Heritage Day: What Did You Inherit About Money
When South Africans talk about heritage on Heritage Day, we often think of language, culture, traditions and the stories passed down from one generation to the next. However, families also pass down something else: their relationship with money.
The way people save, manage debt, invest and plan for the future is often influenced by the financial habits they grew up with. A person’s financial legacy therefore begins long before there is any discussion of a will or an estate, says Thys van Zyl, CEO of Everest Advisory Services.
“When we talk about a financial legacy, people usually think of money, property or other assets that will one day be passed on to the next generation. However, the financial lessons and habits we pass on to our children can be just as important.”
According to Van Zyl, children begin developing a relationship with money from an early age. They observe how adults talk about money, how they budget, whether they save and how they deal with financial pressure.
“We do not only inherit money. We often inherit ideas about money too. In some households, saving and planning are discussed from an early age. In others, money is only discussed when there is a problem, while there are also families where finances are simply something no one talks about.”
He says Heritage Day therefore provides a good opportunity to ask not only what you would like to leave to the next generation one day, but also what financial habits you are passing on to them today.
“It is worth asking yourself what money lessons you learnt from your parents, which of those lessons have served you well, and whether there are habits or beliefs about money that you would prefer not to pass on to the next generation.”
Van Zyl says this conversation is particularly important for families trying to build wealth across generations. “It takes many years to build wealth, and simply transferring assets to the next generation does not necessarily mean that wealth will be preserved. Financial knowledge and sound money habits need to be passed on along with those assets.”
He says parents can therefore gradually involve their children in age-appropriate conversations about money and teach them how budgeting, saving, debt and investing work. “Do not only leave money behind; leave knowledge too. Someone who understands how to manage money responsibly is better equipped to protect what previous generations have built and to build on that foundation.”
Van Zyl says a financial legacy is also shaped by the decisions adults make today. “The legacy you leave one day begins with what you do now. It is built through the habit of saving regularly, managing debt responsibly, providing for retirement and investing for the long term.”
As people accumulate assets and their financial affairs become more complex, proper estate planning also becomes increasingly important, he says. “A will is an essential part of the process, but a will alone does not create a financial legacy. Consideration should also be given to how assets are structured, whether there will be sufficient cash in the estate, and whether your financial plan still reflects your family’s circumstances and objectives.”
He says people should also be careful not to associate a financial legacy only with significant wealth. “You do not need millions of rands to pass something valuable on to the next generation. The habit of living within your means, regularly putting something aside, approaching debt cautiously and planning ahead can make an enormous difference over decades.”
According to Van Zyl, the ultimate goal is to create a cycle in which each generation does not simply receive something, but is also better equipped to build on what came before. “Our cultural heritage tells the next generation where they come from. A sound financial legacy can help them decide where they go next.”
IMPORTANT NOTICE AND DISCLAIMER
General Information
This press release is provided for general information purposes only. It shares the author’s personal reflections on wealth, money and legacy, and does not constitute advice as defined in section 1(1) of the Financial Advisory and Intermediary Services Act 37 of 2002 (FAIS Act). It was prepared without regard to the objectives, financial situation or needs of any particular person, and should not be relied upon as a basis for any financial decision. Readers seeking advice suited to their own circumstances should consult an appropriately authorised financial services provider.
Author’s Capacity
This document represents the personal views of Thys Van Zyl in his capacity as Chief Executive Officer of Everest Advisory Services (FSP No. 49495, CAT I), which forms part of the Everest Wealth Management Group and constitutes economic commentary based on publicly available information and professional experience. It does not represent institutional investment research, formal product recommendations, or the solicitation of financial services.
Regulatory Information
Everest Wealth Management (Pty) Ltd is an authorised Financial Services Provider (FSP 795) CAT I, II & IIA and registered credit provider (NCRCP 21504). Fiduciary services, including will drafting, amendment, and estate planning support, are rendered by a separate fiduciary services entity within the Everest Wealth Management structure, and do not form part of the services rendered under FSP 795. For personalised financial advice tailored to your specific circumstances, please contact Everest Wealth Management: Telephone: 087 654 8705 Email: [email protected]