Phone (07) 3221 1122
Hot Issues
ATO reviewing all new SMSF registrations to stop illegal early access
Compliance documents crucial for SMSFs
Investment and economic outlook, October 2024
Leaving super to an estate makes more tax sense, says expert
Be clear on TBA pension impact
Caregiving can have a retirement sting
The biggest assets growth areas for SMSFs
20 Years of Silicon Valley Trends: 2004 - 2024 Insights
Investment and economic outlook, September 2024
Economic slowdown drives mixed reporting season
ATO stats show continued growth in SMSF sector
What are the government’s intentions with negative gearing?
A new day for Federal Reserve policy
Age pension fails to meet retirement needs
ASIC extends reportable situations relief and personal advice record-keeping requirements
The Leaders Who Refused to Step Down 1939 - 2024
ATO encourages trustees to use voluntary disclosure service
Beware of terminal illness payout time frame
Capital losses can help reduce NALI
Investment and economic outlook, August 2024
What the Reserve Bank’s rates stance means for property borrowers
How investing regularly can propel your returns
Super sector in ASIC’s sights
Most Popular Operating Systems 1999 - 2022
Treasurer unveils design details for payday super
Government releases details on luxury car tax changes
Our investment and economic outlook, July 2024
Striking a balance in the new financial year
The five reasons why the $A is likely to rise further - if recession is avoided
What super fund members should know when comparing returns
Insurance inside super has tax advantages
Are you receiving Personal Services Income?
It’s never too early to start talking about aged care with clients
Articles archive
Quarter 3 July - September 2024
Quarter 2 April - June 2024
Quarter 1 January - March 2024
Quarter 4 October - December 2023
Quarter 3 July - September 2023
Quarter 2 April - June 2023
Quarter 1 January - March 2023
Quarter 4 October - December 2022
Quarter 3 July - September 2022
Quarter 2 April - June 2022
Quarter 1 January - March 2022
Quarter 4 October - December 2021
Quarter 3 July - September 2021
Quarter 2 April - June 2021
Quarter 1 January - March 2021
Quarter 4 October - December 2020
Quarter 3 July - September 2020
Quarter 2 April - June 2020
Quarter 1 January - March 2020
Quarter 4 October - December 2019
Quarter 3 July - September 2019
Quarter 2 April - June 2019
Quarter 1 January - March 2019
Quarter 4 October - December 2018
Quarter 3 July - September 2018
Quarter 2 April - June 2018
Quarter 1 January - March 2018
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Quarter 2 of 2017
Articles
‘Bank-like heists’ make way for new wave of cyber crime
Give your children a saving and investing edge - for life
Women still in the dark about finances
Lessons learnt - often the hard way
Australian population figures
ATO poised to ramp up focus on key compliance area
Benefit payments rise dramatically ahead of July 1 super changes
There's no magic pudding when it comes to super
ATO guidance provides clarity on death benefit confusion
Beyond super: Our other personal investment market
The three core pillars of this year's budget
Federal Budget - 2017-18 - Overview
Federal Budget - 2017-18 - Budget documents
Global economy synchronised and thriving
Life's financial turning points: good and not-so-good
2011 Census - what was the make up of your area?
ATO set to release guidance targeted for SMSF clients
More withdrawals from 'the bank of mum and dad'
Tax headache relief: Here’s more help with pension assets changes
Most Aussies shun super advice
Australia in a nutshell
ATO finalises guidance on transfer balance cap
Fit for purpose? The super story so far...
SMSFs urged to review segregation clauses in trust deed
Big insto addresses CGT misconceptions
Dollar-cost averaging for millennial investors
Give your children a saving and investing edge - for life

Perhaps the best way to give your young children a lifetime saving and investing advantage is to ensure they are as financially literate as possible, as early as possible in their lives.



       


 


By indulging their every whim is likely to have the opposite effect. It may pave the way for them to become conspicuous spenders; a wealth-destroying approach to dealing with money.


Australian students have mixed results in a just published 2015 OECD study of the financial literacy of 15-year-olds in 15 countries (including 10 OECD members such as the United States, Canada and Italy). Almost 15,000 Australian students participated in the survey.


Australia ranks fifth with 15 per cent of Australian students being ranked as high performers.


However, there are clear gaps confirmed in the financial literacy of many young Australians with low levels of literacy among lower socio-economic groups including indigenous students. A fifth of Australian students do not reach the baseline for financial literacy – a little below the average for the surveyed OECD countries.


The researchers comment that students who did not reach the baseline for financial literacy could, "at best", distinguish between wants and needs, and make simple decisions on everyday spending.


The survey was designed to assess the extent that 15-year-olds have the financial knowledge and skills to "make successful transition from compulsory schooling into higher education, employment or entrepreneurship".


In regard to Australian students, the survey's findings include:


67 per cent say they will save to buy something if they don't have enough – close to the OECD average.
57 per cent save money each week or month with 17 per cent saying they will only save when they want buy something.
As the Australian Securities & Investments Commission (ASIC) comments on the survey, financial literacy is particularly essential in an increasing cashless society, where it is easy to borrow on a credit card if you don't have the money right now. (For the record, Australian 15-year-olds are legally too young to be issued with a credit card.)


Young people confront significant financial decisions relatively early in their lives in such ways as choosing a career, financing tertiary education, finding a first job, leaving home for the first time and beginning to save.


Those who have a low level of financial literacy are at a huge disadvantage that can burden the rest of their lives as they may try and learn through trial and error.


Young, financially-savvy investors have the powerful advantage of enjoying the rewards of investment compounding over the very long term as their investments – perhaps including their first salary-sacrificed super – earn returns on returns as well as the original capital.


 


 


Written by Robin Bowerman
Head of Market Strategy and Communications at Vanguard.
05 June 2017
www.vanguardinvestments.com.au




27th-June-2017
 

Retirewell Financial Planning Pty Ltd
ABN 29 070 985 509 | AFSL No. 247062
Phone 07 3221 1122 | Fax 07 3221 3322
Level 24,
141 Queen Street (Cnr Albert Street)
BRISBANE QLD 4000
Email retirewell@retirewell.com.au