WEALTH CREATION: What are some of the best financial gifts for our children
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rica Liebenberg, JustMoney Editor talks about Invest in your child’s financial future this festive season
2 December 2022
Most families are stretching their budgets in order to make the festive season memorable for their children, within the constraints of soaring living costs and concerns about what the New Year may bring. Shiny toys, which can soon break or be outgrown, are often the gift of choice; and certainly, as stocking fillers, they can add a lot of colour and fun.
However, when it comes to bigger-ticket expenditure, it’s well worth considering a financial gift instead. While a present of money may seem unimaginative, when carefully chosen, this can be of inestimable value in the years to come.
Grandparents could, for example, establish a money market account for a grandchild whose birth is imminent. This could also serve as a useful cushion to cover initial expenses, and prevent young parents from falling into debt.As the baby matures, and if funds are limited, an old-fashioned piggy bank, or a glass jar containing some coins or notes, will help the child visualise how money grows.
Time is another gift that cash-strapped grandparents can give, says Shafeeka Anthony, Marketing Manager of JustMoney.co.za, a website that assists South Africans to make the most of their finances. “Start a conversation from an early age about how money can grow, show a child how you manage your own spending, and you will pass on valuable financial lessons.”
When considering savings and investments for a child, do your homework first, Anthony recommends. Selecting an investment, she notes, is similar to planting a seed, in that you need to choose the seed carefully and provide suitable conditions for optimal growth. “Considerations include how much risk you are prepared to take, as this will influence returns. Investments also have tax implications. It’s worth discussing options with your bank manager or personal financial adviser.”
2 December 2022
Most families are stretching their budgets in order to make the festive season memorable for their children, within the constraints of soaring living costs and concerns about what the New Year may bring. Shiny toys, which can soon break or be outgrown, are often the gift of choice; and certainly, as stocking fillers, they can add a lot of colour and fun.
However, when it comes to bigger-ticket expenditure, it’s well worth considering a financial gift instead. While a present of money may seem unimaginative, when carefully chosen, this can be of inestimable value in the years to come.
Grandparents could, for example, establish a money market account for a grandchild whose birth is imminent. This could also serve as a useful cushion to cover initial expenses, and prevent young parents from falling into debt.As the baby matures, and if funds are limited, an old-fashioned piggy bank, or a glass jar containing some coins or notes, will help the child visualise how money grows.
Time is another gift that cash-strapped grandparents can give, says Shafeeka Anthony, Marketing Manager of JustMoney.co.za, a website that assists South Africans to make the most of their finances. “Start a conversation from an early age about how money can grow, show a child how you manage your own spending, and you will pass on valuable financial lessons.”
When considering savings and investments for a child, do your homework first, Anthony recommends. Selecting an investment, she notes, is similar to planting a seed, in that you need to choose the seed carefully and provide suitable conditions for optimal growth. “Considerations include how much risk you are prepared to take, as this will influence returns. Investments also have tax implications. It’s worth discussing options with your bank manager or personal financial adviser.”
