Father’s Day is a time to recognise our superheroes – the father figures who play a vital role in our lives. As much as ties and socks have become classic dad gifts for this occasion, South African fathers can give their children the most precious present of all – financial wisdom.
Francois Viviers, Group Executive: Marketing and Communications at Capitec, says there are countless financial lessons fathers can teach their kids about money management. “Fathers can give their children the tools to navigate life’s financial challenges. This knowledge instils financial discipline and sets them up for success later in life. Fathers leading by example and adopting smart money habits is the best way to impart financial wisdom and help shape their little one’s financial futures.”
So, here’s a guide to help fathers build a financial legacy this Father’s Day.
Teach your children the value of money
One of the greatest gifts fathers can give their children is a solid understanding of personal finance. Viviers says it’s never too early to teach children about budgeting and making wise spending choices and suggests involving children in age-appropriate financial discussions and decisions early on.
“Talk to your kids about the factors you’re considering when planning the family budget or purchasing something. Explain how you’re weighing needs versus wants, looking for value, and making trade-offs. These early lessons will help prepare them for the future.”
Viviers encourages fathers who find budgeting daunting or time-consuming to use the 50/30/20 budgeting principle that allocates their household income into three main categories:
- 50% towards essential expenses like housing, transportation, food, and utilities.
- 30% towards financial priorities such as saving, retirement investments, and medical expenses.
- 20% towards lifestyle choices like entertainment, personal care, and dining out.
Lead by example with healthy spending and saving habits
Children learn by observing their parents’ behaviour, including how they handle money. Fathers who demonstrate responsible financial habits like saving regularly and avoiding unnecessary debt set a powerful example for their kids.
Viviers suggests fathers lead by example by saving a portion of their money in a savings account. By using Capitec’s Save Better tools, for example, they could start using:
- Round Up, which rounds up each purchase to the value of their choice (R2, R5 or R10) and automatically transfers the difference to the client’s Live Better savings account once the transaction has cleared.
- Interest Sweep, which sweeps the interest earned in the transactional savings account and savings plans into the Live Better savings account at the end of every month to earn even more interest.
Viviers says using tools like Capitec’s Track Your Spend feature on the banking app can also help fathers monitor their spending patterns and identify areas for improvement.
Invest in your financial knowledge
Viviers says it’s easy for fathers to put their needs last as they focus on providing for their families. But investing in their financial education and well-being is one of the best things they can do for their loved ones.
“Make time to read personal finance books, attend webinars, or consult a financial advisor to continue growing your money management skills. Expanding your financial knowledge allows you to make more informed decisions for your family, whether creating a budget, saving for education, buying a home or retirement planning. It also empowers you to have more meaningful money conversations with your spouse and children.”
He adds that Capitec’s MoneyUp Academy offers free online budgeting, saving, and debt management courses, making it easy for busy fathers to upskill themselves.
“Dads can become the financially fit role models their little ones need this Father’s Day by embracing these tips and insights to build a lasting financial legacy. They can create a brighter, more secure future for their loved ones through education, discipline, open communication, and a commitment to continuous growth,” concludes Viviers.
