Newsletter: May 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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Neuroscience and financial learning
New research in neuroscience, and especially neuroplasticity, offers parents, educators and financial service professional's new ideas in supporting the financial education of children, teenagers, students and clients.
This article provides a brief introduction to some neuroscience findings that may interest those who value financial education.
The article is available for subscribed schools to give to teachers, parents and senior students.
In six months your senior students are in the real world!
Will the students soon to leave your school have the financial knowledge and skills they will need?
Preparing school students for the financial world they live in may seem a daunting task, especially when there are so many competing priorities for students in the final year of school. However, it is a task that we must meet.
This can be made easier if schools:
- have a planned and coordinated financial life skills program over several years
- use the expertise that exists within local communities
- ensure programs have an attitudinal, behavioural orientation, rather than just a calculation orientation, and
- link to real-world decision-making contexts for teenagers.
In the news: Gambling apps continue to attract teens
We MUST take greater responsibility to teach our students about the dangers and risks of gambling.
Recently the ABC reported on how gambling was being integrated into popular gaming programs. Unfortunately, the gambling has real consequences, with many teenagers losing thousands of dollars.
Read the article: Counter-Strike skins gambling: Australian teens risking thousands through video game
ePosters are now available for download
The latest set of ePosters is now available for subscribed schools.
This ePoster relates to an article in the recent Issue of Teenfinca. It is an article that focuses on financial decision-making,
Extract: Peer group pressure is very powerful. Companies that sell products to teenagers know that teens want to be a part of the same crowd; they want to belong to the group. This is why large companies have marketing teams that develop advertising campaigns targeted at teenagers. Often these campaigns show teens shopping
in groups, purchasing phones and clothes with peers, and laughing and enjoying themselves. These advertisements never show teens considering the pluses and minuses of purchasing a product, or checking their budget, or any other example of using their financial intelligence
have a role in developing the financial intelligence of their children. Discussing this article with your teenage children makes sense.
Financial service providers
, experts in their fields, should also demonstrate an active role and responsibility in supporting the financial life skills learning of their client's children.
The National School Improvement Tool brings together findings from international research into the practices of highly effective schools and school leaders.
One of the dimensions for review is School-community partnerships
. Outstanding school leaders... make[s] deliberate and strategic use of partnerships with families, local businesses and community organisations to access intellectual, physical and/or other resources not available within the school for the purposes of improving student outcomes. There is a range of currently operating partnerships, each carefully planned and designed to enhance student outcomes (for example, to broaden student knowledge, build new skills, develop more positive attitudes, increase engagement levels, create applied learning opportunities for students, or facilitate successful transitions to work or further education or training).
Financial life skills is an obvious context where local businesses and community organisations can support student learning outcomes.
Read more (pp 18-19 School-community partnerships) National School Improvement Tool
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: Can reward programs be taxed?
Many companies offer their customers loyalty award-based incentives programs. These programs, such as the “Frequent Flyer” and “Fly Buys” schemes, are designed to reward customers for purchasing or using a company’s goods and services.
As a result of one particular court case, the Tax Office has come to accept that flight rewards received by employees in their personal capacities in respect of expenditure paid by their employer are not assessable income.
The tax treatment is based on the court’s decision that flight rewards received by an individual who provides services, or who has received the reward because of “business expenditure”, are not assessable as the reward arises from the personal (that is, non service/non business) contractual relationship with the rewards program administrator.
The case in question dealt with the situation where an employee who had accumulated points as a result of travel on behalf of her employer converted those points into airline tickets for her parents (the points were not convertible to cash). The court held that the points related to her membership of the program, and there was no contractual relationship between the employer and the program administrator. Consequently it was irrelevant that the employer had paid for the cost of the original travel.
The Tax Office also accepts that with consumer loyalty programs such as Fly Buys, aimed primarily at domestic purchases by an employee, no amount is assessable income. It has however stated that it may take a different view of situations where the reward accumulated in a year exceeds 250,000 points as a result of a business relationship or business expenditure, and the arrangement has no commercial purpose other than to allow the recipient to receive reward points.
While many schools teach business that includes studies in entrepreneurship, some schools have taken the extra step and started an Entrepreneurs Club.
In partnership with start-up hub River City Labs, the St Paul's Anglican School Entrepreneurs Club will provide an opportunity for students, staff and parents to grow their own business by learning the basics of transforming an idea into a business and pitch their ideas to investors for possible funding.
Learn more: St Paul's Anglican School
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.
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 partner? We can help.
Find out more about sponsorship and partnership 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.