Anri Armer, Financial Planner at Momentum Financial Planning
There are many families who aspire to build wealth and leave a lasting legacy, just like iconic figures Buffett, Musk, and Motsepe. These billionaires did not simply stumble upon their financial success; they cultivated it through discipline, strategic planning, and relentless dedication. At times, the journey may seem daunting, but it begins with small, deliberate steps and the right advice.
The power of a vision
Every great legacy starts with a clear vision. For families, this means sitting down together to define what wealth and success mean to them. Is it financial independence, the ability to travel the world, or funding education for future generations? By clearly articulating their values and goals, families can create a roadmap that guides their decisions and future actions. The path to wealth doesn’t require a windfall; it often begins with a trusted financial adviser at your side.
On Heritage Day, we honour the rich tapestry of cultural history brought forth in all South Africans. Although this is an ever-inspiring celebration, our individual cultural histories and origins tend to dominate the narrative.
Yes, culture is crucial, but Heritage Day is also an opportunity to think about how we can introduce new traditions that fortify our families and communities going forward. Yet, while cherishing our past, we should focus on creating practices (and traditions) that will benefit future generations. It is an opportunity to empower future generations – particularly when it comes to financial independence.
Breaking free from the financial mistakes of the past and creating a legacy of financial literacy is a tradition we can all adopt. The way we talk about money can be distinctly tied to our culture. By establishing open conversations about money at the family dinner table, we can set a foundation that supports long-term financial stability, equipping our children to make smarter decisions about their futures.
For many households, talking about money is often considered a sensitive or taboo subject. However, there’s a growing recognition of the value these conversations bring. Rather than being left unspoken, family money talks are now crucial for ensuring the whole family is aligned on financial behaviours, goals and expectations.
So, how do we make money conversations a routine part of our family heritage? Perhaps, like most important family discussions, it should happen at the dinner table.
Here are a few ideas to help incorporate financial topics into your family dinners:
1. “How can we start planning to save for our next family goal?”
This can teach younger family members the importance of budgeting, setting aside money, and long-term financial planning. By discussing these goals, families can align their priorities and ensure everyone understands what matters most. This may also spark creative ideas for saving or finding more efficient ways to achieve the goal together.
2. “Why is money important?”
It is important for everyone around the table to understand why money is important. Money not only provides food, shelter and clothing but when budgeting and planning come into play, money provides a sense of security and stability. It is also important to take this opportunity to differentiate between credit and debit and find ways to understand various financial tools.
3. “How to wisely spend your savings or allowance?”
This encourages us to think about how we can manage spending and savings effectively and fosters the development of good financial habits. This can also be a great opportunity to talk about smart shopping practices, like comparing prices or waiting for sales to make informed purchasing decisions. This question can also raise awareness around different ways of earning an income and how to take accountability when it comes to finances.
4. “How can you use your money to help others?”
This encourages discussions about the significance of generosity and community support.
5. “How are our finances influenced by what is happening in the news?”
Discuss how current events or economic trends might impact your family financially, such as inflation, job markets, or relevant financial news. By understanding the basics of how the economy turns, we can pass on our wisdom to the next generation, like knowing how to adjust budgets when interest rates fluctuate or inflation rises.
When forging the heritage and tradition of family finance discussions, it is also crucial that you get it right the first time. Consulting with a financial adviser can provide additional support and bridge the gaps of understanding for both parents and children. By partnering with a financial adviser, you can get personalised advice and help navigate complex financial decisions based off the conversations you’ve already had with your family. Not only that, but a financial adviser can also help guide you on how to structure these conversations as well.
Previous generations have faced challenges like debt, overspending, and insufficient savings for the future. As we celebrate Heritage Day, we have the power to change this narrative. Let’s honour our traditions while establishing new ones. Let’s lay a strong foundation for the future and walk this financial road together as families. By making financial discussions a regular part of family life, we create a legacy of financial literacy and shared values that will strengthen our country for generations to come.
ENDS
