Hello,

Welcome back to Mini Millionaires.

It’s our first full edition back, and we hope you enjoyed our holiday-themed editions, and they helped build some awesome money-smart skills during your holiday downtime.

We also hope the first day back at school went well, and that your mini millionaires have a lot of fun stories kicking off the new school year.

In this edition, we dive into how to teach kids about SA tax…

No matter your thoughts on taxes, the reality is we can't escape them. It’s everywhere, from PAYE (Pay As You Earn) deducted from our salaries to the VAT (Value-Added Tax) added to pretty much anything you purchase.

So it’s one of those things to help mini millionaires understand early, in order for them to be prepared for one day when they start earning their own salary and paying for their own things.

Let’s dive in.

Taxes are simply just a part of how money works in South Africa. SA’s tax authority SARS collects taxes on behalf of the government in order to pay for public services, like roads and hospitals, the police and other services required to run the country.

We dive into this a little deeper in a previous edition: How to teach kids about taxes…

If you earn money, some of it is taxed (as PAYE). If you spend money, some of what you pay is tax (as VAT). There are even taxes built into the cost of petrol (the fuel levy), sin taxes on alcohol and tobacco, municipal rates and services, company tax, and even import taxes/duties on items you have imported into the country.

Teaching mini millionaires about taxes early helps them understand why some money never reaches their pocket and why something “costs more”. 

Starting with PAYE and VAT gives kids a practical lens into how the SA tax system works and why money decisions always need to account for real-world constraints like tax.

Some money comes with deductions

In SA, salaries are usually advertised as gross amounts. 

PAYE is deducted before the money even reaches someone’s bank account, standard practice across most formal employment. SARS publishes its tables annually, and employers are legally required to withhold this tax. 

Teaching kids that the headline number is not the final number prevents confusion (and shock) later when they see their payslips.  

Takeaway: The amount you earn and the amount you receive are not the same thing.

Check whether tax is included

VAT is charged at 15% percent on most goods and services in South Africa. 

And while some basic food items are zero-rated, VAT still applies widely. 

Retail prices usually include VAT, but it’s not always clear. Sometimes one needs to take a look at the receipt to show them separately. 

Teaching your mini millionaire to look at the receipts builds awareness of how much tax is attached to everyday spending. And the cool thing is, it doesn't rely on them understanding percentages (although it is a nifty trick), just that they notice VAT exists within the price of the item they want to buy.

Takeaway: The price you see is not always the full breakdown of what you pay.

Separate “spendable” money from the rest

One practical way to explain tax is separation. 

When your mini millionaire receives any money, be it as pocket money or earnings, separate out a portion of it as a tax. This mirrors how PAYE works without explanation or persuasion. 

Separating money into different jars makes it easier to see what is available to spend and what is not.

BONUS: You can also reinforce the lesson by implementing “Mom” or “Dad Tax” with sweets, biscuits and other treats. It’s a fun little bonus lesson on the realities of taxation. You’re welcome.

Takeaway: Some money is set aside before it hits your pocket.

This week’s free downloadable, printable resource introduces a fifth jar to your family money system. 

Alongside Save, Spend, Share, and Sow, check out the Services Jar. 

This jar mirrors how tax works in real life. Everyone contributes a small amount, and that money is set aside for shared services the whole household uses, like water, electricity, and WiFi. 

This resource helps mini millionaires see that some money is allocated before spending decisions are made, and also includes simple reflection prompts to encourage discussion.

Download it, print it, and add it to your existing jar routine when talking about tax and everyday money realities.

Back to school is the perfect time to start smarter money habits.

Fintr4Schools makes learning about money as fun as spending it. This gamified digital platform turns the CAPS EMS curriculum into an adventure, with savings skills at the heart of the mission.

Learners set goals, track progress, and practise delayed gratification through story-driven challenges, including taking on money villains like Saverstrain.

Along the way, they build superhero money habits, make smarter money choices, and develop skills that last a lifetime.

Built for classrooms. Backed by experts (Fintr4Schools has been certified 93% by Education Alliance Finland). Let’s chat about bringing Fintr4Schools to your school.

In our last reader poll before the holidays (How to teach kids about retirement), we asked what counts as “long-term thinking” in your house? And it looks like our mini millionaires are only looking as far as their birthdays or Christmas…

⬜️⬜️⬜️⬜️⬜️ 😅 “What’s for dinner?”

⬜️⬜️⬜️⬜️⬜️ 🤷 “What am I doing tomorrow?”

⬜️⬜️⬜️⬜️⬜️ 🏡 “Which friend’s house am I going to this weekend?”

🟩🟩🟩🟩🟩 🎁 “When is Christmas/my birthday — because I want that specific gift.”

⬜️⬜️⬜️⬜️⬜️ 📱 “When can I get a phone?”

What you said: 

“All about Christmas - hahaha. But great to now have the tools to talk about "future you" thinking for retirement...”

JM

Ke Dezemba vibes even for mini millionaires it seems. We are longing. 😂

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.

PS: Did someone forward you this email? Subscribe here.