Start planning your child’s savings in National Savings Month

This according to Rupert Giessing, head of product development at PSG Wealth, an independent financial services group that extends its services to the Sandton area.

Giessing encourages parents to invest in a tax-free savings and investment account on their children’s behalf.

“Parents and grandparents can take the opportunity to provide a good start in life for their children and grandchildren by ensuring there is money aside for the future,” added Giessing.

“Be it that your plan is to start saving for your child’s tertiary education or you would like a few years to get together a nest egg for your child to boost his or her own savings, a tax-free savings and investment account can be a useful product to invest in.”

A tax-free savings and investment account is an option available to any person who is South African, including children of any age. Giessing said tax-free savings and investment accounts were introduced to the market in March as part of government’s drive to improve South Africa’s savings culture.

“If you start saving when your child is a toddler, you would have a sizeable sum of money that would easily cover university expenses and provide your child with a considerable financial head start,” explained Giessing. “It’s also an opportunity to teach your child about the importance of saving and how savings can grow when you exercise patience.”

A tax-free savings and investment account ensures that investors (the person whose name the account is in) will not pay any tax on the growth of the investment, or when the money is withdrawn.

“The good news is that the investment will continue to grow, all the while adding up to a meaningful sum of money for your child,” he added.

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