Page 22 - IFV_Issue 8_2022

Today’s Child

TEACH YOUR CHILDREN FINANCIAL LITERACY

BY SABRINA
According to SASI (the South African Savings Institute), not to say that chores are a bad idea –
they equip kids with life skills for other
the savings culture in SA is continuing to decline. It reasons too – knowing how to cook,

wasn’t that healthy to begin with, but it seems that clean, tidy up, do the laundry – these are
everyday tasks best learnt when one is
more and more people are living beyond their means. young.

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

20 • Issue 8 2022 • The Villager