Budgeting

Navigating the terrain of challenging money queries from your children can often feel confronting and awkward. Drawing insights from interviews with Australian parents, guardians, and caregivers, we’ve identified common money topics they tend to sidestep. Below are some strategies to transform these tough questions into valuable teaching moments. Tough Money Questions From Your Kids Parenthood often calls for tapping into reserves of patience and creativity. You become adept at fielding a barrage of inquiries, sometimes resorting to crafting imaginative narratives – like the superhero vision-enhancing powers of carrots (naturally). Yet, what about those instances where the answer truly matters, and you find yourself at a loss? Perhaps you lack the knowledge to respond adequately or struggle with conveying complex concepts in a child-friendly manner. Or maybe you’re hesitant to broach the subject altogether? Welcome to the realm of awkward money conversations. Many money-related queries demand a deep understanding of the topic, necessitating deconstruction and reframing to suit your child’s comprehension level. Moreover, it’s crucial to safeguard their sense of security by delicately packaging your responses and ensuring they remain impervious to inadvertent dissemination on the playground. Two thousand Australian parents, guardians, and caregivers of children aged 8-17 were interviewed. This revealed the top money topics they tend to avoid discussing. Instant gratification Navigating through the supermarket aisles, with chocolate tempting from one side and chips beckoning from the other, and a hungry child in tow, the challenge arises: how to handle the plea for instant gratification when faced with the allure of a Kinder Surprise? In this scenario, the practice of teaching delayed gratification proves more daunting than the theory suggests. Our suggestion? Instill in your child the concept that a “no” today leads to a far more rewarding “yes” tomorrow. Collaborate with your child to identify a worthwhile goal to save towards (tomorrow’s “yes”). Then, your role becomes that of a supportive guide, gently steering them away from immediate desires towards long-term rewards. For instance, gently remind your child, “If you spend $4 on this Kinder today, you’ll delay getting that $20 Lego set you’ve been eagerly saving for. What makes having the Kinder surprise now more appealing?” Engage with their responses by asking probing questions. And if they propose the idea of you sponsoring the chocolate, gently remind them that, just like them, you have your own savings goals. Discipline is a skill that requires nurturing. By providing your child with a tangible goal to strive for, you can emphasize the satisfaction of achieving it. For those who are inclined, consider experimenting with the marshmallow test as an additional learning tool. Why certain things are beyond your financial means Picture this: it’s dinner time, and your child eagerly asks if your family can visit Italy during the upcoming school holidays, which are only three weeks away. Knowing that such a trip isn’t feasible at this time, you’re faced with the challenge of how to respond when your child privately inquires, “Do we not have enough money?” This question is delicate, as your response plays a significant role in shaping your child’s social identity and their relationship with money for years to come. So, what’s the best approach? Consider reframing the concept of “not being able to afford” as “choosing not to spend.” Seize this opportunity to delve into the decision-making process behind your family’s spending habits. For instance, explain that while you’re not opting for Italy this month, it’s because you’re prioritizing saving for a future trip to visit their grandparents or supporting local Australian businesses and rural communities instead of international travel. Engage your child in discussions about what values and passions are important to them, and brainstorm examples of how they can align their spending with those values. This moment presents a valuable chance to nurture your child’s understanding of financial decisions and encourage thoughtful consideration of how they allocate resources in line with their beliefs and interests. The value of money Fostering an appreciation for the value of money without instilling life-long spending guilt is a delicate balance. As your child progresses through life, their perception and valuation of money will naturally evolve. Nevertheless, there are several strategies to cultivate fundamental appreciation and comprehension. Initially, provide your young one with various perspectives on money by metaphorically stepping into different pairs of shoes. Consider how individuals who grew up with ample financial resources might value money differently from those who did not. Similarly, ponder the disparities in how individuals with varying income levels perceive money. Additionally, broaden your child’s understanding by exploring what a dollar can procure globally. Highlight the diverse perspectives and valuations of money held by different people and communities. While a dollar may suffice for a canteen snack for your child, for someone else, it could represent an entire day’s earnings. Encourage your child to contemplate these discrepancies in valuation. Furthermore, facilitate hands-on learning experiences to deepen your child’s understanding of money’s value. Introduce them to a Kit card, enabling them to earn, spend, save, and consequently appreciate the value of their own dollars. Indeed, firsthand experience serves as the most effective teacher in comprehending the significance of money. In summary, while providing examples and perspectives is beneficial, allowing your child to actively engage with money is paramount. Through experiential learning, they will develop a genuine understanding and appreciation for its value. The cost of living “Hey Mum, Dad, what portion of our income went into buying our house? How much of our budget do we allocate for groceries? What proportion of our savings did we use for our trip to Bali?” Discussing exact amounts of our financial investments and expenditures can sometimes feel uncomfortable. Imagining the whispers among parents about what we spent on our Bali getaway can be daunting. Instead of focusing solely on exact figures, let’s consider breaking it down into percentages. This approach can paint a broader picture of our financial flow, giving context to our earnings and expenditures. It might be more insightful for our child, offering them

Deciding to buy your parents’ property can blend emotional sentiment with practical considerations. It can help provide financial security for your loved ones while keeping a cherished family home within the family. However, navigating the complexities of property sales, taxes, and liabilities in Australia can be challenging. In this comprehensive guide, we’ll explore the intricacies of buying your parents’ property and how to potentially minimise capital gains tax (CGT) and stamp duty. The Heartfelt Decision to Buy Your Parents’ Property Buying your parents’ property is a significant life event. It can be motivated by various reasons, such as wanting to: However, approach this decision with both your heart and your head. Practical considerations, including tax implications and financial responsibilities, must be thoroughly understood. Property Sales and Transfers in Australia Before delving into strategies to minimise CGT and stamp duty, let’s clarify the typical process for purchasing your parents’ property in Australia: Agreement of Sale… or Not Normally, property sales are governed by an Agreement of Sale and a formal Contract of Sale. However, for inter-family property sales, the team at OzPropertyLaw stressed there’s no need to file those papers, as long as both sides are related by blood or marriage. As such, both sides can approach a single solicitor and financial advisors with expertise in property transactions. They can guide you through the intricacies of the sale, ensuring you’re well-informed and protected throughout the process. Transfer of Ownership The property’s ownership must be formally transferred from your parents to you. This involves filing the necessary paperwork with relevant government authorities, such as a title search and council zoning certificate.. Payment of Stamp Duty Stamp duty is a tax levied by Australia’s state and territory governments on property transactions. The amount varies depending on the property’s value and location. It’s typically payable by the buyer. Capital Gains Tax (CGT) CGT is a federal tax imposed on the profit made from selling an asset, including real estate. When purchasing your parents’ property, CGT can apply if the property has increased in value since they acquired it. Minimising CGT and Stamp Duty While CGT and stamp duty are legitimate obligations, there are strategies that can help you reduce the financial impact of these taxes when buying your parents’ property.  Principal Place of Residence (PPR) Exemption One of the most significant tax benefits in Australia is the PPR exemption, also known as the main residence exemption. If your parents have lived in the property as their primary residence, and it’s their PPR, it may be exempt from CGT. This exemption can significantly reduce the CGT liability. Under the main residence rule, you may qualify for the Principal Private Residence (PPR) exemption if you promptly move into the property after acquiring it from your parents and establish it as your primary residence. This could help you avoid CGT on future appreciation in the property’s value. Family Home CGT Exemption If your parents are transferring their family home to you, they may be eligible for a CGT exemption under certain circumstances. This exemption could apply if they meet specific criteria such as being over 60 years old and the property has been their main residence for a certain period. Under ATO rules, CGT exemptions may also apply if your parents bought the property before CGT was implemented on 20 September 1985 and still remained as is. You must file for CGT, however, if that property had any major improvements or expansions built.  Use a Family Agreement In some cases, setting up a family agreement can help reduce stamp duty and CGT liabilities. This legal arrangement can outline the terms of the property sale and may involve a lower purchase price than the market value, reducing stamp duty costs. Seek Professional Advice Navigating the intricacies of tax law and property transactions can be daunting. You will need licensed property agents and tax planners into the equation as soon as you build your offer. Property Inheritance in Australia If your parents are looking to transfer their property as part of their estate planning, there are other considerations: Estate Planning Consulting with estate solicitors can help your parents create a comprehensive estate plan. This plan may include strategies to lower tax liabilities and ensure a smooth transfer of assets upon their passing. Testamentary Trusts Testamentary trusts are valuable in the sense they allow assets, including property, to be distributed according to your parents’ wishes while potentially minimising tax obligations for beneficiaries. Life Insurance Life insurance policies can provide a source of funds to cover any tax liabilities that may arise upon your parents’ passing. This can help ensure that the property remains within the family without creating a financial burden for beneficiaries. Conclusion Buying your parents’ property in Australia is a significant decision that involves various legal and financial considerations. While CGT and stamp duty are inevitable, there are legitimate ways to minimise their impact. Leveraging tax exemptions and seeking professional advice can help you navigate this process with greater ease. However, always remember that tax laws are complex and subject to change. Therefore, it’s essential to stay informed and work closely with legal and financial professionals who can provide up-to-date guidance tailored to your unique situation. Ultimately, the goal is to create a seamless transition that preserves your family’s legacy and provides peace of mind for all involved parties. DISCLAIMER:  This article is for informational purposes only and is not meant to constitute official financial advice. 2 Ezi has no relationships with any tax agent, property agent or the ATO.

Prioritised mental health is important for overall well-being, yet the cost of mental health treatment in Australia can create financial stress for individuals seeking support. In this article, we will discuss the importance of seeking mental health treatment, available safe options, and strategies for managing your mental health services budget. By adopting these approaches, you can focus on stabilising your mental health without compromising your financial stability. Support from the Australian Government The Australian government is continuously factoring mental health treatment services in the national budget. The 2023-2024 Federal Budget, in particular, has some noteworthy items: In addition, Mental Health Australia prepared a submission for deliberations into the 2024-2025 Federal Budget. The organisation praised good efforts in 2023 to improve mental healthcare such as continued development of Head to Health Centres and Kids Hubs, and to advance education development for mental healthcare workers. However, they expressed hope that the government will do more by implementing results of the Better Access evaluation and NDIS Review, a full enactment of the National Mental Health Workforce Strategy, and fixing the National Health Reform Agreement to include mental health support. The Importance of Seeking Mental Health Treatment Recognising the Need Mental health issues are common and can affect anyone. Recognise the signs and symptoms that indicate the need for professional help, such as persistent feelings of sadness, anxiety, or changes in behaviour. Seeking treatment is an important step towards recovery and well-being. Accessing Professional Help In Australia, there are various avenues to access mental health treatment. Start by consulting your general practitioner (GP) who can refer you to a mental health professional. Alternatively, you can reach out to helplines, community mental health centres, or private practitioners directly. Many mental health support companies offer phone, text, or video chat options 24/7. In Australia, digital mental health support services include Lifeline Australia at 13 11 14 (landline) and 0477 13 11 14 (cellphone), Beyond Blue at 1300 22 4636, and the Blue Knot Foundation at 1300 657 380.   Safe Options It’s important to ensure that the mental health services you choose are safe, reputable, and regulated. Look for professionals who are registered with organisations such as the Australian Health Practitioner Regulation Agency (AHPRA) or are members of recognised mental health associations. Managing Your Mental Health Services Budget Accessing treatments for your mental health can be challenging, particularly if you’ve been advised to undergo long-term counselling. The following are how to ensure your finances are kept under control. Research and Compare Before committing to a mental health professional or treatment plan, research different options and compare their costs. Consider both public and private services, as public services may have lower costs or be covered by Medicare. Medicare Benefits In Australia, Medicare provides rebates for certain mental health services through the Better Access to Mental Health Care initiative. This can significantly reduce out-of-pocket expenses for eligible individuals. Discuss this with your GP or mental health professional to determine if you qualify for Medicare benefits. Seek Bulk-Billing Options Some mental health professionals offer bulk-billing, which means they accept the Medicare rebate as full payment, eliminating the need for out-of-pocket expenses. Inquire about bulk-billing options when searching for mental health services. Government Subsidies and Programmes Explore government subsidies and programmes that may assist with the cost of mental health treatment. For example, the NDIS provides support for individuals with a disability, including mental health conditions. Research eligibility criteria and application processes for these programmes. Nonprofit and Community Organisations Look for nonprofit and community organisations that offer free or low-cost mental health services. These organisations often operate on a sliding scale based on income, ensuring accessibility for individuals with limited financial resources. Employee Assistance Programme (EAP) If you are employed, check if your workplace offers an Employee Assistance Programme (EAP), which can offer confidential counselling for employees. Take advantage of this benefit to access mental health support at no additional cost. Payment Plans and Negotiation Speak with mental health professionals about payment plans or flexible arrangements. They may be willing to negotiate fees or offer instalment options based on your financial situation. Openly discussing your budgetary concerns can lead to mutually beneficial solutions. Supplementary Support In addition to professional help, consider supplementing your mental health treatment with self-help resources. Books, online courses, support groups, or mobile app can provide additional support at a lower cost or even for free. Self-Care and Preventive Measures Prioritise Self-Care Incorporate self-care practices into your daily routine to support your mental well-being. Engage in activities that promote relaxation, mindfulness, and stress reduction. Regular exercise, healthy eating, and quality sleep also play vital roles in maintaining good mental health. Community and Peer Support Seek support from friends, family, or support groups. Sharing experiences and learning from others can be invaluable in managing mental health. Online communities and forums can also provide a sense of belonging and support. Early Intervention Address mental health concerns as early as possible. By seeking treatment in the early stages, you may prevent conditions from worsening and requiring more intensive or expensive interventions later on. Regular Review of Treatment Plan Periodically review your treatment plan with your mental health professional. Discuss any changes in your financial situation or insurance coverage to ensure the most cost-effective approach to your treatment. Conclusion Putting a premium on mental health is essential, even when facing financial constraints. By accepting the need for mental health treatment, accessing safe options, and implementing strategies to manage your mental health services budget, you can maintain your well-being and still keep your finances in check. DISCLAIMER:  This article is for informational purposes only and does not constitute financial  or medical advice. 2 Ezi has no working relationships with any Australian mental health treatment vendor. Please consult your GP and mental health treatment practitioner immediately. Call Lifeline Australia at 13 11 14 (landline) and 0477 13 11 14 (cellphone), Beyond Blue at 1300 22 4636, and the Blue Knot Foundation at 1300 657 380.

Money leaks, often subtle and unnoticeable, can slowly erode your financial stability. In Australia, as in many parts of the world, individuals often find themselves facing unexpected financial challenges due to these leaks. In this blog, we will explore the concept of money leaks, identify common causes, and provide practical steps on how to stop money leakage and improve financial security. What is Money Leaks? Money leaks refer to the small, often overlooked expenses or habits that drain your finances over time. While each leak on its own may seem insignificant, the cumulative effect can be substantial, impacting your ability to save, invest, and secure your financial future. Identifying and addressing these leaks is crucial for achieving financial stability. Common Causes of Money Leaks Money leaks can occur for a variety of reasons, and identifying their root causes is the first step in plugging them. Here are some common causes Impulse Spending Impulsive purchases on non-essential items can lead to money leakage. It’s easy to overlook the cumulative impact of these small expenditures. Subscriptions and Memberships Unused or forgotten subscriptions to streaming services, gym memberships, or magazines can slowly drain your bank account. A noted podcaster once claimed, for example, that he took up a certain SVOD service’s free trial just to watch a single fight but never used that service again – even as the free trial was automatically upgraded to a paid subscription, with the bill incrementally going up.  Dining Out Excessively Regularly dining out or frequently ordering takeout can significantly drain your finances. It becomes particularly troublesome when you realise that a considerable portion of your monthly budget has been consumed by these expenses upon reviewing your receipts and statements. Unmonitored Utilities Neglecting to regularly review utility bills can result in overpaying for services or failing to identify water or energy leaks in your home. Some people might only discover they’re behind on utilities when they are actually cut by the provider.  Unplanned Fees Late fees, ATM withdrawal charges, or overdraft fees can accumulate when financial accounts aren’t managed carefully. Unused Gift Cards and Vouchers Forgetting about gift cards or vouchers can be seen as a loss of potential savings. How many coupons do you have at home that you were about to use – only to find their expiration dates have long passed? How to Stop Money Leakage Now that we’ve identified common causes of money leaks, let’s explore practical strategies to stop the leaks and improve financial security Create a Budget Create a detailed budget delineating your income and expenditures. Track every expense, no matter how small, to identify where money is slipping away. Prioritise Spending Distinguish between needs and wants. Prioritise essential expenses while cutting back on non-essential purchases. As credit cards are also a form of money leak, you must strive to pay the entire balance, if not a big bulk every month, to avoid late fees.  Review Subs and Memberships Regularly audit your subscriptions and memberships, and cancel those you no longer use or need. Some financial apps offer users the flexibility to cancel those subscriptions and memberships with a swipe of the screen, which may help avoid long wait times speaking to a subscription service’s customer helpline requesting a service cancellation.  Meal Planning If part of your money leaks concern eating, you can consider cooking your own recipes at home when the money you spend on dining out is used to buy ingredients instead. Plan your meals, and assemble the shopping list for the ingredients. Take the time to add more long-term staples to add more cupboard resources.   Shop Mindfully Avoid impulse purchases by drafting your shopping lists and ensure adherence to them. Consider waiting 24 hours before making non-essential purchases to reduce impulse buying. Although, the appropriate waiting period may vary for different individuals and situations. In some respects, certain very minute purchases can snowball if there’s money spent on them every month; in an interview with News Corp Australia’s Anthony Keane, Thalia Stanley Group director Marion Mays said one of her clients was shocked to find they have been spending as much as $100 a month on bottled water – which may discomfort others, given Australia’s issues with bottled water and the effect of PET bottles on landfills. Monitor Utility Bills Review utility bills for any discrepancies or unexpected increases. Fix any leaks or issues promptly to save on utility costs. When that includes rising power bills for example, make a pivot such as shutting down certain appliances when not in use or to use them for shorter periods, like putting air conditioners on sleep mode or to use any timing functions.  Automate Savings Set up automated transfers to a savings account as soon as you receive your latest paycheque. One way to make it happen is to arrange it with your bank, especially if that bank also handles your employer’s payroll account. This ensures that a part of the money is already set aside before you even spend anything. Make sure to regularly review and adjust savings goals as your financial circumstances change. Emergency Fund Build an emergency fund to cover unexpected expenses, reducing the need to dip into your regular budget. Track Your Expenses Use budgeting apps or software to help you track expenses in real-time. This can provide insights into your spending habits and help you identify areas where leaks occur. Financial Planning If it’s within your budget, consider seeking guidance from a financial advisor. They can assist in crafting a thorough plan tailored to your goals, pinpointing and resolving any financial inefficiencies along the way. Conclusion Money leaks may seem inconsequential on their own, but they can have a significant impact on your financial stability and security over time. Recognising the common causes of money leaks and taking proactive steps to address them is essential for achieving financial freedom. Developing smart financial habits, such as meal planning and automating savings, can help you regain control of your finances and secure your future. Remember, closing the

In a society where accumulation and excess are frequently glorified, minimalism stands out as a compelling alternative — a lifestyle centred on simplicity, intentionality, and conscientious consumption. More than merely tidying up our physical spaces, minimalism represents a mindset that permeates every facet of our lives, from our interpersonal connections and financial decisions to our daily habits. Join us in this blog as we delve into the philosophy behind minimalism and its successful implementation within the Australian context. Discover practical strategies for embracing a minimalist ethos and unlocking the myriad benefits of a life lived with greater purpose and less clutter. What is Minimalism? By reducing clutter and eliminating non-essential possessions, minimalism allows individuals to regain control over their time and experience a sense of freedom. With fewer material possessions to manage, one can focus on activities that bring joy and fulfilment. Minimalism streamlines decision-making by eliminating unnecessary choices. When we have fewer belongings, it becomes easier to make decisions and reduces decision fatigue. This clarity extends to other areas of life, such as relationships and career choices. Minimalism encourages mindful consumption by questioning the need for new purchases and considering the environmental and social impact of our choices. By embracing quality over quantity, minimalism supports sustainability and reduces waste. Shifting the focus from acquiring more possessions to appreciating what we already have will help you foster gratitude and contentment. It encourages us to find joy in experiences, relationships, and personal growth rather than material possessions. Embracing a minimalist lifestyle has the potential to pave the way towards financial freedom. By reducing expenses, avoiding unnecessary purchases, and prioritising saving and investing, individuals can achieve greater financial stability and pursue their passions and goals. Minimalism in Australia Embracing Minimalist Architecture Australia has seen a rise in minimalist architecture, characterised by clean lines, simplicity, and functionality. Minimalist homes focus on open spaces, natural light, and a connection with nature, promoting a sense of calm and tranquillity. One example of minimalist Aussie architecture is a certain property in Alphington, Melbourne, which had the house set far back from the road, but had a large earthen mound to serve as the front fence.   Sustainable and Ethical Fashion Australian consumers have embraced minimalism in the realm of fashion, supporting sustainable and ethical brands. The focus is on building a smaller, versatile wardrobe consisting of high-quality pieces that withstand the test of time. Tiny Houses The tiny house movement has gained traction in Australia, reflecting a minimalist approach to housing. Tiny homes emphasise simplicity, efficiency, and a smaller environmental footprint, offering an alternative to traditional large-scale living. Decluttering and Minimalist Blogs Numerous Australian bloggers and influencers have embraced minimalism and share their experiences and practical tips for decluttering and living with less. These platforms provide inspiration, guidance, and a sense of community for individuals embarking on their minimalist journey. Examples of minimalist blog discussions include those in The Sane Mum, Frugal and Thriving, and Living Simply with Valerie. Tips for Embracing a Minimalist Lifestyle Here are some wonderful elements to make a smooth translation to minimalist living:  Declutter Mindfully Start by decluttering your physical space. Sort belongings into categories, keeping only items that serve a purpose or bring you joy. Donate or responsibly dispose of the rest. Streamline Your Digital Life Extend minimalism to your digital space by organising files, deleting unnecessary apps, and unsubscribing from email lists that no longer serve you. Practise digital detoxes and limit screen time. Prioritise Experiences Focus on experiences rather than material possessions. Invest in activities, travel, and creating memories with loved ones. Seek out free or low-cost activities in your community that align with your interests. Mindful Consumption Before making a purchase, consider whether it aligns with your values and serves a genuine need. Avoid impulse buying and opt for quality, sustainable products that will stand the test of time. Create a Capsule Wardrobe Build a minimalist wardrobe by curating a collection of versatile, high-quality clothing items that can be mixed and matched. Aim for a smaller number of pieces that reflect your personal style and are suitable for various occasions. Simplify Daily Routines Streamline your daily routines to minimise decision-making and create more time for activities that matter. Establish a consistent morning and evening routine that supports your well-being and sets a positive tone for the day. Practice Gratitude and Contentment Cultivate a mindset of gratitude by regularly reflecting on the things you appreciate in life. Direct your attention to what you possess instead of dwelling on what you lack, nurturing contentment and diminishing the urge for unnecessary material possessions. Simplify Your Finances Take a minimalist approach to your finances by simplifying your accounts, automating bill payments and savings, and reducing unnecessary expenses. Prioritise financial stability and long-term goals over short-term indulgences. Embrace Mindfulness and Meditation Incorporate mindfulness and meditation practices into your daily routine to cultivate a sense of presence and awareness. Mindfulness can help you make conscious choices, appreciate the present moment, and stay grounded in your minimalist journey. Conclusion Minimalism offers a pathway to a simpler, more intentional way of living. By focusing on what truly matters, decluttering our physical and mental spaces, and making mindful choices, we can create a more fulfilling and sustainable lifestyle. Let us embark on this journey of minimalism, simplifying our lives and prioritising what truly brings us joy and meaning. DISCLAIMER:  This article is for informational purposes only and is not meant to replace lifestyle advice. 2 Ezi is not affiliated with any resources mentioned in the article. The views presented belong solely to the author.

In today’s interconnected world, sharing financial responsibilities among spouses, business partners, or close family members is a norm. Joint bank accounts often emerge as the most efficient and practical solution for managing shared finances. But what precisely constitutes a joint bank account, and how does one establish it? This guide delves into joint banking in Australia, providing insights into opening and effectively managing such accounts. What is a joint bank account? A joint bank account is a type of bank account owned by two or more people. The account is used for shared expenses and can be managed by any of the account holders. This means that each person has equal access to the account, and can make deposits and withdrawals as needed. In Australia, joint bank accounts are commonly used by couples, families, and business partners. Why open a joint bank account? There are several reasons why someone might choose to open a joint bank account. A joint bank account makes it easier to manage shared expenses, such as bills, rent, or groceries. With a joint bank account, each person can deposit money into the account and access the funds as needed, without the need for transfers or separate accounts. A joint bank account is a convenient solution for managing shared finances. It allows multiple people to access the same account, which can be helpful if one person is unavailable or unable to manage the account on their own. A joint bank account can provide a measure of security, especially if one person is unable to manage their finances due to illness or disability. With a joint bank account, the other account holder can step in and manage the account, ensuring that bills are paid and other expenses are covered. However, while joint bank accounts can provide security in certain situations, they also require a high level of trust and transparency to avoid misunderstandings or misuse of funds. Some banks may require for the account to be “either to sign” or “both to sign”. “Either to sign” means the account holders will have their own debit cards and can monitor the transaction history individually. “Both to sign” denotes that for withdrawing the funds in the account, both parties must concurrently approve the transaction for it to proceed. Opening your joint bank account Opening a joint bank account in Australia is relatively straightforward, but it’s important to follow the right steps to ensure that the account is set up properly. Here’s what you need to know: Pick your bank To initiate the process of opening a joint bank account, start by selecting a bank that aligns with your needs. Evaluate aspects such as interest rates, fees, and customer service to make an informed decision. Gather necessary information To open a joint bank account, you’ll need to provide each account holder’s personal information, including their full name, date of birth, and address. Additionally, you might be required to furnish proof of identity, such as a driver’s license or passport. Decide on account type Most banks offer several types of joint bank accounts, including standard joint bank accounts, joint bank accounts with survivorship, and joint bank accounts with right of survivorship. Consider your needs and the type of account that best suits your situation. Take note that if you were actually intending to convert any individual accounts you currently maintain, many banks do not allow that option and may advise you to open a joint bank account instead. Complete the application Once you’ve gathered all of the necessary information, complete the joint bank account application and submit it to the bank. The bank will assess your application and may request further information or documentation before granting approval for the account. Fund the account Once your joint bank account has been approved, you can begin funding the account. You can deposit money into the account using a variety of methods, including direct deposit, automatic transfers, or personal cheques. Managing a Joint Bank Account Managing a joint bank account requires careful planning and communication between the account holders. Here are a few tips to help you manage your joint bank account successfully: Communicate regularly Consistent communication is essential for effectively managing a joint bank account. Make sure your partner is informed if you intend to withdraw from the account or to supplant it with new funds.  Share the load Both account holders must be equal partners in managing the balance. Define the purpose In establishing your joint bank account, both you and your partner should have a clearly defined rationale for running it, based on any long-term financial goals you want to achieve. Are you opening it to save for a house deposit? Buying a new car? Saving for your child’s college fund? The possibilities are endless.   A finance app such as 2 Ezi can be a vital asset in running your account. Through the app’s budget management section you only need to enter the account number and be kept abreast all the time about its running balance, and its projected savings over a predefined period of time. It may be vital that your co-holder has the same level of access, so you can both plan your next moves.  If you are in a long-term relationship, opening a joint bank account may be one key to making things work. We at 2 Ezi are confident you can go this distance together. DISCLAIMER: This article is for informational purposes only and is not meant to supersede official financial advice. 2 Ezi is not affiliated with any bank. Consult with a financial advisor for personalised advice tailored to your circumstances.

In today’s complex financial world, teaching children about money is an important responsibility for parents. One effective way to initiate this education is by opening a bank account for your kids. Not only does this instil good financial habits early on, but it also fosters a sense of responsibility and independence. In this blog, we’ll explore the importance of teaching children about money through bank accounts, the mechanics of setting up these accounts, and how to guide your children in managing their funds wisely. Financial Education from an Early Age Financial literacy is a skill that can significantly impact a person’s life – but it’s often overlooked in traditional education. Parents play a significant role in filling this gap by teaching their children about money management. Here’s why it’s essential: Life-Long Skills The financial habits children develop at a young age often persist into adulthood. By teaching them early, you set them up for a lifetime of financial responsibility.  Independence and Responsibility Managing money encourages independence and responsibility. Children learn to make choices, set goals, and understand the consequences of their financial decisions. Avoiding Financial Pitfalls Financial education helps children recognise and avoid common financial pitfalls, such as excessive debt and impulsive spending. Building a Strong Parent-Child Relationship Teaching your child about money is an opportunity to bond and build trust. It fosters open communication and reinforces the parent-child relationship. Opening the Bank Account for Your Kids Now that we’ve established the importance of financial education, let’s dive into the practical steps of opening a bank account for your child: Choose the Right Bank Research different banks to find one that offers suitable accounts for children. Look for low or no fees and consider proximity to your home or work for convenience. Gather Necessary Documents Typically, you’ll need your child’s birth certificate and your identification like a driver’s licence. Some banks may have additional requirements, so check in advance. Visit the Bank Schedule an appointment or visit your chosen bank branch with your child. Explain the purpose of the visit to help ease any anxiety they may have. Select the Type of Account Most banks offer special accounts designed for children or teenagers. These often come with features like no minimum balance requirements and parental controls. If you have ample cash to spare, you can consider a savings account in the child’s name with you as co-signer, and a special time deposit with higher interest.  Complete the Application Fill out the account application form, providing all necessary information and documentation. Be prepared to sign as the legal guardian or parent, as current banking rules in Australia do not allow depositors to sign the document until they are at least 18 years old at the time the account will be opened. Deposit Funds To activate the account, you’ll need to make an initial deposit. This can be a small amount, but it’s an excellent opportunity to involve your child in the process. Explain that this money will grow over time through interest. At this point, if the bank has a required minimum balance, you can teach your child to make sure the money in the account is higher.  Set Up Online Access Many banks offer online account management tools. Set up online access to monitor the account, and teach your child how to check their balance and transaction history. Explain Security Measures Teach your child about the importance of keeping their account information, including their PIN and online banking credentials, confidential. As bank accounts can be compromised via cybercrime, take the time to discuss not sharing your emails or phone numbers with anybody outside the family, even people claiming to know your loved ones. Make It a Learning Experience Use the account-opening process as a teaching moment. Explain concepts like interest, deposits, withdrawals, and the importance of saving. Guiding Your Kids in Properly Managing Funds Once the bank account is activated, the real learning begins. Here’s how to guide your child in managing their funds effectively: Set Financial Goals Help your child set achievable financial goals. This could be saving for a special toy, a school trip, or even college. Encourage them to save a portion of any money they receive as gifts or allowances. Track Expenses Teach your child how to record their spending. This can be as simple as keeping a ledger book or using budgeting apps designed for kids. Budgeting Basics Introduce the concept of budgeting. Help your child create a simple budget that allocates money for different purposes, like saving, spending, and giving. Earning Opportunities Encourage your child to explore ways to earn money, such as doing chores, starting a small business (like a lemonade stand), or helping with household tasks. Teach Delayed Gratification Many children nowadays want things right that instant, but adults can tamp that Explain the value of waiting and saving for something they want. When they express a desire for a new toy, for example, suggest that they save a portion of their allowance for it. Discuss Wants vs. Needs Help your child differentiate between wants (things they desire) and needs (essentials like food and clothing). This understanding will guide their spending choices. Explore Compound Interest As your child’s savings grow, explain the concept of compound interest. Show them how their money can earn more money over time. Some finance experts claim that helping a bank account gain compound interest often lies in seldom withdrawing from the account while depositing more money.  Regular Money Talks Make discussing money a regular part of your family conversations. Share your own financial experiences and decisions to provide real-world examples. Encourage Giving Teach the importance of giving to others. Suggest setting aside a portion of their savings for donations to charities or helping those in need. Conclusion Opening a bank account for your child is one of the first steps toward providing them with a solid foundation in financial literacy. It equips them with the tools they need to manage money responsibly and make informed decisions throughout

In an era marked by growing environmental consciousness and social responsibility, ethical banking has emerged as a promising alternative to traditional banking. The concept revolves around aligning financial decisions with values such as sustainability, social impact, and environmental conservation. In this article, let’s pore over the mechanics of ethical banking, explore how to find the best ethical bank in Australia, and weigh the advantages and disadvantages of this approach. What is Ethical Banking? Ethical banking, often referred to as green banking or sustainable banking, involves financial institutions incorporating environmental, social, and governance (ESG) considerations into their operations and investment decisions. These banks prioritise the allocation of funds to projects and businesses that promote positive societal and environmental outcomes. This can range from financing renewable energy initiatives to supporting community development projects. Understanding Ethical Banking Investment Screening Ethical banks apply rigorous screening processes to ensure that the companies they invest in align with their ESG values. This involves scrutinising factors such as carbon footprint, labour practices, and community engagement. Transparency Ethical banks emphasise transparency in their operations. They disclose information about their investment portfolios, allowing customers to make educated decisions about where their money is being invested. Sustainable Lending Ethical banks offer loans and credit to projects and businesses that demonstrate a commitment to sustainability and social responsibility. This might include supporting green startups, eco-friendly construction projects, and affordable housing initiatives. Community Development These banks often have a strong focus on community development, directing a portion of their profits towards social and environmental causes. Finding the Best Ethical Bank in Australia Selecting the perfect ethical bank in Australia may demand some effort, but by conscientiously adhering to the following steps, the eventual benefits could prove invaluable.  Begin by researching ethical banks in Australia. Look for banks that are certified by recognised ESG standards or organisations. Examples include the Global Alliance for Banking on Values (GABV) and B Corp certification, which for Australia is handled by B Lab Australia and New Zealand. Compare the account offerings, fees, and services provided by different ethical banks. Ensure that the bank offers the types of accounts you need for your financial goals. As ESG is a critical component of an ethical banking system, study the preferred bank’s ESG policies and reports. Understand their investment criteria and the sectors they support. Look for transparency in how they communicate their impact. Reviews from current customers can help you gain insights into their experiences with the bank’s services and customer support. Consider the bank’s accessibility through online banking, mobile apps, and physical branches if needed. While prioritising ethics, don’t overlook financial stability. Ensure that the bank is financially sound and capable of safeguarding your deposits. Five Prominent Australian Ethical Banks  Given the above tips on finding your ideal ethical bank, you may still be nonplussed as to which fits the bill. When it comes to ethical banking in Australia, several institutions stand out for their commitment to sustainability, social responsibility, and transparency. Let’s take a closer look at five prominent ethical banks that you might consider for your financial needs. Bank Australia Bank Australia is a leading ethical bank that has been dedicated to responsible banking for over 60 years. As a certified B Corp and a member of the GABV, Bank Australia places a strong emphasis on supporting projects that contribute to positive social and environmental outcomes. They offer a range of ethical banking products, including transaction accounts, savings accounts, and loans. Bank Australia is known for its transparent reporting on where customer funds are invested, allowing clients to see the direct impact of their banking choices. The bank’s investment programme focuses on fields such as non-profits and renewable energy sources. Australian Ethical Investment Australian Ethical Investment (AEI) is a pioneer in ethical investing and banking. They focus on managing investments and banking services in alignment with ESG principles. Their banking products include savings accounts, term deposits, and superannuation options. Australian Ethical Investment is known for its stringent investment screening process, ensuring that your money is used to support companies and projects that meet their sustainability and ethical criteria. Beyond Bank Australia Beyond Bank Australia is another notable player in the ethical banking landscape, with origins as a credit union. As a B Corp-certified bank, Beyond Bank Australia channels its profits into community projects and initiatives. They offer a variety of banking solutions, including transaction and savings accounts, loans, and credit cards – their home loan framework was also overhauled for digital transformation, with NextGen’s ApplyOnline platform as a partner system. Beyond Bank Australia’s commitment to social and environmental responsibility is reflected in its support for causes such as education, health, and environmental conservation. Such dedication has earned the bank a Forbes recognition as one of the world’s best banks for 2023, plus eight straight years as CANSTAR’s Customer Owned Bank of the Year in the Digital Banking category and a 2023 award for Customer Owned Bank of the Year in the Most Satisfied Customers category. Community First Credit Union Community First Credit Union is a member-owned cooperative that prioritises community well-being and sustainability, first operating in 1959 as the Sydney Water Board Officers Credit Union Co-Op. While not a traditional bank, it offers ethical banking options to its members. Community First provides a range of financial services, including banking, loans, insurance, and financial advice; the loan component, in particular, allows flexible payments for people looking to buy hybrids or EVs. Being customer-owned, it places a strong emphasis on delivering value to its members and contributing positively to the communities it serves. Future Super Future Super is a superannuation fund that combines ethical investing with retirement savings. While not a traditional bank, it’s worth mentioning due to its significant impact on ethical finance. Future Super offers a fossil fuel-free investment portfolio and supports industries and projects that align with their clean energy and sustainability goals. This option is particularly appealing for those looking to align their long-term retirement savings with their ethical values. Pros and Cons With

Stay connected abroad with your Australian mobile phone. Learn about managing data roaming charges and communication alternatives. In an increasingly globalised world, staying connected while travelling abroad is crucial. Your Australian mobile phone number holds familiarity and convenience, allowing you to communicate with friends, family, and colleagues without hassle. However, using it abroad involves considerations such as data roaming charges and cybersecurity. This article provides insights into the importance of keeping your Australian mobile phone number while travelling, strategies to manage data roaming charges, and alternatives to data roaming to ensure a seamless communication experience. The Importance of Taking Your Australian Mobile Phone Abroad Some people may think bringing your Australian mobile number overseas is too much of a hassle, but here are a few points to their importance: Familiarity and Accessibility Your Australian mobile phone number is the primary point of contact for your network, friends, family, and business associates. By retaining your local number, you maintain a sense of familiarity and accessibility, making it easier for people to reach you (although some may say, a suitable option will be to contact your accommodation provider and ask for your suite). Business Continuity If you’re travelling for business, having your Australian number can be essential for maintaining communication with clients, partners, and colleagues. This ensures business continuity and prevents any disruptions in professional relationships. Avoiding Confusion Using a local number abroad might lead to confusion for your contacts. They might not recognise the foreign number, leading to missed calls or messages. Having your Australian number may prevent such misunderstandings. Planning for Roaming Charges Some mobile carriers claim that using data roaming while abroad is effective if you do not want to use the local mobile line, but you have to ponder on these steps before pulling the trigger: Check with Your Telco Before embarking on your journey, get in touch with your telecom vendor here in Australia to understand their international roaming plans. Some telcos offer specific international roaming packages that provide reduced rates for calls, texts, and data usage abroad, like this list compiled by our friends at WhistleOut. Enable Data Roaming Only When Needed Data roaming charges can be particularly steep. To manage costs, disable data roaming when you’re not actively using the internet. Enable it only when necessary, such as when you need to check emails, use maps, or access important information online. Use Wi-Fi Whenever Possible Make use of Wi-Fi hotspots available at hotels, cafes, airports, and other public places. Connect to Wi-Fi networks to avoid using cellular data and incurring roaming charges. Monitor Data Usage Keep track of your data usage through your phone’s settings or by using your telco’s mobile app. This allows you to stay within your allocated data limit and avoid unexpected charges. Alternatives to Data Roaming If data roaming overseas is not cost-effective for you, here are possible workarounds.  Local SIM Cards A SIM card from a telco in your host country provides you with a local number and access to local data plans, which are often more affordable than international roaming rates. Learn which telco stores in your destination sell SIM cards and buy one as soon as you arrive; they may contain a set amount of credits with options to buy prepaid cards.  It pays as well if you have a phone that offers dual-SIM capability, allowing you to switch active numbers as needed. Travel SIM Cards Some companies offer travel-specific SIM cards that provide discounted rates for international calling, texting, and data usage. These cards are designed to help travellers save on communication expenses. Pocket Wi-Fi If you are booking through a travel agency, inquire about any partnerships with local mobile Wi-Fi providers and their rental rates and return policies for the devices. Some vendors may have options to arrange for pickup while you’re still in Australia prior to takeoff or upon arrival at your destination. Enhancing Cybersecurity While Abroad Given the international nature of cybercrime, it is vital to protect your digital assets when you go overseas.  Use Secure Networks Be cautious when connecting to public Wi-Fi networks. Use virtual private networks (VPNs) to encrypt your internet connection, enhancing your cybersecurity and protecting your sensitive data from potential hackers on unsecured networks. If you already have a VPN service active on your devices you can simply switch servers in the VPN list. Be aware, though, if your destination country has a tight policy on VPN usage; NordVPN, in particular, notes that VPNs are banned or heavily restricted in China, Russia, Türkiye, and the UAE, among others.   Update Software Ensure your phone’s operating system and security software are up to date before travelling. They will contain new patches to secure the system against the latest vulnerabilities and may even introduce new safeguards such as Stolen Device Protection included with Apple’s iOS 17.3 and iPadOS 17.3.   Avoid Unsecured Links Be wary of clicking on links in emails or messages from unknown sources, as these could lead to phishing attempts or malware installation. Only access websites and links from trusted sources. Two-Factor Authentication (2FA) Enable 2FA for your accounts whenever possible. They will usually issue an extra verification channel that must be tapped by notifications on text or email. Stay Connected  Bringing your Australian mobile phone number abroad offers familiarity, accessibility, and continuity, but it’s important to manage potential data roaming charges and a premium effort on cybersecurity. By planning ahead, understanding your telco’s international roaming options, and exploring alternatives to data roaming, you can ensure a seamless communication experience while keeping costs under control. Additionally, practising cybersecurity measures such as using secure networks, updating software, and being cautious of online links will help protect your sensitive information while enjoying your travels. DISCLAIMER:  This article is for informational purposes only. 2 Ezi has no relationships with any company or individual mentioned in the article and does not offer deals on any tech product discussed.

Discover the restrictions after bankruptcy filing in Australia and steps for financial recovery in this insightful blog. Bankruptcies are known to have long-lasting effects on your financial stability and lifestyle. In Australia, just as in many other countries, there are strict rules and regulations in place to govern the process and its aftermath. In this blog post, we will explore the financial restrictions imposed on individuals who have recently declared bankruptcy and the measures they must take to resolve their situation and regain their financial security. Declaring Bankruptcy Declaring bankruptcy is a legal process in Australia that allows individuals who are unable to meet their financial obligations to seek relief from their debts, as per the Bankruptcy Act 1966 (Cth). It provides a fresh start for those overwhelmed by debt but comes with certain financial restrictions and responsibilities. A new monthly AFSA report from December 2023 revealed that 805 new personal insolvencies were filed that month, a slight dip from the 853 in November. From the December figures, there were 509 bankruptcies, 289 debt agreements, and seven personal insolvency agreements. When broken down by states or territories, NSW recorded the most filings at 101, with Queensland (91) and Victoria (66) completing the top three. New bankruptcies in the ACT were the fewest nationwide at three, but AFSA classified 481 insolvencies under the Other category.  Although the number of personal insolvencies overall filed in Australia have dropped since the start of the COVID19 pandemic – from over 20,000 in 2019-2020 to 9,930 in 2022-2023 – the AFSA’s latest State of the Personal Insolvency System report predicts a resurgence in 2024-2025 at 14,750 new filings. This is attributed to young renters facing cost-of-living pressures, such as taking out personal loans or using BNPL apps. When it comes to the amounts owed to creditors, the report tagged the ATO as the largest single creditor at over $2billion. Financial Restrictions After Bankruptcy Declaration Once you’ve declared bankruptcy, you will face several financial restrictions, including the following. Asset Seizure and Sale One of the primary purposes of bankruptcy is to use your assets to repay your creditors. This may involve selling some of your assets, such as non-essential property, investments, or luxury items, to generate funds for debt repayment. However, any tools you use for your trade worth no more than $4,200 total and vehicles worth under $9,100 total are declared “protected assets,” and therefore cannot be seized.   Income Contributions Depending on your income, you may be required to make income contributions to your bankruptcy estate for a specific period, usually up to three years and a day after filing. These contributions are used to repay your creditors. The AFSA states that while there are no limits to the income you can earn and save during your bankruptcy, you will be ordered to make payments under a set amount. For example, if your unsecured debts exceed $137,537.40, you will not be allowed to propose a debt agreement. Credit Restrictions Your bankruptcy will be recorded on your credit report for a minimum of five years (or up to seven years in some cases). During this time, it can be challenging to obtain credit or loans from traditional financial institutions. Current rules also state the bankrupt’s permanent inclusion in the National Personal Insolvency Index, but the Attorney-General’s Department released a discussion paper in September 2023 proposing among others that the permanent status be cut down to seven years.    Travel Restrictions If your bankruptcy trustee believes that you may try to escape your financial obligations by leaving the country, they can place travel restrictions on you, with cooperation from agencies such as the Australian Border Force and the Australian Federal Police, if needed. Business Ownership Bankruptcy may affect your ability to own or operate a business. If you want to continue running a business, you’ll need to seek permission from your bankruptcy trustee. Measures to Resolve Bankruptcy While bankruptcy comes with several financial restrictions, it’s not a life sentence. There are steps you can take to resolve your bankruptcy and work toward regaining your financial security. Here’s how: Financial Counselling Seeking professional financial counselling is an essential first step. A financial counsellor can help you assess your situation, create a budget, and develop a plan to address your debts. Sacrifice Play To resolve your bankruptcy, you may need to make a “sacrifice play.” This involves making substantial financial sacrifices to maximise the funds available for creditors. It may include selling non-essential assets and adopting a frugal lifestyle. Austerity Measures During your bankruptcy, you’ll need to adhere to strict austerity measures. This means living within your means, cutting unnecessary expenses, and prioritising debt repayment. Income Contributions If your income exceeds a certain threshold, you will be required to make income contributions. Ensure you make these contributions on time as specified by your trustee. Full Disclosure Cooperate fully with your bankruptcy trustee by providing all required financial information and documents. Failure to do so can lead to delays in resolving your bankruptcy. Credit Repair While your bankruptcy will remain on your credit report for several years, you can start rebuilding your credit by using secured credit cards, making on-time payments, and demonstrating responsible financial behaviour. Regular Review Your trustee will regularly review your financial situation to ensure that you are meeting your obligations and making progress towards resolving your bankruptcy. The review may also play into the expected discharge. Under the Bankruptcy Amendment (Discharge from Bankruptcy) Act 2023, the three-year-one-day rule is confirmed when the trustee approves a debtor’s petition or accepts a Statement of Affairs from an involuntary bankruptcy filing. The Road to Financial Recovery While the path to financial recovery after bankruptcy may be challenging, it is by no means impossible. Here are some guiding tips to assist you as you navigate this journey. Set Realistic Goals Understand that financial recovery takes time. Set realistic short-term and long-term goals to monitor your progress. Stick to Your Budget Creating and sticking to a budget is crucial. It will help