Today’s observation looks at how moms and dads alike have had to fulfil the economic needs of their children. From giving them a consistent stipend to helping when need arises, this generation has yet to experience what true financial independence looks and feels like.
The insight from our 30/30/30 Project illustrate that South Africa’s GenZs do not only face a challenge of being gainfully employed but ensuring that whatever employment they find will give them the independence they need to build their future.
Continue reading to find out.
What we learnt:
Although we did not explicitly ask this, we found indications that many rely on their parents or older partners for financial support.
22 of the 30 interviewees show signs of this arrangement during the conversations.
Seven interviewees said that they receive an allowance from their parents. The average amount is R2,300 per month.
The way these three factors interact is on a case-by-case basis:
(1) their living arrangements
(2) their relationship status and,
(3) whether they were students, employed or unemployed.
Concerning living arrangements, we found 13 who live with their parents (students, employed and unemployed). This point was a strong indicator of whether they were receiving financial assistance. Even in those cases where the interviewee is employed while living at home, there is a strong chance that, while there may not be an allowance, these individuals are likely to save on groceries, rent, etc.
“She is so incredible. Honestly, I think that’s the silver lining that I needed. Yeah, it’s a different family. It’s a different relationship dynamic because she’s like 11 years older than me. And she has a child. Acceptance in terms of being lesbian, but just in our circle as people that are in a relationship, it’s a good place to be in. [We’ve been together] two months, two weeks.” – Hlengiwe is unemployed (28, Black, female)
What does the research/experts say:
Parents have always supported their children into adulthood. Now, fiscal support extends much later into adulthood. According to a March 2023 survey done by Savings.com, nearly 50% of US parents financially support at least one adult child. 52% of 20-24 year olds and 17% of 25-29 year olds receive financial support from their parents. The average amount supplied to the children was $1,384 monthly, about R25,737.
55% of those aged 18-35 receive financial help from their parents, according to a January 2024 Pew Research Center report. Generally speaking, most parents are not unhappy with the arrangement. 45% say the living arrangement has been good for their relationship with their child, while 29% say it is somewhat happy with their living arrangement.
It is tempting to say that this generation of Americans is spoiled or terrible with money. They have amassed more debt and are less financially well off than their parents were at their age. Young South Africans are experiencing financial challenges, too. Staggeringly high unemployment is one of them. South African parents are increasingly supporting their children into older age, with 71% of people over the age of 50 polled in a Forerunner report released by the UCT Liberty Institute indicating they still had dependent children.
In the US, age-disparate relationships are being frowned upon on social media. The followers of Beyonce debated whether she was “groomed” at 19 when she started dating Jay-Z. In 2022, Gen Zers disapproved of the then-20-year-old Billie Eilish when she began dating Jesse Rutherford, a musician ten years her senior. Having grown up in the #MeToo era, young Americans are well aware of unbalanced power dynamics.
While we only found one or two examples of intergenerational relationships where the older person assumes financial responsibility, this phenomenon is happening in South Africa. A group of young women spoke about why they chose to date older men in a viral video that received over 12K views (March 2022). They removed this post. They continue to engage in a group discussion about why dating men significantly older than them works to their advantage. In these “blesser and blessee” relationships, rich older men tend to entice young women with money and expensive gifts. Similarly, “Ben 10” is a township colloquialism which refers to a man who has a sexual relationship with an older woman on whom he is financially dependent. A photo went viral in January 2024, when South African media personality Zodwa Wabantu revealed her new Ben 10 boyfriend.
What can businesses and policymakers do about this?
Achieving financial independence benefits both the young adults and their benefactors. Being able to take care of themselves elevates young individual’s self-esteem. A psychological sense of well-being and control of one’s economic destiny are intimately tied. For the parents (or older partners), supporting their adult dependents could compromise their ability to save for their future. According to the Savings.com study, working parents contribute “2.4 times more to support adult children than they do to their retirement accounts each month.”
Employers could empower their young employees to become financially self-sufficient by compensating them fairly for their work and providing financial wellness benefits such as budgeting, saving and investing in education.
Older generations need to learn how to wean their young dependents off of them. This practice is likely to be an emotionally challenging process for these benefactors. Support groups would be helpful in this instance. A financial adviser can act as a mediator to sit with both the young adult and the parents to discuss a way forward for both parties.
By Flux Trends
The data and quotes mentioned above refer to a project that we are in the midst of, in conjunction with Student Village called “The 30/30/30 Project” whereby we collected insights from 30 South Africans, under the age of 30, 30 years into our new democracy.
WHERE TO FROM HERE?
Use these and many more insights from the 30/30/30 Project Report to BUILD your team, by booking a Bridgebuilder™ Workshop.
Close the generation gap and dive into the future of work and how to manage it.
There is a 15% discount for booking this workshop for September 2024.
Contact Bethea Clayton at connected@fluxtrends.co.za or +27764539405, to claim your discount!
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Image credit: Mathieu Stern
