While macroeconomic factors almost certainly contribute to Gen Zs’ delayed transition to independent living, there are deeper dynamics at play.
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Research suggests that there may be long-term benefits for Gen Zs who are embracing “waithood” – staying at home for longer.
Market trend analysis firm Flux Trends found that young people are delaying – or foregoing – traditional “adulthood” markers such as moving out and marriage. Instead, they are redefining independence, balancing privacy and autonomy while remaining at home.
The key question is: how can they use this phase as a launchpad for long-term financial independence?
Mariska Oosthuizen, chief marketing officer for Sanlam, says: “Our 2024 Sanlam Financial Confidence Index (FCI) found that Gen Z (young people aged from 18 to 26) is the most financially confident generation, with its optimism driven by financial self-determination and resilience. This suggests they’re not simply waiting – they’re making strategic choices in an uncertain economy. The real opportunity lies in ensuring their waithood is productive and that they can amplify their financial confidence when they do move out.”
Economic uncertainty, including the rise of the gig economy and contract work, makes financial caution essential. The FCI reveals that many young people are juggling multiple jobs, leading to hesitancy about long-term commitments like rent as they focus on financial stability.
However, while macroeconomic factors almost certainly contribute to Gen Zs’ delayed transition to independent living, there are deeper dynamics at play.
Dr Mavis Mazhura, behavioural science and performance specialist and FCI contributor, says that one significant factor is self-determination. According to the FCI, Gen Zs are highly self-determined, making choices based on their values rather than external pressures. This sense of agency fosters optimism and financial confidence, enabling them to shape their futures on their terms.
She pinpoints another influence as strong support systems. In the FCI, Gen Zs’ high resilience is linked to strong familial financial safety nets. Many Gen Zs may benefit from emotional and financial support that allows them to focus on career growth, education, and long-term planning without the burden of high living costs. They also prioritise comfort, convenience, and mental well-being – values increasingly supported by home environments.
Additionally, she says shifting societal norms and longer transition periods are reshaping adulthood. With life expectancy rising, traditional milestones like moving out, marriage, and homeownership are happening later, allowing Gen Zs to pursue financial independence at their own pace.
Digital connectivity further reinforces this trend. With remote work becoming the norm, many Gen Zs no longer need to relocate for job opportunities, allowing them to remain at home while building careers.
Here are Dr Mazhura’s tips for building on Gen Zs’ existing financial confidence, resilience and self-determination:
Leverage this by encouraging Gen Zs to have an agenda of milestones to mark as complete before moving out – such as setting up an emergency fund, a retirement annuity, and investment portfolio, for example. Celebrate each win to reinforce healthy habits. Encourage lots of financial learning and even a session with a financial adviser to put robust foundations in place.
Sanam Naran, psychologist and FCI contributor, also stresses the importance of creating a safe, non-judgemental space for money discussions. “This starts with asking if Gen Zs want advice or simply someone to listen, as unsolicited advice may discourage future sharing. Conversations are key to financial well-being. The F-word – finances – is not a dirty word. The more we talk about money, the more we can learn, share and set goals, together,” Naran says.
Oosthuizen says: “Gen Zs are financially confident, optimistic, and determined to define success on their own terms. With the right guidance, their waithood can be a launchpad for financial independence rather than a holding pattern. By equipping them with financial skills, accountability, and real-world experience, we can ensure that when they do leave home, they are not just stepping out – but thriving.”
PERSONAL FINANCE