Families Get Money Smart with These Top Tips

Access to simple, straight-forward and concise financial information and advice can help Australians overcome the barriers to making sound financial decisions according to latest research from ASIC. In a bid to help Australians develop their basic financial literacy, the Australian Scholarships Group (ASG) collaborated with expert financial writer Ms Justine Davies to deliver a simple, straight-forward and step-by-step guide to help Australian families establish good financial habits.

The resulting ASG's Planning Counts is a free, practical guide providing step-by-step tips, tools and information for Australian families on topics such as budgeting, planning for future goals, navigating government benefits, solutions for financial problems, investing, and many more.

ASG's General Manager Development, Ms Frida Kordovoulos reported that ASG's Members nominated financial literacy as one of the top issues they wanted to know more about.

'Financial decision making for families is becoming more and more complex. More choices, competing goals, too much of the wrong kind of debt, and lack of planning being some of the main contributors," Ms Kordovoulos said.

'And while dealing with money can be overwhelming for many of us, research has shown that people are in fact relatively financially literate. There just seems to be a lack of simple and direct tools and information for families to help them practice what they know, and this is supported by the recent findings of the ASIC report.

'Most Australian families know the value of good financial health and want to develop their habits further so they achieve more with their money.

'Good financial health can help us afford lifestyle choices, plan ahead for big goals for the family such as holidays, a new car, home renovations and children's future education. It can also help us set aside money for those expenses that pop up unexpectedly from time to time.

'And that is what ASG's Planning Counts guide aims to do for families. ASG and Ms Davies focussed on making this guide clear and simple without sacrificing any valuable information. The guide can be used as a workbook for families to work through together at their own pace, or simply focus on the particular sections that interest them," Ms Kordovoulos explained.

Ms Davies and ASG's top tips for families are: (sourced from ASG's Planning Counts):
1. Talk about money openly in your family
Finances rate as one of the most contentious areas for families to negotiate. Money, often more than any other issue, can come with a high emotional charge. Examine financial issues, opinions, and beliefs so you can understand and respect each other's viewpoints.

2. Get a budget
Draw up a budget, being as thorough as you can. A budget is a powerful tool that lots of Australians resist. It's usually because they think it limits them, but it's easier to make friends with your budget if you think of it as your spending plan. Make sure you use it; otherwise it is simply another piece of paper.

3. Analyse your spending
Compare your spending to your budget. Are you overspending? Make the possible cutbacks; including using your credit card, to make sure your income is higher than your expenses.

4. Plan ahead for your goals
Use your budget to work out how much you need to put aside for your future goals and how long it will take you. Stick to this plan.

5. Buy peace-of-mind
Don't underestimate the value of insurance, particularly if you have a dependent family. Research your insurance and ensure you have the right level of coverage.

6. Don't suffer in silence
Sometimes despite our best intentions we can find ourselves in financial difficulty, with more expenses than income. Asking for help doesn't have to be difficult or expensive; there are a number of financial counselling services that are available in Australia. ASG's Planning Counts lists how to get help. Ms Kordovoulos and Ms Davies urge families to download the free copy of ASG's Planning Counts today to improve their financial habits and gain a better financial situation for their family.

'This collaboration with Ms Davies is part of ASG's ongoing commitment to assisting parents to provide education opportunities for their children. Like many other important life goals, it is important for families to start planning for their children's education as soon as possible," Ms Kordovoulos said.

Not-for-profit organisation and Australia's specialist education benefits provider, ASG offers parents a proven and proactive way to nurture and fund the education dreams they have for their children. ASG has supported parents to provide education opportunities for their children for more than 35 years. Find out more about ASG and ASG's Education Program™ from www.asg.com.au or phone 1800 648 945 for more information.