Real Estate Investor Magazine South Africa June/ July 2019 | Page 61

money, you need to set the example. “Be prudent with the way you spend, because children watch what you do. Let them see how hard you work so that they will develop the same work ethic. “My wife and I have raised a fiercely independent 24 year old daughter who saves every month and has a high work ethic. When I ask her why she works so hard ,she tells me it is because she watched her mom and I as she was growing up. I can’t stress the importance of love and boundaries enough, as these two components give children the security within which to learn the fundamentals of generating wealth.” financial-education/financial-education-programmes/on-the- money “In my early adult life, my parents ended up losing most of what they had due to a bad business decision in retirement,” says Bradley. “This made me very aware of financial security, to the extent that I probably became slightly obsessed by it. With the help of my wife we were able to unpack that and work to a compromise that worked for both of us based on what we wanted to achieve as family.” Gradidge says it is important to teach children to see banks as a source of capital and little else. “Banks have too much power over consumers, yet banking is a commodity. Banks also have far bigger budgets to market their credit facilities, rather than their investment products. Disclosure: This information is provided to you as a resource for informational purposes only. It is being presented without consideration of the investment objectives, risk tolerance or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal. This information is not intended to, and should not, form a primary basis for any investment Elian Wiener decision that you may make. Always consult your own legal, tax or Elian Wiener is Founder of investment advisor before making Wealthwoke, a community any investment/tax/estate/financial of people who are redefining planning considerations or decisions. their concept of wealth Teach them the importance of financial security Help them become financially literate. Gradidge believes it is crucial to teach children financial concepts such as compound interest, the time value of money, inflation and tax. He says that too many adults have themselves not gotten to grips with money and are not in a position to pass any advice on to their kids around the issue. “I think you can see the results of this in the debt statistics that we have today.” There are a number of free financial literacy sites and courses you can use to improve your knowledge. These are some of the best of them: https://www.moneyacademy.co.za https://www.oldmutual.co.za/about-us/transformation/ Make them invest from an early age Calitz says mutual funds are a great way to teach them how to invest at an early age. “Start their own fund and teach them to save 10% of their pocket money in it.” Gradidge suggests opening a tax free savings account in their names. “Nothing gets a person’s attention more than seeing their name on something. I give my kids their statements every few months.” Teach them to have a healthy disrespect for banks South Africa’s Cyprus specialists since 2008. We have offices in Sandton, Cape Town & Cyprus Contact us. www.cypriotrealty.com a & r personal 5 r day r inspection r trip offer r a r Customised r For more information, contact Jenn y Elli nas 083 448 87 34 je nny@cypriotr ealt y. com Nothing is than a m more expensive is sed oppo rtunity!