This guide breaks down the key steps in a simple, easy-to-understand way for South African parents.
1. Start Early: The Importance of Financial Education
Start them young. Children as young as three can begin understanding basic concepts like saving, spending, and sharing. The foundation for good money habits can be laid during their formative years.
How to begin:
Use play money to teach your child how money works. Explain the difference between coins and notes. Allow them to handle small amounts of cash to feel the value.
2. Lead by Example: Practice What You Preach
Your kids are more likely to adopt good financial habits if they see you practicing them. If you’re wise with your money, they’ll learn to be too.
Ways to set a good example:
Stick to a monthly budget and show them how it works. Save regularly for long-term goals, like a family holiday or house deposit. Pay bills on time, demonstrating the importance of avoiding debt.
3. Introduce Basic Money Concepts
Introduce simple financial concepts in an age-appropriate way, depending on your child’s age. For example:
For Younger Kids (Under 10): Focus on the concepts of spending, saving, and sharing.
For Tweens (10-13): Teach them about earning money, needs vs. wants, and saving for a specific goal.
For Teens (13-18): Discuss more complex ideas such as budgeting, debt, and the importance of credit scores.
Examples:
Use South African rand notes and coins to practice counting. Explain that spending money means you have less for savings. Teach about the importance of saving for future needs, such as school supplies or a phone.
4. Give Them Responsibility: Allow Your Kids to Handle Money
One of the best ways for children to learn money management is to give them responsibility. Give them pocket money, or create opportunities for them to earn small amounts of money for doing chores or helping around the house.
How to do it:
Set a weekly allowance for chores they complete. Encourage them to divide their money into categories: spending, saving, and giving (charity). Teach them how to make decisions: “Do you want to spend your money on a toy, or save it for a bigger goal?”
5. Teach the Importance of Saving
One of the most valuable lessons you can teach your child is to save money regularly. Saving is important for both short-term and long-term goals. It also helps develop patience, discipline, and the ability to delay gratification.
Steps to teach saving:
Use a piggy bank or savings account to show them how savings grow over time. Discuss the difference between saving for something immediate (like a toy) and something long-term (like a car or university). Explain the concept of interest - how money saved can grow when invested or placed in a savings account.
6. Teach About Budgeting: Managing Money Wisely
As your child grows older, it’s important to teach them how to budget. Budgeting is the key to ensuring they never spend more than they have and always save for future needs.
How to teach budgeting:
Create a simple budget together using categories like "Savings," "Spending," and "Giving." Teach them how to track their income and expenses, using either a spreadsheet or a physical notebook. Help them set realistic goals, like saving for a school trip or buying a desired item.
7. Discuss the Risks of Debt and Borrowing
It’s vital to educate your child about the dangers of debt. While borrowing can be useful in some cases, managing debt responsibly is crucial. In South Africa, where many people face financial struggles due to high interest rates and debts, teaching this lesson early on is important.
Ways to explain debt:
Use examples of how credit cards or loans work, and the importance of paying them back. Explain the concept of interest, and how debt can grow if not managed properly. Teach them to avoid borrowing money from others unless absolutely necessary, and to always be mindful of their ability to repay.
8. Discuss Wants vs. Needs
One of the most important lessons is teaching kids the difference between wants and needs. This lesson helps children make wise financial decisions as they get older.
Examples to make this clear:
Needs are things like food, clothing, and shelter. Wants are things like video games, toys, or extra snacks. Help them understand that money can be limited, and sometimes sacrifices are necessary to prioritize needs.
9. Encourage Earning Money: Financial Independence
Teaching children to earn their own money can be a powerful lesson in financial responsibility. In South Africa, where many teens are looking for ways to earn extra cash, there are plenty of opportunities for them to take on small jobs or side hustles.
Ideas to encourage earning:
Offer paid chores around the house or in the garden. Encourage them to sell homemade crafts or second-hand clothes online. Explore freelance opportunities for older children, such as babysitting or tutoring.
10. Teach the Value of Giving Back
Financial literacy isn’t just about spending and saving; it’s also about generosity. Teaching kids to donate a portion of their money to charity will instil empathy and a sense of social responsibility.
How to practice giving back:
Dedicate a small portion of their allowance to a cause they care about. Organize family charity events or donate clothes or toys to those in need. Conclusion: Setting the Foundation for Financial Success
By teaching your kids about money management from an early age, you can set them up for financial success in the future. In South Africa, where financial literacy is vital due to fluctuating economic conditions, teaching your children these fundamental skills can help them navigate the challenges ahead. Start small, lead by example, and encourage them to make responsible financial decisions.
With these simple steps, you’ll be helping your kids build a strong foundation for managing money wisely, saving for their future, and making smart financial choices.
Questions after the interview:
At the end of an interview there is usually an opportunity where you can ask any questions you might have. This is a great opportunity to show the interviewer that you are interested in the position as well as the company. It is a good idea to prepare a few questions before the interview – this can be done while you are doing research on the company.
Your questions should show the interviewer that you are a good candidate for the position. Try and avoid questions that are based on your personal needs and preferences, for instance:
- How much leave will I get in a year?
- Will I be considered for promotion in my first year?
- When will I get an increase?
- What time can I leave in the afternoon?
These questions are inappropriate at this stage and will probably raise concerns on the side of the interviewer. Should you be the successful candidate then all these questions will be answered in your letter of appointment so don’t waste this opportunity by asking these basic questions.
If the position is an entry level job or very junior then you are welcome to ask questions in line with the position, for instance:
- Why did the previous person leave the position?
- What would the successful person be tasked to do in a typical day?
- How does this position fit into the department and / or company?
- Could you explain the company structure to me?
- Is there any further education assistance or support?
If the position is more senior then you can prepare question around the following themes:
- current issues that will face the successful candidate;
- inter-personal challenges in the department;
- any process, technology or people challenges that needs to be attended to urgently;
- key result areas that need urgent attention in the first few months;
The above information should get you started. Prepare a few questions so that you can show your worth. Good luck with your interview!
