A New Era of Financial Wellness
For South Africa’s Gen Z (aged 19–27), financial wellness is about more than just budgeting—it’s about balancing short-term convenience with long-term security. Armed with technology and optimism, Gen Z is reshaping how financial products and services are used. Insights from YouGov Profiles reveal key trends in their financial habits, preferences, and aspirations, giving us a glimpse into how this generation is driving change.
Optimism for Financial Growth: What Gen Z Expects for the Future
Gen Z is optimistic about their financial futures, with 75% believing their household’s financial situation will improve within the next 12 months.
This positivity drives a willingness to engage with financial planning tools, savings products, and investment opportunities. Brands targeting this demographic should align with this forward-thinking mindset by offering products that promote financial literacy and long-term growth.
Saving for Success: How Gen Z Builds Financial Security
Savings accounts are the cornerstone of Gen Z’s financial wellness, with 70% holding a savings account, followed by tax-free savings accounts (25%) and fixed deposit accounts (23%).
Despite this, challenges remain, as 17% have less than R500 saved across savings accounts. These figures highlight both the financial aspirations and the struggles of this generation. Accessible financial education and savings incentives can help bridge the gap and encourage consistent saving habits.
Household Financial Shifts: Adapting to Monthly Changes
When comparing their household financial situations to a month ago, 51% of Gen Z feel things have improved, while 35% report no change.
This optimism reflects resilience in navigating economic challenges. For brands, this is an opportunity to support young consumers through flexible financial products that adapt to their evolving needs.
Gen Z’s Banking Preferences
Among South African Gen Z, 44% have their main account with Capitec, making it the most popular bank for this generation. First National Bank (FNB) follows at 19%, with Absa at 9% and Standard Bank at 8%. The rise of Tyme Bank (5%) also indicates a growing interest in digital-first banking solutions.
Low fees, simple product offerings, and user-friendly mobile banking apps support and resonate with these tech-savvy young consumers who are looking to shift towards convenience-driven solutions.
Real-Time Banking: Smartphones as Financial Hubs
Smartphones are central to how Gen Z manages their finances, with 44% using them for online banking several times a day and 22% engaging 4–6 times a week.
Features like instant payments, savings goals, and transaction monitoring offers a tech-savvy approach to money management underscoring the importance of seamless app experiences and security features for engaging this generation.
Insurance for the Young: A Practical Safety Net
Gen Z demonstrates a strong inclination toward insurance, with 47% holding funeral cover, 44% opting for life insurance, and 31% investing in car insurance.
These choices highlight a focus on financial security and family priorities. While cellphone insurance (23%) and accidental death cover (17%) are included, they reflect specific practical concerns rather than top priorities for this generation.
Mobile Payments: Convenience Over Cash
Digital payment systems are revolutionising how Gen Z handles transactions. PayPal leads with 40% usage, followed closely by banking apps like Capitec and FNB (38%). Samsung Pay (27%) and Apple Pay (27%) also show strong adoption among Gen Z users.
These platforms offer speed, convenience, and security, making them ideal for a generation that values efficiency. Brands and financial institutions should continue to innovate in mobile payments, ensuring they cater to this growing preference.
Gen Z’s Investment Landscape: Stocks and Beyond
While savings accounts dominate, 15% of Gen Z invest in stocks, and 15% hold money market accounts. This indicates a growing appetite for wealth-building products, though adoption is still limited compared to savings accounts. Apps that enable easy, low-cost trading have likely contributed to this trend, making investing more accessible with minimal amounts.
Building Long-Term Wealth: The Future of Gen Z Financial Planning
For some, significant progress has been made, with 15% of Gen Z South Africans saving over R25,000. This reflects a segment of the generation actively preparing for long-term financial goals. However, the relatively low uptake of retirement annuities (8%) and education policies (10%) highlights an opportunity to further encourage this segment to prioritise long-term financial security.
Financial institutions have an opportunity to engage this segment by offering tailored products that encourage consistent contributions and provide clear long-term benefits.
Conclusion: Redefining Financial Wellness
South Africa’s Gen Z is redefining financial wellness by blending optimism, tech-savvy habits, and a commitment to savings. From leveraging mobile apps for everyday banking to exploring investment opportunities, this generation is actively shaping the future of financial services.
Insights from YouGov Profiles reveal clear opportunities for brands and institutions to align with Gen Z’s values and priorities. By offering innovative, accessible, and flexible financial solutions, companies can build trust and loyalty with this forward-thinking generation.
Methodology
Profiles: Segmentation and media planning tool. YouGov Profiles makes it simple to find and understand the audience that matters most to you. With data collected daily, it gives you the power to build and customise a portrait of your consumers’ entire world with unrivalled granularity.Dataset: 2024-12-29
Population: South African Generation Z aged 12-27 years old with access to the internet
n ~ 1094
