To engage with South African Gen Z, who see cash as king, credit is hard to come by, and side gigs frequently generate more income than 9 to 5 jobs, brands must break free from outdated stereotypes and start paying attention to the data. Additionally, they’re not just waiting for a break; they’re planning and solving problems on their own.
According to a recent study called The Gen Z Economy Report: Cash, Culture, and Clout, it demonstrates how South African youth make, spend, save, and think about money.
The study depicts a generation that is resilient despite being moulded by financial strain and economic instability. It demonstrates how Gen Z is redefining what it means to make money, spend it, and save it, along with the reasons why businesses should begin to pay more attention.
In collaboration with Bronwyn Williams of Flux Trends, a futurist, economist, and business trends analyst, Student Village, a youth specialist, produced the report, which was based on responses from more than 900 South Africans between the ages of 18 and 30.
According to Student Village’s CEO, Ronen Aires: “This generation isn’t broke, they’re building.
“Despite limited income, Gen Z is navigating the financial system on their 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,” Aires added.
The survey also highlights a startling paradox: while saving more than a third of their monthly income, the majority of Gen Zers make less than R5,000. Additionally, about 30% are already experimenting with cryptocurrency, demonstrating a cautious yet inquisitive attitude toward money.
Continuing, Aires had this to say: “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,” Aires added.
The Gen Z Economy Report ought to serve as a wake-up call for industries like banking, FMCG, retail, and telecommunications.
Aires stated: “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,” Aires added.
This is more than simply a study dip, according to the CEO. It is a blueprint, Aires revealed: “If your brand wants to win Gen Z wallets, you need to understand the real lives behind them, rather than just stereotypes.”
BrandSpur news reports that it is expedient to know the following:
- The unemployment rate is only 16.6%, and many people combine their side jobs, gigs, and studies to make ends meet. Instead of a lack of jobs, work is being redefined.
- Not because they dislike digital, but rather because of ongoing expenses, access issues, and trust gaps, 80 percent still use cash regularly. While credit is still uncommon and feared, debit cards are the most common way to make purchases online.
- Clothing, food, and cosmetics are prioritised over other things, not out of vanity but rather out of identity and worth. Self-perception correlates with influence, social capital, and even employment prospects. According to Gen Z, appearance is currency, and they spend as much on clothes as they do on rent.
- While 27.37% of young South Africans shop online four or more times a month, they only receive one to three deliveries per month.
- Despite being enrolled in loyalty programs, 99% of people have little genuine brand devotion. Recurring business is driven by deals, not feelings.
- NSFAS and love partners discuss their income sources with their families and acquaintances. Ubuntu is not only cultural, but also profitable.
- 90.52% of those surveyed save regularly. This generation’s expectations and worries are hinted at by the two largest savings categories: emergency savings (25.75%) and education savings (19.83%).
- The percentage of people saving for retirement is only 5.5%. For this generation, retirement is just not a priority yet.
