Gen Z and money: Hustle, save and spend with purpose

Faced with high youth unemployment, rising living costs and a precarious social safety net, South Africa’s Gen Z is reshaping what it means to earn, spend and save in an economy that hasn’t made it easy for them.

These under-30s are not waiting for opportunity to knock. They’re hustling, budgeting and making money choices that reflect both caution and ambition.

Two new studies offer a revealing look into how South Africa’s Gen Z navigates money.

The first, The Gen Z Economy Report: Cash, Culture and Clout, compiled by Student Village and trend analyst Bronwyn Williams of Flux Trends, surveyed more than 900 people aged 18-30. The second, Standard Bank’s Youth Barometer Report, explores how economic pressures and aspirations are shaping the financial behaviour of young South Africans between 18 and 35 (a tad over the Gen Z mark).

“They believe in themselves,” Williams tells Currency. “They control their own lives, choose their identity, curate their social media personas; they’re far more individually empowered, even if their broader future feels unstable.”

The data points to a generation that is financially engaged, deeply value driven and unafraid to break with convention.

“They’re investing in themselves – in their education, their side hustles, their skills. But they’re not investing in the economy. That’s why they’re not putting money into pension funds. They don’t trust the system,” she says. “They’re putting money into influencers, cryptocurrencies – things they feel they understand and control.”

And while the income of this cohort of about 27.5-million people is modest, collectively they represent substantial spending power. Despite month-to-month financial pressure, they find ways to earn and spend through multiple income streams and savvy prioritisation.

Not idle, just redefining work

Despite South Africa’s staggering youth unemployment figures (46.1% for those aged 15-34), only 16.6% of respondents in the Student Village study identified as unemployed. That’s because Gen Z doesn’t see work in traditional nine-to-five terms. Many blend formal studies with gig work, side hustles and entrepreneurial ventures.

Cash-conscious and credit-averse

Though digitally fluent, Gen Z leans heavily on cash. About 80% of respondents in the Gen Z Economy Report use cash regularly. This isn’t out of nostalgia: it’s about avoiding fees, managing access and maintaining control. Debit cards dominate digital payments, but only 15.8% have credit cards.

This aversion to credit reflects hard-earned caution. For this generation, debt is viewed not as a tool but as a trap. Many were raised by parents who struggled through financial crises, and they’re wary of repeating those mistakes.

Standard Bank customers aged 18-24 were conscious of interest charges, and made on average three repayments on their credit cards a month.

Saving, but not for retirement

Here’s a paradox: most Gen Zs surveyed for the Student Village and Flux Trends report earn less than R5,000 per month, yet nearly 91% say they save regularly. Top goals? Emergency funds (25.8%) and education (19.8%). Only 5.5% say they’re saving for retirement. This survey was skewed towards students, who, by nature, are less economically active than those who are employed full-time.

With high youth unemployment and rising costs, retirement feels like a distant luxury. More immediate needs take precedence, like navigating daily expenses, funding studies or building a safety net.

Standard Bank, which measured a wider audience, found that less than 15% earn more than R50,000 a month. Most earned below R10,000 – 36% of them under R5,000. According to Standard Bank, many Gen Zs are also investing, with nearly 30% already experimenting with cryptocurrencies. It’s a mix of caution and curiosity – a willingness to take calculated risks in pursuit of better returns.

Value-driven spending and digital shopping

Gen Z isn’t stingy – they’re selective. Spending is often intentional and linked to self-image. Clothing, food and cosmetics top their spending priorities, not out of vanity but as a form of identity building. In fact, Gen Z spends as much on clothes as on rent, says the Gen Z Economy Report.

But deals trump brand loyalty. More than 99% belong to loyalty programmes – just for discounts, not out of deep brand allegiance. They want value, relevance and ethical alignment – and they’ll switch fast if they don’t get it.

“Brand trust doesn’t mean what it used to,” Williams says. “Gen Z’s relationships with brands are transactional. They’ll sign up for every loyalty programme, but they’ll still buy from your competitor.”

You need to show value – real, tangible value – and billboards and massive ad campaigns won’t work anymore as the new generation of shoppers relies more on individual influences and their peer group for buying decisions, she says.

“Gen Z is a savvy, low-trust consumer,” Williams adds. “This is why older-style messaging doesn’t land anymore.”

E-commerce is also booming among young South Africans. About 27% shop online at least four times a month. But they still use cash where possible, avoiding what they see as “regressive taxes” in the form of card fees. Brands that offer flexibility and low-friction digital experiences are winning.

Community economics: Ubuntu in practice

The financial picture for Gen Z isn’t just individual – it’s communal. Income sources are often shared, coming from family, friends, partners and even the National Student Financial Aid Scheme. There’s a strong culture of mutual support, especially in black and lower-income households.

This isn’t reliance, it’s resilience. Gen Z is applying ubuntu to money – sharing what they have, navigating tough times together and leaning on community instead of institutions. It’s an economy of care as much as one of consumption.

What this means for brands and banks

For companies in banking, retail, fast-moving consumer goods and telecoms, the message is clear: Gen Z wants respect, relevance and reward. They expect digital-first convenience, transparent pricing and ethical business practices. And if you don’t deliver, they won’t complain – they’ll just move on.

“These are pragmatic decision-makers, conscious of their limits, but unwilling to be defined by them,” says Tshiamo Molanda, the head of youth and mass market segments at Standard Bank.

“From saving for their first home to budgeting for reliable transportation – often through second-hand cars – and ensuring their extended families are protected with funeral cover, this generation is making thoughtful trade-offs with intent and maturity.”

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