Finance

Young people today identify money as one of the biggest causes of stress in their lives.

We recommend a terrific site called Money For Life  to get some straightforward advice about finances. This site is British but the advice about banking, saving and budgeting etc. is very relevant to young people in Gannawarra.

Further to this, Scott Pape, the ‘Barefoot Investor’, has answered some of the most common money questions asked by teenagers and school leavers.

Appling for a Loan

If you’ve just turned 18, you may be excited at the prospect of many things becoming available to you – alcohol, voting and yes, loans. However, finding credit may be more difficult than simply applying and being approved. When you first turn 18 you will have little to no credit history and you may have little savings.

So what are your options if you’re an 18-year-old who needs a loan?  Finder.com.au has some terrific advice.

Get a Tax File Number

Your Tax File Number (TFN) is your personal reference number in the tax and super systems.

Your TFN is an important part of your tax and super records as well as your identity, so keep it secure.

Your TFN is yours for life. You keep the same TFN even if you change your name, change jobs, move interstate or go overseas.

You don’t have to have a TFN, but without one you pay more tax. You also won’t be able to apply for government benefits, lodge your tax return electronically or get an Australian business number (ABN).

If you’re an Australian resident, the easiest way to apply for an Australian Tax File Number is to:

  1. Complete the online form.
  2. Print the summary, which will include your application reference number, and take it to your Australia Post interview.
  3. Attend an interview at a participating Australia Post outlet within 30 days of completing your online form. You’ll need to take your printed summary and proof of identity documents External Link to the interview. You’ll need to sign your application at Australia Post when you complete your interview.

The Australian Tax Office has advice about expenses you can claim at tax time if you have specific self-education expenses or working while you’re studying. It’s definitely worth spending time working out if you’re eligible to be reimbursed for portions of your internet plan for example. Click here to find out more.

Renting

There is some terrific advice out there about moving out of home for the first time and what your responsibilities are.

CANSTAR has published a terrific article that outlines what you should know prior to this exciting venture.

Another aspect of renting and moving out of home you will have to consider is housemates. Here are a few articles that discuss both the pros and cons of moving in with friends (which may seem like the perfect option being out of the family house for the first time).

https://www.mymovingreviews.com/move/moving-in-with-friends/

https://www.domain.com.au/living/what-to-consider-before-moving-in-with-a-friend-20160108-gm1wmu/

https://metro.co.uk/2017/05/07/why-i-never-move-in-with-friends-and-neither-should-you-6620850/

https://www.storagefront.com/therentersbent/8-things-you-must-discuss-before-moving-in-with-your-best-friend/

Subscription Traps

It is wise to remember that companies will make it very easy for you to join or subscribe to their services. You’ll be offered free trials, the waiving of subscription fees for a period of time or even gifts but the reality is that these services cost money. Can you afford them and can you afford for these costs to be automatically rolled over?

Here’s a terrific article on avoiding subscription traps.

Office 365 Subscription

You may not have thought about the cost of the Microsoft Office Suite that you have used all your life on devices purchased by your family. The cost is quite significant. It pays to do the sums and work out if a month-to-month subscription will work best for you, or whether you prefer not having to think of the expense for 5 years.

Also remember that if you are studying, you can claim this expense at tax time.

 

Anti-virus software.

No doubt you’re pretty savvy about anti-virus software but you may not have had to pay for it before.

Here’s a site link to help compare different products.

Remember that these sorts of products will be an automatic rolled-over expense on your account, after the year, or two-years of your subscription. You might get a shock when money is randomly taken out of your account!

To apply for a re-fund or cancel your account you will need to contact the company directly.