Page 45 - Kyalami issue 3 2022

Kyalami Estates Corporate Brand Bible Design 26
3.0 Folder (Inner)
TODAY'S CHILD

TEACH YOUR CHILDREN

FINANCIAL

LITERACY

BY SABRINA

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

HOW DO WE REVERSE THIS TREND?
Over the long-term, the best way to get
the population to buy into improving
our savings culture is to start with
the kids. Enhancing one’s financial
well-being is, after all, a long-term
exercise, so – as any financial adviser
will tell you – it’s best to start young
so that budgeting and wealth creation
become an integral part of one’s life
philosophy.

Kyalami Estates • CONNECT • Issue 3 • 2022 43