Born into a world constantly reshaped by technology, economic uncertainty, and global challenges, Gen Z (born mid-1990s to early 2010s) and Generation Alpha (early 2010s onward) must approach money very differently from older generations.
As the core of our nation’s youth, these young dreamers are all about control, clarity, and practical strategies to achieve independence. But are they ready for the financial challenges of the modern world?
Bertie Nel, head of financial planning and advice at Momentum, explains, “Gen Z and Alpha are incredibly tech-savvy and socially conscious. They value financial independence but also want their money to align with their values, whether it’s through ethical investing or creating multiple income streams.”
The problem is South Africans are slightly, if not overtly, against openly discussing money at home. However, Nel argues that this kind of dialogue is crucial if we want to empower the next generation. Even with their bountiful strengths, Nel says young people today face their own unique hurdles. Rising living costs, student debt, uncertain job markets, and scant formal financial education all make it more difficult to succeed.
He believes this is precisely why personalised advice from a professional financial adviser is so important. “We need to help our youth fill their financial cup as much as they focus on tending other aspects of their holistic wellness journey,” says Nel.
To help Gen Z and Alpha navigate their finances, Nel offers these 10 essential tips:
- Track your money: Know exactly where your income goes with budgets and apps.
- Emergency fund first: Save at least 3 to 6 months of living expenses for unexpected costs.
- Manage debt smartly: Prioritise high-interest debt but keep making minimum payments on others.
- Invest early: Harness the power of compound interest by starting small investments now.
- Educate yourself: Use books, podcasts, workshops, and online resources to learn financial basics.
- Set clear goals: Short and long-term targets help keep motivation high.
- Build credit responsibly: Pay bills on time and avoid unnecessary debt to grow a good credit score.
- Make lifestyle choices that count: Spend consciously, cook at home, and prioritise needs over wants.
- Explore side hustles: Tap into digital skills for extra income or entrepreneurship.
- Adequate insurance for what matters most: Ensure your assets, life and income are adequately insured.
He says too many young South Africans think financial advice is only for the wealthy and the soon-to-retire. The truth is, financial advisers can help anyone, from first-time earners to side-hustlers, build confidence and clarity in managing money.
“Financial advisers today are not just number crunchers.” “They are coaches who guide you to create a plan that fits your lifestyle, dreams, and values. Especially for Gen Z and Alpha, financial advisers are a trusted ally to keep your financial cup full, so money worries don’t steal your peace of mind.”
Of course, Nel knows that it can be tempting to focus solely on career or wellness trends that promise quick fixes in a fast-paced world. But he/she notes that genuine self-care includes the practical and powerful step of taking control of your finances. “Filling your financial cup is a daily act of self-respect, resilience, and readiness for the future.”
He calls on all young South Africans to embrace this mindset. “Your money, like your mental and physical health, deserves attention, care, and expert guidance,” he concludes.