South African Gen Z is redefining adulthood by delaying traditional milestones like marriage and homeownership, creating unique wealth-building opportunities. This article explores their spending habits, investment strategies, and the long-term benefits of prioritising experiences over commitments.
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South African Gen Zs – who are now in their twenties – are stepping into adulthood on different terms than previous generations. As they delay traditional adulthood milestones, they are creating one of the biggest wealth-building opportunities of our time by ticking off traditional life milestones later (or not at all) while investing now.
According to Stats SA, the median age for South African brides rose from 31 in 2015 to 33 in 2021, while that for bridegrooms increased from 36 to 37 over the same period. Meanwhile, BetterBond data indicates that the average age of first-time homebuyers is climbing to 37, up from 33 just a few years ago. Along with marriage and property, Gen Z is also delaying starting families: South African household sizes have shrunk from 4.5 people in 1996 to 3.5 in 2022, with more women choosing to have children later in life (34% of births today are to women over 30, projected to rise to 48% by 2100).
It’s a global trend, but in South Africa it’s very clear: young people are delaying traditional life milestones – and that’s freeing up capital for other purposes.
,Those major life events come at a cost. Weddings cost anything from R70 000 to over R250 000. Raising a child now averages about R100 000 per year, while schooling costs between R650 000 and R1.9 million across their school career. Those numbers matter. If you put the equivalent savings into an ETF – whether you decide on marriage, a house or children later – the investment gives you options.
Lifestyle first, commitments later
So, how are Gen Zs spending their money? Today’s young adults are prioritising lifestyle and experiences over traditional commitments. Research by Student Village and Youth Dynamix shows that South African youth (aged 15 to 34) control a potential spending pool of R303 billion per year, with their biggest spending categories being groceries, mobile data, and beauty products. Currently, 71% still live at home, though 30% of working youth contribute financially to their families.
Travel is also a rising priority: 38% of 18- to 34-year-olds reported travelling most recently, compared to 36% of those aged 35+. Social media is central to these choices – as many as 60% of South Africans find travel inspiration on Instagram and TikTok, while almost 40% say influencers and celebrities guide their decisions on where to go, what to eat and what to do.
These choices point to a generation that values autonomy and experiences. We need to frame investing as the way to secure more choices later.
Putting that extra capital to work
What if young people invested the “extra” money instead? Even though lifestyles are changing, the maths of wealth-building stays the same. What changes is where the money goes.
Consider, for example, a 25‑year‑old deciding whether to buy a starter home or rent for a few more years. Buying might cost R15 000 per month (factoring in bond, rates, and home maintenance), while renting a similar property might cost R10 000 per month. That’s a R5 000 monthly difference.
Instead of letting that savings disappear into lifestyle spending, imagine investing it into a diversified ETF portfolio. R5 000 per month invested into a combination of Satrix Top 40 ETF (which offers local equity growth) and Satrix MSCI World ETF (for global equity exposure).
Assuming a long‑term return of 13% per year (before fees, not guaranteed), after five years of investing R5 000 a month, their R300 000 total contributions would have an approximate value of R420 000. After 10 years, their R600 000 in contributions would be worth about R1.22 million.
The point isn’t that renting is “better” than buying. It’s that if you delay one milestone, you can redirect the cash flow into investments that compound in the background, giving you more flexibility later – whether that’s for a home deposit, a career break, or starting a family.
The same applies to a wedding. Weddings are meaningful – but they’re also expensive. In South Africa, a wedding can easily cost R100 000 or more for a single day. Now consider an alternative: instead of spending R100 000 upfront, what if our 25‑year‑old invested that same amount gradually over a year? That’s R8 300 per month for 12 months, invested into a growth‑oriented ETF. Assume the investment is then left untouched. After 10 years at 10% per year, R100 000 becomes approximately R260 000. After 20 years, the same investment grows to about R670 000.
That’s the power of time and compounding. The decision isn’t “wedding or no wedding”. It’s about understanding the long‑term trade‑offs and making conscious choices.
The principles don’t change
Even as lifestyles shift, the rules of wealth-building remain the same. Every generation behaves differently, but the principles of investing don’t change. Young people may get distracted by current investment trends, but the fundamentals of investing have been around for decades. Don’t get caught up in the noise, as the formula that works is still the same: consistent contributions to a diverse investment portfolio over time, with low fees.
As Gen Z embraces new ways of living, they stand at a unique inflexion point. In choosing to live differently, they have the chance to redirect resources into long-term wealth.
Freedom equals options. And the only way to buy yourself options – in love, in lifestyle, in family – is to invest. The message to today’s twenty-somethings is: don’t invest later; start today to secure more freedom for your future self.
* Mxenge is the head of business and market development at Satrix.
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