Valentine’s Day can be a costly affair – warns bank
'Put your loved ones in a better financial position this Valentine’s Day', a South African bank suggests.
Valentine’s Day is synonymous with the exchange of cards, chocolates, gifts and sharing a candle-lit dinner with loved ones.
It not only signals appreciation and love for another – it is also a life-long tradition that is celebrated in most parts of the world. “Splurging on loved ones is great; but why not spoil your loved one with a gift that will put them in a better financial position?” said Ester Ochse, Product Specialist – FNB Advisory.
“Valentine’s Day can be a costly affair and we tend to overspend to show our appreciation in a number of ways. Given the times we are living in and rising household costs, we encourage consumers to think differently and consider buying gifts that will have a lasting, long-term impact and benefit.”
She said that, according to the economic data site tradingeconomics.com, the household saving rate in South Africa remained unchanged from its second quarter level of 0,20 per cent in the third quarter of 2017. Personal savings in South Africa has averaged at 4,84 per cent from 1960 until 2017.
“A re-evaluation of our current spending habits needs to take place sooner rather than later. This will help you identify and create a savings habit that will better your quality of life in the long-term.
“Look at investment products like a unit trust portfolio or even a Tax Free Savings account which will potentially help you reap higher returns, depending on the underlying asset class. These are great vehicles that will help you and your loved one start that savings journey. Not only will they help you improve your financial situation, they will set you up for the future,” she added.
Let’s be honest – chocolates, perfume or leather handbags are more appealing than an investment product but the value and quality diminishes over time. Investment products are not seen as the most attractive or sought-after gifts. For many, investing is postponed to when they are older or wiser and is not considered to be urgent.
“Rather invest now and grow your money over time for great returns and financial stability. This gives you the opportunity to build and continue creating your wealth over time. It’s never too late to start investing, be it for you or your loved one,” concluded Ester.
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