During Heritage Month many South Africans think about what’s passed from one generation to the next – usually culture, traditions and family values. There is another inheritance that matters just as much: how families understand, manage and build wealth.
In many South African homes lessons about money rarely start in a classroom or a sit‑down talk. Children learn about money by watching how their parents spend, save and manage household bills. According to Thomas Berry, Head of Sales at PSG Wealth, this is concerning in a country where up to 49% of South Africans are considered financially illiterate, with women, the primary caregivers, most affected. As the cost of living rises, building good money habits – and passing them on – matters more than ever.
Only 6% of South Africans are likely to retire with enough savings to sustain their current standard of living, according to National Treasury. “This highlights the growing importance of financial education, particularly from a young age. More people are recognising that financial knowledge is essential for long-term financial wellbeing and forms a cornerstone of any legacy,” says Berry.
“Many parents want to leave assets for their children, but they may overlook the importance of teaching them how to manage those assets,” adds Berry. “A lasting financial legacy isn’t about what you leave behind. Wealth is about the knowledge, habits and values you help the next generation develop.”
According to Berry, these lessons can start small and increase in complexity as children grow. “Younger children can learn the basics of saving like the difference between needs and wants and the value of waiting until they have enough to buy something. As they grow older conversations can expand to borrowing, investing, how money grows over time financial independence and planning for the future. Each lesson helps shape a financial future for the next generation,” says Berry.
He explains that financial literacy should be a conversation that evolves as children grow. “The sooner young people understand ideas like compound growth, responsible borrowing and the value of saving, the better prepared they will be to make sound money decisions later in life.”
Talking about money can feel awkward, Berry notes – especially when it touches on inheritance, current wealth or different financial goals. “Avoiding the conversation leaves the future generation unprepared to manage what they inherit, putting the very legacy families want to protect at risk. Uncomfortable or not, it is an important conversation worth having.”
He adds that helping the next generation become responsible stewards of family wealth is a frequently neglected piece of wealth planning. “It might not be an easy topic to raise, but it helps families set shared expectations and protect not just their financial legacy but their relationships too.
Berry believes that building a legacy does not require an inheritance. He says that it grows out of habits repeated over time, saving regularly investing with care and keeping a long‑term view. Thanks to compound growth, he says that small consistent contributions can grow into meaningful wealth over the years.
“Heritage Month reminds us that every generation has a role to play in shaping the future,” Berry says. “We often think about the traditions, values and stories we inherit. We should also think about the legacy we leave behind. Financial knowledge, money habits and a long‑term mindset can be just as powerful, as any financial asset. By passing these ideas on we give the generation the tools to make smart choices navigate financial challenges and create opportunities of their own.”