Gen Z Leads Financial Confidence But Lags Wellbeing

South Africa's youngest adult generation has never felt more sure of itself with money. Gen Z's financial confidence score of 61 topped every other generation in the latest Sanlam Financial Confidence Index, released in October 2026, as reported by Cape Town Etc. Millennials and Gen X landed in the middle of the pack, and Baby Boomers — the generation holding the most accumulated wealth — finished last among the four cohorts at 47.

But the same study hands Gen Z a far less flattering ranking on financial wellbeing. There, Baby Boomers take the top spot and Gen Z lands near the bottom, at 35 against the older generation's 41. The reversal captures the central tension of the findings: feeling confident about money and actually being financially secure are not the same thing.

What Financial Confidence Really Measures

The index is built on a survey of 1 502 South Africans from their twenties to their seventies who earn at least a thousand rand a month, and it measures financial confidence across three pillars: self-determination, resilience and wellbeing. The national financial confidence score held steady at 54, statistically unchanged from 53 the year before and the strongest reading since the study began in 2022, according to FAnews. Financial wellbeing climbed to a four-year high, but that figure remains a low number.

So what actually drives financial confidence? A reliable income led at 51 percent, followed by having savings or an emergency fund at 48 percent and manageable debt at 45 percent. Access to credit came dead last — only 17 percent said being able to borrow when they need to contributes to their confidence, and those who do value it mostly see it as an emergency safety net rather than a way to fund a lifestyle.

"One of the clearest findings this year is that South Africans are prioritising financial protection over financial expansion," said Lee Hancox, Head of Channel and Segment Marketing at Sanlam. "People are telling us that confidence comes from knowing they can cover their expenses, manage their debt and put something aside for the future."

Credit Is Losing Its Grip

The clearest behavioural shift in the data is the retreat from big-ticket borrowing. Home loan ownership fell from 21 percent to 14 percent, personal loan ownership from 34 percent to 29 percent, bank overdrafts from 24 percent to 20 percent and vehicle finance from 19 percent to 16 percent. Store credit was the lone holdout, holding steady year on year — suggesting households still lean on small revolving credit to smooth monthly budgets while stepping back from long-term debt.

The study does not establish what caused the decline, but the message households are sending is consistent: confidence comes from stability, not from access to more borrowing.

Financial Confidence Is Not a Safety Net

Here is where the paradox sharpens. Nearly two-thirds of respondents said they feel in control of their day-to-day finances, yet fewer than half believed they could withstand a major financial setback. The resilience measure — the ability to recover from shocks like unexpected expenses or lost income — slipped from 58 to 57. People are getting better at managing pressure, but there is very little room for error.

Gen Z's financial confidence rests on agency rather than assets. The generation recorded the highest self-determination score in the study at 73, around eight in ten young respondents have written down financial goals, and they are more likely than older South Africans to focus on increasing earning power and seeking financial advice. Their investing habits outpace their elders too: young respondents were likelier than Boomers to report owning stocks and shares at 36 percent — more than double the Boomer share — investment property at 27 percent (nearly double the older cohort's figure) and even livestock investments at roughly a third of young respondents against nine percent among Boomers, as reported by Cape Town Etc.

There is a real question over whether that confidence is fully earned. Surveys in the United States and Britain regularly find Gen Z reporting the highest levels of money anxiety of any generation — the mirror image of South Africa's findings, but with the same root cause: a generation that feels in control of its budget yet sits one emergency away from trouble. Confidence built on goals and side hustles is real, but it is not the same as a buffer.

The intention-action gap underlines the point. Roughly three-quarters of respondents said they understand where their financial knowledge gaps lie, and about two-thirds have written financial goals — but only 43 percent actively track them. A plan that is never checked is closer to a wish than a strategy.

The Playbook Behind Gen Z's Financial Confidence

For young readers, the study's implicit advice is refreshingly unglamorous: a reliable income, an emergency fund and manageable debt matter far more than access to credit. That is the actual formula behind the generation's top ranking, and it is reproducible without a six-figure salary.

Community-based saving plays a role too. Women were substantially more likely than men to report saving through stokvels, the rotating savings clubs common across South Africa, at 55 percent against roughly a third among men, according to FAnews.

The provincial picture adds another wrinkle: Limpopo and Mpumalanga recorded the country's highest confidence scores at 60 each, ahead of Gauteng and the Western Cape at 49. Financial confidence, it turns out, is not simply aligned with the biggest economic centres — a reminder that perceptions of security vary as much by place and generation as by income.

A final caveat is worth stating plainly. This is Sanlam's own annual study — an insurer's lens on the national mood, not an independent academic survey — and the South African context comes with its own credit and savings culture. Still, the generation dynamics mirror global patterns: everywhere, young people are pairing high financial self-belief with thin safety nets. The index measured confidence, not security. Gen Z is winning on belief; the next decade will test whether that belief converts into buffers. Explore more Voices explainers, and read our take on the Gen Z wealth paradox: rich on paper, broke at heart.