“The money lessons I want to pass on to my grandkids”
Published on 30th August, 2019 at 03:20 pm
Make saving a priority from the start
Trevor Africa, 58
Africa encourages his grandchildren to adopt one of the most important money lessons – the principle of saving. He reminds the younger generations that there are various ways to do this. “Unit trusts would be a good place to start,” he says. “Make it a priority when you get money to take at least 20% of the amount and use it towards your saving plan.
“The government has also introduced tax-free savings investments. Please make use of this vehicle one day,” he urges.
Speak to a registered financial planner to find the best savings options for you. Click here to schedule a meeting.
“Don’t be flashy – be practical”
Africa also suggests searching for a practical, economical car when you get your first set of wheels, and buying it cash. “Your first car doesn’t have to be brand-new,” he says. Think about these options for taking good care of it.
And when it comes to property? “For me, the only time you apply for a loan is when you purchase your first property…. Save up for this to have a big deposit and a small bond repayment.”
Break the cycle and think long term
Nobahle Ndava, 69
One of Ndava’s most important money lessons? “Long-term investments were never a thing for my generation,” shares Ndava. “We would do short-term saving for maybe a year or less, and we’d use up all that money only to start saving again the following month, and so the cycle continued.”
Her suggestion is to commit to long-term investments. Speak to a financial planner to discuss your options. Click here to schedule a meeting.
“Choose reputable companies you can trust with your money”
Ndava also cautions younger generations to be wary of investing too much in burial societies. “We have many family members who are dependent on us, even when they are no longer around. But we need to be strategic about it. Some policies and burial societies collapse along the way and people lose valuable amounts of money,” she says.
When you do invest, ensure it’s with a reputable, established company to reduce the risk of losing your money or not being paid out when you need it most.
Before you spend a cent from your pay cheque, do this
Keith Burger, 64
As part of Burger’s money lessons, he is an advocate for saving for retirement, even when it seems a lifetime away: “The most important lesson I can offer is this: before you spend anything from your salary, save towards your retirement. Regard it the same way you do tax – a non-negotiable.
“If you start that in your 20s, you can likely retire comfortably. Aim for at least 10-15% saved away, and do that your whole life. You won’t regret it. You’re building your own social security for the future.”
“Don’t be afraid to go against the grain”
For those brand lovers and impulse shoppers, Burger has this to offer: “Don’t subscribe to what society says you need in order to be validated. Don’t feel compelled to buy into the image thing (for example, the most expensive phone or car). Live frugally and basically.”
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