Teaching our children healthy financial habits.

Francois le Clus • October 7, 2024

Habits, as defined by the Oxford Dictionary, are “a settled or regular tendency or practice, especially one that is hard to give up.” Good habits can make a huge difference in how we live, and they often become second nature. Think about the simple act of closing the garage door when leaving for work—it’s automatic. Now, imagine if your financial habits could be just as effortless.

Building strong financial habits can make managing your money easier and improve your financial health. Successful investors follow key principles: they know how to save and invest, practice good habits, and steer clear of costly mistakes.

 

Take Control of Your Money

 

From childhood, allowances teach us the basics of money. Setting a budget for kids helps them make smart choices. If they spend their pocket money too quickly, they learn the value of saving and the importance of waiting for what they really want.

As we grow older, these early lessons shape our money habits as adults. Whether you’re paid weekly or annually, the first step to financial control is knowing the value of your income. A budget helps you make the most of what you have.

If you’re new to budgeting, start now. Don’t guess with your expenses—use one of the many budget templates available online. The key is building the habit of budgeting and sticking with it. Christine Benz from Morningstar has a great guide titled How to Assess Your Cash Flows and Create a Budget to help you get started.

 

Keep It Simple With Basic Financial Rules

 

The simpler your habits, the easier they are to maintain. For your finances, stick to these straightforward rules:

 

  • Spend less than you earn.
  • Pay yourself first (save), then spend what’s left.
  • Save for big purchases rather than using credit.
  • Pay off debt quickly.
  • Have an emergency fund.

 

 

Start Early—No Matter How Small

 

Some people think they need a lot of money to start investing, but even small amounts grow over time, thanks to compounding. The sooner you start saving and investing, the better. Even if it’s just a little, investing early sets you on a path to accumulate wealth over time.

Starting small helps you build the habit of saving, which can become one of your strongest financial tools. It’s better to start now with what you have than to wait and save larger sums later.

 

Time Is On Your Side

 

When it comes to investing, young people have an advantage—time. Even modest investments can grow significantly over time due to compounding.

For example, a 22-year-old who saves R200 a month at a 5% annual return could have over R362,000 by age 65. In comparison, someone who waits until 35 and saves R300 a month at 6% will have just over R300,000 by the same age. Those extra years make a big difference.

 

Understand the Power of Compounding

 

Money saved in your 20s and 30s has decades to grow. For instance, R1 growing at 6% annually becomes R10.30 in 40 years. The same R1 will only grow to R3.20 after 20 years. The earlier you start, the more your money will grow, reducing the amount you’ll need to save to reach your goals.

 

Teach the “Rule of 72”

 

A great way to explain the time value of money is the "Rule of 72." Divide 72 by the interest rate to see how many years it will take for your money to double. This concept helps people understand why starting early is so valuable—even small investments now are more beneficial than larger ones later.

 

Avoid Lifestyle Inflation

 

As your income increases, it’s tempting to spend more. While it’s okay to reward yourself for hard work, be careful not to let your spending grow faster than your savings. The more you spend, the more you’ll need to maintain that lifestyle in retirement.

A smarter approach is to live conservatively. By keeping your spending in check and avoiding unnecessary debt, you can save more while you’re working and create a more affordable lifestyle for retirement.

 

In Conclusion

 

The key to financial success is staying motivated and consistent. You’ll have setbacks, and that’s okay—just keep moving forward. Share your goals with your family to stay accountable, break your goals into small steps, and celebrate your progress along the way. With patience and dedication, you can build better financial habits and enjoy a more secure future.

Smart money moves: How to create financial habits that last longer than your New Years resolutions!

By Geo Botha • December 4, 2025
I recently signed up for one of my bucket list items, the demanding Comrades Marathon. It’s something that I always had in the back of my mind, and I said to myself that if I ever where to take on the 87km beast, I am going to be prepared. So, as I successfully entered and received my number, I immediately did 2 things: 1) I got a coach: Someone who is experience and can guide me week by week, month by month leading up to the Ultra Marathon 2) I got a training partner : After using all my persuasion skills, I convinced a friend to join me on this journey. Not only for the comradery, but more as an accountability partner, to make sure I show up for training even though I might not feel like it For many of us, we want to make sure 2026 is our best year yet, not just physically, but financially as well. How can we be more productive and make more money or at least manage it better? In his Book Atomic Habit, James clear writes about the ‘Commitment device’ in chapter 14. A Commitment device, also referred to as the ‘ Ulysses pact’ is a choice you make in the present, that controls your actions in the future. It is a way to lock in future behaviour, bind you to good habits and restrict you from the bad ones. Some examples include: - Eating out of smaller plates – to limit calorie intake. - Unsubscribe to emails and apps – to waste less time - Setting up an outlet timer, to cut off the Wi-Fi at 9pm per night - to limit social media or series binging. - Keep your phone in another room when working – to avoid distractions When it comes to your finances here are a couple of things you can try to make 2026 you most financially rewarding year yet. - Automate your investments: Remove the temptation to spend your money by setting up debit order for the money to be invested as soon as it hits your bank account - Appoint a financial partner – this can be an advisor, friend or spouse: his person must be strict and diligent and keep you to your goals. Schedule quarterly calls to go through your investment accounts to see how much it has grown - Buy groceries only twice a week: We almost always buy things we don’t need – limit your number of visits to the store - Let you partner hide your credit card during the week and have an x amount of cash available. This might sound harsh but can be extremely effective as we swipe or tab often without thinking. There’s so many examples of how we can adjust our behaviour by setting up ‘ Commitment devices. I’d like to hear your favourites so please send them through to geo@bovest.co.za and let’s help each other to make 2026 memorable and profitable. Geo Botha CFP® Marketing Director

2025 - Reflection and a Personal Testimony.

By Yvonne Velthuysen • December 4, 2025
Dearest clients and colleagues. While I was contemplating about this month’s topic, I felt led to share the following testimony with all of you. I really hope it will encourage you and call you to action. Before I begin, I am sure you will get enough information about the markets and politics from my colleagues, so I am happy to divert and continue my story. Just a bit of background. I have been on diamond Vitality status with Discovery for many years. I have faithfully done my yearly check ups every year and also the specific tests that Discovery requests. I slipped up after Covid with my mammogram and pap smear and I didn’t know I had to do a colonoscopy. Just before my birthday in July, I had severe stomach pain. I am not a person who likes to visit a doctor but here I certainly learned a lesson. If you have pain, your body is telling you there is something wrong, so don’t be tough, just go and check it out. I was diagnosed with colon cancer. EVERYTHING changes in an instant. The way you look at life, your values, how you see people, your relationship with your Creator and Saviour. Everything happened so fast and I had to go in for major surgery. After 10 days in ICU, fighting for my life and a couple more days in the surgical ward, I was discharged. So many things were going through my mind. Will I see Christmas again? Will I ever be strong enough to enjoy life again? Will I see my children and grandchildren again? Will I have to go for chemotherapy and radiation? Doubt and fear started to slowly enter my mind. The battle is in the mind. Then breakthrough! My tests came back and I was clear. No cancer in my body. Surgery was successful. Oncologist was happy. I do have to be monitored regularly, but praise God? Here I must elaborate. I have a strong support group who carried me in prayer. I have faith in our Almighty God who still heals today. Bovest as a company also supported me phenomenally. Thank you to all 🙏  My message for all of you is the following: please go to the doctor if you have pain or discomfort. Please do your mammogram, pap smear, prostate and colonoscopy tests regularly. Prostate test now is just a blood test. Please make sure your severe illness and income protection cover is in place. You really need it. Speak to your advisor about it. Don’t be like an ostrich, prevention is far better than cure. Surround yourself with positive people. Spend time in the Word. It is alive and it is healing to your body, soul and spirit. You are welcome to reach out to me anytime. May you have an amazing 2026 and please look after yourself. Kind regards Yvonne