BOITUMELO NTSOKO: It’s virtually Christmas, and when you haven’t discovered the good items for your family members, then keep tuned. Tanya Joubert, who’s a licensed financial planner at PSG Wealth Pretoria East, joins us on this episode to share some ideas of last-minute financial items that your family members will respect. Welcome, Tanya.
TANYA JOUBERT: Thanks for having me in your present, Tumi.
BOITUMELO NTSOKO: Tanya, may you perhaps give us some ideas on what to provide those that have simply grow to be mother and father?
TANYA JOUBERT: I feel we are able to all agree that new mother and father expertise important pressure on all kinds of sources. The two that come to thoughts are financial strain, which in all honesty I feel most individuals are experiencing at the second, no matter youngsters, and the second one is time constraints. So items that may alleviate these pressures will all the time be welcome.
Often mother and father or grandparents have the particular intention of investing a specified quantity in an funding to profit a toddler in the long run. This financial increase could make an enormous distinction in the long run, but it surely’s necessary to contemplate that this gift entails a little bit of paperwork and there are some technical implications to contemplate. So it is likely to be a good suggestion to talk to a financial advisor and even perhaps a tax practitioner who can perhaps assist navigate these waters.
For extra fast or short-term gift ideas the choices are virtually countless. Of course, apparent items like diapers are all the time useful, or home-cooked meals for the freezer, however there are lots of different choices to contemplate that may not come to thoughts instantly. These can vary from comparatively small contributions to extra substantial ones. A gift voucher is all the time a helpful gift concept, and a few folks would possibly really feel that’s barely extra private than only a gift in money.
Vouchers will also be used for on-line purchases, saving each money and time. Almost all retailers supply vouchers permitting the new mother and father to buy gadgets that they could want, however an Uber voucher I discover is all the time helpful. Consider somebody who won’t have their very own transport and, for instance, require medical consideration for the child.
A voucher concept for a grocery retailer may also go a great distance in assuaging the basic financial strains on the complete family.
Another voucher concept is for a household-cleaning service or a gardening service like SweepSouth. Getting round to prioritising on a regular basis family duties can show to be fairly difficult for new mother and father.
And in fact, passing on beforehand cherished child garments and toys will profit all events concerned.
Alternatively, certainly one of my favourites is being artistic with some do-it-yourself [free] voucher ideas for particular experiences like a free babysitting session. That’s a enjoyable and inexpensive means of exhibiting like to the new mother and father.
When you concentrate on it, the actuality is that many individuals grow to be fairly anxious at the moment of yr, considering of the numerous financial implications referring to the festive season. Not all items have to value an arm and a leg, and it actually is feasible to expertise the festive cheer with out all the stress.
BOITUMELO NTSOKO: And what may you contemplate giving major and highschool youngsters that would assist them construct financial information or begin them on their financial journey?
TANYA JOUBERT: Such an necessary query, Tumi. Financial schooling is a subject that for my part isn’t sufficiently addressed in the formal college curriculum in any respect. You know what they are saying – ‘it takes a village to raise a child’. Well, sadly, it finally comes right down to this village to show the youth financial literacy, aiding youngsters in gaining information and changing into financially literate, or equipping them to get a head begin in the future in their very own financial planning and independence.
Ideas to contemplate right here may embrace financial journal or newspaper subscriptions, one thing that may supply entry to podcasts and audiobooks like Audible or Spotify. These are items that may find yourself maintaining the youngsters joyful lengthy into the future.
And then let’s not underestimate the significance of a great outdated piggy financial institution in educating the little ones to avoid wasting, or a board sport like Monopoly which teaches cash issues in a enjoyable and interactive means.
BOITUMELO NTSOKO: And for those that have simply graduated and are about to start out their careers in the new yr, what can be the very best current for them?
TANYA JOUBERT: Generally talking, most of those children [will] earn an entry-level wage, which frequently must be stretched fairly far. This is the time to construct your financial basis and, by the finish of the month, whenever you’re performed with all the financial commitments, there won’t be something left to spend on your self or to take pleasure in. I really feel most of the items that I’ve talked about to date can assist right here too – Uber vouchers, grocery vouchers, audiobook subscriptions – but in addition issues like dinner vouchers, film tickets, clothes vouchers. I feel the theme right here ought to be serving to these guys [to] not spend their very own cash, in order that they’ll deal with discovering their ft with their very own financial planning.
BOITUMELO NTSOKO: Now we all know that startup entrepreneurs want loads of sources to get their companies going. What may you give them to assist them out?
TANYA JOUBERT: Most enterprise ventures take a while earlier than they grow to be worthwhile. So I feel if there’s something you are able to do for these entrepreneurs that may help them throughout the irritating time, you need to do it. It would possibly sound boring, since there’s no wrapping concerned, however when you have a specific ability set which you could supply this generally is a improbable gift. As an instance, when you’re a photographer or an internet developer, aiding the entrepreneur to get his web site up and operating will show to be extraordinarily priceless. Sometimes entrepreneurs are the dreamers, and slightly assistance on a few of the extra sensible or enterprise points will in all probability go a great distance and assist them in that preliminary startup part.
These are only a few examples, however being keen to provide your time to somebody is commonly the most treasured gift which you could give.
Alternatively, you’ll be able to all the time assist them upskill themselves by maybe gifting them an internet course. There are many on-line programs obtainable on the market as of late. A primary accounting or finance course, or a subject that may help them in managing their social media presence, even a primary Excel course, might be additionally a good suggestion and fairly helpful.
And then they could additionally expertise challenges from a transport viewpoint. If it’s a must to go and see a consumer and also you don’t have your individual transport, an Uber voucher can once more turn out to be useful. Or maybe airtime or knowledge bundles, which can permit them to maintain the wheels of the enterprise turning going ahead.
BOITUMELO NTSOKO: And what would make the very best gift for grandparents?
TANYA JOUBERT: I’ve discovered that many retirees actually try to simplify their lives by cutting down and decluttering. They’ve reached some extent of their lives the place accumulating issues is not a precedence.
So gifting experiences, fairly than issues, is likely to be a greater possibility to contemplate for these guys – or gifting them sure client items like favorite skincare merchandise in order that they don’t have to incur the expense themselves. That may show to be fairly helpful.
Then simply keep in mind in fact with the ageing course of come sure particular wants. Often sources are fairly restricted, making it a problem to satisfy these wants. Physically talking, it won’t be simple for them to fulfil their regular family duties like cleansing or mowing the garden. Once once more, I feel a voucher for a cleansing service or gardening service like SweepSouth will are available very helpful. Many grandparents discover studying books to be much more difficult than it was once in the previous. Once once more, a subscription for audiobooks like Audible would possibly fill this hole. Subscriptions to streaming companies will also be nice items. Our grandparents actually have earned the proper to loosen up on the sofa for slightly longer than ordinary.
And then, once more, gifting your time might be the greatest gift for grandparents. I discovered grandparents connect nice worth to their grandkids or youngsters serving to out with, for instance, tech-related points like establishing e-mail on their cell telephones, and even on-line banking and getting the on-line banking app going. The bonus of gifting your time is that in fact it doesn’t value you a cent, and the value-add in doing that is priceless.
BOITUMELO NTSOKO: And what are a few of the elements you want to bear in mind when giving these financial items? For occasion, are there any tax implications for you?
TANYA JOUBERT: This is such an necessary query, Tumi. There are many technical points which is likely to be tough to navigate with out the assist or steerage of a financial advisor or wealth supervisor, however let’s simply take a look at just a few primary ones.
I feel the most necessary consideration that involves thoughts is donations tax. Each particular person is permitted to gift or donate solely R100 000 per tax yr. Donations that exceed this quantity are taxed at 20%. Then one other catch with that is which you could’t wait for the finish of the tax yr to pay it over to Sars. Donation taxes are due by the finish of the month following the month that the donation is made.
There are, although, just a few exclusions that may apply, like donations between spouses which don’t appeal to donations tax. But it’s all the time a good suggestion to seek the advice of with a tax specialist earlier than exceeding the R100 000 restrict. They would possibly have the option that will help you with the technicalities and advise you by way of structuring the donation.
Another necessary consideration is available in when investments are made by mother and father or grandparents in the identify of a minor. It’s necessary to know that whereas the youngster is a minor the mother and father or authorized guardians are often the people who’ve authority to behave. But as quickly as that youngster turns 18 [he or she gains] full management of this funding. Another implication of an funding in the identify of a minor is the proven fact that it doesn’t type a part of the dad or mum’s property, however fairly the youngster’s personal property.
Also simply remember that most financial establishments will insist on paying out the funds – when [the funds] attain the level of withdrawal – solely to a checking account in the identify of the investor, who on this case is the youngster.
BOITUMELO NTSOKO: Thank you a lot, Tanya. That was Tanya Joubert, who’s a licensed financial planner at PSG Wealth Pretoria East.
