is head of business and market development at Satrix.
CIS disclosure
Satrix Investments (Pty) Ltd is an approved financial service provider in terms of the Financial Advisory and Intermediary Services Act, No 37 of 2002 (“FAIS”). The information above does not constitute financial advice in terms of FAIS. Consult your financial adviser before making an investment decision. While every effort has been made to ensure the reasonableness and accuracy of the information contained in this document (“the information”), the FSP, its shareholders, subsidiaries, clients, agents, officers and employees do not make any representations or warranties regarding the accuracy or suitability of the information and shall not be held responsible and disclaim all liability for any loss, liability and damage whatsoever suffered as a result of or which may be attributable, directly or indirectly, to any use of or reliance upon the information.
Satrix Managers (RF) (Pty) Ltd (Satrix) is a registered and approved Manager in Collective Investment Schemes in Securities. Collective investment schemes are generally medium- to long-term investments. With Unit Trusts and ETFs, the investor essentially owns a “proportionate share” (in proportion to the participatory interest held in the fund) of the underlying investments held by the fund. With Unit Trusts, the investor holds participatory units issued by the fund while in the case of an ETF, the participatory interest, while issued by the fund, comprises a listed security traded on the stock exchange. ETFs are index tracking funds, registered as a Collective Investment and can be traded by any stockbroker on the stock exchange or via Investment Plans and online trading platforms. ETFs may incur additional costs due to being listed on the JSE. Past performance is not necessarily a guide to future performance and the value of investments / units may go up or down. A schedule of fees and charges, and maximum commissions are available on the Minimum Disclosure Document or upon request from the Manager. Collective investments are traded at ruling prices and can engage in borrowing and scrip lending. Should the respective portfolio engage in scrip lending, the utility percentage and related counterparties can be viewed on the ETF Minimum Disclosure Document. A feeder fund is a portfolio that invests in a single portfolio of a collective investment scheme, which levies its own charges and which could result in a higher fee structure for the feeder fund. International investments or investments in foreign securities could be accompanied by additional risks such as potential constraints on liquidity and repatriation of funds, macroeconomic risk, political risk, foreign exchange risk, tax risk, settlement risk as well as potential limitations on the availability of market information.
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