A 21st Birthday Gift Beyond Money: Learning Financial Wisdom

A month before I hit 21, my grandfather announced a birthday gift of 21,000 South African rand, around $1,500 USD back then. The twist? I was to meet a financial advisor with him to invest it.

The autonomy that money brought me was something I relished at that time, yet my thoughts hadn't wandered to investment strategies. While juggling various gigs from bartending during my college days to freelancing in writing, most of my earnings went toward living it up in college or planning a big trip with friends.

Investment: A Present Responsibility and a Future Priority

Not long after I turned 21 in early 2019, my grandfather arranged for us to see a financial consultant together.

In the boardroom, as the advisor delved into stock markets and financial terms like 'repo rate', 'Capital Gains Tax', and 'volatility', I found myself nodding along, pretending to grasp these concepts. My grandfather wisely paused the conversation, urging the advisor to explain the crucial details like the drawbacks of early withdrawals in turbulent markets.

I started getting quarterly updates about my investments, which I often ignored, nearly forgetting their existence. However, this changed during a family Easter gathering two years later when investments came up in conversation. Upon checking my emails, I found my portfolio had grown to 28,138 ZAR, marking a 34% rise.

Taking Ownership of My Investment Future

Three years into the investment journey, I reached out to my advisor about adding another 80,000 South African rand to my portfolio, also initiating a monthly contribution to a retirement fund free from taxation.

Instead of merely sharing wealth, my grandfather imparted the knowledge of financial acumen. He allowed me to see my wealth grow first-hand, which was the most effective lesson. Today, I continue to turn to him for financial insights.

His philosophy wasn't about dictating how I should manage my finances but about offering the knowledge and resources to secure a stable future.