SHARE
By Yolanda Marshall, Growth Manager at FNB Cash Investments
Statistics South Africa data shows that the country’s household savings rate has remained under pressure, slipping to around -1.2% of disposable income. For young South Africans, the outlook appears even more constrained, with youth unemployment among 15- to 24-year-olds standing at 60.9% in the first quarter of 2026.
By the official numbers, young South Africans can’t afford to save, and many don’t. Look beyond those numbers, and a different picture emerges: one of a country where saving has never been fully ingrained as an individual financial habit, despite a long-standing culture of collective saving, and a generation striving to sustain this behaviour in a far more challenging economic environment.
Traditional measures of saving largely focus on formal financial products. For millions of South Africans, however, this has never been the only or even the primary way they save.
The National Stokvel Association of South Africa (NASASA) estimates that more than 800 000 stokvels collectively save around R50 billion annually, with over 11 million members, including participation in burial societies and other informal savings mechanisms.
For many households, stokvels predate formal banking relationships. They have long provided a trusted way to save for funerals, festive-season expenses, school fees and other shared financial goals, built on accountability and trust within communities. Communal saving has never simply been a substitute for formal financial services; it has been a deliberate and effective strategy in its own right.
This helps explain why the resilience and saving behaviour seen among young South Africans today is not new but inherited and adapted. Increasingly, young people are participating in stokvels and savings groups, carrying longstanding financial habits into a digital-first world. As June marked Youth Month in South Africa, it is worth recognising that many young people are not starting from scratch, but building on traditions observed at home.
Consider two examples: a grandmother’s burial society that has operated for decades, and a group of young people saving together via a WhatsApp group towards a shared goal. At their core, both are driven by the same principle – pooling resources, supported by trust and accountability. The platform may differ, but the behaviour remains consistent. What is changing is the wrapper, not the underlying habit.
Young South Africans are increasingly applying this communal logic through digital tools, and this shift is reflected in FNB data. Customers under the age of 24 hold R7.5 billion in Cash Investments, split across the lower and upper customers. These balances may be relatively modest, with an average of around R4 011, but they point to consistent saving behaviour, often supported by multiple income sources, including side hustles and family contributions.
Savings activity among this group is typically goal-driven, with funds used for education, travel, or managing unexpected expenses. Rather than idle balances, these accounts reflect deliberate planning, much like traditional stokvel contributions. Importantly, savings often span generations, with families working collectively towards shared financial objectives.
Product design is also evolving in response to these behaviours. A significant portion of young customers use savings accounts that require funds to be transferred into a transactional account before spending, introducing a deliberate pause between saving and spending. This mirrors the discipline embedded in communal savings structures, where access is structured and goal oriented.
At the same time, the financial sector is increasingly recognising and integrating the principles that have made stokvels successful for generations—shared goals, accountability and structured contributions. FNB, for example, has introduced digital stokvel solutions that bring these elements into formal banking environments. While adoption among younger customers is still building, early data shows that individuals aged 21–30 currently account for 9% of uptake.
Although this is not yet a dominant segment accounting for 9% of the total base as of May 2026—it signals a promising shift. The number of stokvel members under the age of 30 has grown by 30% year-on-year (May 2025 to May 2026), indicating increasing uptake among younger consumers. The solution was introduced in October 2025 and officially launched in March 2026, meaning awareness and behavioural adoption remain in the early stages. As more young people become familiar with its availability and benefits, participation is expected to grow particularly as this segment increasingly seeks structured, community-driven ways to save within a secure digital environment.
Communal saving is deeply embedded in South Africa’s financial culture, and the opportunity lies in strengthening not replacing these behaviours through tools that support how people already save.
Young people are not turning away from formal savings, but are instead seeking a balance between flexibility, community, and the security offered by digital financial tools.
Youth unemployment remains one of South Africa’s most pressing challenges, yet even within this context, many young people continue to save – often in small but consistent amounts. This speaks to a strong underlying culture of financial resilience and determination.
For too long, the story of saving in South Africa has been framed as one of absence. Yet when we look at where people are putting money aside, a different picture emerges – one of a country that saves consistently, often collectively, and increasingly through a blend of informal and formal channels.
If young people are already saving – through stokvels, savings clubs, or digital platforms – the opportunity is not to change their behaviour, but to support it. The institutions that succeed will be those that meet young South Africans where they are, recognising communal and traditional saving not as competing models, but as complementary pathways to financial resilience.
INFO SUPPLIED.