Saving may seem like a distant priority in an economy fuelled by inflation, leading to a rise in living costs. While developing a savings habit in your 20s can have a profound impact on your financial future, is it possible in President Cyril Ramaphosa's economy? 

According to a report by The Guardian, rather than aggressively stockpiling for retirement, Gen Z is embracing a soft saving approach, prioritising memorable experiences while saving extra cash for the future. 

TimesLIVE spoke to financial literacy content creator Nicolette Mashile on the rise of online banking, which has increased participation in banked savings, especially among Gen Z and millennials.

“It’s incredibly tough. Many young people face income instability, high debt and rising living costs, all of which make saving feel out of reach. But behaviourally, it’s not always about income. It’s about mental bandwidth,” she said.

“In lower-income groups, good saving behaviour often stems from community structures like stokvels, which offer social accountability and cultural familiarity. In higher income groups, savings behaviour may be more goal-based, for example, saving for a child’s education, a funeral or investment-driven saving with the intention of growing your money over time, and not keeping it like the tax-free savings accounts,” she said.

“Behaviourally, Gen Z is more open to hybrid saving. They split funds between bank accounts for safety and investment-based savings (like money market funds, Unit trust, exchange trading funds, Cryptocurrency and fractional property platforms) for growth. This signals a shift from “store and protect” to “optimise and grow.”

Mashile said young people are driven by visibility and control. They want to see their progress and feel a sense of momentum. This sees tools such as cryptocurrency make saving feel rewarding.

Cryptocurrency feels more exciting and rewarding than traditional saving methods. She said: “It offers the potential for quick growth, which makes it feel more dynamic, especially compared to a regular savings account with low interest.”

While it may feel more rewarding emotionally, it’s important to remember crypto is volatile and can just as easily lose value. Introducing behavioural risks such as overconfidence bias, herd mentality and loss aversion leads to poor outcomes.

“Young people don’t want to be locked into rigid products. Platforms that allow both flexibility and growth are winning. They help shift the mindset from short-term gratification to long-term planning without losing control. 

“I think moving forward, the challenge is not only to give young South Africans access to savings products, but also to design tools and narratives that align with how they actually live, feel, and behave about money. That’s where financial wellness, tech innovation and behavioural insight must meet.”