Generation Z has never known life without the internet, and for them, managing money is as simple as tapping a smartphone screen, scanning a QR code, or paying with a digital wallet.
But while technology has made banking faster and more accessible, financial experts warn that the online world is also reshaping how young people think about money – not always for the better.
The ease of digital payments, combined with social media influencer culture and highly targeted, algorithm-driven retail apps, can easily transform conscious spending into emotional, reactive financial decisions.
— Bertie Nel, head of financial planning and advice at Momentum
Aged between 14 and 29, Gen Z has grown up in a hyper-connected world where social media, online shopping, and mobile banking are part of everyday life. Traditional banking methods have largely been replaced by mobile-first financial services that allow users to save, spend, and invest without ever setting foot inside a bank.
Research by insights agency KLA shows that 44% of South African Gen Z consumers access their mobile banking apps several times a day. Data from the South African Reserve Bank (SARB) also shows that 53% of young people actively use digital payment methods such as mobile wallets, QR codes, and tap-and-go features.
The internet has also opened the door to greater financial inclusion. More young South Africans are saving money, while a growing number are investing in wealth-building products such as stocks and money market accounts.
But experts say the same internet-driven convenience that empowers young people can also encourage poor financial habits.
Bertie Nel, head of financial planning and advice at Momentum, said social media and online shopping platforms have fundamentally changed consumer behaviour.
“The ease of digital payments, combined with social media influencer culture and highly targeted, algorithm-driven retail apps, can easily transform conscious spending into emotional, reactive financial decisions,” explained Nel.
He said the internet exposes young consumers to influencers promoting the latest fashion, gadgets and lifestyle trends, while online retailers use personalised advertising to tempt them into making purchases they had not planned.
Another growing concern is the rise of Buy Now, Pay Later (BNPL) platforms, which have become popular among younger consumers because they allow purchases to be split into smaller instalments.
“The rapid growth of Buy Now, Pay Later platforms – projected to grow further in the next few years locally – is popular among younger demographics who are looking to break big payments up into bite-sized chunks,” said Nel.
“While these platforms assist with short-term cash flow flexibility, they also carry the risk of encouraging over-commitment, subscription fatigue, and an ongoing cycle of short-term gratification at the expense of long-term financial security.”
The internet has also transformed investing. Young people can now begin investing with just a few taps using micro-investing apps and automated savings features that round up spare change from everyday purchases.
While these innovations have lowered the barriers to investing, Nel cautions against relying entirely on technology.
“Micro-investing apps and automated round-up features are excellent entry points for learner investors, yet over-reliance on technology can foster a false sense of financial security.”
He said genuine financial wellness requires more than downloading the latest financial app.
When saving, budgeting and investing become fully automated, people can become disconnected from the financial decisions that determine their long-term success.
According to Nel, fintech should be viewed as a useful administrative tool rather than a replacement for financial planning.
“Technology can execute a strategy beautifully, but it cannot formulate a highly personalised holistic life plan or instil the behavioural discipline required to keep to it when market cycles shift or personal circumstances change,” he said.
For that reason, Nel believes accredited financial advisers continue to play an important role, even for a generation raised online.
“While an app can track daily expenditure or automate a monthly debit order, a professional financial adviser helps bridge the gap between immediate digital convenience and disciplined, intentional money management,” he said.
“Advisers play a key role in helping younger consumers establish a strong financial framework, helping them weigh short-term lifestyle desires against long-term objectives such as retirement funding, asset accumulation, and comprehensive risk protection.”
As Generation Z continues to embrace the internet for almost every aspect of daily life, Nel says the challenge is to ensure technology remains a tool for building wealth rather than a shortcut to unnecessary spending.
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