Tag Archives: kids

Ze Bank in Ze Wall

Many years ago, a gorgeous friend of mine, Dutch back ground, owed me $20.  I wasn’t terribly worried about it, but she really wanted to pay me back this particular day.  So, she suggested that we head to ‘ze bank in ze wall’ to get my cash out.

I think I looked at her blankly for a moment before realising she meant an ATM and I loved it, and the name stuck… for my family anyway!

Tho these days, we don’t even need ‘ze bank in ze wall’ terribly often.  A few dollars out  to cover the rare occasions that I need cash is accomplished during a grocery shop.  According to some futurists, the ATM’s days are numbered… but others disagree.  So will it survive? or thrive?

And how the use of cold hard cash has changed over the years!  In the early 90’s I assisted in a payroll office for a large Gold Coast cafe and remember stuffing envelopes with the exact amount of cash required in each staff member’s particular packet.  Things then progressed to electronic transfers directly into our accounts, and then we had to withdraw what we needed to cover ourselves each week – especially for those using the ‘envelope system.’  Seems like a hassle now!

Today, it’s rare that I carry cash.  My sister tells me I’m classified as a vagrant as I don’t often have 40c for a phone call (do they still cost that?) but who needs 40c when I’ve got a mobile?  And seriously, if I can’t tap and go, you’re unlikely to get a coffee order from me.

So, our children have grown up as the Invisible Money Generation or Gen Z (born post 1995) or even Gen Alpha (the wee bairns.)  Well, my 2 have anyway… and what does the change mean for them?

We’ve understood the value of money all our lives.  We’ve seen it, touched it, saved it and spent it – the real stuff, that is.  But things can be a different story for those who’ve never understood the real value of cash and used the real McCoy.  Although the young these days are ‘digital natives’ many parents are too stressed to talk to them about money as they’re battling financial issues themselves.  And chances are, their parents never spoke to them about money either.

I remember a friend often being told by her son, ‘just put it on Visa, mum’ and I’m sure he had no concept that mum needed to repay Visa, with interest.

If you’d love to know more about the Invisible Money Gen, how to talk to kids about money, pocket money, work, find out your money personality and so much more, please feel free to download your copy of the FPA’s Share the Dream Report here.

You’re welcome!

Saving for retirement: Hacks for parents with dependents

You can build your retirement savings while supporting your dependants.

Providing for the kids doesn’t have to come at the expense of stashing funds for retirement. There are ways you can build a sufficient nest egg while supporting your children.  And chances are, you’ll be spending a lot longer in retirement than previous generations… who knew?

Saving for retirement

Forced saving can be your best ally in building your retirement fund. Making voluntary contributions to your super through salary sacrifice can seriously boost your nest egg.  You can make concessional super contributions of up to $25,000 each financial year (which includes your employer’s super guarantee contributions.) The government will tax your salary-sacrificed contributions at 15% which may be much lower than your marginal tax rate.

It may also be worth looking at how and where your super fund invests your money. Choosing a different investment option may help you earn better returns and grow your super.  Do you know what your Investor Risk Profile is?  Conservative?  Balanced?  Aggressive?

Super can be a difficult subject to get your head around. Have a chat with your adviser about how you can boost your super by making voluntary contributions or changing your investment options. Your adviser can also knows about retirement saving options beyond super.

Protecting your income

While you’re building your fund for retirement and still supporting those eating you out of house and home, it’s important to protect your current income in case you’re unable to work due to an illness or injury. Taking out income protection insurance is an incredibly wise precaution against any event that can prevent you from working. This policy may provide a monthly income to support you and your family during your recovery and help you stay on track with your financial commitments.  Premiums are tax deductible.  And if you think about it, why wouldn’t you insure your most important asset? – the ability to earn an income!

It’s also crucial to ensure your dependants are looked after if you die or became seriously ill or disabled. Having life insurance, total and permanent disability cover, and trauma insurance can help you protect what’s important to you.

Get advice

Balancing your need to prepare for retirement and your responsibility to your partner and kids can be tough, but keep in mind that help is always available. Speak to your adviser about how you can provide for your dependants while building a nest egg for a comfortable retirement.

Your future self will thank you for it!