What if we told you that if you miss out on buying a top for R100 you can grow that money? It’s called investing. This is when you put money away so it grows by earning interest. Interest is the money earned by the person you borrowed money from. In this case, the bank will pay you since they will be using your money.
Saving is a great way to achieve financial goals. When you save money, you learn to work with focus and discipline, which as skills you’ll use in other areas of your life. Let’s say get R250 for your birthday. You invest R200 and keep adding R60 from your weekend hustle every month, you’ll have R979 after 12 months. The simplest way to start investing is through a bank. Try the following accounts, which are available for people under 18.
ABSA’s Target Save. You open it with R100 to earn 4.65% interest every year. You also get bonus interest every six months if you don’t withdraw your savings.
FNB’s My First Savings needs a minimum of R100 and earns 6.50% over 12 months. Nedbank has three accounts you can open with R50. Save4me earns 5.75%, Nedbank4me gets 3% and Justsave gives you 2.90% per annum. The interest you earn on your savings will be affected by inflation. This is when the rand’s value goes down, which causes prices to go up.
To open a savings account, go to the bank with the following:
- Proof of residence
- A parent or guardian and they must also bring their ID
You can also start a stokvel with your friends. If there’s six of your saving R30 each every month, you’ll have R2160 saved at the end of the year, and each member will get R360.
Side hustles are boss.