While many of us dream of owning a fancy sports car or house right on the beach, the majority don’t know the right way to save in order to get there.
Visa has launched Practical Money Skills this week, a website that aims to help Australians manage their money.
Vipin Kalra, country manager of Visa Australia, believes that the financial aspirations of Australians don’t always correlate to their spending and saving habits.
“Studies show there are a number of barriers that prevent people from making good financial decisions, like information and choice overland. But it’s often the money basics that people are missing, like setting a household budget or knowing exactly how long it will take to save for a goal,” Kalra said.
“Understanding the true value and power of money comes from the ability to save and budget. Good management of personal finances has a positive knock-on effect on quality of life. It provides new opportunities, a sense of security, and also contributes to improving the economic outlook of individuals, households, and the country,” he said.
Practical Money Skills provides budget calculators, information, tips, and games like Financial Football to help people understand and plan for financial decisions.
The site also provides lesson plans that allow teachers to incorporate financial literacy into curriculums from kindergarten to year 12.
Kalra believes it’s important to educate young people, particularly 18-24 year olds, as they are more likely to have lower levels of financial literacy.
“This is the same age group most likely looking to buy their first car, and they need to realise that budgeting for a car goes beyond just paying for it,” he added.