By Charnay Cooper and the Morebo Interns
In preparation for Youth day our Interns, accompanied by Certified Financial Planners visited the University of Johannesburg to present a lecture on Financial Literacy and how to create and maintain wealth.
The first point they focused on was the South African youth’s perception around financial planning. After establishing the overall viewpoint, interactive questions were asked, tapping into everyone’s real life experiences with financial planning, or rather the lack of financial planning.
The presentation focused specifically on saving money and investing for oneself. The audience did not seem to delve into the fact that individuals, groups and societies should build generational wealth instead of just being rich. Due to our previous experiences with the education of financial literacy, it was expected that many young people did not see the value in risk products and that their primary concern was investments. It is one of our fundamental focuses to ensure that we changed this perception and we were pleased that the students found importance in managing one’s own finances and setting goals.
After lengthy discussions and debates, we posed another question: –
‘Who of you have lost a person you were financially dependent on?”
That was followed by “did that person have a will?”
A young lady in the audience stood up and shared her personal story; her parents had passed on however they had left a will. The will had stated that a trust be set-up and her education be paid directly to the institution. This lady is now a final year student at the University of Johannesburg. Her parents did not die intestate and she had a competent executor and administrator to handle everything. What we and the rest of the audience took away from this was the fact that this woman was left with piece of mind and able to mourn with less of a burden. Her parent’s wishes were also fulfilled.
The goal of these presentations is to make the youth aware and help them to understand the importance of being conscious about their spending habits – not spending more than you earn.
We tried to guide the audience regarding spending on certain burdens like “black tax.” It is important to prioritize certain expenses and impulsive purchases. Certain examples that triggered the audience was many South Africans would cancel life cover during an economic downturn and prioritize a DSTV subscription.
Hence, emphasis was put on smart saving and spending habits.
To bring this discussion full circle, financial planning must be viewed holistically and must link investments, risk, retirement, estate and tax planning services.