Form1 Financial Controller, Louise Shegog, says learning more about financial fundamentals are an important factor for everyone’s wellbeing, at any age.
“Making informed and smart money choices can affect your life in so many ways,” says Louise.
For Form1 Apprentices Toolbox, Louise set up the financial education talk and worksheets, Simple Personal Budgeting Methods, to summarise the budgeting principles by Scott Pape in The Barefoot Investor.
“We also wanted to offer a copy of The Barefoot Investor for deeper learning to Form1 apprentices,” explains Louise.
“I have been impressed by the awareness and interest some of our apprentices have over their financial goals. Financial wellbeing evolves and is a long-term game. I think the principles of The Barefoot Investor simplify steps to take.
“Financial responsibilities can trigger a lot of ups and downs emotionally and life events can also do the same thing to our actual financial situation. When you are not feeling good about your financial situation, making a start on small changes can have the biggest impact. When you talk about your goals and get the support that Form1 wants to offer, we hope it is not so overwhelming.
“The Barefoot Investor presents simple, fundamental concepts with detailed instructions. There are no excel spreadsheets and it guides you to set up bank accounts, pay down debt or start saving. There is less thinking and more ‘knowing’ your financial situation,” adds Louise.
Less thinking about your financial situation is a big win towards your financial wellbeing. And gives you more time to get on with enjoying life!
Empowering Young People
Recent research from the University of Newcastle, forms the basis of a new report called Financial Wellbeing and General Life Satisfaction in Australia.
According to the report’s lead author, Professor Christina Boedker, the results show financial literacy has a significant impact on a person’s general wellbeing.
“With rising living costs and high interest rates, the importance of having higher levels of financial literacy, backed up by financial planning activities such as having a household budget or setting longer-term savings goals, is as important as ever, as it leads to greater financial wellbeing,” says Professor Boedker.
“This in turn feeds into overall life satisfaction, with regression analysis showing that individuals with higher financial wellbeing experience significantly higher levels of general life satisfaction.”
The report also found:
- 43% of young people aged 18 to 24 years reported that they could not meet their personal debt obligations.
- Young people have the lowest levels of financial literacy and financial autonomy of all age groups.
- Women have lower levels of financial literacy but demonstrate better financial planning behaviours.
- While younger men have higher levels of financial literacy, they are less likely than women to apply their financial knowledge to make good financial decisions.
Learning how to manage money now, plan for the future, and make informed decisions, is essential if people are to feel in control of their financial lives.
Where does financial wellbeing fit into your business?
Are your staff empowered to make smarter choices when it comes to money?
You can read the full report Financial Wellbeing and General Life Satisfaction in Australia here.
