Latest news with #TshiamoMolanda
TimesLIVE
4 days ago
- Business
- TimesLIVE
UCount Rewards expands: Save at even more Shoprite Group stores
UCount and Shoprite's partnership expansion comes at a time when many households are under pressure from a rising cost of living. Standard Bank is focused on helping customers stretch their money further by offering real savings at the places where they shop most. Members have taken advantage of the ability to pay for their purchases both in-store and online using their UCount Rewards Points. 'We want to help our customers save where it matters most: on everyday purchases,' says Tshiamo Molanda, head of Youth and Mass Market Segments at Standard Bank. 'We know people are feeling the pinch. In this stagnant economy, every bit counts. By understanding where our customers shop, we can bring them more value in the places they already trust.' Molanda says the extended partnership delivers on a promise made earlier this year to unlock even more value through the UCount-Shoprite collaboration. 'This is exactly what we committed to when we launched this partnership: more exciting savings, more brands, and more ways to help our customers do better every day,' she says.
Mail & Guardian
16-06-2025
- Business
- Mail & Guardian
Survey finds SA youth display financial savvy
Instead of splurging on luxury brands, young adults are buying homes and cars while carefully balancing their budgets South Africa's young adults make bold yet careful financial decisions and not splurging on luxury brands on credit, as they are often stereotyped as doing, Standard Bank's inaugural Youth Barometer Report has noted. The study, which drew on insights from Standard Bank's personal and private banking divisions as well as from insurance data from Liberty, showed how the bank's three million According to the barometer, more than 15% of youth in 'Our research shows … young people are making intentional, informed choices in how they spend, borrow and save,' said Tshiamo Molanda, the head of youth and mass market segments at Standard Bank. 'From saving for their first home to budgeting for reliable transportation — often through second-hand cars — and ensuring their extended families are protected with funeral cover, this generation is making thoughtful trade-offs with intent and maturity.' The study found that people aged 18 to 24 allocated the highest share of their income to essentials (58%), focusing This group also showed a strong affinity for fast food takeaways, spending the highest proportion on dining out compared to older youth segments. Fitness and self-care spending on items such as clothing was nearly double that of the 30 to 35 age group, reflecting their prioritisation of wellness. 'This tells us that younger age-groups have a higher brand affinity to luxury brands,' Shené Mothilal, a digital money manager at Standard Bank said. Popular clothing destinations for this group included Mr Price, Pep, Ackermans, Shein, H&M and luxury outlets such as Farfetch, Louis Vuitton and Timberland. The 25 to 29 age group spent 53% of their income on essentials, with groceries, digital connectivity and clothing still featuring prominently. But spending on insurance and loan repayments was higher for this group, indicating growing financial maturity and credit record building. Although their fast food spending remained high — second only to the 18 to 24 group — this age group reflected a slight decline in discretionary spending on eating out and entertainment. But they spent more on fashion, favouring brands such as Foschini, Shein and Markham. By the time they reached 30 to 35, young adults showed an even split between essentials and discretionary spending (49:51) according to the barometer. They dedicated the highest proportion of their income to insurance compared with the other groups, nearly double that of the youngest segment, and also allocated significant funds to loan repayments, especially for those earning R10,000 to R20,000 a month. Clothing spend declined compared to younger groups, with this age group favouring affordable and mid-range brands such as Pep, Ackermans, and Mr Price. Their spending on travel and entertainment was also the lowest of the segments. Credit card penetration among under-35s remained relatively low, accounting for just 16% of Standard Bank's credit card base. The youngest group comprised only 1% of cardholders, reflecting lower incomes and cautious credit use. 'Many under-35s use their cards primarily for daily essentials like groceries and personal care, as well as transport and dining out,' said Tumelo Ramugondo, head of credit cards at Standard Bank. He said customers in the 18 to 24 age group were also conscious of interest charges and made on average three repayments to their cards a month. Ramugondo added that young adults were also increasingly adopting Buy Now, Pay Later (BNPL) credit services, with purchases doubling from R102 million in 2023 to R200 million in 2024. 'This group is getting smarter about using credit cards to benefit from rewards and to access additional liquidity, especially when repayments are made within the 55-day interest-free period,' Ramugondo said. According to the barometer, homeownership aspirations were strong across all youth groups. From January 2023 to April 2025, 74% of all new home loan applications were from first-time homebuyers, with youth accounting for about 40% of new home loan inquiries. The average home loan granted was R1.2 million, with 70% approved for a term of 20 years. 'Youth are aspirational and determined to enter the property market. For many, owning a home represents both stability and a long-term investment, even if they have to stretch affordability to get there,' Toni Anderson, head of home services at Standard Bank said. Young people made up 37.7% of Standard Bank's vehicle finance customers with 65.1% financing their cars without a deposit and 41.4% opting for balloon payments. A significant 73% opt for pre-owned vehicles, with Volkswagen, Toyota and Suzuki leading the pack. Insurance funeral cover, which often covered extended family, was the most popular insurance product among under-35s, with the youth, mostly women, comprising 26% of all policy holders. But life insurance lagged, with only 16% of under-35s holding policies, reflecting lower affordability thresholds, immediate cultural priorities and a tendency to prioritise shorter-term risk mitigation over longer term planning.
IOL News
14-06-2025
- Business
- IOL News
Point of view: understanding the financial habits of South Africa's youth
Explore how South Africa's youth, aged 18 to 35, are navigating their financial journeys amidst economic pressures, balancing essential expenses with aspirations, and embracing digital financial tools. The financial landscape for young South Africans is rapidly evolving, shaped by economic pressures, shifting priorities, and a growing reliance on digital financial tools. The Youth Barometer, which harnesses data from Standard Bank's Personal and Private Banking and Liberty, offers a revealing snapshot of how South Africans aged 18 to 35 are navigating their financial journeys—balancing essential expenses with discretionary spending, financing their first assets, supporting their families, and planning for their long-term futures. The inaugural Youth Barometer was launched this week in Rosebank. According to the head of youth and mass market segments at Standard Bank, Tshiamo Molanda, these insights are more than data points; they are a call to action. "They challenge us to design solutions that are relevant, inclusive, and forward-looking. Solutions that not only respond to where young South Africans are now but also anticipate where they aspire to go. Because when we understand youth better, we can partner with them more meaningfully, enabling them to grow as we grow," she says. But where are young South Africans today, financially? The Barometer's findings provide answers. Data from three million youth customers reveals a shifting pattern in spending habits. Young South Africans aged 18–24 allocate the highest proportion of their income to essential expenses (58%), followed by those aged 25–29 at 53%. Only the 30–35 group shows an even split between essentials and discretionary spending—a trend mirrored among those over 35, likely due to higher earnings reducing the strain of covering necessities. However, younger generations spend proportionately less than their elders on insurance, loans, transport, and savings, while prioritising categories such as clothing, groceries, dining out, entertainment, digital connectivity, and self-care. Meanwhile, spending on education, healthcare, holidays, utilities, and family support remains fairly consistent across all age groups. The data reveals that while the digital economy is expanding, cash withdrawals remain a common habit for youth aged 18 to 24, making it harder to track their exact spending patterns. Still, the data that remains within banking systems points to top spending categories such as digital connectivity, groceries, and fast food. Interestingly, despite a decline in clothing spending from 2021 to 2024, younger customers still allocate more income to clothing than older youth, frequently shopping at brands like Mr Price, Pep, Ackermans, Sportscene, Pick n Pay Clothing, Shein, H&M, Cotton On, and Markham. Luxury brands also feature strongly, with spending patterns reflecting preferences for Farfetch, Louis Vuitton, Timberland, Steve Madden, Piccadilly, G-Star Raw, and Hugo Boss. 'This tells us that younger age groups have a higher brand affinity to luxury brands, because while we see some of this behaviour among older age bands, more reasonably priced brands feature among older youth,' says Shené Mothilal, solution owner for Digital Money Manager. Young adults aged 18–24 allocate the highest proportion of their income to groceries among under-35s, alongside the highest spend on takeouts—indicating that while older customers increasingly cook at home, younger customers prefer a balance between eating in and dining out. Among 25–29s, spending remains focused on essentials such as groceries, digital connectivity, and clothing. However, insurance and loan repayments begin rising, suggesting that many in this age group are establishing financial stability and working towards formal credit histories. Meanwhile, those aged 30–35 start exhibiting spending behaviours akin to over-35s, allocating more of their income to insurance, loans, and healthcare. With incomes rising due to career advancement, their spending shifts away from essentials such as groceries, clothing, and digital connectivity. This trend is compounded by demographic factors—many are not yet supporting children, with South Africa's median age for first-time mothers now sitting at 28.3 years. In a climate where the cost of living continues to rise and incomes remain under pressure, savings aren't optional—they're essential. To address this, Standard Bank provides tailored guidance for different age groups: 18–24: Start small, but start now. Redirecting just R50 to R100 a month from takeouts, self-care, or entertainment into an emergency fund can create momentum. Using financial tools like Standard Bank's Digital Money Manager to track spending habits can help build consistency before scaling up savings contributions. 25–29: Rebalance discretionary splurges. This group is showing increasing financial maturity through higher contributions toward insurance and loans. However, they still rank second in clothing and takeout spend, suggesting an opportunity to fine-tune their budgets further. 30–35: Leverage career gains to build a cushion. With a more balanced split between essentials and discretionary spending, this group is well-positioned to accelerate their savings toward property, education, and retirement. Redirecting even a small portion of entertainment or takeout spending into interest-bearing financial products could significantly bolster long-term security. The data reveals that despite making up nearly 60% of South Africa's population, those under 35 account for just 17% of the country's outstanding credit value. Their credit portfolios consist largely of unsecured products such as retail accounts, personal loans, and entry-level credit cards, unlike older generations, who have broader access to secured credit lines. Once credit becomes available to them, young South Africans tend to use it extensively. For example, the average credit limit for 18–24-year-olds is approximately R20,000, with utilisation rates above 70%, suggesting many rely on credit for both necessities and lifestyle expenses. Additionally, youth in this age bracket make more credit card payments per month than any other segment, averaging three payments per month. Encouragingly, youth under 35 are showing a strong and growing interest in property ownership, despite broader affordability concerns and rising living costs, the data shows. Approximately 40% of all new home loan enquiries at Standard Bank from January 2023 to April 2025 have come from this demographic, demonstrating a clear ambition to secure long-term financial assets. Similarly, insights from Standard Bank's Vehicle and Asset Finance division indicate that youth aged 18–35 remain a vital segment in the car finance ecosystem, accounting for just under 40% of vehicle finance customers. However, limited incomes shape their decisions—from car brands to deposit sizes and repayment structures. * Maleke is the editor of Personal Finance. PERSONAL FINANCE
