Side hustles, smart credit use shape youth spending habits — study

South African youth are increasingly using credit cards for everyday expenses, while women are snatching up freestanding properties and buying second-hand cars for their side hustles.

This was revealed in the latest Standard Bank Youth Barometer study released by the bank on Tuesday. The study showed that young people are making sound financial decisions about their money and where they choose to spend it.

The report, which examines the financial behaviour, aspirations and spending patterns of people aged 18 to 35, found that young consumers are using credit differently from previous generations, with purchases for groceries, fuel and clothing high on their list.

Tshiamo Molanda, head of personal banking at Standard Bank, said the findings challenge the perception that young people are reckless with money.

“Our data shows that young people are pragmatic. Even though they face significant financial pressure, many are still buying cars, purchasing homes and starting side hustles,” she said.

Tumelo Ramugondo, head of credit cards, said younger customers generally receive lower credit limits because they are earlier in their earning and credit journeys.

“What is interesting is that they often take less credit than they qualify for. They are not necessarily chasing credit; they are looking at what is relevant to their needs and means,” Ramugondo said.

He added that younger customers tend to use a larger proportion of their available credit than older customers, largely because their limits are smaller.

What is interesting is that they often take less credit than they qualify for. They are not necessarily chasing credit; they are looking at what is relevant to their needs and means.

—  Tumelo Ramugondo

Ramugondo said many young customers also use credit cards to access rewards such as discounts and airport lounge benefits

The Youth Barometer also found that many young adults, particularly single women, are buying standalone properties and renting them out as an additional source of income.

Andrea Kraushaar, director at Youth Dynamix, said young people are adjusting their financial strategies rather than abandoning long-term goals.

“Youth juggle daily expenses, lifestyle priorities and long-term goals with limited resources. They tend to prioritise essentials and avoid overcommitting while still working towards future goals,” Kraushaar said.

She said spending decisions are influenced not only by affordability but also by convenience, wellbeing, identity and social connection.

Charl Muller, head of the personalisation centre of excellence at the bank, said spending habits are often shaped by family background and exposure.

“If someone grows up in a household where a particular type of car is common, their first vehicle is often from the same category. These contextual factors help explain the data,” he said.

Muller said the study found that between December 2025 and April 2026, people aged 18 to 35 spent an average of 12.34% of their wallets on groceries and 3.58% on fast food.

KFC emerged as one of their most popular fast-food purchases.

For fashion and clothing, spending was concentrated at Pep, Ackermans, Bash, Shein, Foschini and Mr Price.

Muller said these purchases were often in the early stages of starting families, while fashion spending generally reflected a combination of self-expression, practicality and value.

The report concludes that South African youth are navigating a difficult economic environment by balancing immediate needs with longer-term goals such as property ownership, savings and additional income opportunities.

Online financial advice

The theme of carefully navigating the financial system while tussling with side hustles also featured strongly at the 10th anniversary of the FNB Bank Nav» ecosystem. The platform, which is found on the bank’s app, assists young customers with practical guidance beyond traditional banking, from saving and homeownership to mobility, protection and giving back.

FNB also launched two new solutions — nav» Youth, built for the realities of younger South Africans, and nav» Payroll, which gives businesses a simple, compliant way to pay their people.

The platform has 6-million users and has so far helped users buy 61,000 properties and 1.3-million vehicles and resulted in 728 car licence renewals.

The platform also has a marketplace where customers can look for service providers such as plumbers and electricians.

“The traditional financial journey is becoming less common. Customers are adapting to a world that’s changing faster than ever before. They’re building multiple income streams, exploring new opportunities and looking for greater financial certainty. We understand those realities and help create a stable foundation to enable their ambitions,” said Clair Brenner, CEO of nav».

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