Young South Africans are making more disciplined financial decisions despite ongoing economic pressure, with many borrowing less than they qualify for, buying affordable vehicles and investing in property.
According to the Standard Bank Youth Barometer Report released on Tuesday, younger consumers are generally taking a cautious approach to credit.
Instead of maximising available borrowing limits, many are choosing to live within their means, while a growing number are purchasing more affordable Chinese vehicle brands.
Access to credit cards ‘a challenge’
Standard Bank head of credit Tumelo Ramugondo said access to credit cards remains a challenge for many young people because lenders require an established credit history before approving applications.
The report found that when young consumers do apply for credit, it is often driven by financial necessity rather than discretionary spending. Common reasons include emergency expenses, medical bills, supporting family members and temporary disruptions to income.
At the same time, credit cards are widely used for everyday purchases. Groceries and fuel are the two biggest spending categories, followed by restaurants.
The report suggests this trend may be partly driven by loyalty and rewards programmes that encourage card usage for daily expenses.
Fun anchored on prudence
Ramugondo said younger consumers continue to show a desire to socialise and enjoy experiences despite financial pressures.
“We realise that despite being in the digital age and being glued to mobile devices, young people actually enjoy going out and exploring. They eat at restaurants and prefer a dining experience,” said Ramugondo.
However, the report also found that many are actively managing their debt by making multiple repayments during the month rather than waiting until payment is due.
Among consumers aged 18 to 24, credit card spending averages 73% of available limits, while repayments average 39%. Those aged 25 to 29 spend around 70% of their available credit and repay 37%, while consumers aged 30 to 35 spend 71% and repay 36%.
The findings suggest that although young South Africans remain under financial pressure, many are balancing essential spending with responsible credit management and long-term financial planning.
Young people not neglecting property
Tshiamo Molada, Standard Bank head of personal banking, said home ownership further remains an aspiration as the report shows a 13% increase in youth home purchases. She said 77% are first time buyers but there has been a recognisable 23% in repeat buyers.
“While first time homebuyers account for 77% of youth borrowers, reflecting strong demand for new market entrants, almost one in four buyers is a repeat homebuyer. This shows tat some young South Africans are already progressing beyond their first property purchase,” said Molada.
She said this raised suspicion that young people are investing in property because they might be seeing opportunity in renting them out as a hustle. She said there is also an increased trend in buying standalone homes instead of a shared space.
“A lot more single people buy homes compared to joint bonds and this is dominated by females,” said Molada.
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- Young South Africans are taking a cautious approach to credit, borrowing less than their limits and choosing affordable vehicles, including more Chinese brands.
- Access to credit cards remains difficult for many youth due to lack of an established credit history, with credit sought mainly for necessities like emergencies and family support.
- Despite financial pressures, young consumers prioritize social experiences and actively manage debt by making multiple repayments monthly, balancing spending and credit responsibly.
- There is a significant increase (13%) in youth home purchases, with 77% being first-time buyers and a growing number investing in additional properties, possibly for rental income.
- More single young people, particularly females, are buying standalone homes rather than shared spaces or joint bonds, indicating a trend toward independent homeownership.
Instead of maximising available borrowing limits, many are choosing to live within their means, while a growing number are purchasing more affordable Chinese vehicle brands.
At the same time, credit cards are widely used for everyday purchases. Groceries and fuel are the two biggest spending categories, followed by restaurants.
“We realise that despite being in the digital age and being glued to mobile devices, young people actually enjoy going out and exploring.
However, the report also found that many are actively managing their debt by making multiple repayments during the month rather than waiting until payment is due.
“While first time homebuyers account for 77% of youth borrowers, reflecting strong demand for new market entrants, almost one in four buyers is a repeat homebuyer.
“A lot more single people buy homes compared to joint bonds and this is dominated by females,” said Molada.
