{"id":13588,"date":"2022-08-03T09:39:25","date_gmt":"2022-08-02T23:39:25","guid":{"rendered":"https:\/\/explorecareers.emotedigital.com.au\/?p=13588"},"modified":"2022-08-03T09:39:25","modified_gmt":"2022-08-02T23:39:25","slug":"the-explore-careers-intro-to-money-management-that-actually-makes-sense","status":"publish","type":"post","link":"https:\/\/explorecareers.com.au\/the-explore-careers-intro-to-money-management-that-actually-makes-sense\/","title":{"rendered":"The Explore Careers Intro to Money Management (That Actually Makes Sense)"},"content":{"rendered":"

Throughout high school, you\u2019ll hear a lot about \u2018literacy\u2019 – usually around English and Maths. But there\u2019s also something called Financial Literacy.<\/strong><\/p>\n

It\u2019s a valuable life skill, and we’ve become increasingly aware when talking with young people that there isn\u2019t enough to support them develop this skill before they really need it.<\/p>\n

So, we\u2019re launching a new series focused on financial literacy and money management – this blog\u2019s the intro.<\/p>\n

First Things First; Financial Literacy vs. Money Management<\/strong><\/h4>\n

We don\u2019t want to make things overly complicated here, and there are crossovers between these concepts.<\/p>\n

Here\u2019s a little definition to help:<\/p>\n

    \n
  • Financial Literacy:<\/strong> Financial literacy is the knowledge and confidence that you understand key financial concepts, including savings, debt, credit, and investing. This knowledge is the foundation of how you interact, use and utilise money. It helps you have a sense of financial well-being and trust in your abilities to look after yourself financially. It forms the foundation of ongoing money management.<\/li>\n
  • Money Management:<\/strong> Money management is the practical application of your financial literacy. It allows you to manage your finances appropriately. It includes monthly budgeting, debt management, sensible use of credit and loans, paying bills, managing your superannuation, paying taxes and achieving saving goals.<\/li>\n<\/ul>\n

    There\u2019s often an assumption we\u2019ll just \u2018know\u2019 how to be good with money and that being \u2018bad\u2019 with money is unavoidable. The truth is we learn financial literacy and money management all the time without realising it – usually from our parents and how they manage finances.<\/p>\n

    Both financial literacy and money management are primarily knowledge-based, which means you can learn how to improve them with the right education and set yourself up for financial success.<\/p>\n

    You don\u2019t need to be a pro from the outset, but it’s worth spending time working on your financial literacy as soon as possible.<\/p>\n

    Why Are They Important?<\/strong><\/h4>\n

    When we\u2019re young, we don\u2019t have any outgoings – we don\u2019t have to pay bills or rent (most of us). So, it\u2019s easy not to think about financial literacy or money management when you get a part-time job or pocket money.<\/p>\n

    There\u2019s nothing wrong with enjoying what you earn, but it could lead to habits that don\u2019t support successful money management as you get older. That\u2019s why it\u2019s worth thinking about these things early.<\/p>\n

    Money management helps you plan effectively for your financial future. Without a plan, you can easily overspend and miss opportunities to save money or develop good budgeting skills.<\/p>\n

    Planning helps you avoid financial problems and puts you in control of your money.<\/p>\n

    Key Topics to Explore<\/strong><\/h4>\n

    As part of this series, we\u2019ll focus on a few key topics we think are essential (which we wish someone had taught us about when we were younger!).<\/p>\n

    Here\u2019s an overview:<\/p>\n

    1. Choosing a Bank<\/strong><\/h5>\n

    Probably the first important step! Not all banks are the same, and it pays to do a little research.<\/p>\n

    We\u2019ll aim to cover:<\/p>\n

      \n
    • What to look for when choosing a bank.<\/li>\n
    • How to open a bank account<\/li>\n
    • How to get the most out of your daily banking<\/li>\n<\/ul>\n
      2. Setting Up a Savings Account<\/strong><\/h5>\n

      When you\u2019re young, it feels like you\u2019ve all the time in the world to start saving and thinking about bigger life ambitions. Creating savings early helps you not only develop vital money management skills but achieve saving goals faster.<\/p>\n

      We\u2019ll be covering:<\/p>\n

        \n
      • Why savings matter and how to get started<\/li>\n
      • Understanding interest on savings<\/li>\n
      • Some good saving goals to consider<\/li>\n
      • Top tips for reaching savings goals<\/li>\n<\/ul>\n
        3. Thinking About Tax<\/strong><\/h5>\n

        We know – yuck<\/em>. Tax isn\u2019t many people\u2019s favourite thing. While it might seem tedious, it\u2019s crucial to get right as there are many ways to maximise your tax returns to support your ongoing financial plans.<\/p>\n

        We\u2019ll cover:<\/p>\n

          \n
        • What tax is, and why we pay it<\/li>\n
        • The basics of completing a tax return<\/li>\n
        • What you can claim on a tax return<\/li>\n
        • Top tips for managing tax<\/li>\n<\/ul>\n
          4. Understanding Superannuation<\/strong><\/h5>\n

          Superannuation is the dedicated savings account you\u2019ll tap into once you retire. We know it feels a long way off, but your employer will directly contribute to these savings for you once you start work. It\u2019s good to have some solid knowledge as you start work.<\/p>\n

          We\u2019ll talk you through:<\/p>\n

            \n
          • What superannuation involves, and how it works<\/li>\n
          • The different superannuation providers and how to choose one<\/li>\n
          • What contributions look like, and how you can keep your super healthy<\/li>\n<\/ul>\n
            5. Credit, Debt, and Credit Cards<\/strong><\/h5>\n

            There is \u2018good\u2019 debt – mortgages, student loans, car loans – that serves a purpose. And there is \u2018bad\u2019 debt – maxing out credit cards with high interest on stuff you might not need. Credit and debt require set management skills – the sooner you learn to make credit work for you, the better.<\/p>\n

            We\u2019ll go through:<\/p>\n

              \n
            • Why credit can be good and how it aids your financial health (when used properly)<\/li>\n
            • What to avoid when taking out credit<\/li>\n
            • The impact of debt on your financial health<\/li>\n
            • Tips for managing credit and debt the right way<\/li>\n<\/ul>\n
              6. The Basics of Budgeting<\/strong><\/h5>\n

              Budgets are a great way to help you clearly understand what money you have coming in and going out. Budgets allow you to ensure all your financial priorities are taken care of (helping to reduce stress) so you can focus on enjoying life.<\/p>\n

              We\u2019ll talk about:<\/p>\n

                \n
              • What a budget is and how to set one up<\/li>\n
              • Some great tools you can use to create and manage a budget<\/li>\n
              • The types of things you can use a budget for<\/li>\n
              • How to adjust budgets when you have bigger financial goals (like buying a car or going travelling)<\/li>\n<\/ul>\n
                7. How Investing Works<\/strong><\/h5>\n

                Investing is a way to build on your finances and maximise your financial goals – it can often seem confusing, and many people don\u2019t bother with it for this reason. But it\u2019s not all \u2018Wolf on Wall Street\u2019 style intensity! Your superannuation, for example, is an investment.<\/p>\n

                To help, we\u2019ll cover:<\/p>\n

                  \n
                • What investing is and how it works<\/li>\n
                • Tips for starting with investing<\/li>\n
                • When it\u2019s a good time to think about investing<\/li>\n
                • How things like bitcoin and cryptocurrency fit in here<\/li>\n<\/ul>\n

                  Getting Started<\/strong><\/h4>\n

                  Now you see why we\u2019re breaking this down into a series! There\u2019s a LOT to cover, and we\u2019re super excited to start on all this with you.<\/p>\n

                  As always, we love your feedback, so if there\u2019s a money management question burning away in the back of your mind, get in touch and let us know! We\u2019ll cover it in a blog or do a dedicated post on Insta for you: hello@explorecareers.com.au<\/p>\n

                  Just for Fun: Test Your Knowledge<\/strong><\/h4>\n

                  And lastly, just for fun (and to ensure you were paying attention), here are a few questions to test your knowledge of what we\u2019ve covered so far!<\/p>\n

                  No scrolling up and cheating!<\/p>\n

                    \n
                  1. What is financial literacy?<\/li>\n
                  2. What is money management?<\/li>\n
                  3. Who do we initially learn financial literacy and money management from?<\/li>\n
                  4. What is superannuation?<\/li>\n
                  5. Is all debt bad?<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

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