South Africa’s young millennials – those between 18 and their mid-20s – may have a more responsible attitude to money than older millennials, according to a study by FCB Africa in partnership with market research firm Answered Insight.
David Smythe, the strategic planning director at FCB Cape Town, who led the study, says in an article for marketing website Marklives.com that, based on what they tell us about themselves, their career goals and aspirations, South Africa’s younger millennials won’t be anything like older millennials.
“Young South Africans may only now be entering adulthood with limited purchasing power, but there are indications that they’re more conservative with their money than previous generations, and prefer financial independence,” Smythe says.
The research found that that 66%of young South Africans want to work for themselves. It also showed that they were taking on less debt than their older counterparts and were more inclined to save. Of those polled, 81% said saving was important. Only 16% had a credit facility and 14% a student loan.
Asked what they would do once their savings reached R5 000, 28% said they would continue to add to their savings, 23% would spend it on necessities, 21% would put it towards tuition, 14% would pay off debt, and 8% would share it with their family, according to the FCB Africa research.