Point of view: the stark financial reality facing South Africa's youth in 2025

In 2009, I earned R5000 a month as an intern. Rent was R2000 a month, and while that swallowed most of my income, I could still afford transport, groceries, and the occasional night out. It wasn’t glamorous, but it was possible. I lived independently, shared a flat in Observatory, and felt like I was building something. Fast forward to 2025, and I see young professionals entering the same industry with similar starting salaries, but facing a cost-of-living crisis that makes my early struggles look like a luxury.

A new report by The TEFL Academy titled: The Cost of Being Young in 2005 vs 2025 in South Africa aims to spark discussion about the widening affordability gap and the urgent need for policies and pathways to support today’s youth. While Millennials face challenges, the report makes clear that Gen Z in South Africa is paying significantly more of their income for basic survival, housing, food, education, and transport, even as nominal earnings have risen.

The report lays bare the generational divide: Gen Z graduates today earn between R6,000 and R9,000 per month, yet rent alone averages R8,598. That’s up from R1,500 in 2009, meaning rent now consumes up to 64% of a graduate’s income, compared to 30% in my time. Even cheaper options around R4,000 still eat up half their pay. Add deposits, transport, and groceries, and financial independence becomes a fantasy.

Back then, food cost me around R1,500 a month. Today, the average household food basket sits at R5,443, a 263% increase. For Gen Z, groceries compete directly with rent and debt repayments. Many are forced to cut back on nutrition, rely on instant meals, or skip meals entirely. This isn’t just about affordability, it’s about dignity and wellbeing.

Student debt has tripled. The average NSFAS loan has ballooned from R30,000 to R90,000, meaning graduates start their careers in the red. I didn’t have a student loan, but I remember friends who did. R30,000 felt daunting then. R90,000 today is suffocating. It delays milestones like moving out, buying a car, or saving for retirement. It also widens the generational wealth gap, as Gen Z must prioritise repayments over building assets.

Transport costs have surged, too. In 2009, I paid around R561 for monthly public transport. Today, it’s R850, and fuel has skyrocketed from R7.00 to over R21.00 per litre. Buying a car is nearly impossible, with entry-level prices jumping from R65,000 to R178,800. For early-career professionals, fuel alone can consume 15–25% of their income, depending on commute distances.

According to the report, despite being more educated and digitally skilled than Millennials were in 2009, Gen Z feels less financially secure. They’re delaying homeownership, family formation, and are increasingly reliant on credit. Many remain dependent on family support into their late 20s, not because they’re lazy or entitled, but because the numbers simply don’t add up.

Brendan Pitt, a South African teaching English in Thailand, puts it plainly: “Limited job opportunities in South Africa made it harder each year to secure decent work. In contrast, living costs in Thailand are significantly lower, and the teaching lifestyle offers flexibility and breathing room.”

Rhyan O’Sullivan, managing director at The TEFL Academy, says: “For many young South Africans, the dream of financial independence feels further away than ever before. Gen Z isn’t struggling because they lack ambition or ability; they’re facing an economic landscape that has fundamentally shifted. Yet despite the odds, they’re showing remarkable adaptability, finding new ways to build meaningful lives on their own terms".

The Cost of Being Young in 2005 vs 2025 in South Africa aims to spark discussion about the widening affordability gap and the urgent need for policies and pathways to support today’s youth. While Millennials face challenges, the report makes clear that Gen Z in South Africa is paying significantly more of their income for basic survival, housing, food, education, and transport, even as nominal earnings have risen.

* Maleke is the editor of Personal Finance

PERSONAL FINANCE