Gen Z leads South Africa’s financial confidence rankings

South Africa’s youngest adult generation is reporting the highest levels of financial confidence, but the latest data reveals a notable gap between feeling confident about money and actually feeling financially well off.

Gen Z recorded a Financial Confidence Index (FCI) score of 61 in the 2026 Sanlam Financial Confidence Index, placing the generation ahead of Millennials at 55, Gen X at 49 and Baby Boomers at 47.

Yet when it comes to financial wellbeing, the rankings reverse, with Baby Boomers recording the highest score at 41 compared with 35 for Gen Z.

The findings, released on 7 October, offer a snapshot of how South Africans are navigating household finances, from everyday expenses and savings to credit use, financial goals and resilience when unexpected costs arise.

South Africa’s overall FCI remained at 54 in 2026, statistically unchanged from 53 in 2025 and the highest level recorded since the index began in 2022.

Financial wellbeing, meanwhile, climbed from 32 to 35,  its highest level in four years, although the score remains low.

The distinction between confidence and financial security is particularly evident in the survey’s resilience findings. While 64% of respondents said they feel in control of their day-to-day finances, only 49% believed they could withstand a major financial setback.

Financial resilience also edged down from 58 to 57.

Lee Hancox, who is the Head of Channel and Segment Marketing at Sanlam, said the findings point to a shift in how households view financial security.

‘One of the clearest findings this year is that South Africans are prioritising financial protection over financial expansion,’ said Hancox.

‘People are telling us that confidence comes from knowing they can cover their expenses, manage their debt and put something aside for the future. Access to credit is becoming less important than financial stability.’

Credit takes a back seat

Picture: Brent Lewin/Bloomberg via Getty Images

One of the clearest changes in this year’s research is the decline in reported ownership of several major credit products.

Home loan ownership fell from 21% in 2025 to 14% this year, while personal loan ownership dropped from 34% to 29%. Bank overdraft ownership declined from 24% to 20%, and vehicle finance fell from 19% to 16%.

Store credit remained unchanged at 60%.

A reliable income was the leading contributor at 51%, followed by savings or an emergency fund at 48% and manageable debt at 45%. Only 17% identified access to credit when needed as a contributor to their financial confidence.

Among respondents who do value credit, it was more commonly viewed as a safety net for emergencies than as a means of funding a lifestyle.

The qualitative findings indicates that household budgets remain centred on essential expenses, as groceries, school fees, insurance premiums and transport were consistently prioritised across income groups.

When finances become tighter, discretionary spending such as eating out, travel and entertainment is more likely to be reduced.

Kele Boakgomo, behavioural scientist and CEO of Yugrow, said the findings point to households becoming more deliberate about financial decisions while still having limited room to absorb unexpected costs.

‘South Africans seem to be getting better at managing pressure, but there is very little room for error,’ Boakgomo said.

‘The data suggests people are adapting to difficult circumstances, becoming more deliberate about financial decisions and focusing on what they can control. But many households remain vulnerable when something unexpected happens.’

The research also points to a gap between financial intention and follow-through.

Nearly three-quarters of respondents, or 74%, said they understand where their financial knowledge gaps lie. Meanwhile, 65% have written financial goals.

However, only 43% actively track those goals.

Tshepo Mogotsi, Group Head of Brand at Sanlam, said having a plan remains an important part of building financial security.

‘Financial security can mean different things to different people, but it’ll remain out of reach for as long as one doesn’t have a plan and a day-to-day approach to that plan. For me, it meant slowly climbing out of the black hole that was my debt obligation, with the help of professionals and my family.’

Gen Z is confident, but Boomers feel better off

The generational results provide one of the more striking contrasts in the research, as Gen Z not only recorded the highest FCI score at 61, but also led on financial self-determination with a score of 73.

Around eight in 10 Gen Z respondents have written down financial goals, while the generation is also more likely than older South Africans to focus on increasing their earning power and seeking financial advice.

Yet that confidence does not translate directly into higher financial wellbeing.

Baby Boomers recorded the highest wellbeing score at 41, compared with 35 for Gen Z.

The findings also show differences in investment behaviour. Gen Z respondents were more likely than Baby Boomers to report owning stocks and shares, at 36% compared with 14%; investment property, at 27% compared with 14%; and livestock investments, at 34% compared with 9%.

The provincial rankings also produced a notable result, with Limpopo and Mpumalanga sharing the highest FCI score at 60.

Gauteng followed at 55, while the Western Cape recorded 49.

The findings suggest that financial confidence is not simply aligned with the country’s largest economic centres, with perceptions of financial security varying across generations and provinces.

Community-based saving also remains significant, as women were substantially more likely than men to report using stokvels as a savings method, at 55% compared with 34%.

Hancox said the findings indicate a growing emphasis on stability rather than simply gaining access to more credit.

‘The findings suggest we’re seeing a more deliberate approach to money,’ he highlighted.

‘People are focusing less on accessing credit and more on building stability. That’s encouraging. The next challenge is turning that sense of control into greater resilience, so that South Africans are not only coping with financial pressure but are also better protected from it.’

The 2026 index was based on a survey of 1 502 South Africans aged between 20 and 70 who earn at least R1 000 a month.

Conducted in partnership with African Response, the fourth annual study measures financial confidence across self-determination, resilience and wellbeing.

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