Budgeting

Estate planning is an important process that involves making arrangements for the distribution of assets and the management of affairs after one’s passing. However, certain complexities arise when accounting for divorced partners, loved ones struggling with substance abuse, or individuals diagnosed with disabilities. In this article, we will explore the complications that can arise in estate planning and provide guidance on how to navigate these sensitive situations. Estate Planning Around Divorce Divorce introduces unique challenges in estate planning, particularly when it comes to the treatment of former spouses. Adjustments to your estate planning may be vital, considering the most recent ABS data available indicating 49,241 divorces filed in Australia for a 2.4 crude divorce rate.  Update Beneficiary Designations After a divorce, review and update beneficiary designations on various accounts and policies. This includes life insurance policies, retirement accounts, investment accounts, and payable-on-death (POD) or transfer-on-death (TOD) designations. Failure to update these designations may result in assets passing to an ex-spouse instead of intended beneficiaries. Revise Wills and Trusts A divorce often renders any provisions in a will or trust regarding the former spouse ineffective. It is essential to review and revise these documents to reflect the changed circumstances and ensure that assets are distributed according to the individual’s current wishes. This includes updating provisions related to property distribution, appointment of guardians for minor children, and naming of executors or trustees. Take note as well that Australia’s states and territories will have their own treatments on divorces and wills, which your family solicitor can guide you on. The team at Altus Financial claims that in some areas, a divorce removes the spouse who served the papers as executor if they were ever named in the will, and may not even be given anything due them. Address Custody and Support for Minors Divorce often involves child custody and support arrangements if the couple ever had kids. Estate planning should consider the well-being and financial security of minor children. This may involve appointing a guardian in the event of the individual’s death and establishing trusts or other mechanisms to provide for the children’s care, education, and upbringing. Powers of Attorney and Healthcare Directives During marriage, spouses often grant each other powers of attorney and healthcare decision-making authority. After a divorce,revoke or revise these documents to ensure that decision-making authority aligns with the individual’s current wishes and relationships. New powers of attorney and healthcare directives may need to be executed, designating trusted individuals to act on behalf of the individual in financial and medical matters. Review and Update Asset Distribution Divorce can impact how assets are distributed upon death. It is important to review and update any provisions related to property distribution, especially if there are specific assets or amounts designated for the ex-spouse. Additionally, the individual may want to reassess their overall estate plan and make adjustments based on their changed financial situation and goals. Estate Planning Around Substance Abuse Estate planning requires careful consideration if a beneficiary might have episodes with substance abuse. Leaving significant assets outright to someone battling addiction may inadvertently enable more destructive behaviour. In 2023, the Parliamentary Joint Committee on Law Enforcement expressed concerns about people having more digital channels to seek illicit substances (which may include people already hit with drug addiction) and sought input from the Australian Criminal Intelligence Commission and the Australian Institute of Criminology.  The following are some strategies to handle estate planning with a loved one under addiction. Asset Protection and Management Leaving significant assets outright to someone struggling with drug addiction may not be in their best interest. The funds could be misused, fueling destructive behaviour or exacerbating the addiction. To protect the individual and their inheritance, a trust can be established as part of the estate plan. A trust appoints a responsible trustee to manage and distribute the assets on behalf of the beneficiary, ensuring they are used for their intended purpose, such as rehabilitation, healthcare, or education. Substance Abuse Treatment and Support Estate planning can incorporate provisions that promote treatment and support for the individual’s addiction recovery. This may include directing funds from the trust towards rehabilitation programmes, counselling services, or ongoing therapy. By structuring the trust to provide financial assistance for recovery efforts, estate planners can contribute to the individual’s well-being and long-term recovery. Conditions and Incentives To encourage sobriety and responsible behaviour, estate planners can include conditions or incentives in the trust. For example, the trust may stipulate that the individual must maintain sobriety, attend regular counselling or support group sessions, or participate in educational or vocational programmes. Meeting these requirements could unlock additional distributions or benefits from the trust, providing motivation for the individual to maintain a drug-free lifestyle. Estate Planning Around Disability In estate planning, persons with disabilities (PWDs) require additional attention to ensure their financial security and access to necessary support.  Special Disability Trust One of the primary considerations for estate planning involving PWDs is the creation of the Special Disability Trusts (SDT). SDTs are designed to provide financial support for the person with a disability while preserving their eligibility for government assistance programmes such as the National Disability Insurance Scheme (NDIS) or disability pensions. The trust can be structured to supplement public benefits by covering additional expenses not provided by government support, but consult the Department of Human Services for further advice as they can gauge eligibility for support. Appointing a Trustee When establishing a special needs trust, it is important to carefully select a trustee who will manage the trust assets and make distributions on behalf of the beneficiary. The trustee should have a good understanding of the individual’s unique needs, be financially responsible, and act in the beneficiary’s best interests. This trustee may be a family member, friend, or professional trustee. Financial Management and Assistance Estate planning for a person with a disability should consider their ongoing financial management and assistance. This may involve appointing a financial guardian or solicitor to make decisions on their behalf if they are unable to do

Choosing to be a stay-at-home parent is increasingly common in Australia. This trend reflects desires for family connection and cost considerations. The concept of a traditional family dynamic has been evolving. While the dual-income family model has become the norm in many households, there is a growing trend of parents choosing to be stay-at-home parents in Australia. This shift in family dynamics is driven by various factors, such as the desire for a stronger connection with their children or the cost-effectiveness of staying at home. However, the decision to be a stay-at-home parent comes with its own set of financial challenges, which can impact the family’s overall expenses. In this blog, we will pick apart the rationale behind why some parents prefer to stay at home, as well as the costs that can mount up for the Australian household. Reasons to be a Stay-at-Home Parent One of the primary reasons some parents opt for the stay-at-home life is their child-rearing philosophy. They believe in providing hands-on care and nurturing for their children during the crucial formative years. This choice is often driven by the belief that a parent’s presence has a profound impact on a child’s development. There are also concerns that hiring a househelp to look after a child may possibly gravitate that child’s parental bond to the househelp instead of the parents. In a world where the demands of work can be all-consuming, some parents decide to prioritise family life over their careers. The idea of achieving a work-life balance, with a focus on spending quality time with their children, can be a powerful motivator for parents to stay at home. Staying at home can sometimes be financially beneficial. In some cases, the cost of childcare can be so significant that it makes more sense for one parent to stay at home and look after the kids. This is particularly true when the parent’s income barely covers the expenses associated with working, such as childcare, transportation, and work-related costs. Some sources attest that childcare in Australia costs between $90 to $180 per child per day. The emotional well-being of the family as a whole can be enhanced when one parent is always present. This can reduce the stress and pressure experienced by working parents and foster a more positive family environment. Many parents find personal fulfilment in being directly involved in their children’s upbringing. Witnessing their children’s milestones, teaching them valuable life skills, and being there for them can be immensely satisfying. The Costs of Choosing Stay-at-Home Parenthood While the decision to become a stay-at-home parent may offer numerous benefits, it is not without its financial implications. The following are some of the costs that can mount up for households in Australia. Loss of Income The most apparent cost of staying at home is the loss of income. This can be a significant blow to the family budget, particularly if the stay-at-home parent previously contributed significantly to the household income. Reduced Retirement Savings When one parent opts to stay at home, they may also miss out on retirement savings contributions. This can impact their long-term financial security, especially if they don’t have alternative retirement savings plans in place. Childcare Savings While this might seem counterintuitive, many families spend a considerable portion of their income on childcare services. Stay-at-home parents, on the other hand, save on these expenses, potentially offsetting the loss of income to some extent. In a 2023 interview with News Corp Australia’s Mary Madigan, Brisbane resident Ms Rebecca said she has worked to manage her partner’s take home income by wisely budgeting their expenses, and when it came to childcare, she has homeschooled her eldest child as they are on the spectrum    Education and Skill Development When a parent steps out of the workforce for an extended period, they may miss out on opportunities for career advancement and skill development. This could hinder their re-entry into the job market when they decide to return to work. Household Expenses The cost of household expenses can increase when one parent stays at home. Additional costs may arise from utilities, groceries, and other daily expenses that come with a family member being home all day. Career Interruption Staying at home for an extended period can lead to a career interruption. Upon returning to work, some parents may find it challenging to secure positions that are on par with their qualifications and experience. Side Hustles for a Stay-at-Home Parent For many stay-at-home parents, the financial challenges can be daunting. To mitigate these challenges and contribute to the household income, many opt to pursue side hustles. Here are some viable options for stay-at-home parents in Australia: Conclusion In a household where one parent chooses to be the stay-at-home caregiver, the other often assumes the role of the breadwinner. For the breadwinning partner, it is essential to recognise the financial and emotional responsibilities this role entails. Effective communication and collaboration between both parents are crucial for a successful partnership in this family dynamic. The decision to become a stay-at-home parent is deeply personal and often influenced by various factors, including child-rearing philosophies and financial considerations. While the costs associated with this choice are not to be underestimated, many parents find the experience to be rewarding and fulfilling. Balancing the books and managing expenses can be achieved through careful financial planning and exploring income-generating opportunities. Ultimately, the choice to stay at home or pursue a career is a family’s unique decision, and what matters most is the well-being and happiness of the family unit as a whole. DISCLAIMER:  This article is for informational purposes only.

Night out expenses can add up quickly. Instead of unwinding with costly nights out, consider tightening your budget and finding more affordable ways to relax. People want to unwind after a long day’s grind. In many cases, that unwinding is done with friends or family, but what if previous nights out have ended with enormous bills? You can push back that trend and tighten belts for the next night out. Cash, no cards  Prepare a certain amount of cash and make sure to spend within that limit, especially if you’re just going to one place. A budgeting app like 2 Ezi may help in keeping to the spending cap. Do not bring any credit cards; that way there’s less danger of being tempted to swipe it on a whim, let alone the possibility of losing the cards due to misplacement or theft. Even if you have a debit card on hand, do not attempt to withdraw money or swipe it either. Avoid using smartphone payment apps The prevalence of buy-now-pay-later (BNPL) apps gave consumers added flexibility with their payment options. However, that also gives rise to unwanted swipes using QR codes. If you have certain BNPL apps on your gadgets, make sure not to engage them, as any usage could also appear on your credit card the same way as a swipe. Eat before going out  Some social experts advise eating a full meal at home before heading out. That way, you reduce the need to order food yourself and also not increase your appetite. Walking If the place you’re going to is not that far away from home, consider walking with your friends. Aside from the exercise and mental clarity offered by the stroll, you save money that would have been spent on taking the taxi or a rideshare. However, if the group is already tipsy, you can split a taxi on the way home. Not just a bar-only place You may have to check up on social establishments that have other features on offer besides a bar. That way, you can bond with your friends or meet new people over other activities that may not require some spending. Off-peak nights Not all clubs tend to be full houses most of the time. Research the evenings when your chosen venue is not at peak capacity. You and your party will have more maneouvre room and can watch out for each other. Even when the COVID-19 pandemic is not over, you may also be wary of people with symptoms – check your state or territorial authority on the level of community transmission. No pub crawls  Some groups of club patrons may have plans to visit a number of bars all in one night. Consider going home after your group visits the first bar to prevent incurring additional expenses. Promotional staff Some clubs may have promotional staff coming up to offer a drink. As much as possible, avoid the offers for your own safety and protect your budget. Nobody knows if the drinks they are offering are a potent kicker – or have been spiked with certain sedatives. Avoid big-ticket drinks Even if you resolve to have just one alcoholic drink, do not be tempted to order one shot of the most expensive drink on the menu. There’s a chance your entire budget for the night may be spent on it. Just one pitcher If your group is going for the same drink, ask if the dining place offers the drink in a pitcher and the team can chip in to cover that cost. This can save you and your group full price for separate glasses of the same drink. Take advantage of deals If you’re heading out to a bar, research beforehand if the place has deals. These may include free drinks for one person in a party depending on the size or half-price off certain drinks during off-peak hours. If you intend to hang out at a particular place going forward, some nightlife gurus suggest getting to know the staff and building relationships with them; they will appreciate your loyalty and possibly give you incentives. No to “waiter, another round!” If you and your friends are at the bar, limit yourself to one drink only and you can’t order a round for everyone on the team. You run the danger of considerably blowing your budget if you do order a round. Constant hydration Alcohol is a diuretic and will force you to hit the restroom many times in one night if the drinking is not controlled. You need to request water on tap to keep your fluid intake between drinks – even more if you only consume one alcoholic drink. Conclusion If you need a hangover meal, plan ahead by stocking up easy-to-prepare food at home, such as frozen pizza and pasta, coffee, bread (for toast) and fruit. It’s okay to have some time on the town with friends or loved ones. If there’s a way to bond without spending a lot of cash, so much the better. DISCLAIMER: This article is for informational purposes only and does not constitute official financial or health advice. Please practise responsible behaviour in a public setting.

While professional athletes often enjoy substantial wealth during their playing careers, the transition to life after sports can bring about significant financial challenges. Many athletes face difficulties in managing their finances and sustaining their wealth once they retire. In this blog post, we will explore the financial problems that professional athletes face after retirement and discuss potential solutions to help them navigate these challenges successfully. Overspending and Lifestyle Adjustments One common financial problem faced by retired athletes is overspending. During their playing careers, athletes may develop spending habits that are not sustainable once their income decreases or ceases altogether. Maintaining the same extravagant lifestyle without a consistent source of high income can quickly deplete their savings. To address overspending and make necessary lifestyle adjustments, retired athletes should: Lack of Financial Education and Planning Many athletes focus solely on their sporting careers, neglecting financial education and planning for the future. They may not have the necessary knowledge or skills to manage their finances effectively, leading to poor investment decisions, inadequate retirement planning, and vulnerability to financial scams. To address the lack of financial education and planning, retired athletes should: To underline how issues with finances can affect former players, Australians may know the story of Lucas Neill, who was declared bankrupt in the UK back in 2016 due to several bad investments despite earning over $40m in two decades of EPL service. Some of his former Socceroos teammates claim Neill has practically distanced himself from them. In August 2023, the Australian Sports Foundation (ASF) released a survey highlighting financial issues affecting current or former athletes, with 2,304 respondents. The data revealed that 46 per cent of the top athletes representing Australia between 18 and 34 years old were earning just below $23,000 a year, and had problems trying to earn a living despite being in active competition, with travel, training, and equipment costs a major factor. At least 40 per cent reported poorer financial standings than they were a year ago.   Worse, one of every two athletes training for the 2026 Commonwealth Games and 43 per cent of those preparing for the 2032 Olympics in Brisbane are entertaining the possibility of moving on from their sport, the survey added.      Mismanagement of Investments Athletes may fall victim to poor investment choices, trusting their finances to unscrupulous advisors or making uninformed decisions. Investments in high-risk ventures or business ventures without proper due diligence can lead to significant losses. To address the mismanagement of investments, retired athletes should: Mental Health and Emotional Support The transition from a successful sporting career to retirement can have a significant impact on athletes’ mental health and emotional well-being. Financial stress and uncertainty can exacerbate these challenges, leading to poor decision-making and a further decline in financial stability. To address mental health challenges and seek emotional support, retired athletes should: Issues with mental health amongst athletes are noted in Australia’s sporting community. Talking to ABC, Brumbies skipper Owen Finegan revealed that fellow Wallaby Dan Vickerman had been suffering from depression after problems with his right leg forced him to retire from the game in 2012; the depression led to his suicide five years later. Former Test cricketer Nathan Bracken said his job prospects were nil after injuries forced his retirement from national duties, even a supermarket wouldn’t consider hiring him. Despite the gloom and legal woes with Cricket Australia, he was able to bounce back with a communications degree from Charles Sturt University, a short run in politics, and a successful account manager role with Boral. In addition to the financial woes, the above ASF survey recorded that at least one in four respondent athletes reported mental health declines than a year before.  Conclusion It can be a hard life for any athlete when the time comes they have to close their chapters on the field. The financial challenges faced by retired athletes require careful attention and proactive steps to mitigate risks and ensure long-term financial stability. It is essential for athletes to recognise the need for professional guidance and to be proactive in managing their finances to secure a solid financial future after they make their exit. DISCLAIMER:  This article is for informational purposes only and does not constitute official financial advice. 2 Ezi has no working relationships with any individual or organisation mentioned. Please consult your finance advisor immediately. For financial and mental health concerns, please call Lifeline (131 114), MensLine (1300 789 978), the National Debt Helpline (1800 007 007), and BeyondBlue (1300 224 636).

Investing in the Australian share market can build wealth. This guide covers mechanics, budgeting, and share selection. Investing in the Australian share market can be a powerful strategy for building long-term wealth. The Australian Securities Exchange (ASX) offers numerous opportunities for individuals to grow their financial assets through shares. Going for shares may be a worthy investment – the ASX Investor Study 2023 noted that international issues such as the pandemic and cost of living have not dampened the thirst to buy shares. In this guide, we will delve into the mechanics of the share market in Australia, provide tips on budgeting for share investments, and offer insights on how to choose the right shares for your portfolio. The Share Market in Australia The Australian share market, often referred to as the ASX, is the platform where investors can buy and sell shares in publicly traded companies. They revolve around some cardinal elements  Shares and Ownership When you invest in shares, you are essentially buying ownership stakes in a company. The number of shares you own determines your ownership percentage in that company. As a shareholder, you may have the right to vote on certain company decisions during an annual general meeting and may be entitled to a portion of the company’s profits in the form of dividends. However, not all Australian companies will be open to stock investments and they can only go for an IPO if they submit a prospectus to ASIC.   Stock Exchanges The ASX is the primary stock exchange in Australia, where shares of thousands of companies are listed and traded. It provides a regulated marketplace for buyers and sellers to transact shares. Share Prices and Market Capitalisation The share market dynamics on supply and demand influence stock prices. When more investors want to buy a particular share than sell it, the share price tends to rise, and vice versa. The market capitalisation of a company is the total value of all its outstanding shares, calculated by multiplying the share price by the number of shares. Brokers and Trading To buy and sell shares on the ASX, you’ll need to use the services of a stockbroker or an online trading platform. Brokers act as intermediaries who execute your trades on your behalf. Online trading platforms have become increasingly popular due to their convenience and cost-effectiveness. Diversification One key strategy in share market investing is diversification, which involves spreading your investments across different companies and industries. Diversification can help mitigate risk by reducing your exposure to the performance of a single company or sector. Tips on Budgeting for Share Investments Investing in shares requires careful budgeting and financial planning. Here are some important tips to consider: Set Clear Investment Goals Before you start investing, define your financial objectives. Are you looking to generate income through dividends, achieve capital growth, or both? Answering that question and researching your prospect stocks will help determine your investment strategy. Create an Investment Budget Determine how much money you can comfortably allocate to share investments without affecting your day-to-day finances. It’s crucial to invest only what you can afford to lose, as share prices can fluctuate. Build an Emergency Fund Even when you are committed to buying a good deal of shares, it pays to have a hefty amount of money left over in your personal accounts for an emergency. Prioritise building an emergency fund with enough savings to cover three to six months’ worth of living expenses.   Pay Off High-Interest Debt Before investing, consider paying off high-interest debts like credit card balances. The interest on these debts can outweigh the returns from your investments. Consider Dollar-Cost Averaging Dollar-cost averaging (DCA) involves investing a fixed amount of money at regular intervals, regardless of share prices. Some observers state it can help reduce the impact of market volatility on your investments. Review and Adjust Your Budget Regularly review your budget and adjust it as needed. As your financial situation changes, you may be able to allocate more funds to share investments. How to Choose the Right Shares Selecting the right shares is critical to your investment success. Here’s a step-by-step guide on how to choose shares for your portfolio: Research and Education Begin by gaining a solid understanding of the share market and how it operates. Books, seminars, and notable financial news sources may bolster your knowledge. A financial advisor with expertise in the stock market can also guide you through its complexities, ensuring that investing in shares becomes a strong component of your financial strategy.  Define Your Investment Strategy Decide whether you want to focus on income-oriented shares (dividend stocks) or growth-oriented shares (stocks with potential for capital appreciation). Reconcile your decision with your current investment strategy. Analyse Companies When choosing shares, conduct thorough research on the companies you’re interested in. Look at their financial statements, earnings reports, and future growth prospects. Consider factors such as industry trends, competition, and market positioning. Note that in making your initial purchase for any shareholding, the ASX requires you have bought no less than $500 worth of shares. Diversify Your Portfolio A key point of investing in shares is to diversify your holdings. Diversification can help protect your portfolio from the poor performance of a single company or sector. For example, you might spend $1k to buy stock in anti-drone countermeasures company DroneShield and $1,600 in supermarket chain Coles.  Evaluate Financial Metrics Pay attention to financial metrics like price-to-earnings (P/E) ratio, earnings per share (EPS), and dividend yield. These metrics can provide insights into a company’s valuation and financial health. Stay Informed Keep abreast of market news and events that may impact your investments. Stay informed about the companies in your portfolio and be prepared to make adjustments if needed. Your stockbroker or financial adviser may guide you on which companies to watch. Conclusion Investing in the Aussie share market can be a rewarding journey towards long-term wealth accumulation. By understanding the mechanics of the share market, budgeting wisely for your investments, and following a

For Gen Z in Australia, understanding finances is challenging. This blog explains its importance and offers steps for financial security. In the fast-paced and ever-changing landscape of today’s world, financial literacy is crucial for every generation. However, for Generation Z in Australia, understanding personal finances and achieving financial security is becoming increasingly challenging. This blog aims to delve into the rationale for financial education among Gen Zs in Australia and provide actionable steps to help them embark on a secure financial track. Gen Z Financial Education Economic Uncertainty The current economic climate is characterised by uncertainty and volatility. Gen Zs are facing the consequences of global financial events, such as economic downturns, inflation, and rising living costs. Without a solid financial education, they may struggle to navigate these challenges effectively. To illustrate, a March 2023 report from Finder carried over the Australian Financial Review noted that the rise in cost of living tagged 56 per cent of Gen Z respondents as having been pressured to find a second job to have more money. A 21-year-old startup founder from Melbourne interviewed for the Fin was even forced to cancel two VOD subscriptions and stop UberEats deliveries to cover an $800 monthly rental on a Frankston house where he used to spend over $1k on a place in Ascot Vale.     Debt Burden Many Gen Zs are burdened with significant student loan debts, credit card debts, and other financial obligations. A November 2023 analysis from ASIC revealed that Gen Zers’ average personal debts were tagged at $8,188 against $6,730 for older demographics, four per cent of Australia’s Gen Z population are at least $50k in debt, and 25 per cent have savings accounts with no more than $1,000 in balances.  Longevity of Financial Decisions Gen Zs have a long future ahead of them. The financial decisions they make today can have far-reaching consequences on their financial health in the future. Proper financial education empowers them to make informed choices that will positively impact their lives in the long run. Shifting Landscape The financial landscape is continually evolving, with the rise of digital currencies, new investment opportunities, and alternative financial services. Gen Zs need to stay informed to make the most of these developments while avoiding potential pitfalls. Retirement Planning Despite being at the early stages of their careers, planning for retirement should not be overlooked by Gen Zs. Starting early and understanding the benefits of compounding can significantly improve their financial security in later years. One critical element of this is imparting the need for awareness of superannuation in Gen Zs. Data compiled by the Australian Retirement Trust revealed that 29 per cent of Gen Z respondents do not know the current SG rate, but another 47 per cent want to determine how they can contribute more to their supers.  In discussions with News Corp Australia’s Mary Madigan, Finder money expert Sarah Megginson said Gen Zers are not of the same financial mindset as their elders, preferring to look after their mental health instead of working harder to earn as much money as possible. Money Magazine’s Tom Watson looked over the results of Aware Super’s July 2023 study, which revealed that in the 16-34 age demographic, 31 per cent are looking to retire by the time they reach 55 years old and 29 per cent claim they can have a comfortable retirement at that age for under $500k. However, the Aware Super team estimates single people can possibly have a comfortable retirement by age 67 if their super finances are at least $545k. Entrepreneurial Opportunities Gen Zs are known for their entrepreneurial spirit. A sound financial education can help them manage finances in their business ventures, increasing the likelihood of success. Getting Gen Zs on a Secure Financial Track Financial Literacy Hardcoded into the Education System To ensure that financial education reaches every Gen Z individual, it is crucial to incorporate financial literacy programmes into the education system. These programmes should cover topics like budgeting, saving, investing, debt management, and understanding financial products. A Findex study from 2021 stated that 48 per cent of Australians between 15 to 25 years old admit they couldn’t remember much of whether their schools had any financial literacy subjects.  Interactive Workshops and Seminars Organising interactive workshops and seminars on financial literacy can engage Gen Zs and make learning about finances enjoyable. Local communities, educational institutions, and financial institutions can collaborate to host such events. Digital Tools Given Gen Z’s affinity for technology, using mobile apps and online platforms that offer financial education and budgeting tools can make a significant impact. These interactive tools can help them track expenses, set financial goals, and understand their financial health. Encouraging Parental Involvement Parents play a crucial role in shaping their children’s financial behaviours. Encouraging parents to talk openly about money matters with their children and lead by example will reinforce the importance of financial responsibility. The above Findex study stated that 71 per cent of Australians between 15 to 25 years old say they still consult their parents or guardians for financial advice.  Mentorship Programmes Establishing mentorship programmes connecting Gen Zs with financially savvy individuals can offer valuable guidance and support. Mentors can share their experiences, provide insights, and offer personalised advice to help Gen Zs make informed financial decisions. Gamification of Financial Learning Gamifying financial education can make the learning process enjoyable and effective. Developing financial literacy games or incorporating financial elements into popular games can boost engagement and knowledge retention. One example of a game that aims to teach about financial literacy is Celebrity Calamity; made by a non-profit organisation, the game puts players as business managers of a certain B-list celebrity. The objective is to rein in the person’s wanton spending while still keeping them satisfied and their career on track. Female testers claimed that upon running the game, between 15 to 30 per cent claimed more confidence with financial management.   Building Credit Awareness Gen Zs should be educated about the significance of building and maintaining a

Nudge theory can help manage finances by promoting physical fitness, revealing hidden financial benefits. When it comes to managing our finances, finding effective strategies to save money is a common goal. Surprisingly, one way to achieve financial savings is by focusing on physical fitness. By understanding the mechanics of nudge theory and its application to promoting a healthier lifestyle, we can uncover the hidden financial benefits. In this article, we will explore the concept of nudge theory, its relevance to physical fitness in Australia, and how it can positively impact your finances. What is Nudge Theory? Nudge theory is a concept popularised by Nobel laureates Richard H. Thaler and Cass R. Sunstein. It suggests that small changes in the decision-making environment, known as nudges, can influence people’s behaviour without imposing mandates or restrictions. Nudges aim to subtly guide individuals towards making desired choices that align with their long-term goals. Choice Architecture Choice architecture refers to the overall design of a decision-making process. Nudges leverage choice architecture to make certain options more prominent, attractive, or easier to choose. By modifying the environment in which choices are made, nudge theory can steer individuals towards more beneficial behaviours. Linking Physical Fitness with Financial Health Physical fitness plays a vital role in overall well-being, and the benefits extend beyond improved health. Adopting a fitness routine can increase productivity, boost energy levels, reduce healthcare costs, and enhance mental well-being. These advantages, in turn, positively impact financial health by reducing medical expenses and improving work performance. Embracing physical fitness helps individuals establish healthier habits and reduce the risk of chronic diseases. This can result in long-term financial savings by avoiding costly medical treatments, medications, and doctor visits. By focusing on preventive care, individuals can proactively invest in their health, reducing the financial burden associated with illness. Fitness Benefits of Nudge Theory Making Exercise More Accessible Applying nudge theory to physical fitness involves making exercise more accessible and convenient. Fitness nudges can include designing workplaces with standing desks or encouraging the use of stairs instead of lifts; this may even be true if your office is just on the second floor. By adjusting the choice architecture, individuals are more likely to incorporate physical activity into their daily routines, leading to improved fitness levels and potential financial savings in the long run. Gamification and Rewards Nudge theory can be leveraged to incorporate gamification elements and rewards into fitness activities. Fitness apps and wearable devices often use features like challenges, achievements, and progress tracking; the app may even be interlinked with the wearable device for more comprehensive fitness monitoring. One example of this is the Apple Watch synchronising with an iPhone’s Apple Fitness app or other third-party health apps to monitor food intake and exercise levels.  Those elements may prime individuals to engage in regular exercise, driven by the desire to achieve goals and earn rewards. This motivation contributes to improved physical fitness while simultaneously saving money by reducing the need for costly gym memberships or personal trainers. Healthy Eating Nudges Nudge theory can also be applied to encourage healthier eating habits. Choice architecture can be modified by placing healthier food options at eye level in grocery stores or installing portion control cues in restaurants. These nudges encourage individuals to make healthier food choices, resulting in improved nutrition and potential financial savings by reducing expenses on unhealthy processed foods or dining out. Financial Benefits of Nudge Theory Reduced Healthcare Costs Embracing physical fitness can lead to a decrease in healthcare costs over time. Proactive management of health through exercise and healthy eating can minimise the need for medical interventions, prescriptions, and hospital visits, thereby saving significant amounts of money in the long term. Enhanced Work Performance Regular exercise has been shown to improve concentration, productivity, and cognitive function. By incorporating physical fitness into your routine, you can experience increased mental clarity and focus, leading to enhanced work performance. This can open up opportunities for career advancement, salary increases, or even entrepreneurial ventures, ultimately improving your financial prospects. Insurance Premium Reductions Maintaining a healthy lifestyle through physical fitness may also lead to lower insurance premiums. Some insurance providers offer discounts or incentives for individuals who demonstrate healthy behaviours, such as regular exercise or non-smoking habits. By prioritising physical fitness, you can potentially save money on health, life, or disability insurance premiums. Applying Nudge Theory in Fitness and Finances Set Attainable Goals Start small by setting realistic fitness goals that align with your lifestyle and capabilities. This increases the likelihood of adherence and success, reinforcing positive behaviours and motivating you to continue on your fitness journey. Fitness Apps and Wearable Devices Take advantage of technology by using fitness apps and wearable devices to track your progress, set reminders, and receive personalised recommendations. These tools can provide the nudges necessary to stay motivated and engaged in your fitness routine. Create Accountability Establish accountability measures by sharing your fitness goals with friends, family, or joining fitness communities. Having a support system and regular check-ins can provide the necessary motivation and encouragement to stick to your fitness regimen. Gamify Your Fitness Routine Incorporate gamification elements into your workouts to make them more enjoyable. Set challenges, compete with friends, or earn rewards for reaching fitness milestones.  Certain fitness apps have a variety of challenges all their own to give added motivation. Apple Fitness’ monthly challenge badges, for example, require travelling a minimum set number of kilometres in a day or burning a specific amount of calories every day for 14 days. By making fitness fun and engaging, you are more likely to stay committed and reap the financial and health benefits. Optimise Nutrition Pair your physical fitness efforts with a healthy and balanced diet. Incorporate nudge theory principles into your eating habits by organising your pantry and refrigerator to prioritise nutritious options. Plan meals in advance and prepare healthy snacks to avoid impulse purchases or unhealthy food choices. Track Your Financial Progress As you prioritise physical fitness, also monitor the positive impact it has on

Courtship often involves gifts like flowers, yet some prefer alternatives. Discover personalised gift ideas for a unique courtship experience. Courtship is an essential part of dating, and giving thoughtful gifts is one way to show affection and appreciation for your potential partner. While flowers have long been a traditional courtship gift, some individuals may not find them appealing or might prefer more personalised presents. In this blog post, we will explore alternative gift ideas based on the subject’s interests, ensuring a meaningful and unique courtship experience. The Appeal of Personalisation When choosing a courtship gift, personalisation is key. While flowers are beautiful, they may not reflect the unique tastes and preferences of your partner. Opting for unique gifts such as custom-made jewellery, engraved items, or a bespoke gift based on their interests, shows that you put thought into selecting a present that truly resonates with them. If your love interest, for example, is an athletic type with a noted attachment to Australian rugby union games, you might consider getting them a jersey of their favourite XV or the Wallabies, with options to personalise by jersey number and their name. Environmental Consciousness For many people, the environmental impact of cut flowers can be a concern. Large-scale flower production often involves harmful pesticides and significant water usage. Choosing alternative gifts that align with your partner’s eco-friendly values, such as a potted plant, sustainable fashion items, or a membership to an environmental organisation, can be a more considerate gesture. If you are considering enrolling your partner in an environmental organisation, make sure that group offers values that truly speak to their heart; some people might not accept the membership and actually break it off. Allergies and Sensitivities Flowers, though lovely, can trigger allergies and sensitivities in some individuals. To avoid potential discomfort, consider alternative gift ideas that do not involve allergens. This may include items like scented candles, gourmet food baskets, or a spa day experience tailored to your partner’s preferences. Supporting Local Artists and Artisans Choosing unique, handcrafted gifts not only adds a personal touch but also supports local artists and artisans. Consider gifting a one-of-a-kind piece of artwork, handmade pottery, or artisanal jewellery. These gifts not only showcase your thoughtfulness but also contribute to the local creative community. Practical and Useful Presents Instead of giving gifts that are solely ornamental, consider selecting practical and useful items that your partner may need or enjoy in their daily life. This could be a high-quality cooking utensil for a food enthusiast, a premium notebook for a writer, or an electronic device for a tech-savvy individual. One of our 2 Ezi members, though, had a unique practical gift idea for a young woman they were interested in. The person learned from their love interest that the latter was a devoted fan of the popular The Last of Us action-adventure game franchise and was the sporty, outdoors type. He endeavoured to order her a special Pendleton camping throw blanket with the associated branding for The Last of Us Part II, which turned out to be the very last in stock at the Sony PlayStation Gear store and also something she has never heard of. While Sony only ships game merchandise to the continental US and Canada, the member arranged for a friend flying back to Australia from the US to accept the shipment first and bring it home with him. Shared Experiences Courtship is an excellent time to create lasting memories together. Consider giving the gift of a shared experience, such as tickets to a concert, a cooking class, or a weekend getaway to a place your partner has always wanted to visit. Shared experiences strengthen the bond between two people and create stories to cherish for a lifetime. Books and Literature If your partner is an avid reader or has a particular interest in literature, books can make excellent gifts. Select a book that aligns with their taste or a rare edition of their favourite author’s work. Books not only show that you value their interests but also provide opportunities for intellectual discussions and shared reading experiences. Personal Development and Hobbies Gifts that support personal growth or hobbies can be deeply appreciated. Consider enrolling your partner in a workshop or class related to their interests, such as painting, photography, or yoga. Supporting their passion shows that you care about their personal development and well-being. Subscription Services Subscription services can be a delightful ongoing gift. Depending on your partner’s interests, you can choose from a wide range of options, such as a SVOD streaming service for movie lovers, a beauty box for skincare enthusiasts, or a meal kit for couples such as the team at the Pepper Leaf. Subscriptions offer a continuous reminder of your thoughtfulness throughout the courtship. Handwritten Letters or Journals In the age of digital communication, a handwritten letter or a journal can be a heartfelt and meaningful gift. Pour your thoughts and emotions onto paper, expressing your feelings and aspirations for the relationship. Handwritten gifts showcase sincerity and effort, making them memorable tokens of courtship. Conclusion While flowers have been a classic courtship gift, there are many valid reasons to explore alternative gift ideas during dating. Personalisation, environmental consciousness, allergies, and the desire to support local artists are all factors to consider. By selecting gifts based on your partner’s interests, you show that you genuinely value their uniqueness and are willing to put thought into your courtship gestures. Alternative gift ideas offer a more meaningful and enjoyable courtship experience, setting the stage for a lasting and fulfilling relationship. DISCLAIMER:  This article is for informational purposes only. 2 Ezi has no working relationships with any vendor offering the above products or services mentioned in this article.

In estate planning, it’s vital to address digital assets. Learn to itemise them in your will for a comprehensive digital legacy. People’s lives are increasingly intertwined with technology. From social media profiles to cryptocurrency holdings, our digital footprint is expanding rapidly. As such, it’s becoming crucial to consider these digital assets in our estate planning. This article will cover the importance of accounting for digital assets in your will, how to properly itemise them, and why they are an integral part of your digital legacy, with a focus on estate planning in Australia. Evolution of Estate Planning Estate planning, once a relatively straightforward process, has evolved significantly over the years. Traditionally, it involved tangible assets like property, cash, and personal belongings. However, the rapid advancement of technology has given rise to a new category of assets: digital assets. Digital assets include but are not limited to the following. Social Media Accounts Your Facebook, Twitter, and Instagram profiles, among others, hold not just memories but also potential financial value through sponsored content or followers, if those websites engaged you as a partner account. Online Banking and Investments Access to online bank accounts, investment portfolios, and cryptocurrency holdings will be critical to ensure a beneficiary can still make use of them after you pass away. An estate solicitor may advise you that if the bank accounts are to be accounted for in your assets, you must ensure to cover the money within as some may ask that even if the account exists, it can raise questions to whether there’s still money in there or it may have been cleaned out.  Digital Media E-books, music libraries, and movie collections stored in digital format. This is important considering recent trends in pop culture content have shifted from producing them for physical media to digital.   Email Accounts Important correspondence, financial statements, and even subscriptions tied to your email addresses. Preserving access and the materials in the emails are very critical in light of deletion protocols by Yahoo! and Google due to long periods of inactivity in the emails – Google in particular, started closing Google Accounts inactive for over two years on 1 December 2023.  For example, one user who has operated a special email address for personal projects, which he logged in a few weeks ago after so many years. After verification, he discovered that the email provider shut down their address in the interim – wiping out correspondences and notifications dating back over 20 years.   Websites and Domains Ownership and management of websites, blogs, and domain names. It is possible that their providers will close down the sites due to nonpayment of hosting costs. Cryptocurrencies Bitcoin, Ethereum, and other cryptocurrencies stored in digital wallets are marked by the ATO for Capital Gains Tax (CGT). Depending on the disposition, appointed estate executors may be asked to have those assets sold off and converted into Australian dollars.  Digital Businesses If you own or have equity in a digital business, ensuring its continuity is vital. Preserving Your Digital Legacy With this ever-expanding list of digital assets, the need to account for them in your estate planning becomes evident. Here’s why: Monetary Value Many digital assets have tangible monetary value. Cryptocurrencies, for instance, can amount to substantial wealth. Your will can ensure that these assets are inherited by your chosen beneficiaries. Privacy Concerns Failing to plan for your digital assets can trigger privacy concerns. Unauthorised access to your emails, social media profiles, or personal files could have unintended consequences. Asset Management If you own digital businesses, websites, or domains, a well-thought-out plan in your will can help manage their transfer or continuation seamlessly.  Emotional Value Your digital assets might hold sentimental value for your loved ones. Family photos, personal blogs, or cherished playlists can be a source of comfort after you’re gone. Social media providers such as Facebook have prepared for this contingency by allowing users to nominate legacy contacts and have their own profiles be converted into a Memorial page when they pass away. Creating a Digital Asset Inventory Now that we understand the importance of including digital assets in estate planning, let’s discuss how to properly itemise them. This process involves creating a digital asset inventory, which can be divided into three key steps: Identify Your Digital Assets Starting assembling a comprehensive list of all your digital assets. This may require thorough exploration of your online presence. Start with the following: Access and Authentication For each digital asset, record the necessary access and authentication details. These should include: Document Your Wishes Clearly articulate your wishes for each digital asset. This should involve specifying who should inherit or manage these assets and any particular instructions or restrictions. Updating Your Will Creating a will requires periodic updates – as your digital footprint evolves, so should your will. Review your digital asset inventory and make necessary changes whenever you open new accounts, change passwords, or acquire new assets. In some cases where there are assets that only you have access to, they may need safeguards on who can access be passed down to after death. This was made evident when QuadrigaCX owner Gerald Cotten passed away unexpectedly in early 2018, but only he knew the access codes to the crypto exchange’s crypto vaults worth an estimated US$135m at a time when the company had some stock fluctuations and filed for bankruptcy. Estate administrators EY were able to recover US$34.2m in assets and prepare distribution of funds to beleaguered investors. Estate planning can be complex, especially when digital assets are involved. Australia’s inheritance laws, at present, do not have provisions for digital asset accounting, and only the NSW Law Reform Commission’s digital access scheme discussion paper from December 2019 has been the farthest of any thoughts on the matter.   It’s advisable to consult with Australian estate solicitors who are well-versed in digital estate planning laws and regulations. They can provide valuable insights and ensure your will complies with legal requirements, especially since those digital assets will also still be

Sending money overseas has become increasingly convenient and accessible, thanks to digital advancements in financial transactions. However, it’s crucial to exercise due diligence and adopt proper strategies to ensure the security and reliability of these transactions. In this blog post, we will explore these most important tips and strategies to consider before sending money to a contact abroad, safeguarding your funds and protecting against potential risks such as cybercrime and fraud. The Big Picture A study released in Research and Markets revealed that Australia’s international outbound remittance businesses posted a 24 per cent growth to be valued at US$6.34 billion in 2023. The inbound remittances were estimated at $1.29 billion, a 14.3 per cent increase. Such a large amount may be partly attributed to expatriates in Australia sending money to loved ones back home, especially those who may have had some financial problems as a result of the COVID19 pandemic. Some international remittance providers are also taking advantage of that growth to establish operations in Australia by expanding services Down Under, as in the case of the Nepalese company Hamro Patro. Others are partnering with Aussie firms, such as the Indonesian remittance firm Faspay landing a service deal with EzyRemit. Research and Verify the Recipient Before sending money overseas, conduct thorough research on the recipient. Verify their identity and ensure they are a trusted and legitimate contact. Take the time to confirm their contact information, such as their full name, address, and bank account details. This step will help minimise the risk of sending funds to the wrong person or falling victim to scams. Use Reputable Money Transfer Services Choose reputable and well-established money transfer services to send funds overseas; they are identifiable via customer reviews and its protective measures. Opt for services that offer robust encryption protocols and multi-factor authentication to protect your financial information. As an added backstop, Forbes Australia recommends cross checking your preferred money-transfer provider for credentials with ASIC and AFCA, including a verifiable Australian Financial Services Licence and ABN number.  Be Wary of Unsolicited Requests Exercise caution when receiving unsolicited requests for money from unknown individuals or organisations. Be sceptical of requests that involve urgent or emotional situations, as these are often tactics used by scammers. Verify the legitimacy of the request through independent channels before proceeding with any transaction. Check Exchange Rates and Fees Compare exchange rates and transaction fees across different money transfer providers, as they may affect the amount the recipient got. Consider using online platforms that offer transparent and competitive rates, ensuring your funds go further. In a related tangent, check if your remittance provider has scrapped their money transfer fees. CBA made that leap in June 2023, waiving its $6 transfer charge to Transaction Account and Foreign Currency Account holders sending money through NetBank, the CBA app or CommBiz.   Take Cyber Security Precautions When conducting digital transactions, implement cybersecurity measures to protect your financial information. Use secure and private networks, avoid conducting transactions on public Wi-Fi, and regularly update your device’s software and antivirus programs. Be cautious of phishing attempts and suspicious emails or messages requesting personal or financial information. Consider Transaction Limits and Regulations Familiarise yourself with any transaction limits or regulations imposed in Australia and the recipient’s country. Some countries have specific restrictions or reporting requirements for large transfers. Understanding these regulations will ensure compliance and prevent any delays or complications during the transaction. The limits may be specified in a transaction breakdown or the terms of service; read them well and seek clarification if needed.  Opt for Traceable Transactions Choose traceable transaction methods, such as wire transfers or digital payment platforms, that provide a paper trail. Avoid sending funds through untraceable methods like cash or money orders, as they offer less protection and make it challenging to track the funds in case of issues or disputes.  Double-Check Account Details Before initiating any transfer, double-check the recipient’s account details. Mistakenly entering incorrect account numbers or other details can result in funds being sent to the wrong recipient. Verify the accuracy of the information with the recipient directly or through reliable channels. Inform the Recipient Communicate with the recipient before sending funds to ensure they are aware of the transfer. Provide them with the necessary details, such as the expected amount, currency, and anticipated arrival date. This open communication helps avoid misunderstandings and ensures the recipient is prepared to receive the funds. Keep Records and Confirmations Maintain a comprehensive record of all transaction details, including receipts, confirmation numbers, and any communication related to the transfer. These records will serve as proof in case of any discrepancies or issues that may arise during or after the transaction. Doing your Part The above tips may possibly save your financial assets from exploitation by criminals. In March 2023, the Australian Federal Police launched TASKFORCE AVARUS, a joint initiative with AUSTRAC, the Australian Criminal Intelligence Commission, and the Australian Border Force to stop money laundering activities in Australia’s financial and property markets. The group is looking to shut down various existing methods to transfer illicit cash while taking down suspected depositories of money stashes.   Prior to the establishment of AVARUS, money remittances out of Australia have been challenging to pin down for any suspicious transactions, even at bank level. The danger attracted AUSTRAC scrutiny in late 2019 when it flagged Westpac Bank’s WestpacLite service for facilitating payments of 12 customers totalling close to $500k to finance paedophilia activities in the Philippines. The service was set up in 2016 through local bank partner BPI to help Filipino-Australian expatriates send money back home to loved ones in the Philippines. BPI scrapped the partnership, which also brought about Brian Hartzer’s resignation as Westpac CEO. Conclusion Sending money overseas requires careful consideration and the implementation of proper strategies to safeguard your funds and protect against potential risks. The above bits of advice may spell the difference between a successful remittance and a nasty pilferage of your hard-earned money.  DISCLAIMER:  This article is for informational purposes only and