Newsletter: April 2016
The Wealth Academy assists parents, teachers and professionals in the financial services industry to help their children, students and young clients to improve their financial knowledge and skills. We look forward to providing news, research, readings, hints, provocations, and some humour, to help younger generations become financially capable.
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Teenfinca® now available
The first 2016 issue of the Teenfinca® student ezine will be available for subscribed schools and their partners next week.
This issue features:
- different ways to a preferred future
- the influence of peers on financial decision-making
- financial stress and domestic violence
- why economics?
- an introduction to the share market
- student leadership and careers focus
- your first job and your first pay
- a narrative about contents insurance
- five lessons for financial savviness
- top tips from a financial coach
- three small business profiles
- ethics and financial life skills.
Each article will be accompanied by a lesson plan, e-poster and short video slideshow for the benefit of teachers. School principals are encouraged to make the ezine available to the parent and carer community, so that they can also support the financial life skills education of their children.
In the news: Gambling apps and financial literacy
Gambling apps on phones are a great cause for concern.
The deepening presence of gambling advertising in all forms of media, including major news bulletins and sporting events is a concern for all of us who want young people to develop good financial habits. The saturation advertising funded by multiple gambling providers can result in our teens becoming desensitized to a pastime that preys on the financially illiterate.
Politicians and community representatives have expressed deep concerns recently of the exposure young people (and adults) have to gambling through the apps on their phones. With little effort they can gamble away their savings. Such habits can impact not just on their own life, but also the lives of other family members.
Schools and parents will have an increasing responsibility to counter-balance the collective advertising of the gambling industry. The need for comprehensive financial education increases to grow.
News report 1: Smartphone gambling in remote communities
News report 2: Bookmakers glamorising bettin
In the news: MLC reveals next generation's wealth worries
Recent research by MLC reaffirms the concerns parents have for their children.
Sky News reported: Almost two-thirds of Australians believe the next generation will never be able to afford their own home.
New research by MLC, part of National Australia Bank's wealth management division, also found one-third of parents are concerned their children will not enjoy the same standard of living as their own.
MLC chief executive Andrew Hagger said there has always been an expectation that future generations will do better than people today, yet these findings paint a different picture.
'It's concerning to see so many people are worried about how their children will afford their own homes and live a comfortable lifestyle,' Mr Hagger said, releasing the survey of 2000 Australians views...
View the MLC infographic: Australia today - Are we worried about the future?
Car insurance checklist
Do you have students at school learning to drive and perhaps considering purchasing a car?
A car is often one of the most expensive things that you will own. The freedom of driving on the open road is difficult to match but those open roads are varied in both location and condition and then there are those pesky other drivers. Whether you own your vehicle outright, are paying off a loan, or someone else owns it and you are driving it, appropriate risk management is pretty important.
When buying a car insurance policy, knowing what to ask or look for is half the battle, which is why we've put together this handy checklist to help you when you're looking cover your most prized possession - your ride.
Download the printable car insurance checklist
from Know Risk helping you to understand risk and insurance
School newsletter inserts
Financial literacy has been a long-term issue across all communities. By keeping financial literacy in the community consciousness, hopefully we can help improve financial life skills where it is needed within that community
This is why inserts are provided to schools to be placed within the school newsletter.
Twenty financial literacy inserts are provided for schools to use each year. The inserts are provided in four batches; one batch per term. If any one particular insert is not a good fit for your school, please revisit earlier batches to find a more appropriate insert. All inserts are compiled by The Wealth Academy.
The first two batches of 2016 Inserts are now available for schools to download.
Find out more here
Teaching tax: The deductable cuppa
Providing morning and afternoon teas and light refreshments to employees (or their “associates”) at the employer’s business premises or work site is tax-deductible to the employer. The same applies if the business provides such refreshments to visitors.
The Tax Office has ruled that this is not “entertainment”. If the business has no employees (for example, a partnership), claims for light refreshments are not allowed unless they are also provided to visitors.
School career's day
Many schools organise Career Days for their students, especially those in the final two years of schooling.
Recently I have been informed of schools who modify the speed dating concept found in some communities. This version is speed career dating. That is, students move every 2-3 minutes around a room which has many people from a variety of careers sitting at tables. These guests are ready to answer questions and provide information to those students who come to their desk. What a great idea!
Financial services is the largest employer in Australia. It should be easy to ask the school's current financial life skills partners and other interested parents and community-oriented businesses to contribute some time to tell students about the benefits and challenges of working in financial services..
In the news: Budget
The yearly federal budget is a good opportunity to talk about many financial concepts including needs and wants, 'saving for a rainy day', risk and return, short and long-term thinking, and decision-making. It is also a good time to talk about how different people within a community have different values and beliefs about how money should be used. Such discussions can help students to develop their own views and beliefs. Importantly, it can also help them to develop their own thinking framework for how they will use their hard-earned money in the future.
For business and economics students this year's budget features many policies that relate to taxation, superannuation, economic growth and employment. It is a great opportunity to discuss how financial decisions can impact on people's lives individually, within families and across a community.
Teachers: An open invitation
The Wealth Academy values partnerships and relationships that will ultimately help young people become more financially capable.
Teachers can support this cause by:
- contacting us with ideas to improve their financial education program (What do you need?)
- contributing resources or articles for us to consider for publication
- participating in our research program.
We want to help, as do our partners. Help us to help you.
Register your school here
Need help registering. Contact us
Does your school need a school financial education sponsor? We can help.
Find out more about sponsorship on the home page
Please share this newsletter with fellow parents, teachers and financial service professionals committed to the financial education of Australian youth. Financial capability does not happen by accident or by default—it requires effort. A united effort will bring greater benefits.
Yours in learning
Ken Swan, Director The Wealth Academy
Help your network: We are proud to consider ourselves lifelong learners, so please send us information, ideas and comments that you think we should share with our network. All inquiries and submissions for publication should be directed to the Manager using the contact options on our website www.thewealthacademy.com.au .
Information provided is for educational purposes and does not constitute financial advice. You should obtain independent advice from an Australian financial services licensee before making any financial decisions. Although The Wealth Academy (TWA) has made every effort to ensure the accuracy of the information as at the date of publication, TWA does not give any warranty or representation as to accuracy, reliability or completeness of the information. To the extent permitted by law, TWA and its employees, officers and contractors shall not be liable for any loss or damage arising in any way (including by way of negligence) from or in connection with any information provided or omitted or from any one acting or refraining to act in reliance on this information.