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- My grandfather helped me open an investment account for my 21st birthday. He didn’t just give me money — he gave me financial literacy. (businessinsider.com)
Grandfather’s 21st Birthday Gift Unlocks Financial Wisdom for Granddaughter
A unique 21st birthday present from a loving grandfather has blossomed into a valuable lesson in financial literacy for his granddaughter, Alice Draper.
When Ms. Draper turned 21, her grandfather presented her with 21,000 South African rand (approximately $1,500 USD). However, this wasn’t just a cash gift; it came with a crucial condition: she had to meet with a financial advisor and invest the money in the stock market.
At the time, Ms. Draper, a university student juggling a part-time bar job, promotional gigs, and fledgling freelance writing opportunities, admitted her focus was primarily on immediate financial needs and occasional splurges.
“Most of my earned money went toward subsidizing my lifestyle in university (usually drunken nights out or greasy takeaways from the local pizza shop), or I saved the money for a specific occasion, like a road trip with my roommate across the country,” she shared. Despite this, she welcomed the gift, recognizing its potential long-term value.
Six months after her birthday, in early 2019, her grandfather facilitated the meeting with a financial advisor. Ms.
Draper recalled the initial experience as a whirlwind of unfamiliar financial jargon, from “repo rate” to “Capital Gains Tax” and “volatility.” While she nodded along, her grandfather played a key role in clarifying important concepts, particularly the risks associated with early withdrawals during market downturns.
After the investment was established, Ms. Draper confessed to largely overlooking the quarterly email updates.
It wasn’t until a family Easter holiday two years later that the topic resurfaced. Prompted by her brother, who had received a similar gift, she checked her portfolio’s balance.
To her surprise, it had grown to 28,138 ZAR-a remarkable 34% increase in just two years.
This revelation, coupled with her growing financial understanding through her PR business and subsequent tax consultant, spurred Ms. Draper to take further action.
Three years after the initial investment, she proactively contacted her financial advisor to add an additional 80,000 South African rand to her portfolio. She also initiated a monthly debit order for a tax-free retirement fund.
Ms. Draper credits her grandfather with more than just a monetary gift; she sees it as “the gift of financial literacy.”
She explains that his approach allowed her to witness the tangible growth of her own money, solidifying the value of investing. Her grandfather, who continues to be a financial and business mentor, never adopted a prescriptive tone.
Instead, he empowered her with knowledge and options.
“Learning to invest at 21 gave me exactly that: the ability to make thoughtful choices with my money as my life and income changed,” Ms. Draper concluded, highlighting the profound impact of her grandfather’s insightful present.