Many of us make a lot of money mistakes, especially as young people. We asked several young Bayporteers to tell us about the money secrets and wisdoms they wish they had been told earlier in their lives.
We tend to believe that wisdom only comes with age, but there is no reason why we can’t learn valuable lessons early in life and make decisions that put us on the road to financial wellness as young people.
Here are some of the money lessons that Bayport employees wish they had learned earlier in life, and tips on how to help your children or other youngsters to not repeat your mistakes.
Saving
Molapo: “I wish I knew to start saving as soon as I started working. I convinced myself I was still young and there was time. Imagine if I started saving R500/month when I started working in 2000, how much I would have had by now. I wish I had thought of it then, that’s why I tell my daughter to save now.”
Tshiamo: “I wish I was taught to save, had that mindset instilled in me.”
What you can do:
Give your children an allowance and help them plan how to spend it – including saving a portion of it every month. Help them open a savings account and show them how the money grows. Saving is a habit that children must learn.
More than one income stream
Refilwe: I wish we were taught from a young age to have a side hustle and not only focus on our jobs.
What you can do:
Expose your children to entrepreneurs in your community, as well as successful businesspeople in the country. Help them to understand that you can create your own opportunities and that someone giving you a job is not the only option.
Live within your means
Lesego: Spend less and save more – I wish I knew this earlier.
Mandla: If I knew how to live within my means at an early age, I would have been further now. There are certain things you encounter in life because you are not using your brain – if you have money and you want to impress people and you want to be seen, you end up living above your means. This is what I’d love young people to know.
What you can do:
Help your children to set goals for themselves and, using their allowance, show them that impulsive spending makes it impossible to achieve their goals. You can also share the household budget with them, so that they can understand the choice you make to not overspend.
Investing
Dimakatso: I wish I knew about properties earlier. Property is an asset you can keep for a lifetime and gain money from.
Nthabiseng: I still want to know how to invest – we don’t have enough information regarding that.
What you can do:
Teach your children the difference between saving and investing and help them to put some of their allowance money into an investment vehicle, such as a tax-free savings account.
Plan, don’t just spend
Nomvuyo: When I started working, I wish I was told not to have clothing accounts. I tell my siblings not to go there – if you don’t have cash, do layby. Plan, don’t just spend.
What you can do:
As Nomvuyo says, teach your children to plan before they spend. Have these conversations with them when you help them work out a budget for their allowance.
