Harsh debt reality for young South Africans on World Savings Day

With youth unemployment sitting at 62.4% for those aged 15–24, young South Africans are entering an economy where basic living costs swallow up most of what little income they earn. Saving, for many, isn’t a lifestyle choice – it’s a luxury.

This is not a case of carelessness or poor discipline. It’s one of pressure, trade-offs and persistence. Data from the 2025 Zaka Index – commissioned by the Sanlam Foundation in partnership with financial education platform Blackbullion – reveals a fragile financial foundation, with 82% of employed young people earning less than R6,000 a month. That is a precarious footing where even a small shock can unravel everything. Over half of those surveyed say they feel financially stressed every day.

Vicious squeeze of essential expenses

For this group, the budget battle begins and ends with essentials. The Zaka Index highlights food as the biggest monthly expense for half of respondents, followed by rent at 25%. Add transport, and there’s almost nothing left to work with. Four in five young people have skipped meals or delayed payments just to stay afloat.

Where are the youth spending?

The generational contrast is telling. Wage research from the Tefl Academy shows that in 2005, rent took up around 20% of a graduate’s income. Today, it’s closer to 50–60% – especially for lower-earning graduates. The same research reveals that salaries – adjusted for inflation – have barely moved in two decades, having lost around 21% in real terms when adjusted for inflation. The result is an affordability crisis that’s forcing young South Africans to delay independence and abandon the notion of saving altogether.

Debt has become a coping mechanism. The 2025 DebtBusters Money-Stress Tracker shows that 63% of consumers spend more than 30% of their after-tax income on debt – already considered a danger zone. The Standard Bank Youth Barometer adds that many young credit users are near their limits, with under-24s often using more than 70% of available credit. This high-wire act means the cost of non-saving isn’t just financial; it’s deeply emotional and social. When an unexpected R1,000 expense can derail the entire month, resilience starts to look like endurance.

Emotional and social cost of non-saving

Under such strain, money decisions become as emotional as they are practical. Social pressure and survival instincts collide. As Victor Bucarizza, executive partner at GIB Private Clients, puts it, “peer-moulding” – the urge to look successful – often wins over long-term planning.

But this isn’t about frivolity. The Zaka Index found that mobile data and airtime are the top “luxury” spend for 38% of respondents – more important than fashion or streaming subscriptions. In today’s world, connectivity is not indulgence; it’s participation.

Luxury goods the youth prioritises

There’s also the question of “money shame.” Bucarizza notes that embarrassment and distrust keep many young people from seeking advice or starting small. DebtBusters’ research supports this: many respondents say they feel “stuck” or “don’t know who to trust”. In an economy that’s already stacked against them, that emotional hurdle deepens the sense of paralysis.

Building resilience: Small wins and realistic starts

Resilience doesn’t start with big money, but with small, consistent habits. As Doret Jooste, head of money management and advisory at Standard Bank, advises: “Start now, start small. The habit matters more than the amount.” Even redirecting R50 or R100 a month from small comforts can create momentum.

The Standard Bank Youth Barometer also notes a shift towards affordable protection: funeral cover and tax-free savings accounts are growing among under-35s, particularly women who carry family financial responsibilities. Tshepo Kgapane, product lead at WaFunda, says digital financial education tools are helping change habits. 

“Among users who engage with learning content, 75% stick to a budget,” he says – proof that small interventions can shift behaviour.

Read more: Youth and money — how to save smart, spend smarter and dodge debt

Structural realities

World Savings Day is meant to inspire financial discipline. In South Africa, it’s also a reminder that discipline without breathing room doesn’t work. The youth are not failing to save, they’re adapting in an economy that keeps moving the goalposts.

As Bucarizza puts it: “A generation that commits to spending less than they earn and using the difference to build assets is a generation that can break the cycle.” 

The message isn’t about perfection; it’s about persistence. In a time when saving feels almost impossible, every small act of financial control is an act of quiet defiance — and hope. ” DM