New Report Highlights How Gen Z Graduates Face Higher Costs of Living Than Millennials

• A new report from The TEFL Academy highlighted how the cost of living for young South Africans has increased over the past two decades
• The report compares the realities faced by Millennial graduates entering the workforce in 2005 with those of Gen Z graduates in 2025
• The study took data from Stats SA, National Treasury, the Quarterly Labour Force Survey, and the Household Affordability Index
• Rhyan O’Sullivan, Managing Director at The TEFL Academy, shared with Briefly News how Gen Z finds meaningful ways to live their lives

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Millennials graduated in 2005, full of hope, dreams, and shiny new degrees. Life was tough, but salaries mostly covered the basics: rent, transport, and tuition. Fast forward to 2025, and Gen Z graduates are navigating a financial obstacle course that feels more like a survival game than a career launch.

According to The TEFL Academy, the cost of living for young South Africans has skyrocketed over the last 20 years. Using data from Stats SA, National Treasury, and the Household Affordability Index, the report compares Millennials entering the workforce in 2005 with Gen Z graduates in 2025, tracking everything from rent and groceries to student debt and transport costs.

Salaries are no longer sufficient

Back in the day, most 2008 graduate salaries were between R75,000 and R100,000 a year (roughly R6,250 and R8,333 per month), with the top roles reaching R175,000 (R14,583 per month). Fast forward to 2025: internships and entry-level jobs pay between R6,000 and R9,000 a month, with some data showing an average of R5,847 and R9,000. Over nearly 20 years, this is barely a bump. In real terms, Gen Z’s paychecks are worth about 21% less than their Millennial predecessors.

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In 2005, rent for young graduates averaged R1,500 per month, about 20% of income. You could actually live independently, grab a weekend getaway, and maybe even save a bit. Today, the average rent is R8,598 per month. For early-career Gen Zers earning R6,000 to R9,000, rent takes up 48 to 64% of their paycheck. Even cheaper spots at R4,000 per month take almost half of a lower-earning graduate’s salary.

Brendan Pitt, a South African teaching English in Thailand, shared his take:

"Jobs in South Africa are limited. Thailand offered lower living costs, flexibility, and a way to breathe while building a career.

Groceries have gone from a predictable R1,500 per month in 2005 to a whopping R5,443 per month in 2025, a 263% increase. Millennials could budget for food and still have cash left for fun. As for Gen Z, they’re choosing between paying rent and eating well.

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The growing burden of student debt

NSFAS loans have tripled, from R30,000 to R90,000. Gen Z graduates often start working already in the red, delaying milestones like moving out, buying a car, or saving for retirement. Meanwhile, Millennials could breathe easier as they started with lighter debt loads.

"For many young South Africans, financial independence feels further away than ever. Gen Z isn’t lazy—they’re just playing the game on a much harder level. Yet they’re adapting, finding ways to live meaningful lives on their own terms," Rhyan O’Sullivan, Managing Director at The TEFL Academy, said.

Comparing Gen Z and Millennials

While Millennials faced challenges, Gen Z graduates are paying way more of their income just to survive. Rent, food, education, and transport consume almost everything, leaving little room for savings, travel, or even fun. Financial independence is delayed, wealth-building is harder, and family support is often essential.

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The TEFL Academy’s report, The Cost of Being Young in 2005 vs 2025 in South Africa, is a wake-up call: it’s not a lack of ambition holding back Gen Z, it’s a system that has made adulthood way more expensive.

3 More budget-related stories from Briefly News

• Briefly News previously reported that a car salesman shared which cars people who earn R8 000 can buy.
• A young lady shared what R200 can get someone from the grocery store, and South Africans couldn't believe what she bought. People had mixed feelings about it.
• A content creator shared the amount of food she bought with R500 and shared her thoughts on the cost of living in South Africa.

Disclaimer: The views and opinions expressed here are those of the author and do not necessarily reflect the official policy or position of Briefly News.

Proofreading by Kelly Lippke, copy editor at Briefly.co.za.

Source: Briefly News