Hello and welcome to another edition of Mini Millionaires.

Thanks for joining us on our journey to help raise the next generation of money masters.

Thank you for every reply, comment and message - we read them all. Please keep your mini millionaires’ stories coming.

This week, we’re talking about how to teach kids about good and bad debt.

Every family views debt differently. From those who strictly avoid it to those who use it for everything. Regardless of your personal values, we hope these insights help your family distinguish between debt that builds wealth and debt that drains it.

Let’s get into it.

The secret to credit is knowing what you’re buying. 

Good debt is borrowing to buy things that grow in value or earn you money. So think of a loan to start a small business or to purchase a home, for example. 

Bad debt, on the other hand, is borrowing for things that lose value instantly, like toys, fast food, or clothes. 

A really practical way of looking at it is that good debt is an investment in your future, whereas bad debt is you consuming tomorrow’s money today. 

So if it doesn't grow in value, don't use credit to buy it.

Credit is a power tool, not a paycheck.

Most people use credit to buy things they can’t afford. But a mini millionaire uses other people's money to build something bigger. 

Cultivate a mindset that one’s credit score is a reputation that has to be protected, not as extra (or even free) cash to be spent. 

When kids see credit as their Financial Reputation, they’ll treat it with more respect. Early financial socialisation between the ages of 6 and 12 forms their money habits, norms, and values, and sets the tone for how they manage debt (and the other parts of their financial world) as adults.

Takeaway: The better their financial rep, the more doors it opens for them.

Practice a Credit vs. Cash price check.

Here’s something you can do the next time they need to purchase something (even if they are paying for it in cash).

Before making the purchase, have your mini millionaire calculate the real price. 

For example, if they borrowed R100 from you today for a R100 toy but have to pay back R110 next week, the toy actually costs R110. 

That’s R10 more than the cash price on the shelf.

Forming the habit of checking the interest helps kids realise that bad credit makes life more expensive. And this habit of pausing and calculating the real cost reduces impulsive spending. 

Takeaway: Always ask: "Is this item worth the extra cost of borrowing?"

The Family Bank.

Set up a Family Bank where kids can borrow R20 for a small treat today, but must pay back R22 by Friday. 

This R2 interest teaches them that borrowing isn't free. 

On the flip side, you can let them lend you money; if they give you R20, you need to pay them back R22 next week. 

Experiencing both sides of the coin in a safe environment is the best teacher, since hands-on experience with interest helps kids understand how debt grows before they go out in the big, bad world with its real-life consequences.

Takeaway: Feeling the sting of interest when they’re young prevents painful financial lessons as adults.

This week’s free downloadable resource is the Debt Duty template.

It’s a practical worksheet to help your mini millionaire actually see the real cost of borrowing.

Using a Lego set as an example, it breaks down how an R800 item can end up costing R1'000 once one adds the interest. This template guides them to calculate deposits, monthly repayments, and most importantly, the hit their future allowance will take while they’re paying back debt. 

It also has a blank version to run the numbers on their next "must-have" item, and the perfect tool for a hands-on Family Bank session we spoke about as this week’s Tip to Try.

Download it, print it out, and let your mini millionaire see the real cost of buying something on credit.

This week, we’re heading to Schoolscape The Cape, a fantastic event for educators and schools to find innovative EdTech solutions to help make a difference in learners' lives and take their learning to the next level.

Fintr will be one of the awesome exhibitors talking all things Mini Millionaires, Fintr4Schools, FinMaster, and everything else we’re cooking up in the Fintrverse.

The day is filled with speaker tracks across school finance and ops, IT, and academic topics, as well as awesome arenas like the Innovation Lab, the Learning Library, Learning & EdTech Hub, and much, much more…

The Deets:

Date: Thursday, 26 February 2026

Time: 08h00 to 15h40

Venue: Protea Hotel, Techno Park, Stellenbosch

It’s FREE to attend, so get your tickets and come and join us for this amazing EdTech event.

Last week, we asked our readers how their Mini Millionaire would react to saving 50% of their money? Looks like we’ve got an astute future businessperson in our midst.

⬜️⬜️⬜️⬜️⬜️ 💰 Not a problem, they’re already little hoarders.

🟩🟩🟩🟩🟩  🤝 The Negotiator is going to try talk me down to a 10%.

⬜️⬜️⬜️⬜️⬜️ 😲 Wait, what? They think money is all for spending now.

⬜️⬜️⬜️⬜️⬜️ 🔥 My FIRE Starter wants to save 75% to retire by 12.

⬜️⬜️⬜️⬜️⬜️ 🍫They’ll only agree to it if I pay interest in snacks.

What you said: 

“This edition was FIRE. Printing out the Pocket Money Escape Plan now.”

JM

So glad it was helpful. If you print multiple pages onto one page, you could fold it up and have a pocket edition of the Pocket Money Escape Plan…

What’s been your mini millionaire’s favourite lesson they’ve learnt from our newsletter so far?

Or is there something you’re navigating on their money smart journey right now you’d like us to talk about in an upcoming feature?

Hit reply and tell us. We’d love to know.

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