Capitec Bank Youth Prosperity Survey

According to our Youth Prosperity Survey, conducted in August 2009, the recession-savvy youth expect to earn big in the new SA.

621 respondents across all demographics completed the 32-question anonymous, face-to-face survey to represent the population of urban South African youth (18 - 23). The majority of respondents were unemployed/students, lived at home with their parents, were single with no children and had secondary school/college/technikon education.

Top 10 Survey Findings

Education Starts in the Home - 30% said they turn to their mothers for financial advice before their fathers, brothers and sisters or the media. Fathers are often perceived to be the financial heads, but it appears to be mothers who are educating kids about money matters.

Does Money Make You Happy - While money doesn't buy love, it does buy happiness - according to 84% of respondents. It's also 100% true for youth in Limpopo and Mpumalanga. Among traditionally poor provinces this is concerning - placing happiness on their future income could lead to disappointment and debt. Long-term financial stability and security is of far greater importance (52%) to the youth's expected future happiness than being married and having children (22%).

While money isn't everything, it's seen as a nice-to-have with 52.5% saying they would like to spend money on luxuries such as expensive cars and designer clothes.

Is Money Important in Relationships - The majority of respondents say career prospects of a potential partner are more attractive than intelligence, personality or looks.

How Much Money does a Rich Person Have - A rich person has R1 million* in the bank, according to the South African youth. Those with the least income thought rich people had more with 35% of those with no income saying R1 million was 'rich'.

Cost of Living Awareness - The youth seem to have a good understanding of the cost of living. 53% knew the approximate cost of 1l of milk, but when asked how much it would cost to feed a family of 4 for a week, the results varied. In the black community, 56% said R500 or less can feed a family of 4. Only 24% of whites and 33% of coloureds concurred which reinforces the variations in financial realities.

Spending Priorities - Clothes, cosmetics, jewellery and cellphones were among the youth's top spending items. White respondents tend to spend most of their cash on social activities and the black respondents on transport. Transport, along with food, is viewed as a grudge purchase. When asked how they'd ideally like to spend their income, education was a priority for blacks and coloureds after clothing, cosmetics and jewellery. For the white respondents, partying and clothing were among the 'most wanted'.

Plans to Save - Despite only 3% of the youth's current income being saved, 81% said they'd save when they started working. 66% identified investing and saving as a way to earn money in the future. Saving, whether it be for short or long-term goals needs to become a habit from as young an age as possible. Without it, emergencies arise meaning people have to fall back on credit and could end up in debt.

Entrepreneurs and Self-starters - Starting their own business was the number one choice among 71% of respondents as a way to earn more in the future. Given the gap in South African business for emerging entrepreneurs, this attitude is a very positive sign.

South Africa's Still the Best (even though the cash is overseas) - 25% of blacks said they would consider moving overseas as a way to earn more money in future. This compared to 52% whites and 24% coloureds. Those interested in emigrating were optimistic about SA and said they'd move to earn good money, not because the country has failed them.

Who are the Future Breadwinners - Most men still expect to be breadwinners (57%) in their future families. This also strongly accounts for their biggest worry being 'getting a job'. Despite this perception, the female respondents were more likely to currently contribute to the family household expenses (27% vs. 16%). A quarter believes that, in the future, both should be equal breadwinners.

For more information about our Youth Prosperity Survey or to view the full results, please visit www.youthprosperitysurvey.co.za.

*Median figure