Money lessons for every child

Preparing one’s children for the responsibilities that come with adulthood is no easy task, especially when it comes to money management and personal finances. Here are some abiding principles that form the bedrock of financial stability that every child needs to know.

In an age of instant-everything, there is precious little we must wait for. So important is the art of delaying gratification that economists believe the inability to wait for something that you really want is a primary predictor of economic failure in life.

Handbags, wallets and cars, once symbols of status, have been replaced by social media pictures of our latest experiences. Social media is supporting the change from buying “things” to buying “experiences” – endorsing what we have always known: that experiences make us happier than material purchases.

Never have we had access to so much information, so quickly and for so little. There is seemingly no limit to what we can study online.

While many of us have been raised to believe that there is something noble about setting aside one’s true passion to make a respectable living, Millennials are experimenting – and succeeding – with blending passion, purpose and pay cheque.

With most financial transactions being barely tangible, there is now very little that stands between “wanting” and “having”. The danger of a near cashless society lies in the diminishing appreciation for the value of money, especially when it relates to money earned by others.

Materialism is a system that forces us to compare our possessions with those of others, and there is no end to the race. Despite the unrelenting marketing messages we receive, you can absolutely be happy in unbranded gear. Stay out of the race with the Jones’s.

More than qualifications, there is no doubt that hard work, tenacity and resourcefulness are greater indicators of future success. If you believe in yourself and your idea, be prepared to work hard.

Craig Torr is a founding director of Crue Invest