With the right habits, a first pay check is not just income but a launchpad to financial freedom for young people.
When you get your first pay check it could feel like you are an adult now. That also means that you must treat your money like an adult, but not all young people know how to manage their money wisely.
Debra Slabber, director and portfolio specialist at Morningstar Investment Management South Africa, shares her own early financial experiences and four practical lessons she wishes she knew when starting out:
#1: Understand the basics of money
Financial literacy is often overlooked in our school system and rarely discussed openly at home.
Learn to budget, spend wisely and grow your wealth.
Just a little effort up front can make a big difference later. The goal is financial confidence, not perfection.
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#2: Spend less than you earn
This is the golden rule of personal finance, although it is often ignored in the early years.
“There is no shame in living frugally while you build a foundation. Avoid using debt to fund your lifestyle. Loans should support long-term goals such as buying a house, not short-term gratification.”
#3: Start investing no matter how small
Investing even R250 a month can make a meaningful difference when invested consistently over time.
“Time is your biggest financial advantage. Harness the power of compounding now, and your future self will thank you.”
ALSO READ: How to make the most of your first salary
#4: Enjoy the process of building wealth
Building wealth is not about depriving yourself but about empowerment.
“There is joy in taking control of your finances and seeing your progress over time. Learn about the different tools available, track your growth and celebrate the small wins with your first paycheck.”
Slabber’s advice is clear: the earlier young South Africans start making smart money choices, the better positioned they will be for long-term success.
