Treat money like pets, kids told
Start saving as early as you can. That’s ANZ CEO David Hisco’s advice for young people. “Saving money doesn’t mean you are greedy or stingy. It means you’re giving yourself choices and giving yourself something to fall back on if things get tough,” Hisco says.
“Money is hard to get, and it’s impossible to save everything you earn. But if you can get into the habit of putting a little bit away every week you are going to get ahead.”
Hisco began working at ANZ at 17 when he left school. He started out sweeping a carpark then became a teller and has been working his way up ever since.
Hisco recommends students get an after-school job to earn money and to learn how to manage it.
“Somebody will always be trying to sell you something or take your money off you — so be very careful about handing it over to anyone. Before you hand over your money for something you should ask yourself ‘what am I getting, what is the value in it?”’
Money is like having a pet, he says: “You’ve got to look after it.”
ANZ is encouraging people of all ages to set up a regular savings plan after UMR research revealed many people would have trouble paying an emergency expense of $500.
Half of those surveyed in the research said they would use money in their cheque or savings account to pay for an emergency expense while others would borrow money from a family member of friend.
The bank said having a savings buffer of $1000 was associated with higher financial wellbeing.
Saving just 10 per cent of your income puts you in a good financial position, experts say.