Of those who are confident of achieving their savings goals:

• 78% say they know how much money is needed
• 75% say they have a clear savings plan
• 73% say they regularly review progress towards their goal
• 72% say they have a specific saving timeframe, and
• 43% tell family and friends.

Miles Larbey, Senior Executive Leader of ASIC’s MoneySmart said, ‘Savers who regularly review, remind themselves and publicly commit to their savings goals are those more likely to achieve them.’

To coincide with the poll results ASIC yesterday launched a new, free app, TrackMyGOALS, to help Australians set, track and meet their savings goals. TrackMyGOALS can be downloaded from ASIC’s MoneySmart website or through App Store or Google Play.

The poll also revealed the top five things respondents were saving for. Of those who said they were saving:

• 48% are saving to buy or renovate a home
• 47% are saving for a holiday
• 47% are saving for the future
• 33% are saving an emergency fund, and
• 13% are saving for a car.

Other things people were saving for include: education (10%); furniture or household appliances (8%); a wedding (5%); or a new computer (4%).

‘TrackMyGOALS allows users to add multiple goals, set reminders and to share their goals with friends and family on Twitter and Facebook. There are also daily tips and, to help users stay motivated, they can visualise the outcome by uploading a picture of their savings goals’, said Mr Larbey.

The poll results also suggest that women and men approach saving differently. Women are more likely than men to save for more than one thing at a time. Thirty-six per cent of men who save consider themselves ‘fast and determined’ savers because they are focused on saving as quickly as possible. On the other hand, 39% of women say they are ‘slow and steady’ savers in that they save small amounts regularly to reach their target.

For those who are not currently saving, and would like some assistance to get started, ASIC’s TrackMySPEND app can help. It allows people to see where their money is going, identify areas they can save and take control of their finances. TrackMySPEND can also be downloaded from ASIC’s MoneySmart website.

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[1] ASIC’s MoneySmart online ‘Money Goals’ poll, July 2014

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An example of the images produced by the Imaginarium illustrators.

Professional artists illustrated the lives of over 100 people as part of a MoneySmart Week event run by TAL last week.

TAL Chief Customer and Operations Officer Penny Coates said: “The illustrations from the TAL Imaginarium were designed to help people really appreciate what is important in their lives, including the futures they imagine.”

“Participants were amazed to see their illustrations highlight so many things they value in their lives now, as well as their hopes and dreams for the future. Participants came away with a better understanding of the need to protect what’s precious to them.”

The TAL Imaginarium operated at four sites last week, as part of MoneySmart Week, to help improve financial literacy across Australia.

Over a few minutes, participants were asked about what they valued in their lives and imagined for their futures. As they did so, a hidden artist illustrated their responses, which were revealed at the end of the conversation.

Jane, 32, from Chatswood in Sydney, said the TAL Imaginarium helped clarify the dreams she has for the future, and made her realise she is determined to chase those dreams.

“It is too easy to forget the important things in life. To see the people and experiences I cherish and my imagined future come to life in an illustration was a wonderful experience and a complete revelation” she said.

TAL supports MoneySmart Week to improve financial literacy and help Australians build, grow and protect the lives they have created and the ones they imagine for the future.

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NAB Essential Life launches life insurance protection online process.

It’s now easier than ever for Australians to protect themselves and their loved ones with life insurance, with the National Australia Bank (NAB) launching the new online NAB Essential Life protection to coincide with MoneySmart Week.

Customers will be able to apply for the NAB Essential Life insurance protection online at nab.com.au in only a few simple steps and receive cover immediately.

To celebrate the launch of NAB Essential Life, customers who receive coverage online by 31 October 2014 will receive a 10 per cent discount on their premium for the life of the policy.

Unfortunately, many Australians don’t realise the importance of life insurance. According to the latest MLC Wealth Sentiment Survey, 50 per cent of Australians don’t want or don’t think they need life insurance to protect their family’s finances in the event something happens to them.

Retail Wealth Product Executive General Manager, David Hackett said NAB Essential Life was designed to make it simpler for Australians to protect their family’s future with life insurance.

“We are constantly looking at ways to make it easier for Australian families to protect their financial future, and address our nation’s underinsurance problem,” Mr Hackett said.

“We all know that life doesn’t always go according to plan and life insurance can help protect your loved ones if the unexpected happens.

“The launch of NAB Essential Life marks the first time our customers can apply for and receive life insurance protection quickly online at nab.com.au, and is an important part of our strategy to make quality financial advice and services accessible to more Australians.

“The last thing anyone wants is to leave their loved ones in financial difficulty after they are gone. NAB Essential Life gives you the peace of mind that your family will be protected.”

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Jim Minto

A survey has bucked the perception that young Australians are staying at home substantially longer than their parents did.

The findings reveal offspring fly the coup and become financially independent at an average age of 23.

Surprisingly, this compares to their parents who left home only two years earlier at an average age of 21, according to the survey conducted by Australia’s largest life insurer TAL as part of its support for MoneySmart Week this week.

The survey also reveals this meets parents’ expectations: they say their children should leave home and become financially independent at about that age (age 22.7 years).

TAL Group CEO Jim Minto said: “Leaving the protection and comfort of the family home can be both exciting and daunting. It is a rite of passage. Ensuring you are financial protected makes the transition much easier.

“A crucial part of being financial independent is ensuring you can meet your obligations and commitments if for some reason you are unable to earn your income for a period. Income protection is a key form of life insurance for young people and moving out of home is a perfect time to ensure you have financial protection.”

While highlighting that the 30-something “failure to launch” cliché is an exception rather than the rule for those flying the coup, the survey also reveals far fewer children are leaving home before the age of 18.

Only three per cent of parents expect their children to leave home before 18, compared with 13% of parents saying they had moved out by this age.

Fourteen per cent of parents shied away from putting an age on the question – instead saying it should be dependent on getting a job or completing their education.

A number of parents did, however, seem resigned to having their children at home for the long term, with 8% saying their children “would probably never leave home”. In some cases there may be children with special needs or medical conditions.

Mr Minto said: “Looking at life it is clear that a person’s most important asset is their ability to earn an income because that is what sustains our lives.

“But what many young people do not fully appreciate is the impacts and consequences of what can happen when an income unexpectedly stops due to injury or illness. Youngsters will often insure their mobile phones but not themselves.”

TAL supports MoneySmart Week to improve financial literacy and because it wants to help Australians build, grow and protect the life they have created and the one they imagine for the future.

TAL is hosting a MoneySmart Week event outside Customs House at Circular Quay, Sydney give people the chance to bring their futures to life through personalised illustrations completed in real time by professional artists.

Age for leaving home and becoming financially independent

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Brad Fox

The Association of Financial Advisers (AFA) is urging members to encourage the public to take the next step to better engage with their financial affairs by becoming involved in MoneySmart this week.

MoneySmart Week, which runs from 1-7 September 2014, is an independent, not-for-profit national initiative promoting the importance of financial literacy. Held annually, it is designed to encourage all Australians to take simple steps to make a positive difference to their financial wellbeing.

AFA CEO Brad Fox said the AFA has a strong commitment to financial literacy at the consumer level and is encouraging AFA members to get involved. “Australia has one of the largest and safest financial systems in the world, but for the majority of Australians, it is very complex and difficult to understand,” he said. “MoneySmart Week is an excellent government initiative to drive awareness and direct Australians to the places they can go for help with their finances. Financial advisers can be one solution, but there are many other resources available to Australians which can help improve their level of understanding around things like budgeting, superannuation and taking control of debt.”

Mr Fox said the important factor to consider is that Australians need to feel confident that they know the basics around their financial situation. “We find that once people gain the basic knowledge around their own situation, they are more inclined to become more involved in taking care of their personal financial position. Giving back to the community is common practice for AFA members and MoneySmart Week is another great opportunity for them to help and engage with their local communities.”

Mr Fox said the AFA is currently developing a comprehensive financial literacy strategy to be launched in 2015. “This strategy will complement the AFA’s Your Best Interest initiative, which is aimed at engaging, entertaining and educating the Australian public about financial advice and financial advisers.”

The AFA will share more about their financial literacy program at the AFA National Adviser Conference in Cairns from 12-14 October 2014.

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The TAL Imaginarium will give people the chance to bring their futures to life…

Australia’s largest life insurer TAL is hosting the ‘TAL Imaginarium’ in Sydney next week as part of MoneySmart Week.

The TAL Imaginarium will give people the chance to bring their futures to life through personalised illustrations completed in real time by professional artists. The drawings will come to life on large digital screens as people talk about the lives they’ve created and the futures they imagine.

The event is part of MoneySmart Week’s efforts to improve financial literacy in Australia and aims to persuade people to “protect what’s precious.”

MoneySmart Week runs from 1-7 September, and Thursday 4 September focuses on insurance. The day’s theme is “protect what’s precious” and the TAL Imaginarium has been created to help people stop, think and reconnect with what’s really important to them.

TAL Group CEO Jim Minto said: “We invest a lot of time and energy in building our lives and working towards our dreams. At TAL, we are passionate about helping Australia to sleep better at night, so we are right behind MoneySmart Week’s campaign to persuade people to protect what’s precious to them. Many don’t realise that their ability to earn an income and maintain their future lifestyle is their most important asset that needs protection.”

“The Imaginarium is a fun and engaging way to get people to focus on the important things in life.  Financial literacy is an essential life skill but one that too few Australians have. Whether you are struggling to make ends meet or have plenty of money to spare, financial literacy and financial protection are hugely important.”

Additional event

On Thursday 4 September, from 6pm-7.30pm in its Sydney office, TAL will host an event for women called “Life Lessons 101: How to have it all.” We are excited that best-selling author Megan Dalla-Camina will share her life success story at this event, while founder of women’s adviser network 10thousandgirl Zoe Lamont will also talk about the importance of life insurance to female financial fitness. The Imaginarium will also be in operation and more details including registration are available here.

The Imaginarium theme extends online and will see TAL giving away ten $100 Red Balloon vouchers through a competition to be run on its TAL Life Facebook page.

As part of the Imaginarium, TAL is calling on people to take a quick quiz to compare their levels of financial protection to the average Australian: Financial protection quiz.

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Mark Rantall

The Financial Planning Association of Australia (FPA) has welcomed the National Financial Literacy Strategy 2014-17, launched last Friday by ASIC.

The FPA is committed to ensuring that consumers have access to the best financial advice. It sees financial literacy as key to this process, allowing consumers to confidently make decisions in terms of finding the right financial planner and acting on their advice.

Mark Rantall, CEO of the FPA, said: “We firmly believe that all Australians have the right to access the best financial advice. We also agree that there is more to be done to ensure that financial literacy is improved across the board. Ultimately, financial literacy is an everyday life skill that allows people to better understand their finances and to appropriately manage their financial outlook. We welcome ASIC’s commitment to helping consumers in this space, with the launch of this Strategy as well as its MoneySmart Week initiative.

“A collective push is needed from industry and businesses, working together to increase financial literacy and to help bring about the right financial outcomes for all Australians.”

According to ASIC, the National Financial Literacy Strategy 2014-17 aims to improve the financial literacy of all Australians. It will do so by providing a national framework that will allow meaningful action from stakeholders including government, business, community and education sectors.

Mr Rantall said the FPA will continue to support consumer-focused initiatives to execute its vision through members to stand with Australians for a better financial future. It will also continue its own direct work in this space, through Financial Planning Week from 25-29 August, to highlight the benefits of a financial plan and trusted advice.

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Origami made out of money.

Visitors to the TAL building at 363 George Street tomorrow (3 September) will be greeted with a miniature neighbourhood made entirely of paper money while an origami artist completes the creation.

The origami display has been put together by Australia’s specialist life insurer, TAL, as part of MoneySmart Week to illustrate that it’s not how much money we have, it’s what we do with it that matters.

The event is designed to help raise awareness of the importance of being money smart during financial literacy campaign, MoneySmart Week. The installation visually brings to life the importance of protecting the things that matter most in life.

The average Australian household worth is $728,000¹ and according to TAL’s Australian Financial Protection Index released this year, Australians reported they have just 24% of the life, illness, disability and income protection insurance they need to safeguard this worth.

TAL CFO Kent Griffin said: “Whether you are struggling to make ends meet or have plenty of money to spare, financial literacy and financial protection are hugely important. As our origami installation illustrates, it’s not just what you’ve got, but what you do with it that matters in life.”

TAL Dai-ichi Life Liaison Executive Toru Nagashima said: “We are proud to be involved with MoneySmart Week to help educate Australians about the importance of financial literacy and protection. Life insurance, in particular, is one of the least understood financial needs yet it is also one of the most important. We hope our MoneySmart Week installation will inspire consumers learn about how they can protect the lives they have built.”

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MoneySmart Week is an Australian Government Financial Literacy Board initiative led by Paul Clitheroe AM and supported by more than 100 organisations from the business, community and government sectors.

“The aim is to encourage all Australians, including young people, to take a closer look at their everyday money management,” said Tax Commissioner Michael D’Ascenzo.

“When it comes to money, knowing what support and services are available, including through the ATO, can make all the difference.”

Understanding money can help young people and their friends and families make sound financial decisions, manage financial stress, work towards meeting their goals and secure their financial wellbeing.

As part of the week, the ATO is encouraging its employees to do the MoneySmart money health check which will provide simple steps, tips and an action plan to improve personal finances. We are also promoting the week and our leveraged tax and super messages to young people through twitter.

“The reality is money plays a major role in our lives – it can affect our quality of life, sense of security and impact what opportunities we choose to pursue, said Mr D’Ascenzo.

“So think about making the most out of MoneySmart Week and your tax and super – a few simple steps could make a big difference to your finances.”

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