How to teach children about money

PJ Botha • May 6, 2025

We made a podcast, The F Word, but it is all about money. The title "F word" comes from the fact that "money" is seen as a swear word in our society — even more so when people are at home.

The truth is that your kids will learn about money somewhere else if you don't teach them. Schools don't teach it very well, and you don't want American media to teach them, because they will learn how to live a life full of debt and buying things.

There are only six out of every hundred people who can retire independently in South Africa. We need to give our children the best chance to be one of those six people.


There are several concepts you want to teach your children, and you can do so in several different ways:


1) Managing Expenses

Kids should learn early on that they can't always get what they want, even if they (you) can afford it. Giving them options is what you want to do. That's why it's a good idea to give them some money to work with.

Example: You can get either the new computer game or the new shoes.
Choices are what life is all about.


2) Make Extra Money

If your child wants the extra pair of shoes and the new video game, that's a good chance for them to learn that if they work hard, they can make extra money and then buy whatever they want.

Ideas:

  • Take out the trash
  • Clean their rooms
  • Wash your cars

Older kids can learn how to be entrepreneurs so they can sell something or make something of value to earn extra money.


3) Start to Save

It's smart to teach your children how to save money by setting aside 20% to 40% of their budget or income for a big expense. This teaches delayed gratification, and if they want something big in the future, they have to forgo short-term pleasures.

You can also start to teach them the difference between investment and saving when they are in high school.

Examples:

  • Set up a bank account in the child's name and give them "interest" if they save a certain amount each month
  • Open an investment account directly for the child


Financial responsibility starts with the parents, and it is never too early to start training your kids to be smart with money.

The things you teach your child will have an impact on their life for a long time and will compound, just like investments.

How to invest in a volatile market

By Geo Botha • July 4, 2025
How to invest in a volatile market: 3 Principles to keep in mind ‘In the short term, markets can be very volatile depending on which news story makes headlines. However, over the longer-term investors are always rewarded for staying invested and riding out the waves.’ We know this by now, we have heard it many times before and historical data proves it. Yet it’s easier said than done. When it gets to our own money we are emotionally involved and there is a part of us that believes that this time, it might indeed be different. What if the markets never recover and I suffer permanent capital loss. And with the increase power of AI and social media, it feels like my portfolio hangs on the thread of a single Tweet. In this article Stephen Bernard, an actuarial analyst form our partner Allan Gray share his views, backed by statistics and historical evidence: Read the article here: https://www.allangray.co.za/latest-insights/markets-and-economy/how-to-invest-in-a-volatile-market/

Invest Globally, Prosper Locally: Offshore Strategies for SA Investors

By Ruvan J Grobler • July 1, 2025
In an increasingly interconnected global economy, South African investors are finding compelling reasons to look beyond local borders when building long-term wealth. Offshore investing offers access to broader, more resilient markets, particularly in developed economies with stronger currencies and more stable political environments. Given South Africa’s constrained economic growth, fiscal uncertainty, and the rand’s vulnerability as an emerging market currency, allocating a portion of your portfolio offshore can serve as both a growth engine and a hedge. Investing offshore provides exposure to world-leading companies, industries, and fund managers that are often unavailable in the local market. It allows investors to participate in innovation-led growth in sectors like technology, healthcare, and clean energy, which are typically underrepresented on the JSE. Most importantly, it supports diversification—not just across asset classes, but across geographies, currencies, and economic cycles—reducing concentration risk tied to the South African economy. Key Reasons to Invest Offshore: Diversification: Reduce reliance on South African markets and benefit from a broader global opportunity set. Currency Hedge: Protect your wealth against rand depreciation by investing in hard currencies. Global Access: Gain exposure to top-tier international asset managers and world-class investments. Growth Potential: Participate in faster-growing economies and industries driving global expansion. Important Considerations for South African Tax Residents Before investing offshore, it’s essential to evaluate how your investment aligns with your broader financial planning, particularly around access, succession, taxation, and estate planning: Flexibility: Will you have access to your funds when needed? What types of investments can you hold? Succession Planning: Can your investment be transferred to your heirs? Will Capital Gains Tax (CGT) apply? Tax Compliance: Is the structure tax-efficient, and what must be declared on your tax return? Estate Structuring: Will your investment attract foreign estate duties? Is an offshore executor required? An Efficient Offshore Solution: The Offshore Wrapper A tailored offshore wrapper can simplify many of these complexities, offering a cost-effective and administratively streamlined solution. Key benefits include: No exposure to offshore estate duties No South African executor fees on death No inheritance tax in the offshore jurisdiction Ability to nominate beneficiaries directly for smooth succession Creditor protection for assets held within the structure Consolidation of various investments (e.g., share portfolios, funds) under one structure Minimum investment from $25,000 Tax Treatment The offshore wrapper also provides significant tax efficiency: Taxes are calculated and settled annually by the platform—no action required by the investor CGT is capped at 12%, and income tax at 30% Taxes are applied to USD returns, meaning rand depreciation is not taxed Reach out to me at ruvan@bovest.co.za for more information. Ruvan J Grobler RFP™ (PGDip Financial Planning)