Page 32 - FWG_Issue 7_2022

Today’s Child

TEACH YOUR CHILDREN

FINANCIAL LITERACY Image by Alexandr Podvalny

B Y S ABRINA

According to SASI (the South African Savings Institute), the savings – they equip kids with life skills for other
reasons too – knowing how to cook, clean,
culture in SA is continuing to decline. It wasn’t that healthy to begin with, tidy up, do the laundry – these are everyday
tasks best learnt when one is young.
but it seems that more and more people are living beyond their means.
On the upside, there are other ways to get
the kids more street-smart about their
s opposed to countries like more and more people are paying money finances.
China, where the one child policy out merely to cover the finance charges and
prevailed between 1980 and 2015, interest on their debt, leaving little left over MAKE IT A GAME
Aand Japan and South Korea, where as actual disposable income.” One of the methods to get kids more
fewer couples are opting to have children, engaged without having to nag them is
giving rise to ageing populations, South HOW DO WE REVERSE THIS TREND? getting them involved in comparative
Africa has a relatively young population, Over the long-term, the best way to get the shopping. You can discuss the pros and cons
with an estimated 20 million people aged population to buy into improving our savings of bulk buying vs buying a smaller quantity;
between 15 and 34. Reports from SASI culture is to start with the kids. Enhancing retail strategies such as 3 for 2 offers and
indicate that these young people have little one’s financial well-being is, after all, a long- loyalty cards that give you discounts and
interest in saving their money. They are term exercise, so – as any financial adviser ‘cash back’ at the end of a cycle; as well as
more inclined to tap into the availability of will tell you – it’s best to start young so that how much one can save by not having to pay
credit to get what they want now, rather budgeting and wealth creation become an for those plastic shopping bags – not a lot,
than delaying gratification until they have integral part of one’s life philosophy. in the bigger scheme of things, admittedly,
enough funds to make a once-off, full but 100 shopping bags over a three-month
payment. SASI attributes this trend to lack HOW TO GET THE KIDS TUNED IN period would cost an extra R110 at the
of financial literacy, not only amongst the The old fashioned way of getting children to current price. Comparative shopping is also
youth, but in all segments of the population. appreciate money was the notion of getting an excellent technique to get kids to practise
them to do chores around the home and their mental arithmetic.
“We need to fundamentally stop living then paying them for work done. But that
beyond our means and drive a savings could involve a lot of nagging and effort Examining the family’s monthly
culture to break the cycle of inter- from the parents – who may have grown consumption of electricity, gas and water,
generational debt,” says Prem Govender, up with domestic staff, so they don’t really and discussing how the family can save on
Chairperson of the SASI Board. “With the know much about doing chores themselves. these utilities, is another useful exercise.
credit culture prevailing here in South Africa, That’s not to say that chores are a bad idea Looking into whether it would be better to

Fourways Gardens • 30 • August 2022