The Old Diocesan Issue 13 - Magazine - Page 46
EYE ON THE MONEY
Your boy might leave Bishops able to analyse Shakespeare and
explain DNA replication – but will he know the pitfalls of using
a credit card? When it comes to money, parents need to guide
the way. We asked a selection of our finest investment men:
Q
What would you want your son to understand about
money and investment before he leaves school?
And how do you go about teaching it?
GRANT ALEXANDER
is the father of
Laine (2007M) and
founder of Private
Client Holdings, in
Cape Town. PCH assists families
in defining and implementing
strategies for managing their wealth.
Start Early and Stay the Course
One of the most valuable lessons
I taught my son Laine before he
left school is that time is more
important than timing when it
comes to building wealth. The
earlier you start investing, the
more opportunity your money has
to compound. As the saying goes,
42 | THE OLD DIOCESAN
It’s not about timing the market, but
about time in the market.
Rather than trying to teach every
aspect of finance, I would focus on
two practical habits.
First, start investing early, even
with small amounts. Encourage
your child to save a portion of
any earnings from part-time work,
gifts or allowances, and invest it
regularly. The amount matters less
than developing the habit. Seeing
savings grow over time helps young
people understand that wealth is
typically built through consistency
and patience, not quick wins.
Second, learn to stay invested,
especially when markets become
uncomfortable. One of the biggest
mistakes investors can make is
becoming nervous during periods
of volatility, and moving to safer
assets too soon. Long-term growth
often comes from remaining
invested through market ups
and downs. Understanding that
investing involves short-term
fluctuations but is designed
to achieve long-term goals is a
lesson that can serve them for life.
Help your children develop these
two habits, and they will leave
school with a greater advantage
than most: an appreciation that
successful investing is less about
finding the perfect opportunity,
and more about starting early
and staying the course.
JEFF MIDDELMANN
(1995G) is, with
Michael Furter
(1993O), co-founder
of Consequence
Private Wealth, an independent
wealth management business in
Cape Town, with a focus on estate
and investment planning.
Make It Real
We encourage clients to involve
the next generation early in family
finance discussions. For me, that
means instilling sound principles
in my kids, including maintaining
a long-term strategic approach and
leveraging compounding returns.
When it comes to teaching your
boy about money, I believe there is
