Trends reflect a preference towards purchasing second-hand vehicles rather than brand new ones, demonstrating a reasonable thought process geared towards making realistic, sustainable financial decisions.
Correspondingly, the move towards ‘buy now, pay later’ models of payment rather than credit card facilities, is equally reflective of the extent to which the youth analyse their finances and identify the best option for their context. Despite the stereotypes, this generation is well-informed on the various ways in which they can circumvent certain costs or achieve certain objectives in a more financially sustainable manner. 'Forty per cent of new home loan inquiries come from young people' according to Standard Bank’s Youth Barometer. In conjunction with the spending behaviour we’ve identified, the willingness of the bank to provide further credit facilities to cover additional expenses may provide the youth of today with a fighting chance at future home ownership.
This generation values the work life balance and where they choose to put their money is demonstrative of those values. Funeral cover has been preferred over life cover which speaks to the intention to achieve financial freedom on a long-term basis. Meeting basic financial obligations remains a priority, but the youth is equally as enthusiastic about spending on experiences. While remaining within the budget is important, an enhanced lived experience seems to be one of the expenses the youth will not forfeit.
