Your ABC to Financial Literacy - Raiz Invest

National Financial Literacy Month is celebrated in April, and it’s a great opportunity for all of us to consider and reflect upon our personal financial situation and skills.  If you feel you aren’t top of the class when it comes to your finances, you are not alone!

It does not matter if you have just started earning or have been earning for a long time, every day is a chance to reflect upon your spending and improve your finances.

 

Five reasons why we need more financial literacy in Australia

  • Just over half of Australians (55%) are considered financially literate. But that means almost half are not.
  • There is a large gender gap in financial literacy. While almost two-thirds (63%) of Australian men are considered financially literate, fewer than half (48%) of Australian women are.
  • 1 in 5 Aussies not able to access $2,000 in an emergency
  • 2 in 3 Aussies don’t understand the investment concept of diversification – don’t put all your eggs in one basket; and
  • 2 in 3 Aussies don’t know the current value of their super

*The Financial Capability website, which is managed by the Australian Treasury, as the lead Australian Government agency for financial capability.

 

Ways you become more financially literate

1. Make a list of what you earn and what you save each month.

It doesn’t have to be complicated. Just two columns of earnings and expenses will give you a better idea of how much spare cash (if any) you have. This may be an indication that you need to find places to save from your current spending habits if you spend more than you earn.

 

2. Compare prices when you go shopping

It’s never been easier to compare prices when you shop, whether it’s for your groceries or your next tech purchase. Google the product, see what prices come up, and decide which is the most affordable place to buy the product. Doing this will help you form habits to compare prices whenever you shop, helping you spend less and save more.

 

3. Start a conversation about money with your friends and family

No need to be too probing or personal. Just getting a sense of what other people do to save and invest, and their feedback on how they help make themselves more confident about money, and the tips and tricks they use.

 

4. Read financial news, financial blogs and listen to podcasts

There are many educational sources around. Ask your friends, colleagues, and family what they are reading and listening to. We put out an email on Tuesday and fortnightly to help keep you financially informed!

 

It all adds up!

Make this month your opportunity to review your finances and gradually improve them. Little by little, it all adds up! And if you choose to start investing, you can always start small and learn as you go!

 


 

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:

 

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Click to download the Raiz app

 

Important Information

If you have read all or any part of our email, website, or communication then you need to know that this is factual information and general advice only. This means it does not consider any person’s particular financial objectives, financial situation, or financial needs. If you are an investor, you should consult a licensed adviser before acting on any information to fully understand the benefits and risk associated with the product. This is your call but that is what you should do.

You may be surprised to learn that RAIZ Invest Australia Limited (ABN 26 604 402 815) (Raiz), an authorised representative AFSL 434776 prepared this information.

We are not allowed, and have not prepared this information to offer financial product advice or a recommendation in relation to any investments or securities. If we did give you personal advice, which we did not, then the use of the Raiz App would be a lot more expensive than the current pricing – sorry but true. You therefore should not rely on this information to make investment decisions, because it was not about you for once, and unfortunately, we cannot advise you on who or what you can rely on – again sorry.

A Product Disclosure Statement (PDS) for Raiz Invest and/or Raiz Invest Super is available on the Raiz Invest website and App. A person must read and consider the PDS before deciding whether, or not, to acquire and/or continue to hold interests in the financial product. We know and ASIC research shows that you probably won’t, but we want you to, and we encourage you to read the PDS so you know exactly what the product does, its risks and costs. If you don’t read the PDS, it’s a bit like flying blind. Probably not a good idea.

The risks and fees for investing are fully set out in the PDS and include the risks that would ordinarily apply to investing. You should note, as illustrated by the global financial crisis of 2008, that sometimes  not even professionals in the financial services sector understand the ordinary risks of investing – because by their nature many risks are unknown – but you still need to give it a go and try to understand the risks set out in the PDS.

Any returns shown or implied are not forecasts and are not reliable guides or predictors of future performance. Those of you who cannot afford financial advice may be considering ignoring this statement, but please don’t, it is so true.

Under no circumstance is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz Invest or Raiz Invest Super.

This information may be based on assumptions or market conditions which change without notice and have not been independently verified. Basically, this says nothing stays the same for long in financial markets (or even in life for that matter) and we are sorry. We try, but we can’t promise that the information is accurate, or stays accurate.

Any opinions or information expressed are subject to change without notice; that’s just the way we roll.

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Raiz Home Ownership Pty Ltd (ABN 14 645 876 937), an Australian Credit Representative number 528594 under Australian Credit Licence number 387025. Raiz Home Ownership Pty Ltd is 100% owned by Raiz Invest Australia Limited (ABN 26 604 402 815).


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