Alternative gifting: The gift of financial stability

The perfect present: Investing in their future

Giving gifts, such as clothing, electronics or toys, is great, but they only bring temporary joy, can go out of fashion or stop working, and they often lack long-term value.

Giving the gift of financial stability by contributing to someone’s financial future shows that you care about not only them but also their goals and dreams and you want to support them in achieving them.

In addition to being thoughtful and personalised, it also has long-term and potentially growing value. Whether it’s saving for an education, retirement or emergency fund, gifting financial stability, even if you’re only providing a small amount, can have a lasting impact on someone’s life and their financial future.

What to give and how much

The beauty of gifting financial stability is that any amount, even a small amount, is suitable as it can become substantial over time, turning into the gift that keeps on giving.

One way to gift is to open a new investment or savings account for someone and provide a starter amount (perhaps a few hundred rand or close to what you would’ve spent on a traditional gift). Alternatively, you can contribute to an existing account that’s set for an education or their own investments and continue to add to it.

That way you’ll also always know what to ‘get them’ for their birthday or to celebrate special occasions. It can also help them reach their goals faster and show your support for their aspirations.

Since investing can be complex, especially for someone new to it, do your research and get professional advice before making investment decisions and financial contributions. It’s also important to ensure the investment is relevant to their situation and will help them to be financially empowered when the time comes.

Presenting the gift

Money in the bank for a future purpose can seem less exciting than a new pair of sneakers or electronics, but guaranteed, they’ll be happy later when they’re in a better position to build financial success.

When you gift financial stability, remember to communicate your intentions and your wish for their future. Let the recipient know why you chose the gift, how you’d like them to use it and what you hope they’ll achieve with it.

_{Disclaimer: This article is solely intended for information. It does not constitute financial, tax or investment advice or recommendation. Please speak to a financial advisor or registered financial professional before making any financial decision(s).}

_{Standard Bank, its subsidiaries or holding company, or any subsidiary of the holding company and all of its subsidiaries make no warranties or representations (implied or otherwise) as to the accuracy, completeness or fitness for purpose of the information provided in this article or that it is free from errors or omissions.}