In my latest podcast, I caught up with Adrian Hope-Bailie, the founder of Fynbos Money, to discuss their new products, which include retirement annuities and family accounts.

I must be honest: I am a fan of what Fynbos Money is doing, because whenever I speak to young people who are just starting out and receiving their first paycheques, they are all looking for simplicity and cost-effectiveness.

They love the idea of a single debit order that automatically splits their money into an emergency fund and a tax-free savings account (TFSA).

If you have started working and don’t have a company pension fund, you can now include a retirement annuity in your Fynbos Money portfolio – all with a single debit order.

In this chat, Adrian and I discuss the importance of building an emergency fund, and the importance of starting early on your investment journey.

Adrian advises how you can use both a TFSA and a retirement annuity as part of your retirement plan, and why you really should start a TFSA for your child rather than just buying them more sneakers.

Apart from giving your children a financial legacy, you can also teach them about the power of compounding.

I realised this recently when my 22-year-old son looked at his TFSA balance and sent me a WhatsApp: “Wow, Mom, the power of compounding!”

Unfortunately, I have not been in a financial position to maximise my sons’ TFSA contributions, but even the few hundred rand we contribute each month has made a significant difference over ten years.

As Adrian noted during our conversation, learning that lesson from a young age means they are less likely to cash in their investments or retirement funds because they have already experienced the wonder of compounding over 10 or 15 years.

This episode was sponsored by Fynbos Money.