South Africa’s young graduates hold over R1 trillion in spending power, new report reveals

South Africans between the ages of 30 and 39 with a tertiary qualification now command a collective spending power of over R1 trillion.

This is according to a new study, the First 100 Paychecks Report: An Investigation into South Africa’s New Professionals by Liberty.

"Higher education remains the strongest predictor of financial success," said lead research and insights specialist at Liberty, Zandile Makhoba.

The cohort also show signs of financial maturity with low student-debt levels, diversified investment portfolios, insurance coverage, pension contributions and property or vehicle ownership.

“This is a significant portion of our population. Graduates contribute the skills to our economy, and they are also the wealth generators, and what they do with their income determines a lot,” she said.

While a majority found their tertiary education to be fruitful, many have not had the opportunity – and even with a tertiary education, you are not guaranteed employment, said Makhoba.

“If we just go back to Grade one, for every 100 students that started… only 12 of them will actually go into a tertiary institution, and only four are going to graduate. Then the new mountain begins, making a success of this qualification that you have now acquired.”

To listen to Zandile Makhoba in conversation with 702’s Relebogile Mabotja, click the audio below: