Poverty and Planning.
Holy bumcakes, I wish I had understood more about money from a younger age! Sadly, if you are raised in poverty or absolute basics, this is unlikely.
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| On the edge? |
I didn't actually realise how poor we were most of the time, and even when I did, I didn't feel terribly hard done by. Of course I got bullied for having the wrong shoes (but I had shoes), the wrong tracksuit pants and ugly glasses as I went to a high school with fairly affluent people from the North Shore in Auckland.
Most of them would not have classed themselves as affluent because they would have compared themselves to people who had even more than they did.
"Mandy's family have a bach in Hahei" - that sort of thing.
My father was not on the scene and mum is a proud person who didn't ask people for help. I learned that asking for help was a weakness and developed a taste for trying to rescue others. I was 21 before I found out that the way middle to upper class Kiwi people thought of money was so entirely different to mine.
"I have no money" interpretation:
Middle to Upper Class:
They actually mean they have no money on them RIGHT NOW or for a short period of time. They do not mean they literally have no money the way a person with no money means it. This person is not trying to lie to you - they have been raised to think about money in a different way.
Example: When I was doing a foundation year in art and design in 1992, I was so poor that I was living off $20 a week (or less) for food. I cycled everywhere and scavenged as much as I could for art materials (an old door made a great canvas).
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| Money tree? |
One day he turned up wearing these mustard Caterpillar boots that were popular at the time. They were horrendously expensive! Amazed, I asked how he afforded them.
"Oh," he said without a trace of awareness,
"I don't touch my savings until I really want something".
"I don't touch my savings until I really want something".
Lesson:
I don't know whether buying stocks is really a good idea or not, so this is how I've decided to think about it: I do not buy lotto tickets and so shares will be my version of 'gambling'.
Sharsies has an annual subscription fee of $30 and a minimum share price of $5. I joined tonight and am willing to risk the occassional $5 gamble (less than lotto with a power ball I believe) and am willing to suffer losses as well as gains over a longer period of time. A lot of people are happy to pay $5 or $6 for a lotto ticket each week and usually lose every time.
Kiwisaver:
It's only this year that a friend clued me in on the fact that you can get FREE MONEY deposited into your Kiwisaver account! It's called a tax credit. You get the full amount of the tax credit if you have contributed at least $1,042.86 for the year. The maximum tax credit amount is $521.43. I personally did not make the $1,042.86 this year, but I was delighted to see that I still got just over $300 in tax credit anyway.
For more details just enter 'kiwisaver tax credit' into a search!
https://www.booster.co.nz/booster-kiwisaver-scheme/manage-your-account/making-contributions/member-tax-credits.aspx
So this is my little foray into financial literacy. I shall share anything of use with you.
Homework:
1) I have never read Rich Dad, Poor Dad. It bored the crap out of me - but now it's available to listen to on youtube and seems much more appealing. Some of the things the 'rich dad' says are annoying, but I will suck it up and keep on listening for the nuggets of gold.
2) I'm reading The Spender's Guide to Debt Free Living by Anna Newell Jones. She created a blog about going on a 'money fast' for a year. Could I go on a money fast? I'm already frugal as it is, but I could still invent a challenge!
What kind of money homework can you do this week? Wishing you health, wealth and magic monkey moonbeams!
I stopped believing middle to upper class people when they claim to have no money. They often have parents who are helping them or access to savings they won't necessarily mention.
My friend wasn't aware that when I got him that 50 cent coffee I was dipping into my extremely limited budget. He may not have even been able to comprehend what it was like for me. It was a pattern I kept noticing with my predominately privileged friends - they were really good at putting themselves first. I thought I was so kind and generous - but I often did things for people at my own expense and very little thanks!
Like me, you may have been raised to put others first. That's a lovely sentiment, but it will leave you resentful and broke if you don't make self care a priority.
Self care does include your finances! My mum raised me to not mention money - that it was impolite. What a pity that talking about money is more uncomfortable for most people than discussing a bowel movement. My guess is that we don't want to embarrass anyone and so it's all very hush hush - but that idea of privacy just leads to ignorance for those of us not raised on the right side of the picket fence.
What to Do?
I feel extremely ignorant regarding a lot of what might be basic knowledge to those raised with financial security. I shall be exploring financial issues and sharing anything I think might be helpful to anyone who is struggling financially or who might like to prepare for the person we will be in future years.
Funnily enough, I mentioned this to a friend today and she told me about a podcast available via the New Zealand Herald and Newstalk ZB called 'Cooking The Books' which tackles a different money problem with each episode.
The podcast I listened to today features information about a new online investing platform for Kiwis called Sharsies. It makes investing affordable for all of us.
https://app.sharesies.nz/
Sharsies has an annual subscription fee of $30 and a minimum share price of $5. I joined tonight and am willing to risk the occassional $5 gamble (less than lotto with a power ball I believe) and am willing to suffer losses as well as gains over a longer period of time. A lot of people are happy to pay $5 or $6 for a lotto ticket each week and usually lose every time.
Kiwisaver:
In New Zealand we also have Kiwisaver (retirement savings) and when it first came out I was resistant but liked the idea of the free $1000 incentive then offered by the government.
That incentive is no longer in existence and my Kiwisaver balance is pretty low. I want that to change.
That incentive is no longer in existence and my Kiwisaver balance is pretty low. I want that to change.
I am not interested in 'retirement' in the stereotypical fashion, but I would like to live vibrantly when I'm over 65. Living vibrantly may include travel, assisting others, creating art and writing books. If I am just scraping by, such dreams may remain the stuff of fantasy.
It's only this year that a friend clued me in on the fact that you can get FREE MONEY deposited into your Kiwisaver account! It's called a tax credit. You get the full amount of the tax credit if you have contributed at least $1,042.86 for the year. The maximum tax credit amount is $521.43. I personally did not make the $1,042.86 this year, but I was delighted to see that I still got just over $300 in tax credit anyway.
For more details just enter 'kiwisaver tax credit' into a search!
https://www.booster.co.nz/booster-kiwisaver-scheme/manage-your-account/making-contributions/member-tax-credits.aspx
So this is my little foray into financial literacy. I shall share anything of use with you.
Homework:
1) I have never read Rich Dad, Poor Dad. It bored the crap out of me - but now it's available to listen to on youtube and seems much more appealing. Some of the things the 'rich dad' says are annoying, but I will suck it up and keep on listening for the nuggets of gold.
2) I'm reading The Spender's Guide to Debt Free Living by Anna Newell Jones. She created a blog about going on a 'money fast' for a year. Could I go on a money fast? I'm already frugal as it is, but I could still invent a challenge!
What kind of money homework can you do this week? Wishing you health, wealth and magic monkey moonbeams!
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