DRAWING a definite line between needs and wants makes a huge difference in a family’s finances.
Mmabatho Manzini, a town planner from Bela Bela, Limpopo, and contestant in the 2018 Absa Money Makeover competition, knows all about handling family finances.
Her three sons – aged 15 to three – have given her plenty of experience balancing the family’s short and long-term financial needs against an unending set of wants.
“The biggest challenge has been learning how to prepare for the future while enjoying the present. This requires financial discipline that I pass on to my kids,” she said.
Mmabatho’s top lessons
- Be honest with your kids about money. Let them know from an early age that money is a limited resource and expenses like rent, mortgages, car payments or school fees need to be paid before nice things like cake and toys.
Introduce budgets by balancing needs and wants.
“I’ve taught my boys the difference between obligations like their school fees, which is a need, and McDonald’s meals, which are a want.”
Make lessons age appropriate.
“Since the competition, I speak to my 15-year-old like an adult and this has made a difference in the way he speaks about money. If it doesn’t fit into the month’s budget, then he looks to see how it can fit into next month’s budget.”
Keep to your shopping lists.
“A reason my boys don’t throw tantrums is that they know that whenever we go shopping, everyone sticks to the list.”
Show them the money
“Every week I withdraw a certain amount of money that is kept around the house but they also watch as it gets spent.
“They also know that when it’s finished, it isn’t topped up – there is no more money to be spent.”
Being able to see the actual money and the way it disappears makes it real for them.
Treat them once a month but make it clear it’s a treat not a right.
