As parents our key role is to be the nurturer and provider of our children’s needs. We want to protect them and equip them to live happy, fulfilling lives. One way you can do this is by ensuring they get a quality education that opens up career opportunities and increases their future earning potential.
But doing your absolute best for your children’s future does not mean you should totally sacrifice or neglect your own.
“Of course, by empowering your children, you are potentially setting them up to gain financial independence one day. But if you don’t prepare for your own future, you may be forced to rely on them financially in your old age,” says Karabo Ramookho, Strategic Retail Marketing Manager at Old Mutual.
She adds: “You deserve to be financially independent too. With proper planning, saving and investing conscientiously and with the support of an accredited financial adviser, you can have the best of both worlds.”
5 tips to help you save for the future
1. Keep learning
Education is not something you complete in your twenties. It’s a life-long need and goal. By continually enhancing your own skills and knowledge, you make life more interesting and make yourself more marketable. The more marketable you are, the greater your income potential, which will make it easier to fund your retirement and their education.
2. Chat to your children about their options
Discuss your children’s options with them. If they are performing well academically, they could qualify for reduced school fees and later for a bursary or even a full scholarship for their tertiary studies. This would help to ease the financial burden.
If they are passionate about a hobby, encourage them to try to earn money from it, so they can help save towards their own future.
3. Set a great example
There’s an old saying that we can all attest to that says: “Children tend to do what you do, not what you say.”
How you manage your finances can impart valuable lessons to your children. If you rely heavily on credit to get by every month, your children may assume this is ‘normal’ and mimic this behaviour when they are older.
Teach them how to manage money well by using your own household budget as an example. Show them how you balance your income with your expenses and savings and investments every month. The sooner they understand financial fundamentals, the better the chance they will grow into financially responsible adults.
4. Give them the gift that grows
Instead of constantly giving your children expensive gifts, opt to give them smaller presents and top up their education savings or unit trusts with the rest.
Share the growth of the investment or savings with them by drawing comparisons between a toy that can break versus a gift that will set them up in the future.
If you give your children pocket money, instill in them the habit of saving a portion of it for something they really want. This will teach them the value of delayed gratification.
5. Get expert guidance
Discussing your needs with a financial adviser and enlisting their help to draw up a proper financial plan is always a good idea.
Advisers are trained to look at your holistic financial needs and recommend solutions that will enable you to achieve your goals. They can also assist you with cover for life’s ‘what ifs’.
If you would like to get in touch with an accredited financial adviser who can help you plan for your and your family’s future, visit https://www.oldmutual.co.za/personal/solutions/financial-coaching
The material is not intended as and does not constitute financial or any other advice.
The material does not take into account your personal financial circumstances. For this reason it is recommended that you speak to an accredited broker or financial adviser to consider all your options and draw up a plan to achieve your financial goals.
This post and content is sponsored, written and provided by Old Mutual.