Saving is important - but so is surviving, building and owning something

South Africa's persistently low savings rates are frequently framed as a behavioural challenge.

For years, the conversation has centred on financial discipline, with repeated calls for consumers to save more, spend less and prioritise the future over the present. Yet despite decades of financial education and awareness campaigns, the needle has barely moved only.

In fact, findings from the 2026 Standard Bank Youth Barometer, developed in partnership with Youth Dynamix and Liberty, show that savings continue to account for one of the smallest shares of wallet across youth age groups. But perhaps the more important question is not why young South Africans are failing to save. It is whether we are fully appreciating everything else they are using their money to build.

Source: 2026 Standard Bank Youth Barometer

While there is truth in the importance of saving and long-term planning, this narrative often overlooks a far more important reality: many South Africans are not choosing between saving and spending. They are choosing between saving and a host of other financial priorities that are equally important to their futures.

The Youth Barometer paints a picture of a generation that remains deeply ambitious despite growing up in an environment where the path to stability has become less predictable than it was for previous generations. Still, young people are buying homes, cars and borrowing to make home improvements to their’s and their parents’ homes – all in an effort to create some wealth and work towards financial independence.

This reality should fundamentally change how we think about savings.

Our research shows that young South Africans typically save later in the month, once major expenses and financial obligations have been covered. While this may appear to reflect a "spend first, save later" mentality, the reality is more complex. Many are juggling rising living costs, transport expenses, debt repayments and everyday necessities long before they have the luxury of applying the "pay yourself first" principle. Saving is often delayed not because it is unimportant, but because other commitments require more immediate attention.

Importantly, this pattern is not unique to youth. Broader customer data suggests many South Africans save what remains after essential expenses rather than prioritising savings upfront. The question, therefore, is not simply why people are not saving more, but what else they are trying to build, and how the financial sector can help them balance these competing priorities.

One of our biggest mistakes in research has been treating savings as the only measure of financial progress. For many South Africans, especially those with limited intergenerational wealth, progress often takes other forms first like building a credit profile, becoming the first in the family to own a vehicle, funding further education, improving a family home or acquiring assets that can create financial security for future generations.

One of the themes emerging from the Youth Barometer is that young South Africans continue to pursue asset ownership despite significant economic pressure. They are buying homes despite affordability constraints, purchasing vehicles despite rising costs, and using credit strategically to build financial credibility. They aren’t using credit not recklessly, but strategically. Too often, savings are viewed in isolation from behaviours. Yet owning a home, purchasing a car to get to work on time or building a credit profile can also be viewed as forms of long-term financial investment.

This is especially relevant in the South African context.

Many developed economies built wealth over generations through asset accumulation. Homes were passed down, businesses were inherited, and family wealth created a foundation for future generations. For many South Africans, however, this process only began about 30 years ago, effectively just one generation.

This does not mean savings are unimportant. Quite the opposite.

As a country, we should absolutely encourage greater saving. But we should also recognise that for many South Africans, especially those building wealth for the first time in their family histories, the journey to financial security begins with accumulating assets and gaining economic footholds.

Committing to an asset purchase can often be a more effective way of building long-term financial security than relying solely on voluntary savings. Home loans, vehicle finance and other asset-backed commitments create a form of "forced saving" through monthly instalments that gradually build wealth over time. This is especially relevant in communities where improving current living conditions and preparing for the future must happen simultaneously, leaving discretionary savings vulnerable when budgets come under pressure.

Perhaps the South African story is not simply one of low savings and high consumption, but of a country where the majority is still building its asset base. The generation buying assets today may be laying the foundation for the next generation to accumulate wealth differently. In time, hopefully over the next generation or two, today’s foundations will provide the financial breathing room needed to save at the levels we have long hoped for.