Our financial behaviours shape our future. So, when you are deliberate about making certain choices, you will find that you are able to move ahead with ease.
A simple example could be to pack s'khafthin (lunch box) when you go to work. And being consistent. Imagine what this will do for your bank balance.
How are you empowering your children, nieces, nephews and grandchildren about making smart money choices? What challenges do you have with teaching them about money?
“The earlier young people understand how to manage money, the better equipped they will be to make smart, confident decisions when they start earning, saving and spending on their own,” says JustMoney operations manager Sarah Nicholson.
“Youth Month offers the perfect opportunity to talk about financial wellbeing as a family. It’s not about having all the answers. It’s about starting the conversation, making learning practical and fun, and showing young people that money is a tool they can learn to use with confidence.
“Teaching young people how to manage money can begin with everyday chats at the dinner table, at the till, or when discussing family expenses. Money lessons work best when they are practical, relatable, and suited to your child’s stage of development.”
Nicholson says understanding “the concept of financial risk is a key skill that helps young people avoid money pitfalls and thrive later in life”
“Just as we teach children to cross the road safely, we should also help them recognise and navigate financial dangers, such as impulse spending, scams, debt, and a lack of savings. Understanding financial risk is a life skill, not just an adult concern,” Nicholson says.
“We often think of financial risk as something adults face – for example, defaulting on a loan or losing an investment. But the truth is that young people are often exposed to money decisions early on. Whether it’s peer pressure to have the latest gadget, being targeted by online scammers, or taking on a student loan without budgeting for repayments, choices made when you are young can have lasting consequences.”
Nicholson's age-appropriate savings tips:
Young children – start with the basics – needs vs wants and the power of saving: Children as young as five can begin learning the difference between what they need (food and school shoes) and what they want (sweets or a toy). You can make this lesson real by involving them in a shopping trip. Before heading out, show them a list: “We need bread, milk, and fruit. We don’t need coffee today – it’s not on the list.” To encourage saving, use a clear jar or a labelled tin and let your kids contribute coins towards something small they want.
Tweens and teens: Introduce budgeting and responsible spending: As children grow older, they can start earning a small allowance or pocket money, and learning how to manage it. For example, a parent might agree to give their child R150 a month. Instead of spending it all on fast food, the teen learns to divide up the money: R50 for weekend treats, R50 saved towards a phone cover, and R50 to put aside. Letting teens help plan a family purchase also builds confidence.
Older teens and young adults: Explore real-world financial tools and risks: This is a good time to go deeper into concepts like credit, interest, debt, and scams. If your 17-year-old is applying for tertiary education, use the opportunity to walk through a student loan agreement and explain repayment terms and interest. Introduce compound interest with a simple example: “If you invest R1,000 at 10% interest, you’ll have R1,100 after a year. But if you leave it there, you’ll earn interest on the R1,100 the next year – that’s compound growth.”
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