Young South Africans are showing a clear appetite for entertainment, fast food and fashionable brands, and some use credit cards to fund much of it.
This is according to Standard Bank Youth Barometer report released on Wednesday.
Shené Mothilal, Solution Owner of Digital Money Manager, said the spending habits of the youth reveal a notable focus on lifestyle-driven choices, particularly among those aged 18 to 24.
While essentials such as groceries, transport and housing still make up the majority of youth spending, the report shows that a significant portion of their income is allocated to “discretionary” expenses.
These include restaurant bills, fitness and self-care, travel, entertainment and high-end clothing.
“This tells us that younger age groups have a higher brand affinity to luxury brands, because while we see some of this behaviour among older age bands, more reasonably priced brands feature among older youth,” said Mothilal.
Standard Bank data show that youth between 18 and 24 years of age spend more on fast food, fitness, digital connectivity and clothing than their elder peers.
This group shops regularly at affordable fashion retailers like Mr Price, Pep, Ackermans and Shein, but also splurges on high-end brands such as Louis Vuitton, Timberland, Farfetch and Steve Madden, though clothing expenditure has declined since 2021. The trend points to a growing desire for image expression through curated brand choices.
The report also found that younger youth consider insurance, savings and even education as non-essential.
Withdrawals of cash, especially among the 18 to 24 bracket, also remain high, making it difficult to trace how funds are being used.
As they grow older, young South Africans begin to shift their priorities. The 25 to 29 age group begins to reflect a more balanced spend, with a growing focus on professional image and career-building. While still engaging with lifestyle brands, this group seeks out products that align with a more polished, aspirational identity.
“Individuals in their late twenties often enter a stage of ‘image investment’, a period where they begin refining their personal brand as they progress in their careers and social circles,” said Mothilal.
For those aged 30 to 35, spending habits closely mirror those of over-35s, with more money going toward insurance, healthcare and loan repayments.
This group also cuts back on entertainment and travel, spending the least of all youth segments on these categories. However, they still show loyalty to retail favourites like Mr Price and Pick n Pay Clothing, with far fewer luxury purchases.
Tumelo Ramugondo, Standard Bank head of credit cards, said credit card ownership among youth remains limited, with 16% of the bank’s credit card base under the age of 35.
“The youngest segment, 18 to 24, makes up only 1%. The shift begins in the 25 to 29 age group, where credit access expands and the Gold credit card becomes the most frequently taken product,” said Ramugondo.
For the 30 to 35 age group, the Gold card still leads, but there is a growing uptake of Titanium cards, which indicates a shift toward more advanced banking relationships and financial management.
However, income remains a major barrier. Ramugondo said a third of youth with Standard Bank credit cards earn less than R5 000 a month, while 43% earn R10 000 or less.
He said nearly 80% of the youth with credit cards earn R10 000 or less, and this limits both eligibility for traditional credit and their ability to afford repayments comfortably.
He said the generational gap showed that under-35s make up close to 60% of South Africa’s population but account for 17% of the country’s outstanding credit by value. He explained that their credit portfolios are made up of unsecured loans and entry-level cards, as compared to older groups with access to secured and higher-value facilities. Despite this, he said, youth tend to manage their credit usage more cautiously.
“This suggests a responsible mindset but may also be a reflection of constrained incomes,” Ramugondo added.
He said with this still in mind, the youth also use the credit extensively once it is accessible. The average credit limit among the 18 to 24 age group is around R20 000 and most of the holders use at least 70% of it.
Ramugondo said this suggests that even everyday expenses are being financed through borrowed money.
