How to make the most out of festive gifts this year

Let’s face it, after a tough year it’s tempting to want to spoil yourself and your loved ones by “splurging a little”. And while it’s never a bad idea to be generous, there’s a fine line between overspending and spending within your means. The trick is finding a balance between gifts that are well thought through and meaningful, but that also fit within your budget. So to help you out, we’ve listed some alternative gift ideas for you to consider this festive season. 

Gifts for kids

Many of the items we buy for our children tend to be short-lived. That’s not to say that short-term items are a waste of money, as they do bring joy, but there are other options that can have a more meaningful and longer-lasting impact. For example, investing the money that you would have spent on the latest toy could make a sizeable dent in the cost of tertiary education in a few years’ time, or better still, a welcomed contribution towards a down payment on a vehicle or property when your child gets older.

Granted, some kids may struggle to understand this plan and may be upset when they don’t get the latest toy or gadget. So another option might be to get a smaller, short-term present with an investment account to complete the gift. This is another great way to ease them into the concept of investing from an early age, while allowing them the opportunity to watch their money grow over time.

A gift for a loved one

If your loved one is working towards a personal financial goal, now’s the perfect time to help them open an investment account and work with them towards reaching it. Even if it’s a small monthly contribution, this can be motivating and inspiring, especially if it’s a BHAG (big, hairy, audacious goal) over time. Our Goal Calculator is a great way to find out just how much you should be contributing each month to be able to reach that end goal.

A gift for yourself

By investing in yourself and boosting your savings, your future self will essentially be the one that benefits. Although you might not be able to indulge in a luxurious holiday or as many festive treats as you would to like this year, several festive seasons into the future you’ll be very pleased you started investing early. When it comes to investing, there’s a saying that goes: “The best time to invest was yesterday, the next-best time is today.” So don’t put off investing in yourself any longer, start by giving yourself an investment gift today.

Find meaning in that festive feeling

If opening up an investment for yourself or someone that you care about sounds appealing to you, it’s time to find out more about the various options available.

To begin, a unit trust investment can make a meaningful gift and lasts much longer than most other presents possibly could. Short of a healthy pot plant, few presents can grow bigger than they originally were, making the potential growth of a unit trust account all the more special.

From as little as R500 per month, you can open an investment account with exposure to a wide range of assets, each with a different mandate based on your risk appetite and financial goals. For example, you might consider a money market fund if you want stable, short-term growth, or more equity exposure if you anticipate a savings horizon of at least 5 years or longer. You can read more about M&G Investments’ fund range here.

For longer-term investing and to supplement retirement savings, Tax-Free Investments are another excellent product to consider. There are government limits as to how much you can invest, however, starting with R36 000 per year and R500 000 over the course of the investor’s lifetime. But if your loved one hasn’t yet opened an account, it’s a great gift to get started. Click here to find out more about our tax-free fund range.

In conclusion, changing the way we think about gifts can have a tremendous impact on our loved ones, ourselves… and of course, our wallet.  So why not do things differently this year, and consider an investment as the perfect gift?

For more information, please feel free to contact our Client Services Team 0860 105 775 or email us at info@mandg.co.za.