Money plays a crucial role in daily life, and how you manage it is often shaped by the practices passed down through generations.
Growing up, you may have observed how elders handled finances, from budgeting to spending, which can create habits and attitudes that significantly influence your own approach to managing money.
This Heritage Day, Sebastien Alexanderson, head of National Debt Advisors highlights the need to break the cycle of negative financial habits and create healthier traditions for future generations.
"Heritage and culture are deeply intertwined with our understanding of wealth, success, and the role we play in contributing to our well-being and that of our family, community, and country," Alexanderson said.
"If budgeting was common in your household, you're likely to continue that practice. But for many South Africans, money wasn’t openly discussed, and the only lesson passed down was that there was never enough of it leading to poor financial behaviours."
Additionally, the inherited secrecy around money often meant that valuable lessons on saving, budgeting, and credit management were overlooked.
In some households, credit was misunderstood, treated as free money, when in fact, it’s borrowed money that must be repaid with interest. This lack of understanding can lead to financial pitfalls and challenges later in life.
Alexanderson said: “Many of us weren’t taught about the long-term implications of credit agreements or how credit bureaus work.”
But it is not too late to start building new positive financial habits.
Alexanderson believes that households need to start creating positive financial traditions, beginning with open conversations at home.
“Talk about money, saving, credit, and budgeting in practical and age-appropriate ways to ensure that future generations are better equipped to manage their financial futures," Alexanderson said.
Here are tips to help you celebrate your heritage while being financially mindful:
Cultural practices
According to Alexanderson, SA's rich cultural heritage offers opportunities to turn traditional practices into side hustles like preparing and selling homemade dishes like koeksisters, or creating and marketing vibrant traditional attire or accessories.
“Whether it's through cooking, crafting, or offering performances or lessons in painting, singing, or dancing, these ventures not only celebrate our heritage but also ensure it thrives for future generations,” Alexanderson said.
Stokvels and burial societies
Stokvels and burial societies are important financial traditions in SA that serve as community-based savings groups to help members manage major life events and financial emergencies.
Alexanderson said that burial societies help families cover the high costs of funerals, allowing loved ones to be honoured without excessive debt.
“These community-driven schemes continue to play a crucial role in the financial well-being of many South Africans,” Alexanderson said.
Lobola savings
In the current economic climate, the dream of marriage and the tradition of lobola come with huge financial commitments due to rising the rising cost of living.
Alexanderson said that planning is critical which means that young men need to create a budget, save consistently, and cut unnecessary expenses to manage the financial strain.
“By treating lobola savings like any other important goal, and being disciplined in their approach, they can alleviate the financial burden while honouring tradition,” Alexanderson said.
Financial planning for cultural rites of passage
In many SA cultures, rites of passage like the Zulu Umemulo ceremony carry deep significance and financial commitments.
"Planning for these events is as important as saving for education," Alexanderson said.
He emphasises the need to save in advance to ensure these milestones are honoured without financial strain.
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