Gen Z’s Mastery of Money Management: An Analysis

As a company dedicated to enhancing the nation’s financial literacy and overall wellbeing, Old Mutual actively participates in Global Money Week each year in many of the regions where it operates.

In my role as the tied distribution general manager at Old Mutual Retail Mass Market, I often emphasize that the more you understand financial matters, the wiser your financial choices will be, ultimately leading to a better future.

This is straightforward logic. You don’t need to be an expert to grasp it. However, you must be armed with basic information and insights. This is precisely the aim of Global Money Week and financial education initiatives like Old Mutual’s On the Money programme.

Recent studies indicate that the recipients of these initiatives, particularly young people aged 18 to 29 years, often referred to as Generation Z, display significant knowledge regarding financial matters.

Despite the economic uncertainties and debt challenges expected in 2025, surveys reveal that Gen Z is markedly more confident and optimistic about financial issues than previous generations: Millennials (ages 29-44), Gen X (ages 45-60), and Boomers (ages 61-70).

What characterizes Gen Z in 2025?

Growing up with the internet at their fingertips, Gen Z exhibits a strong affinity for mobile financial technology, preferring it over cash for its convenience and speed. They inhabit the cashless, digital realm much more fully than their parents or older siblings. Cash, in this context, is seen as outdated!

According to the 2024 Old Mutual Savings & Investment Monitor (OMSIM), a notable trend among young South Africans is the practice of “polyjobbing.” The survey results indicate that 73% of Gen Z are managing multiple income streams simultaneously. This proactive approach certainly enhances their financial health.

While Gen Z appreciates the importance of saving and generally demonstrates financial savvy and responsibility, they also relish the excitement of spending and enjoying the present.

In South Africa, Gen Z places greater value on experiences rather than material possessions, often delaying traditional life milestones such as marriage, parenthood, and home ownership. This trend has contributed to their hesitance in purchasing life insurance, risk coverage, and even emergency savings.

Gen Z’s heightened confidence can be attributed not only to their superior technological skills but also to their exposure to financial education from an early age.

It is encouraging that initiatives such as Global Money Week and Old Mutual’s On the Money programme are cultivating a generation of young adults capable of achieving and sustaining financial wellness.

However, it is important to note that Gen Z is not devoid of risks. The OMSIM findings revealed that instances of risky investment behavior are most prevalent among Gen Z.

For those not part of the optimistic Gen X cohort, the financial statistics remain concerning:

• Only 51% of South Africans are deemed financially literate, according to a 2024 survey by the Financial Sector Conduct Authority (FSCA) of South Africa in collaboration with the Human Sciences Research Council (HSRC). This indicates that nearly half are unclear on how to earn more, save adequately, and spend wisely.
• South Africa’s gross savings rate stands among the lowest globally, recorded at 13.7% of Gross Domestic Product (GDP) in September 2024, as reported by the Reserve Bank.
• With a significant lack of proper retirement savings, it is estimated that only 6% of working South Africans will have the means to retire comfortably.

As always, I maintain that knowledge leads to better actions, so empowering yourself with understanding remains the best strategy for improving your financial wellness.

Thembisa Mapukata is the Tied Distribution General Manager at Old Mutual Retail Mass Market.

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