Legacy starts young
Financial literacy is the new generational wealth. Parents and guardians can raise financially resilient families by blending practical money tools with long-term, values-driven thinking. It is not just about what you leave behind; it’s about what you teach along the way.
How do we build a generation that doesn’t just inherit wealth, but knows how to grow it? The best inheritance isn’t just what’s in the bank account – it’s the wisdom to use it well.
As South African parents, guardians and caregivers balancing work and family life, we all share one goal: giving our children a more secure future. We meticulously plan their education, ensure their health and safety, and want to provide them with every opportunity to live a wealthier life than we did. But what if the most valuable gift we can give them isn’t money in the bank, but rather the knowledge of how to manage it wisely?
Here is a sobering thought: according to the Financial Sector Conduct Authority (FSCA), only 39% of South African adults are financially literate. Financial literacy means understanding and effectively using financial management, budgeting, and investing. That is why learning about money from a young age might be the most powerful way to live wealthier in the future.
So, how does one become money-smart in practical, everyday ways?
The value of financial education
Given South Africa’s economic realities, most people find it difficult to build wealth throughout their lives. But even when families manage to create wealth, it often disappears by the second generation if children haven’t learned how to handle money responsibly. That is why it’s more important now than ever to think about investments and to teach young adults good money habits.
If you need backup, your Banking App has all the information and tools you need to guide you and your family on your savings journey. An experienced wealth manager is also just a click away if you need a more personal touch.
Financial education isn’t just about balancing a budget or understanding interest rates; it’s about fostering responsibility, delaying gratification, resilience, strategic thinking, and generosity. It is about:
- Understanding that money is limited and needs careful management
- Sacrificing immediate pleasure for long-term rewards
- Building an emergency fund to recover from financial setbacks
- Making informed financial decisions
- Appreciating that money is a tool to help others and make a positive difference
Starting the money conversation
Children begin forming money habits by age seven, and parents or guardians who have open financial conversations can instil responsible financial behaviours that last a lifetime. Money conversations with your children don’t have to be difficult. They are, after all, your responsibility, and fear of embarrassment should be put aside. It is this fear that likely prevented previous generations from speaking about money.
The best talks happen naturally, as part of daily life. The key is to make them approachable, age-appropriate, and consistent.
Here are some lessons you may want to impart on young adults making their way into the world:
- Money is limited – even when it seems like there’s enough. Every decision has a trade-off.
- Long-term thinking wins – wealth isn’t built through instant gratification. It’s built through discipline and vision.
- Mistakes are part of the journey – small money mistakes now can become powerful lessons later.
- Your values shape your wealth – generosity, patience, and resilience are financial skills, too.
- Wealth can be a force for good – when used wisely, your money can help others, not just yourself.
You don’t need to be a financial guru to teach your children about money. What matters is having open conversations, setting good examples, and making money management a natural part of family life.
Every day teachable moments
Financial education doesn’t begin with a spreadsheet — it starts at the dinner table. Children absorb more from what you model than from what you lecture. They notice how you speak about money, how you respond to financial stress, and whether you treat money as taboo or a tool.
As your child matures, shift from teaching rules to encouraging critical thinking. Help them evaluate financial advice, compare opinions, and seek out trusted professionals. Let them understand the roles of advisors, tax consultants, lawyers - not so they become experts but so they can build their own circle of trusted support.
Invite them into age-appropriate financial decisions. Allow them to sit in on a meeting with your accountant or wealth advisor. Let them shadow how you evaluate a business opportunity or think through a major purchase. It’s not about giving them control right away, but about building comfort with complexity.
Work with your children on a shared savings goal – one where they reap the rewards for putting money aside. Everyone contributes a small portion, and this teaches them about shared goals, teamwork, and delayed gratification.
Celebrate smart money choices, such as achieving a savings goal, giving to charity, or choosing a cheaper option when shopping. That positive reinforcement can leave an indelible mark on your children’s attitude to saving and living wealthier.
Coach them about money management
This is a phase when you’re not just a parent, guardian or caregiver - you’re a coach. You’re helping them build the muscle of discernment: the ability to ask the right questions, pause before acting, and trust their judgment.
Help your young adult define what wealth means to them. Is it security? Freedom? Impact? Legacy?
This is where values-based coaching becomes essential. Talk about generosity, delayed gratification, humility, and purpose. Show them how money can enable a life of meaning, whether that means giving to causes, investing in businesses that align with their values, or responsibly supporting family members.
True wealth isn’t measured by numbers - it’s reflected in choices.