Johannesburg - Instead of splurging on expensive gifts
this Valentine’s, why not get your loved one a gift that will put them in a
better financial position?
Ester Ochse, Channel Head for FNB Advisory says,
“Valentine’s Day is synonymous with partners exchanging gifts as a sign of
appreciation for one another. This year, people should think a little
differently and consider buying loved ones a gift that will have a lasting
impact. This can be done by purchasing a share portfolio for someone or
offering to open a Tax Free savings account on their behalf.”
Ochse says, “while there’s nothing wrong with spoiling a
loved one as a gesture of appreciation, buying them an investment product could
improve their financial future for the better”.
The advantage of buying someone an investment product for
Valentine’s Day is that you essentially give them a head-start. For example, if
you buy someone a Tax Free Savings Account and offer to contribute a minimum of
R300 a month for the next 12 months, by the time the next Valentine’s Day comes
you would have contributed R3 600 into their investment, says FNB. This is a
good way of investing in someone, and it’s a gift that will keep on giving
because as the years go by it will bear interest, the bank adds.
Read also: Why an $80 T-Shirt is a good investment
It notes, according to economic data site tradingeconomics.com,
South Africa’s household savings rate remained unchanged at negative 0.8
percent in the third quarter of 2016. “Looking at other forms of gifts on
Valentine’s Day such as purchasing shares for our loved ones can contribute to
changing our savings attitudes and the national savings rate in the long run,”
says FNB in a statement issued on Monday.
“Investment products are hardly thought of as possible
gifts, this too can be a way of showing appreciation for someone without
spending large amounts of money. It’s even better if the receiver of the gift
does not have an investment. The advantage of this is that they will finally
have an investment of their own and possibly develop good savings habits” adds
Ochse.
BUSINESS REPORT
ONLINE