Just as everybody got excited to start buying Easter eggs and packing for their annual Easter holiday we were hit with yet another cabinet reshuffle and downgrade to Junk status.
I must warn you that it might nip us only in a few months` time by means of more expensive long term debt (raised interest rates etc.) so be sure to watch those bond repayment sand think twice before buying hat new car for now.
There is better news on the investment side - most clients have a percentage off shore exposure in their portfolios (retired or just savings) so there was definitely an increase in value and return on the off shores idea as well as in the mining and exporting sector.
Clients must know that even if we are in Junk status your shares in certain Companies will still increase in value as a good 50% of companies on the JSE All share Index have interests and business in other off shore markets for instance Naspers, MTN and Steinhoff.
When the Rand weakens it is not always a negative thing especially when it comes to your investments. So please stay on par with your targeted term as short term ups and downs will happen.
I hope you enjoyed the school holidays and got to take a break. Autumn is here, the air is getting cooler and mornings are darker. Please make sure your short term insurance policy is up to date with the latest values and items. Also make sure you save a bit more monthly for those unforeseen emergencies.
It’s important to teach kids to budget and save. Great money habits start young.
But how can you convince your kid to budget his money for a rainy day when he’s throwing a temper-tantrum because he wants a toy?.
Here are a few tips for teaching kids to budget and save:
Let your kid experience the relationship between work and money.
I know a married couple with two sons, ages 8 and 6. Both sons think that money “comes from” an ATM. The sons ask for a new game. The mom replies that it costs too much money. And the sons retort: “Just go to that machine and get more money.”
These little boys haven’t worked a day in their lives, so they don’t understand that money is a result of your efforts.
A child won't be motivated to save unless he understands that the money you have is directly tied to the work you do. Example: Create a chart that lists chores plus the pay rate for each chore. Sweeping the floor might be worth 50 cents. Loading the dishwasher might be worth 75 cents. Mowing the lawn might be worth two Rands. (The chores, of course, must be age-appropriate).
This suggestion - paying for chores - is actually somewhat controversial. Some families believe that children should be required to do chores for no additional compensation so that they can contribute to their overall household.
If this is your philosophy, then you might consider requiring the child to do a baseline level of chores -such as putting their toys away, setting the table, wiping down the table of the dinner – as art of their contribution to the household.
Anything the child does that goes "above and beyond" their normal household duties is rewarded with pay.
Establish three money jars: Saving, Spending and Sharing
When you child asks for a toy, let him know that he must buy the toy with his own hard-earned money. Your child will soon figure out that he's only earned R11.50 this week, but the toy he wants costs R50.
How can he save for it? What should he do with his money in the meantime?
This is the moment when the “three jars” lesson comes into play. Set up three jars for your child: one for saving money, one for spending money and one for sharing.
Each time your child gets paid, help him budget his money between the three jars. Some of it goes into the jar for immediate, short term spending: a candy bar, and ice-cream cone.
Some of the money goes to the jar for “savings”. Your child should choose his savings goal – perhaps he wants a new PlayStation game or a cell phone. Each time he gets paid, he can watch his “balance” grow.
The third jar should be for “sharing”. Your child should choose the cause with which he shares his money. Your child might elect to put that money in the collection basket at church, give it to an animal shelter, donate to a group that helps disabled children, or preserve a hectare of forest.
The three jars method – saving, spending and sharing – was popularized by the Muppet Elmo on the popular children’s television show Sesame Street.