How Your Roots Shape Your Relationship with Money
In South Africa, Heritage Month is a time to celebrate our vibrant cultures, diverse traditions, and the rich tapestry of our history. We gather with loved ones, share stories, and honour the sacrifices that have shaped our nation. But beyond the braais and traditional attire, there’s a deeper conversation to be had—one about how our heritage, a legacy of values and beliefs, profoundly influences our financial lives.
At Money Savvy, we believe that understanding your financial roots is the first step to growing your financial tree. The way you view money, spend, save, and invest is not just a result of your income or education; it’s a reflection of the lessons, both spoken and unspoken, passed down from your parents and grandparents.
The Influence of Family Traditions
Think back to your childhood. How was money handled in your home? Were finances a topic of open discussion, or were they shrouded in secrecy? The habits you observed from your elders have a lasting impact.
- A Culture of Saving: In many families, a strong emphasis was placed on saving for the future. You may have seen your gogo or mkhulu meticulously putting away money in a special tin or a savings account, instilling in you the value of discipline and delayed gratification. These are the foundations of building wealth.
- The Lack of Open Communication: For many South Africans, money was a source of stress and was never openly discussed. This can lead to a cycle of poor financial behaviour. Without the tools to budget, manage debt, or understand credit, we are left to learn by trial and error, often repeating the same mistakes our parents made. The good news is, we can break this cycle.
Exploring Diverse Cultural Perspectives on Wealth
South Africa's financial landscape is as diverse as its people. Different cultural norms and community expectations shape how we interact with money.
For some, wealth isn't just about individual accumulation; it's about communal well-being. Think about the tradition of supporting large family gatherings, ceremonies like weddings and funerals, and the practice of communal giving. While these traditions strengthen social bonds and honour our ancestors, they can also place a significant strain on personal budgets.
On the other hand, a different perspective might focus on building a more individualistic financial foundation, with a strong emphasis on personal savings, investments, and acquiring assets like property. This isn't about one way being better than the other, but about recognizing how these deeply ingrained values guide our financial choices, often without us even realising it.
The key is to find a balance. You can honour your cultural obligations while still building a resilient personal financial plan. This might involve creating a dedicated budget for communal contributions or starting a savings club (like a modern-day stokvel) to pool resources for major life events.
Beyond Physical Assets: The Legacy You Leave
As we celebrate Heritage Month, let’s reframe the concept of legacy. A financial legacy isn't just about the physical assets you leave behind—a house, a car, or an inheritance. It is about the gift of financial wisdom you pass on to the next generation.
A truly valuable legacy is one of financial literacy, resilience, and good habits. It's about teaching your children to be money savvy, empowering them with the knowledge to make informed decisions, and preparing them to thrive in a complex financial world.
This is a legacy that cannot be lost, stolen, or devalued. It’s a gift that keeps on giving, ensuring your family’s financial well-being for generations to come.
Actionable Advice for Your Financial Heritage
Now that you've reflected on your own financial roots, it's time to take action.
- Identify Your Financial Heritage: Take a moment to think about the financial lessons you learned growing up. Write them down. What were the good habits? What were the bad ones?
- Keep the Good, Change the Bad: Choose one good habit you want to reinforce and one negative habit you want to break. For example, you might decide to embrace the family value of saving, but change the habit of not openly discussing money.
- Start the Conversation: Talk to your family about money. Share your goals, your struggles, and your successes. You might be surprised at what you learn from each other.
- Embrace Financial Education: Whether through reading blogs like this, attending a workshop, or consulting a financial advisor, commit to learning more. The knowledge you gain today is the financial legacy you leave tomorrow.
This Heritage Month, let's honour our past by building a better financial future. By understanding our roots, we can grow a tree of wealth and wisdom that will stand strong for generations to come.
