Money is one of those essential things that humans must manage throughout our entire lives. Many Australians today are anxious about money – stressing over their current financial situations.
From the moment we enter adulthood, we step into a world where every twist and turn – from graduation to retirement – will be directly impacted by our financial knowledge and money management skills.
- Career decisions
- Buying your first home
- Investing in property
- Getting married
- Having children
Finances and financial knowledge play a massive role in each of these life events. It’s not just the big events finance has a say in, though; it’s also a part of our day-to-day lives.
- Where we eat
- What we buy
- Where we travel
These events conceal dozens of financial decisions that dictate many facets of our lives.
According to data released by Digital Finance Analytics, close to 75% of home loan borrowers in the northern Brisbane suburbs of Carseldine, Geebung and Zillmere are experiencing mortgage stress. This is well above the national average of 40% who lack sufficient funds to pay their bills, up from an already high 33% in February before the COVID-19 pandemic was declared.
Yet, still – managing money, mortgages and personal finances isn’t taught broadly in school. Why is that?
I can think of a few reasons… but the one that stands out the most is this – personal finance is very personal. Personal finance is also an extensive topic; covering the management of financial decisions made by a person or family-based upon their budgeting, banking, insurance, mortgage/s, investments, retirement and estate planning scenarios.
That’s a lot for teachers to add to their already huge plate of curriculum subjects. Finance – encompassing the oversight, creation and study of money, banking, credit, investments, assets and liabilities that make up our financial systems – is a subject that takes years of study and devotion to understand and master.
Since individuals, businesses and government corporations all need funding to operate, the finance fields can be broken up into 3 sub-categories; personal finance, corporate finance and public finance.
Financial planning involves analysing a financial position to formulate strategies for future needs within financial constraints. Personal finances are specific to a context. For example, individuals must save for retirement, which requires saving or investing enough money during their working lives to fund their long-term plans.
What are your long term plans and financial goals?