A recent study by Nedbank shows that South Africa’s youth are making commendable progress in saving, with 68% saving monthly and 7% saving weekly. However, 78% express a desire for more comprehensive knowledge on ways to grow their money. Young savers seek transparent information on returns and costs, personalized advice and insights into different savings products. While formal savings accounts are the preferred choice for 90% of young savers, there is also an appreciation for informal savings methods, with 89% using some form of informal savings vehicle. The focus of young savers is mainly on short-term goals and there is little emphasis on retirement planning or investment. Factors like rewards points, personalized advice, fee discounts and goal-oriented apps influence the saving behaviours of young people. Digital channels, such as apps and electronic banking, are popular among young adults for saving and investment.
