Mr Taxman
Change the way you feel about taxes.
Get informed and discover what the taxman doesn't want you to know.
Sharing it with Australia, Mr Taxman is a regular Woman’s Day columist and TV finance commentator
  • click to visit Mr Taxman on Twitter
  • click to visit Mr Taxman on FaceBook
  • rss

Money tips for 2013 school leavers

Nov 20, 2013

If you could go back and give your teenage self some sage money advice, what would it be?

With Year 12 exams over and our region's school leavers contemplating their next move, we asked 'Mr Taxman' Adrian Raftery for his top money tips for school leavers to set them up for a prosperous future.

Tip number 1 - Don't get a credit card
"It's the root of all evil. The average credit card debt is five thousand dollars. I've seen young people of 21, 22 (years old) with a hundred thousand dollars of credit card debt," Adrian told ABC Goulburn Murray's Joseph Thomsen.

Tip 2 - If you must buy a car, make it a cheap one
Cars decrease in value so they're not a good investment. "If you do need a car for work, buy the cheapest car possible that will get you from A to B." Instead he recommends you "save your money for investments that will make you money" - like shares, property or a term deposit.

Tip 3 - Ask family and friends for advice
Parents and grandparents love sharing their wisdom - so make the most of it. "Ask them, 'What would you do differently?' ".

Tip 4 - Get smart with super
"Money makes money," Adrian said. Start contributing extra payments into your superannuation now and it'll make things easier it will be later in life. Plus you can benefit from government contributions for low income earners. "Put an extra thousand dollars into super each year, the government will put in five hundred dollars." You can find out if you're eligible for co-contributions here.

Tip 5 - Budget for your goals
What do you want to do with your money? Set goals, budget for them and most importantly be disciplined.

Tip 6 - Pay on time
Late fees add up. Set up direct debits for regular payments like phone bills, insurance, car registration and utilities expenses so you always pay your bills on time.

Tip 7 - Borrow for good
Try to only borrow money for 'good debts' - things that will make you money by increasing in value, like property.

What money advice do you think every teenager should hear? Leave a comment below.

This article was first published on the ABC website.

Tags: BudgetChildrenEducationFamilyPersonal tax

Author: Bronwen Wade

Comments

Post a New Comment

Media Availability

Are you interested in booking Mr Taxman for a speaking engagement or requesting his viewpoints for an article?

comments-rhsLatest Comments

  • "Can either my wife or I claim deduction expenses and medical expenses over the threshhold. This year it would suit for her to claim these tax deductions although this has not been the case..."

    By: Tony Swain at Jul 29, 2014 5:36AM

    Post: Claiming car expenses

  • "I am a proprietary trader for forex with a forex education company. I took a course with a fee, but prior to the course we were required an ABN, would that mean the course fee can be treated as..."

    By: Jeff at Jul 27, 2014 6:00PM

    Post: Foreign currency trading

  • "Hi, my husband and I separated last year (August) - when I do my tax return it asks about your spouse (wrote yes then filled in date) and then it asks for his income. Does it want the full year or..."

    By: Lynette at Jul 27, 2014 10:16AM

    Post: Marriage

  • "I am an employer, I have a staff member who is employed full time. For 7 days a year she is required to work in the afternoon at a client which can be anywhere from 2-15 km away from our office. This..."

    By: Loretta at Jul 26, 2014 10:01PM

    Post: Claiming car expenses

  • "Hi, I bought an investment property 17 years ago. 7 years after buying it I moved into it myself. 7 years later I got married and we built a new home. By that stage the investment unit had..."

    By: Nick at Jul 26, 2014 4:01AM

    Post: Marriage