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Teaching children about money doesn’t have to wait until they earn a salary. In fact, introducing the basics of saving and investing early can help them understand how money grows, the importance of patience and why long-term financial planning matters.
According to Standard Bank, teaching your kids about money and investing is more about empowering them to better navigate financial complexities and truly understand how their money can grow and work for them.
Also see: Struggling to pay bills? What to prioritise when money is tight
Start with the basics
There is no single “right” age to introduce investing. For younger children, the lesson can begin with simple concepts such as saving a portion of pocket money, setting a goal and understanding the difference between something they want now and something they are saving for.
As children get older, parents can introduce concepts such as shares, interest, risk, diversification and compound growth. The Johannesburg Stock Exchange (JSE) notes that starting sooner can give investors more time to benefit from reinvesting and compounding.
Make investing practical
You don’t need to hand your child a complicated investment portfolio. Start by using familiar examples. If your child loves a particular brand, explain that some companies are partly owned by shareholders. Older children can follow a few companies or funds and track how their values change.
Sanlam Reality also recommends using video games and monopoly to make things more understandable and interesting.
Also see: 10 Money habits to start this spring
The JSE also offers youth-focused educational initiatives, including its Investment Challenge, which gives high-school learners and university students experience with simulated investing rather than putting real money at risk.
Consider investing in their name
Parents can invest on behalf of a minor child. As reported by Sowetan, it is helpful to invest for your children as soon as they are born.
South Africa’s tax-free investment rules allow minor children to have their own tax-free investment limits. From 1 March 2026, the annual contribution limit is R46,000, while the lifetime limit remains R500,000.
Before choosing an investment, consider the child’s timeframe, goals and tolerance for risk. Diversified investments such as ETFs can provide exposure to a range of assets, although their values can rise and fall.
Most importantly, make the lesson about building good habits—not getting rich quickly. The real investment may be giving your child the confidence to make informed financial decisions later in life.
Also see: Money Smart Week: The power of possible starts with financial literacy
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