One in Four Australians have less than $1000 dollars saved.
Take Control of Your Financial Education If you think about it, most financial education happens when someone is sitting across from a financial lender of some kind who is pitching a loan. Mortgage lenders give advice on what percentage of your monthly budget you should spend on housing. Car loan officers pitch longer loans to lower monthly payments. Getting financial education from businesses that want you to go into debt is like going to a fast food joint for dieting help. Hiring a financial advisor could help with money management, but that won’t solve the problem of financial illiteracy. Financial literacy advocate Curtis Carroll says, “A professional is a person who knows his craft better than most. And no one knows how much money you have, need, or want better than you, which means you are the professional.” No one will ever care about your financial situation as much as you. Take charge to become not only financially literate, but an expert in your personal finances. Start with understanding the fundamentals of money management and master those skills at home.
TEST YOUR FINANCIAL LITERACY 6
Only one in three people answered all three questions correctly. How will you do? 1. Suppose you have some money. Is it safer to put your money into one business investment, or to put your money into multiple businesses or investments? A. One business or investment B. Multiple businesses or investments 2. Suppose over the next 10 years the prices of things you buy double. If your income also doubles, will you be able to buy less than you can buy today, or more than you can buy today? A. Less B. The same C. More 3. Suppose you have $100 dollars in a savings account and the bank adds 10 percent per year to the account. How much money would you have in the account after five years if you did not remove any money from the account? A. More than $150 B. Exactly $150 C. Less than $150
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MARCH 2018 | MELALEUCA.COM
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