Young South Africans are coming under increasing financial pressure as they enter adulthood in one of the most expensive economic environments in recent years, with the rising cost of living and electricity prices emerging as the biggest drivers of stress.
According to DebtBusters’ latest Money Stress Tracker, financial stress among consumers aged 24 and younger has increased by 18% over the past year. The survey also found a sharp rise in young people applying for debt counselling, signalling that financial hardship is affecting South Africans earlier in their working lives.
Financial Assessor Pumeza Mpengu said the pressures facing young adults have shifted significantly.
“The cost of living and electricity costs have overtaken interest rates. This shift hits younger and lower-income consumers the hardest because they have the least buffer when it comes to income.”
Mpengu said many young people are beginning their careers on entry-level salaries while simultaneously facing rising expenses for transport, food, accommodation and communication.
“Imagine entering your first job, earning an entry-level salary, and at the same time being expected to pay for transport, food, accommodation and communication. It’s about how much income is left to create breathing room while paying off debt and living.”
Despite these challenges, DebtBusters said there are encouraging signs. Young consumers are increasingly taking proactive steps to improve their finances by budgeting, seeking better-paying employment and accessing debt counselling earlier.
The findings suggest that while financial stress is intensifying, many young South Africans are choosing to confront debt before it becomes unmanageable, offering hope for stronger long-term financial resilience.
Listen to the full interview below:
VOC News
Photo: Pixabay
