A growing body of evidence shows that many young Ghanaians born between 1997 and 2012 are prioritising daily spending and short-term needs over formal savings, raising concerns among economists and financial planners about long-term financial resilience in the fastest-growing segment of the workforce.
The 2025 West Africa Banking Industry Customer Experience Survey by KPMG found that Generation Z respondents allocate large portions of their income to food and immediate consumption rather than structured savings products, and that they typically save smaller shares of their income compared with older age groups.
The report indicates that 73 percent of Gen Z respondents identify food as their top expense category, with six out of ten saying their food spending increased over the past year, reflecting short-term financial pressures that may crowd out saving behaviour.
According to the same survey, 12 percent of Ghanaian respondents overall reported that they do not save at all, a figure that has remained unchanged year on year, underscoring persistent financial strain among a segment of the population. The findings show that while some Gen Z customers engage with banking services actively, long-term savings and investment products are not yet central to their financial planning patterns.
Interviews conducted with young Ghanaians in Accra provide deeper context behind the numbers. Tabitha, a young working professional, said unstable and modest incomes are a major barrier to building savings. “Most Gen Zs do not have stable income,” she explained. “When the money comes, you have to sort out transport, food, accommodation and other bills. By the time you finish, there is nothing left to save.” Her experience reflects a broader reality facing young earners whose salaries are quickly absorbed by essential living costs.
Beyond income constraints, Tabitha pointed to what she described as a growing culture of financial dependence among some young people. “Some are dependent on their boyfriends, on their parents or relatives. They know they have someone they can always call when they need money, so they do not feel the pressure to save,” she said. According to her, this perceived financial safety net reduces the urgency to build personal reserves, particularly in emergencies.
She also observed changing social dynamics around gender and financial responsibility. “Even some men these days want to be taken care of. They want to be pampered and provided for. That mindset also affects saving because if you think someone will take care of you, you may not plan long term,” Tabitha added. Her remarks highlight how shifting expectations within relationships can intersect with economic behaviour.
Another respondent, Asantewaa, attributed low saving rates among her peers to lifestyle choices and present-focused spending. “Most Gen Zs invest in material things. They want the latest iPhone and the latest trends,” she said. “They want to enjoy life now, so they live in the moment.” According to her, social media visibility and peer comparison contribute to the pressure to keep up appearances, often at the expense of disciplined saving.
Economic analysts say these lived experiences align with broader structural realities. Rising food and transport costs continue to place pressure on disposable incomes, particularly among entry-level workers and those in informal employment. When essential expenses consume a large share of earnings, savings become difficult to prioritise. Financial planners warn that without deliberate saving habits, young workers risk long-term vulnerability, especially in a context where job security and pension coverage remain uneven.
Behavioural economists often describe this pattern as present bias, where individuals prioritise immediate satisfaction over future benefits. In Ghana’s urban centres, where digital culture amplifies lifestyle aspirations, this bias may be intensified among young consumers navigating both economic uncertainty and social expectations.
Experts argue that improving youth savings rates will require targeted financial literacy initiatives and accessible savings products tailored to young earners. Structured workplace savings schemes, digital micro-savings platforms and practical budgeting education are among the tools recommended to bridge the gap between financial awareness and action.
As Ghana continues to rebuild economic stability and manage cost-of-living pressures, the financial habits of its youngest workers will shape the country’s long-term household resilience. The findings from KPMG, reinforced by the lived experiences of young Ghanaians like Tabitha and Asantewaa, suggest that saving is not simply a matter of financial discipline but a reflection of income realities, social dynamics and generational attitudes toward money.
Whether these patterns shift in the coming years may determine not only the personal financial futures of Gen Z but also the broader trajectory of Ghana’s economic sustainability.
