It’s easy to learn to speak money
ANALYSIS: Michael Speight made a conscious effort to become financially literate when one day the entrepreneur and computer coder realised the drastic limits of his skills.
‘‘In my 20s I spent my time saving, then spending it even quicker travelling various parts of the world. With no responsibilities this hand-tomouth existence worked for me and I had some amazing experiences over the years,’’ Speight says.
But his life had changed. He was now married and had a child, a house and a dog. And yet he thought his money skills would probably only score him a two or three on a 10-point scale. He blames several things for that.
Financial skills were not taught in school. His parents’ financial literacy was not high. In his teens and early 20s, there wasn’t access to social media, blogs and podcasts, where money skills are talked about and shared.
‘‘Twenty years ago there was no YouTube, Reddit, Facebook groups or forums where people actively talked about their financial plans,’’ he says.
‘‘If your close circle of friends and family couldn’t offer up advice, I’m not sure where you would start to learn other than picking up a trusty book.’’
These days there’s no end to the money content easily accessed online. However, Speight says you have to be discerning.
‘‘I was looking for people who had a passion and proven track record of the things they were talking about. I gave a wide berth to anyone trying to sell me stuff and make a quick buck,’’ he says.
Auckland chartered accountant Luke Kemeys is trying his best to do his bit to upskill willing Kiwis. He has more than 5000 subscribers to his Keep the Change money newsletters, and more than 14,500 listening to his podcasts. They get money lessons in small, easily digestible bites.
‘‘I’ve always had a bit of an interest in finance and money, the economy and business and whatnot,’’ Kemeys says. ‘‘That’s probably what got me onto my path of becoming a chartered accountant.
‘‘I noticed clients, and people I know, always have a lot of questions. It’s something that pops up. People want to learn more.’’
During lockdown he started writing a weekly money ‘‘lesson’’, and put them in a Google folder. He was about to share it with his friends, but didn’t. He feared it would land like an enormous, undigestible brain dump. And so the idea of sending out a Friday email was born, and he sent the first in May 2020.
‘‘It’s turned into a bit of a beast,’’ he says.
There are world-famous money bloggers like Mr Money Moustache, and local ones that may appeal more to Kiwis from various walks of life like Te Kahukura Boynton, the Mā ori Millionaire. Acquiring a little bit of knowledge on a daily, or weekly basis, can build financial literacy without it feeling too painful.
British journalist Matthew Lanchester calls this process ‘‘learning to speak money’’.
Consistency is the key, as is focusing on your personal areas of ignorance.
‘‘Don’t be scared by those areas,’’ says Kemeys. ‘‘Build out good habits over time, understand where you are going, and understand what you need to get closer. It’s basically the reverse of ‘don’t bury you head in the sand’.’’
It helps having skills in your family circle, says Speight. His wife and her family are financially literate. He is a great believer in ‘‘the osmosis of information’’.
Hang out with people who are skilled in a thing you want to be good at, he says. Listen and ask questions, and the knowledge comes. Attitude matters, as does how you see yourself. People with ‘‘self-efficacy’’ are more likely to succeed with money. That’s the belief in your ability to execute the behaviours necessary to achieve a certain outcome, such as saving a deposit for a house, or learning a new skill.
Speight believes if he sets his mind to something, he can do it. He was raised in Yorkshire, in the UK, and had a lot of freedom as a youngster. There wasn’t a lot of money in the family. If he needed any, he had to earn it.
He taught himself coding, and uses the language of coding to talk about where people develop selfefficacy. ‘‘You’re born pre-coded, and your environment unlocks certain parts of you,’’ he says.
But he believes anyone can become financially literate, and a better, more prosperous life beckons if they take up the challenge.