Hello,

Thanks for joining us for another edition of Mini Millionaires.

A warm welcome to a whole host of new readers. We can't wait to be part of your mini millionaire’s journey. 

Feel free to hit reply, introduce yourself, and let us know what you’d like to learn about next as you shape the next generation of money masters.

If you’d like to catch up on some previous editions, you can check them out here. Enjoy.

This week, we’re talking about medical aid and gap cover. We know. It’s not always a pleasant topic to think about: your loved ones getting sick or injured. But having medical aid and gap cover can go a long way in protecting your finances against unexpected medical costs.

It’s also a great conversation to have with your mini millionaire as you help them navigate making money-smart decisions when they’re older.

As an aside, cover varies from medical aid to medical aid, and even different products offer different cover. And the same goes for gap cover. It’s always best to do your research to find the best cover for you and your fam. #notfinancialadvice

Let’s get into how to teach kids about medical aid and gap cover…

Getting sick or injured is part of life.

Usually, you can take some medicine or stick a plaster over the scratch and go to sleep to feel better in the morning.

But there are times when you get so sick, or so injured, you need to see a doctor, and even be admitted to hospital. And that can get VERY expensive depending on the type of doctor you need to see, how long you need to be in hospital for, and the types of tests, procedures and operations you need to have done.

If we aren't prepared, those costs can cause serious financial damage. In fact, a recent US study found that unexpected medical bills are one of the main causes of bankruptcy.

That’s why something like medical aid and gap cover is an important part of building your holistic financial life. It helps cover those unexpected medical expenses, decreasing how deeply you need to reach into your own pocket to make sure you and your family get healthy.

There are, of course, other medical cover products like hospital plans, illness cover and other products out there, but for today’s edition, we’ll just stick to medical aid and gap cover.

Think of medical aid as buying peace of mind

Many people view medical aid as a grudge purchase because you’re paying for something you hope you never use. 

But on the journey to being a mini millionaire, it’s just as much about protecting your money as making it.

By cultivating a Proactive Protector mindset, you realise that paying a small amount monthly is a smart investment that prevents a single accident from bankrupting your future. 

Takeaway: It’s about being risk-aware rather than risk-afraid.

Always check the price tag of your health.

Get into the habit of asking about costs before a procedure happens. 

Doctors often have different rates for private patients (those paying cash) and medical aid rates. There is also a difference between the medical aid rate and how much your medical aid actually covers.

It’s this difference that could be covered by your gap cover.

By developing the habit of asking for a quote and comparing it to what your coverage allows, you can see exactly where you might have a shortfall, and this goes a long way in preventing bill shock later and teaches you to navigate the financial side of the healthcare system like a pro. 

Takeaway: Knowing the cost upfront helps you deploy your shield effectively.

Become a Statement Sniper

Show your mini millionaire a recent medical claims statement or Dr’s bill. Bonus points if it’s a medical bill for them - nothing like a bit of “look at what healthcare costs” to help them appreciate all that you do for them.

(Seriously, though, the idea here is not to make them worry or feel guilty, but rather help them understand that even healthcare costs money and is something to prioritise.)

It might look like a complicated receipt to them, but it’s actually a map of a financial rescue. 

Show them what the doctor charged, what the medical aid paid, and how much the member payment was (the gap). If that last number isn't zero, that’s where gap cover would have saved the day! 

Seeing these real numbers helps your mini millionaire understand that medical care has a price tag, but having a plan means your family’s savings stay untouched.

Takeaway: Even something like a medical claims statement is a good lesson in financial literacy.

Before becoming a Statement Sniper, every Mini Millionaire must master a super important money skill: telling a need from a want. 

While a new pair of cool sneakers is awesome, it’s actually just a want. On the other hand, ensuring you have medical protection like medical aid and gap cover is an important need that ensures your family is covered for any unforeseen medical expenses.

Download this week’s free Needs & Wants resource to help your child categorise their world into what’s a need, and what’s a want. This hands-on activity lets them cut and paste everyday expenses into the right blocks. 

Are you looking for a fun way to sharpen your money skills? 

Join us at LaunchLab in Stellenbosch on Friday, 6 February, from 17:00 – 20:00 for our first-ever FinMaster Friday.

In case you don't know, FinMaster is our dynamic, smart money board game where players build wealth by investing in assets and navigating real-world market events.

So whether you're a board game pro or just looking for a great night out, come try out FinMaster and strategise your way to wealth at an evening of laughter, networking, and competitive fun. 

For just R80, enjoy snacks, drinks, and an unforgettable gaming experience.

There are only 50 seats available, so gather your friends or come solo and make new ones.

Last week, we wanted to know what your parenting style is when it comes to digital money. And it’s a toss-up between “it’s real money!” panic, explaining FinTech in Pick n Pay…

🟨🟨⬜️⬜️⬜️ 🎩 A magician never reveals their secrets.

🟩🟩🟩🟩🟩 💳 Say “it’s real money!” while panicking inside.

🟩🟩🟩🟩🟩 🧍‍♂️ Standing in Pick n Pay trying to explain FinTech.

🟨🟨⬜️⬜️⬜️ 🚫 Avoid it like the plague.

🟨🟨⬜️⬜️⬜️ 🤔 Still figuring it out, but I’m open to ideas.

What you said: 

“Had my eldest ask me the other day, "Dad, will you please show me how to use your card" - hahahahaha. *laughs nervously...”

JM

Yeah. What could go wrong? 😂

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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