What are you teaching your children about money?

As we come to the end of the youth month, I reflected about how little I knew about money when I started working and why you want your kids to be money wise as soon as possible

Many parents are shirking their responsibility when it comes to teaching their children about money. Some parents give their kids clothing store cards and thereby teach them that they must buy clothes on credit and sometimes they even give them credit cards. We should not be surprised then when our kids cannot manage money. But there are also good parents who are even teaching their kids about investing in the stock exchange.


What I wish every young person would know about money

These are just some of the things I wish I knew about money when I started working. I also wish that as parents, we begin to talk to our children about money so they have a better chance of making it financially. The list is by no means a complete list

  1. Many older people have not saved enough for retirement and some might have to depend on their children in old age or on the Government pension. It is better to put away even as little as R300 monthly in a retirement annuity ASAP than to wait until it is too late. All of us must resist the urge to cash and splash our pension when we change jobs
  2. You are not meant to spend every cent you earn. You should put away at least 20% of what you earn for the future. If everyone did this, fewer people would be in debt
  3. Some people die while they are young. Get life insurance as soon as you can; especially if you are already a parent. The younger you are, the cheaper your premiums are going to be. You also want to get insurance before you get any lifestyle disease e.g. diabetis, high blood pressure, etc… that might make your premiums more expensive

  4. You shouldn’t buy clothes on credit – why look good when your bank balance looks sad? Buy clothes that are on sale from different shops using cash. Having a store card for every clothing store is not the right thing to do.

  5. A car is not an asset. Do not buy a car on residual – save for a deposit for your car. Remember that the newer the car, the higher the depreciation. You are likely to knock your first car a few times while you are getting used to driving so get a reasonable car and buy a white car if you can, it is easier and cheaper to fix a white car if you knock it

  6. It is still a good idea to buy a home before you buy a car. If you must buy a car before you buy a home, don’t buy the most expensive car you can afford. It is not cool to spend all your money on a car

  7. Emergencies do happen – especially if you own a car. Save money so you can pay cash for emergencies and not get into the trap of personal loans. Many people are personally poor because of personal loans

  8. A credit card is for the financially disciplined only – it is not for you to buy things you cannot afford. If you have no financial discipline, keep away from credit cards. A credit card can give you ulcers, literally

  9. Buying everything on credit will make you poor. Keep away from debt! It is better NOT to have everything you need and have peace of mind than to buy everything on credit and owe everyone
  10. When you are young, we expect you to be modest as we know you have just started working. So don’t try to have everything you ever wanted asap by buying things you cannot afford on credit. Live within your means and save and invest your money.

  11. People who make it financially are not necessarily the high earners. They have taken the trouble to learn about money and practise what they have learnt. Learn about money. At the very least, you should know about the following:Your parents’ money is not your money. Parents send you to school so you can make your own money. If they leave anything for you in a Will, count yourself lucky but don’t expect anything from your parents.
      • Compound interest – see chapter 7 entitled The best-kept secrets about saving
      • Exchange traded funds  – see the last chapter of my book
      • Credit life and why you should keep away from it – pages 115 – 123 in the book
      • Tax free investments – more on this in the next article
  12. Learn to budget and stick to your budget. If payday is the 25th of the month, then you are meant to ensure you have money until the next 25th. Your parents are not your overdraft facility
  13. We hope you are going to get married one day, start saving for lobola and other wedding costs – don’t use a personal loan for wedding costs

  14. If you are staying at home with your parents, it is the right thing to do to contribute towards the living costs – even if your parents don’t need the money. This will teach you financial discipline and financial independence

  15. The above is just a start. Knowledge is power – make sure you understand the rules of money and you get a financial advisor like myself on your side so you make wise money decisions.

Do you want a financial advisor? Contact Phumelele on the following numbers

Office 011 789 6521

Cell 063 034 2532



Will Your Daughter be able to Say NO to a Sugar Daddy? Some of your responses 

Powerful thank you. I will share this with my daughter as a single mom and I have a teenager.



Some men still believe sleeping with a virgin will cure their HIV. Young girls must be taught about this at school and at home!



Thanks for educating us on these matters since we are also having children who will be confronted by same situations



This is nothing new. In my humble opinion it is a symptom of something much larger and more sinister – that is the erosion or lack of values due to our pursuit of material possession in our society. If parents are unable to instil good values that would immunize their children to such corrosive material worship – we will continue to breed such distractive social ills of teenage pregnancies and sugar daddy phenomena.



That is definitely a BEE sugar daddy! I wish he used his money to sponsor university fees of a child than use it to exploit young girls



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Phumelele Ndumo

Financial Advisor

BCom, H.Dip Computer Auditing, MBL

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