Should a young person have a will?

Good morning and how are you doing? Did you have a good week? We hope so. 

Our Friday newsletters are dedicated to answering questions from our community. Do you have a question for the team? Please feel free to send a DM to any of our social media channels. You can also send an e-mail to [email protected]

Question:

Can one buy dividends? -Tola 

Answer:

Hi Tola,

You can't buy dividends. You need to own a company’s shares in order to get paid a dividend. Dividends are the portion of the profit made by a company that is paid out to shareholders. Some companies pay dividends once in a year. Some companies pay an interim dividend and a final dividend. 

An interim dividend is a dividend that is paid before the end of a company’s financial year and its results are audited. The final dividend is paid after a company’s results have been audited. 

You also have special dividends. This is a dividend declared by a company if it has made a significant sum of money from a one-time event, or it has had a particularly good financial year. 

You also have companies that pay dividends every quarter. This is a common practice in the United States. 

Question:

Should a young person have a will? -KC

Answer:

Hi KC,

There is absolutely nothing wrong with a young person having a will. In fact, everyone should have a will. Contrary to superstition, having a will does not make a person die young. 

A will is a legal document that directs the distribution of the assets of a person (called the testator) upon death. 

The testator appoints executors who administer the estate (assets and properties) and makes sure they are distributed according to the last wishes of the testator.

So the best time to write a will is when one begins to acquire assets. You are better off consulting with a lawyer if you are writing a will. 

Question:

Has the CBN banned cryptocurrency? -Sule 

Answer:

Hi Sule,

The Central Bank of Nigeria (CBN) has not banned cryptocurrency trading. What it has instructed, however, is that banks and other financial institutions should not serve as a funnel for either funding cryptocurrency trades or exiting them. So you can not fund your cryptocurrency accounts through your debit card or bank transfer.

This is where we'll draw our money curtains for the day.

A new year is a great time to start to document your financial journey. If you would like to do so, you can order our Personal Finance Guide here

Have a lovely weekend.

With Love,

MoneyAfrica Team??