20 June 2019, by Kentse Mabale
According to statistics published by Liberty they paid out a total of R4,69billion to 28 453 individuals and their beneficiaries in claims during 2018. Of this R3,25billion was paid out in respect of life-changing traumatic events such as accidents, causing various permanent and temporary disabilities, as well as illness such as cancer, cardiac arrest, respiratory disease, renal disorders, etc. and even retrenchment benefits.
Life does not wait for you to put your finances together for another day, tomorrow banks on today!
Standard bank announced recently that it was shutting several of its branches country wide and that approximately 1,200 individuals would be retrenched. Are these the things that we as the youth think of as we gear ourselves up for adulthood and what do we need to do today to ensure that we are financially educated for the future?
Growing up in Warrenton I never had a full grasp of what financial stability is. It is a small town with limited prospects of getting a really good job. Those that do have jobs are likely to work through to retirement in the same job. the shop owners have had the same shops for years and change does not take place. Simply put, there isn’t enough development to cater for the youth. Personally, I found that the pace of development and the only real prospect of having a good life, being able to educate myself and yes, living in an inspiring setting were, outside of my backyard… and so, off to the city, I and many of my peers went.
An undeveloped town where one can easily get used to the slow pace of life and the general lack of resources can have far reaching effects on career prospects, goal setting, creativity and the ability to think outside the box and be the master of your own fate.
I have a burning desire to do a great deal with the money I have and to change my life and those that I love. Being in the financial services industry has exposed me to various wealth management scenarios making me realise that just opening a bank account is the beginning of great things.
There is a large array of financial products from tax free savings, life cover, unit trusts, etc. that not only enable one to save money, but also increases your nett worth. Whilst these are great, the ability to say no and the understanding that you have to be patient and have a realistic time horizon will get one better results. “Having a mixed portfolio and cash in case of emergencies is vital”. – Des Van Rooyen – Administrator at Morebo Wealth.
If it were up to me, we would have more financial education on TV showcasing practical examples of how to attain financial freedom instead of always seeing people spend money and seeing how far we are from the dream, which is demoralising and leads to overcompensating for our shortfalls. Our elders always refer to us being the generation of instant gratification.
I am elated that young people are starting to concern themselves with what their legacy will be . We can all play our part to encourage the youth that want a better future for themselves by having these discussions to prioritise “saving a penny for a rainy day!”
Financial planning and financial literacy can no longer be a conversation behind closed doors between adults. Many children suffer from a lack of financial planning and learn things the hard way when a parent passes away only to find that there was insufficient financial planning. This is a legacy that must change as a gift to our youth.