Money tends to be a concept many people wish they’d understood sooner. Financial advisors from various local institutions always estimate that South Africans in particular have the worst relationship with small loans debt which shows poor planning strategies. Often enough you don’t fully understand what you have until it’s gone and with money this isn’t any less true.
Your teenage self would probably benefit from a little financial sit-down conversation presenting him or her with the fact that even a little bit of money can be stretched a long-way.
Kwazulu-Natal regional head of investment service provider, Citadel, Craig Kiggen believes that 3 simple monthly tasks could have made a lot of financial difference for his younger self.
Who’s to say that they couldn’t still make a difference for your children or grandchildren?
1. Give 10% away. In a world where there is so much need even the small amount given to a needy person or cause makes a massive difference. Only as an adult did I learn the true joy you feel when you see someone grateful for even the small amount that is given. By learning this early, you are able to look outwards with your money rather than only thinking about yourself.
2. Save 10%. Learning to save, even a little, starts ingraining the mind-set and discipline of saving so that when you are an adult and earning a liveable wage the discipline is entrenched and it is not as hard to begin doing. I have met countless adults who have told me it’s not that they don’t want to save, but that it is just something they have never done before and it “feels so unnatural”.
3. Enjoy the rest. If we are able to enjoy the fruits of our labours, and learn to be content with the little we have in our early years, it is far easier to manage the money you earn as your career develops and also for you to enjoy it in a guilt-free way because you are not so worried about your future savings.
And it shouldn’t just be the youth that practices good money habits. Parents are deeply influential in the behaviour their kids adopt towards money. The example set is the future generation’s benchmark tool. The way you handle money now is the very foundation your child might start thinking about money from and therefore it is vitally important that foundation be as solid as possible.
It doesn’t take much to be conscious about personal finance, but it also takes little to be out of touch with your personal finance reality.