How Are Gen Zs Coping Financially?

Although a portion of the generation known as Gen Z, born between 1997 and 2012, has yet to enter the workforce, those that have represent our youngest cohort of workers. They are relatively new to the financial responsibilities that come with earning a living. How are they coping, and could they be managing their money better?

The good news is that South Africans’ overall financial confidence has reached its highest level in three years, according to the recently released 2025 Sanlam Financial Confidence Index, rising from 47 out of 100 in 2024 to 53 this year. Half of respondents say they could recover from a financial setback, up 11% from last year.

The survey had 1 512 participants, aged 20 to 70. Gen Z leads across every measure – from self-determination (70) to resilience (64) – driven by optimism, digital fluency and openness to financial learning. Millennials follow closely, while Gen X and Baby Boomers trail behind.

Lee Hancox, head of channel and segment marketing at SanlamConnect, sees this as a generational turning point. “Gen Z’s optimism is an incredible opportunity. They are open to learning, curious, and digitally empowered. Our job is to provide them with the tools, content and advice that fit their world,” she says.

According to Raziq Christians, executive of retail distribution at PPS Investments, for younger investors, particularly millennials and Gen Zs, the idea of wealth is not purely financial. “Many are deeply values-driven, with a strong preference for transparency, sustainability, and social impact. Environmental, social and governance considerations are no longer fringe; they are increasingly central to investment discussions. These clients are also digital-first, seeking intuitive, on-demand interactions.”

Christians says this generation expects advice to be more personalised, more visual, more interactive, and more aligned to their sense of purpose. Worryingly, they are turning to platforms such as YouTube and TikTok for financial advice, which is often inappropriate or misleading.

Furthermore, Gen Zs represent a fundamental shift away from traditional approaches to work and retirement. Many have side hustles, working multiple jobs; they change jobs (and careers) more frequently than older generations; and many don’t see themselves “retiring” in the traditional sense of laying down their tools at 60 or 65 years of age.

Youth specialists Student Village, in partnership with business trends analyst Bronwyn Williams of Flux Trends, recently released “The Gen Z Economy Report: Cash, Culture and Clout”. It found that 22% of income for under-30s comes from informal gigs, freelancing and digital work. Three-quarters of them identify as “poly-jobbers”, juggling multiple income streams to manage rising living costs. But extra income is not translating into lasting wealth.

Tracy Afonso, executive in private and wealth at Nedbank says that young South Africans are saving, but not in ways that build long-term security. Savings are used for lifestyle purchases rather than going into investments or towards retirement. The uptake of financial products, such as tax-free savings accounts and retirement annuities, remains low.

“Without a proper plan, it’s easy for young people to mistake spending for progress. Buying a car, booking a trip or moving into a nicer flat can feel like signs of success, but they don’t build a cushion,” Afonso says. “Many young professionals earn and spend actively but don’t yet have the knowledge or tools to turn that income into assets. They often make financial choices alone or turn to peers and social media for advice. That exposes them to poor guidance and quick fixes that don’t support long-term goals.

“To move forward, their focus has to shift from just getting by to actually building up from short-term purchases to long-term wealth. Whether it’s protecting what they have, saving for the future or turning that income into assets, every rand has the potential to work for them, but only if they give it direction,” she says.