According to Mellony Ramalho, African Bank’s group executive for sales and branch network, investing is not just for the rich, nor are large amounts needed to start investing. “What you do need is to understand some basic concepts and principles relating to investing,” said Ramalho.
She said the latest research by Momentum and Unisa showed that 73.5percent of South African households were financially unwell and generally did not budget, conduct very little debt and financial planning, and generally had very low financial literacy and capability levels.
Ramalho said the key to investing was finding the right product to meet one's objectives, such as how much one wants to invest, the amount of investment wanted, the returns expected and the time period of the investment.
She said parents of small children, for example, could consider a tax-free investment account, which is aimed at saving and growing the investment for educational purposes.