WeeklySA_AdminPLANT A SEED:Children need to be encouraged to see entrepreneurship as a viable option
Experts say the lessons parents taught their children a generation ago around career and financial success are worlds apart from the wisdom parents need to be handing down to their children now.
Weekly SA Mirror asked four top industry leaders what lessons for success they feel the children of today should be learning for the world of tomorrow.
Lesson 1 – That being an entrepreneur is a viable career option.
Some years ago, it was common for some parents to encourage their children to go to school and acquire good grades for them to find good jobs at companies they would spent their years at. The world of today is very different, says Didi Onwu of Anzisha Communications Stakeholder Relations Associate.
“The career trajectory of today is a lot less linear than it was for generations past and, while traditional careers in law and medicine will remain viable, parents also need to encourage their children to see entrepreneurship as a career option,” Onwu said.
“With the youth population growing at a faster rate than jobs are being created, entrepreneurship will play an undeniable part in growing many economies across Africa.” According to her, secondary and tertiary schooling used to be gateways to formal employment, “but the reality of the contemporary labour market is that there simply are not enough traditional jobs to absorb the young population, even for those who may receive an excellent education.”
Adverse economic conditions, along with a mismatch between the skills taught in schools and those demanded by employers, have worsened youth unemployment, so “it’s in your children’s best interests for you to have ongoing conversations with them about where economic opportunities lie,” she said
“Even with efforts to develop ‘21st century’ skills, there remains little focus at schools to better enable post-school job-seeking.
Entrepreneurial skills are foundational to success in an ever-changing environment, so it’s vital to start preparing young people now for that future.”
Lesson 2 – Teach them about tax and investing for wealth
Parents should teach their children about financial concepts like investing for wealth and taxes by setting up a tax-free savings investment for their children as soon as they are born, says Brett Mackay, investment consultant and group retirement annuity manager at 10X Investments.
“Ideally, aim to invest as close to the maximum annual allowance of R36,000 as you can manage, and make sure you are not losing a disproportionate amount of the growth to high fees. When they are old enough, you should talk to them about this account. It will allow you to introduce them to a number of financial topics like investing for wealth, reading the small print, compound growth, and keeping an eye on costs,” he said.
Mackey adds that it’s also important to talk to children about taxes and what to expect when they one day start working. “Some people never understand taxes, why we pay them and why certain expenses – such as saving for your retirement – attract tax relief. It is a real pity that many taxpayers never get the leg up that tax incentives give because they don’t engage with them.
“In our credit-mad society, parents should teach children that credit has a role to play in a responsible financial plan, but its use should be managed carefully.
They should understand the difference between big, value-adding purchases, such as an education, a home or even a car, and nice-to-haves, like dinners out and new clothes,” said Mackey.
Staying safe online is also important, according to Google SA. “Technology is today an integral part of any modern family. And, as children receive their first devices and embrace a digital-first approach to their education and leisure, parents should take an active role in ensuring their online safety.
That said, safety on the internet is far from guaranteed, especially for children.”
