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FRIDAY DRINKS: 'Twas the night before Christmas · She's On The Money

0:00
Speaker 1: She's on the Money. She's on the Money. Hello and
0:24
Speaker 1: welcome to She's on the Money, the podcast for millennials
0:27
Speaker 1: who want financial freedom. This is one of our Friday
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Speaker 1: Drinks episodes where we celebrate the money wins from our
0:34
Speaker 1: She's on the Money community. There are so many great
0:38
Speaker 1: money wins and confessions that are shared in our Facebook
0:40
Speaker 1: group each and every single week, and we spend a
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Speaker 1: very big part of our days and weeks talking about
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Speaker 1: the things that you guys share in our office. This
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Speaker 1: week we are celebrating you and celebrating the festive season.
0:53
Speaker 1: But before we get there, we are going to recap
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Speaker 1: the week that was. Jessica Ricci, Happy Firstive Season, Happy
1:02
Speaker 1: Christmas Eve.
1:03
Speaker 2: Oh my, oh my gosh, it is Christmas Eve. Santa's
1:06
Speaker 2: coming tomorrow.
1:07
Speaker 1: Yeah, that is very true. I cannot wait for Santa
1:10
Speaker 1: to come. But do you know what else? I can't
1:12
Speaker 1: wait for you to tell me what happened on this
1:15
Speaker 1: week's Money Diaries.
1:16
Speaker 2: So this week we spoke to a beautiful human who
1:19
Speaker 2: has been working her little tush off and has saved
1:23
Speaker 2: seventy percent of her income purchased a house all by
1:26
Speaker 2: herself at the age of twenty six, we love to
1:28
Speaker 2: see it. But then on top of that, she was
1:31
Speaker 2: really lovely and shared a little bit of insight into
1:34
Speaker 2: how she's handling money with her brand new relationship. Because
1:38
Speaker 2: obviously she's bought this house by herself. She's an independent woman,
1:42
Speaker 2: but she has this blossoming love that obviously complicates things
1:46
Speaker 2: a little bit. So it was really interesting to hear
1:49
Speaker 2: how she's approaching that, having those conversations and what that
1:53
Speaker 2: kind of looks like for her.
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Speaker 1: I thought it was really powerful and I mean quite relatable.
1:57
Speaker 1: And I know some people are going to be like Victoria
1:59
Speaker 1: owning house young is not relatable, but it totally is
2:03
Speaker 1: if you're in the situation where you hustled as hard
2:05
Speaker 1: as she is. But those conversations, regardless of whether you
2:09
Speaker 1: own property or you don't need to be had early
2:12
Speaker 1: in a relationship. So it was kind of nice to
2:14
Speaker 1: be like, you talked about it yet and see what
2:16
Speaker 1: she said. George, what happened on this week's Wednesday Deep Dive.
2:21
Speaker 3: This week, Fee we prepped for what will it be?
2:24
Speaker 3: I guess it'll be Sunday Boxing Day. We spoke about
2:27
Speaker 3: how we can make the most of the sales, and
2:30
Speaker 3: as everyone who listens to the podcast regularly would know
2:34
Speaker 3: we're pretty anti sales here a she's on the money
2:37
Speaker 3: unless we're using them to our advantage and buying things
2:40
Speaker 3: that we were going to be buying anyway for that
2:42
Speaker 3: better price. So you know it was loaded with those
2:45
Speaker 3: hot tips.
2:46
Speaker 1: We are anti impulse spending.
2:48
Speaker 2: George.
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Speaker 3: Yeah, well, and that's it. That's it. I confirmed that
2:51
Speaker 3: I most definitely will not be heading to the stores
2:55
Speaker 3: on Boxing Day because it's just way too chaotic. What
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Speaker 3: are you guys going to do? You be hitting the shops,
3:01
Speaker 3: not in person.
3:02
Speaker 1: I'm going to be hitting the beach.
3:05
Speaker 3: Gosh, that's a more affordable option.
3:07
Speaker 1: I absolutely am not going to hit the shops. In fact,
3:10
Speaker 1: it is now Christmas Eve, and so I am done
3:13
Speaker 1: Christmas shopping, guys. I was a few days ago, but
3:18
Speaker 1: the anxiety I was feeling about even going out Christmas
3:20
Speaker 1: shopping it was kind of like a game. I'm not
3:24
Speaker 1: gonna get COVID before Christmas?
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Speaker 2: Oh my gosh. I felt exactly the same way. So
3:29
Speaker 2: I'll be doing a little bit of shopping, but probably
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Speaker 2: online where I can shop around really easily and think
3:35
Speaker 2: about what I'm doing. A lot of those sales have
3:37
Speaker 2: already started as well as I'm already like considering those purchases,
3:41
Speaker 2: which makes me just feel good, you.
3:42
Speaker 4: Know, Oh my gosh, I know.
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Speaker 1: And for me, I was literally like, I don't want
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Speaker 1: to go to the shops, but surely there are going
3:49
Speaker 1: to be a lot of online sales. And if there's
3:51
Speaker 1: nothing that I can think of off the top of
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Speaker 1: my head without checking my emails, guarantee you I don't
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Speaker 1: need it. I don't need anything. So I'm going to
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Speaker 1: try and just avoid my phone on Boxing day. I
4:01
Speaker 1: think you'll find.
4:02
Speaker 2: That's such a good idea. Also, just your friendly reminder
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Speaker 2: to anyone who is planning or going to the sales,
4:08
Speaker 2: please be kind to the staff. It's been a really
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Speaker 2: rough year in general, but it is not a good
4:14
Speaker 2: time to be a retail worker at Christmas. So if
4:17
Speaker 2: it's really crazy or they don't have the shoes in
4:19
Speaker 2: your size, don't take it out on them. It's really
4:22
Speaker 2: not their fault.
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Speaker 1: It's not their fault at all, do you know what.
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Speaker 1: That's one thing I don't like people who are rude
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Speaker 1: to salespeople or anybody who works in hospitality, like.
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Speaker 3: H It says a lot about a person.
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Speaker 1: Yes, exactly, jeeking. So to segue away from that, before
4:37
Speaker 1: I go on a round about how we should all
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Speaker 1: be kind to one another. Geking, let us know what
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Speaker 1: happened in the Facebook group this week, what money wins
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Speaker 1: was shared?
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Speaker 3: Tell us straight into it. Uh, you know there were
4:51
Speaker 3: there were many, as as always. So I guess I
4:55
Speaker 3: know this won't be our last one for the year,
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Speaker 3: will it. We've got one more episode.
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Speaker 1: Nope, we have one more and it is going to
5:01
Speaker 1: be right before the new year, So it's our last
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Speaker 1: one before Christmas.
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Speaker 3: Gee, okay, cool, Well, yeah, that's cool to know. It
5:07
Speaker 3: doesn't really mean much in the context of this, but
5:10
Speaker 3: that's okay.
5:11
Speaker 1: You're like, but you know what I have. I have
5:13
Speaker 1: the thread and I have picked my favorites. It doesn't
5:15
Speaker 1: matter about timing.
5:16
Speaker 3: Precisely, okay. So our first win here is from a Trinity.
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Speaker 3: She sadly just had to go to the hospital for
5:23
Speaker 3: an appointment. Actually, I don't know if it was sad,
5:24
Speaker 3: It might have just been neutral whatever.
5:26
Speaker 1: It might have been a job interview.
5:27
Speaker 3: Georgia could have been in anyway. Parking at the hospital's
5:31
Speaker 3: expensive rudely, so I would say, no, one's really as
5:35
Speaker 3: they want to be.
5:36
Speaker 2: People are going through like a traumatic experience, like you're
5:38
Speaker 2: going to see a loved one or you're going to
5:40
Speaker 2: get a surgery or something like that. They're like, you
5:41
Speaker 2: know what you need to do pay fifty dollars for
5:44
Speaker 2: parking exactly.
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Speaker 1: It's actually taking the mickey in my opinion. I just
5:51
Speaker 1: that's one thing that you're like, you know what, I
5:53
Speaker 1: know we have a really great healthcare system and we're
5:56
Speaker 1: so looked after, but come on, you don't need to
5:58
Speaker 1: kick as well.
5:59
Speaker 3: We're damn one hundred percent. But the good news for
6:02
Speaker 3: Trinity it was that the ticket machine was out of
6:05
Speaker 3: order when she went there. It was, you know, it
6:08
Speaker 3: was a good result.
6:09
Speaker 1: I really like that. That is karma in the best way.
6:12
Speaker 3: Precisely. So our next win here, Ladies is from Annie.
6:15
Speaker 3: So she usually makes dried oranges coated in chocolate or
6:19
Speaker 3: just makes them dried, and you know how, you pop
6:21
Speaker 3: them in your little drinks.
6:22
Speaker 1: A little bit of fancy fancy and you know what,
6:25
Speaker 1: they're so expensive. They are so expensive to purchase on
6:29
Speaker 1: their own, but you can dry them out on your own.
6:31
Speaker 1: They would actually be a great Christmas present. I mean,
6:33
Speaker 1: I can't be can't be out here suggesting things on Christmas,
6:36
Speaker 1: even expecting you.
6:37
Speaker 3: To maybe for next year, guys, Exactly, it does take
6:41
Speaker 3: a few hours. So Annie has been drying oranges and
6:44
Speaker 3: she's taken them to work, and she's charging her colleagues
6:47
Speaker 3: for them, who are loving it. And they've all bought
6:49
Speaker 3: little little baggies of oranges. How good that is?
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Speaker 1: So sweet. She's a genius, she is ALUs Annie, You're
6:56
Speaker 1: a smart woman.
6:57
Speaker 3: That's a good DIY one V. You know how we
6:59
Speaker 3: were talking about that and we were like, oh, what's
7:01
Speaker 3: the good diy?
7:03
Speaker 1: Where were you Annie when we had to write that
7:05
Speaker 1: episode percisely we needed any And are you selling those
7:09
Speaker 1: bags at the hospital where you worked? Pay parking by chicks.
7:16
Speaker 3: Our next week here, guys, is from Sonia. So a
7:19
Speaker 3: neighbor of hers was throwing out a Persian style rug
7:22
Speaker 3: as they were moving in.
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Speaker 1: My gosh, I'm sorry, I thought you were about to
7:25
Speaker 1: say a Persian cash. What is this show? This show
7:31
Speaker 1: has gone loose because we're all really tired, guys.
7:35
Speaker 3: No, so it's not quite that wild. But Persian rugs
7:37
Speaker 3: there are as excited as cats.
7:39
Speaker 1: Some may probably more expensive than purchasing a cat.
7:42
Speaker 3: So she took the rug, which was lovely, took it
7:46
Speaker 3: to the rug cleaner, which charged her five hundred dollars,
7:48
Speaker 3: so not cheap. But this rug is worth five thousand dollars.
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Speaker 3: It's pure silk, it's hand knotted, and now she's made
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Speaker 3: a lovely friend at the rug repair shop and everything's
8:02
Speaker 3: come out aces or I'm not.
8:04
Speaker 1: Gonna lie George that Moneywin has sent Jess like Jess
8:13
Speaker 1: looks like she is nearly going to pass out on zoo.
8:16
Speaker 3: It's not the money, whin, it's the delivery.
8:19
Speaker 1: It definitely was the delivery. But do you know what I learned?
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Speaker 1: I just learned that rug cleaning really expensive. And I
8:26
Speaker 1: didn't even know rugs could be made out of silk.
8:28
Speaker 1: Well in the rich is.
8:30
Speaker 3: That there's different kinds of silks. You know, It's not
8:34
Speaker 3: just like a slippery, little delightful situation. It's I'm assuming it's,
8:39
Speaker 3: you know, just like a regular.
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Speaker 1: Rug, a regular rug made of silk that cost five
8:44
Speaker 1: hundred dollars to clean.
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Speaker 2: I'm just imagining standing on the rug. I couldn't bring
8:50
Speaker 2: like knowing that it was silk. I just don't think
8:52
Speaker 2: that I could do it.
8:54
Speaker 3: You guys know what we need? We need a photo
8:56
Speaker 3: of this from Sonya it actually looks like because I
9:00
Speaker 3: feel like it's going to be stunning and it'll all
9:02
Speaker 3: make sense.
9:03
Speaker 1: I mean, I did just google silk Persian rug and
9:06
Speaker 1: I got a pretty good picture of what that looks like.
9:09
Speaker 1: I think I was just more interested that it costs
9:11
Speaker 1: five hundred dollars to clean a rug.
9:13
Speaker 2: I mean it's a big surface area. If you think
9:15
Speaker 2: about it makes sense. They charge you like eighty dollars
9:19
Speaker 2: to clean a blazer, and a rug is arguably like
9:22
Speaker 2: at least ten blazers stacked on top of each other.
9:25
Speaker 4: That's some good mention.
9:27
Speaker 1: But I have seen on TikTok people taking their rugs
9:29
Speaker 1: to the car wash, so so maybe that could be
9:34
Speaker 1: a money win. You just peg it up like you
9:36
Speaker 1: do the floor mats and give it a little spray
9:38
Speaker 1: a room and you're all good to go.
9:41
Speaker 2: Don't do that to your silk persian rugs. We cannot
9:43
Speaker 2: be responsible for the outcome of that.
9:46
Speaker 1: What let's move on from this, George, What else have
9:49
Speaker 1: you got to bring to the table today.
9:51
Speaker 3: Our next little win here is from Josie So. She
9:54
Speaker 3: created a Christmas fund this year. She wrote a list
9:57
Speaker 3: of who she was buying for, including what she was
10:00
Speaker 3: buying and where from, And she managed to buy everything
10:03
Speaker 3: and had a few little extras and it all came
10:05
Speaker 3: in at two hundred dollars under budget.
10:08
Speaker 1: Two hundred bucks under budget. That's an epic money win.
10:12
Speaker 3: Little bit of organization goes a long way, obviously.
10:15
Speaker 1: I love that for you. I hope that's gone straight
10:18
Speaker 1: back into savings or into the Christmas fun for next year.
10:21
Speaker 3: Love that. Next win here is from Ashley, So her
10:25
Speaker 3: partner and her made some homemade strawberry jam for all
10:28
Speaker 3: of the people they would normally buy gifts, so delicious, wholesome, wholesome. Yes,
10:33
Speaker 3: they went to the local farmer's market for fresh strawberries
10:36
Speaker 3: and bought cute little matching jars from Silly Sully's, which
10:39
Speaker 3: I feel like, I don't really know what that is.
10:42
Speaker 3: I think this girl is from Queensland, so maybe like
10:44
Speaker 3: a Regix kind of like you.
10:46
Speaker 2: Know, yeah, who names their shop the reject shop? That
10:53
Speaker 2: does not inspire consumer confidence in what I'm purchasing there.
10:57
Speaker 1: But it's like a discount shops region stuff. Yeah, it's
11:02
Speaker 1: like the stuff that got rejected, isn't it. It's the
11:05
Speaker 1: reject shop? Are going to come for us and they're
11:07
Speaker 1: going to be like, we are a legitimate institution, Jessica, Ricky.
11:11
Speaker 2: That's I've we I'm so sorry to everybody listening.
11:16
Speaker 3: Guys, Guys, I actually applied for a job at the
11:19
Speaker 3: reject shop the year after school and did.
11:21
Speaker 1: You get rejected?
11:22
Speaker 2: Yeah?
11:22
Speaker 3: I didn't the job.
11:25
Speaker 1: So that was the story of how she ended up
11:28
Speaker 1: and she's on money.
11:30
Speaker 4: Oh yeah.
11:30
Speaker 3: The win of that story, guys, was that she ended
11:33
Speaker 3: up with gifts for eight people and it cost them
11:36
Speaker 3: forty five dollars. So yes, thanks, that's incredible, incredible and
11:41
Speaker 3: heartfelt and wholesome and delicious.
11:43
Speaker 1: To be honest, I would adore getting jam from somebody
11:46
Speaker 1: and they'd be like I made this. I'd be like, oh,
11:49
Speaker 1: I love this, Like that's just it's so nice.
11:52
Speaker 2: I feel like you can just tell, like, if someone
11:54
Speaker 2: gives you homemade jam, you're like, Wow, you put a
11:57
Speaker 2: lot of time into that gift, right, I.
12:00
Speaker 1: Feel like it's really special. I feel like it's really undervalued.
12:03
Speaker 1: And you're right, it's so wholesome. But it's also one
12:06
Speaker 1: of those things where it's not a gift that you're
12:09
Speaker 1: going to put on the shelf and be like, oh
12:10
Speaker 1: my gosh, it's such a homemade gift that I just
12:13
Speaker 1: don't know what to do with. Like, you consume it
12:15
Speaker 1: and it's good, and you could probably reuse that jar
12:18
Speaker 1: if she's gone and bought nice jars from somewhere. It's like,
12:21
Speaker 1: I don't know, does it. Do you guys keep jars?
12:24
Speaker 1: Like when you get a jar a pesto, do you
12:26
Speaker 1: keep the jar? Do you throw the jar?
12:27
Speaker 3: Keep the jar?
12:28
Speaker 2: My mum had a stock pile of jars when I
12:30
Speaker 2: lived at home.
12:31
Speaker 1: I know, Like, how do you guys make salad dressings
12:34
Speaker 1: if you don't have hoarded jars? I don't know. It's
12:38
Speaker 1: a good point.
12:39
Speaker 3: It's a good point. Our final win my voice saunds
12:44
Speaker 3: so wed I.
12:45
Speaker 1: Was like, ah, this whole episode is weird. Georgia King.
12:48
Speaker 1: We are all like it's the end of the year party.
12:52
Speaker 3: We're all drunk.
12:52
Speaker 1: Okay, so last we haven't been drinking. I've got water
12:56
Speaker 1: in front of me.
12:57
Speaker 3: We just lost it, ye okay, So is our final
13:01
Speaker 3: money win for the day. She had some extra end
13:03
Speaker 3: of year income, and instead of splurging on a Christmas
13:06
Speaker 3: present for herself, she put it to good use and
13:09
Speaker 3: paid off her zippay accounts, her credit card and the
13:12
Speaker 3: remaining balance on her hex.
13:14
Speaker 1: It must have been quite aw what did you get paid?
13:18
Speaker 3: Well done, Claire, that's so exciting. Yeah, oh my gosh.
13:22
Speaker 1: I love hearing when people are treating themselves in a
13:25
Speaker 1: different way. Like historically, going out buying an expensive dress
13:30
Speaker 1: or a pair of shoes or something that you really
13:32
Speaker 1: wanted for Christmas was the way that we treated ourselves,
13:35
Speaker 1: whereas now people are like, Ah, I'm going to treat
13:37
Speaker 1: myself by getting out of debt, or I'm going to
13:39
Speaker 1: treat myself by setting up an emergency fund. And I
13:42
Speaker 1: just think it's so special that we are slowly seeing
13:45
Speaker 1: our community reframe what treat yourself looks like and we're
13:49
Speaker 1: now treating ourselves with lots of respect and caring about
13:52
Speaker 1: future us. And it just makes me so excited to
13:55
Speaker 1: think that we might have played a very small part
13:58
Speaker 1: in that journey, and that's just cool. Guys, welcome back
14:01
Speaker 1: to the second part of this wild wild episode that
14:04
Speaker 1: you probably didn't expect to have this level of energy.
14:08
Speaker 1: Just this week. Speaking of wild things that I didn't
14:12
Speaker 1: know existed, you introduced me to an idea. I think
14:15
Speaker 1: it's more of a product or a service. It's not
14:18
Speaker 1: really a news article, but you just thought it was
14:20
Speaker 1: really cool and you wanted to share it with the
14:22
Speaker 1: Shoes on the Money fam. What is it? Pitch it
14:24
Speaker 1: to us, tell us what you have found that you
14:26
Speaker 1: find so interesting.
14:27
Speaker 2: So it is I did see an article about this,
14:30
Speaker 2: but it's also something that I've seen a couple of
14:32
Speaker 2: brands that I know and follow introducing. So we all
14:36
Speaker 2: love investing in this office. We think it's great. We're
14:38
Speaker 2: all about it. We talk about it all the time.
14:40
Speaker 2: A couple of different companies have started offering the option
14:44
Speaker 2: where you can purchase shares as a gift, and so
14:48
Speaker 2: we have spoken on the podcast before about you know,
14:51
Speaker 2: setting up your kids potentially with shares, you know, for
14:54
Speaker 2: their future or something like that. But this is, I
14:57
Speaker 2: guess a service where it's like buying a gift card.
15:00
Speaker 2: So we've seen Chares's, our friends at Sharesy's have just
15:04
Speaker 2: recently introduced this. But the article that I was reading
15:07
Speaker 2: was actually specifically by a business called Upstreet, and the
15:11
Speaker 2: whole purpose of it is to gift the equivalent of like,
15:15
Speaker 2: let's call it a gift card in the same way
15:17
Speaker 2: that you'd send an e gift card to like Cole's
15:19
Speaker 2: Meyer or something like that, and you can choose from
15:22
Speaker 2: there's like twenty top performing Australian brand shares on the ASX,
15:26
Speaker 2: so there's Woolworths, Mali Spoon and a few different things
15:29
Speaker 2: like that, as well as a selection of ETFs. So
15:33
Speaker 2: obviously it's a limited selection that you can choose from.
15:36
Speaker 2: I don't think it's super holistic, but you have the
15:39
Speaker 2: option to send that share gift card I suppose straight
15:45
Speaker 2: to somebody's email as their Christmas gift or Birthday gift.
15:47
Speaker 1: How cool is that we are now gifting shares for Christmas?
15:52
Speaker 2: I thought it was super interesting because I mean I
15:54
Speaker 2: could imagine a lot of people, me included, going oh, well,
15:58
Speaker 2: I'm super into empowering my self and future me. I
16:01
Speaker 2: want to do that for someone else. Instead of buying
16:03
Speaker 2: them a gift that they're going to use for maybe
16:05
Speaker 2: a couple of months and then it's going to go
16:07
Speaker 2: in the back of the closet, why not gift them shares?
16:10
Speaker 2: And though that's what I wanted to ask you, Victora,
16:12
Speaker 2: why not is there a catch twenty two here?
16:14
Speaker 1: Look, I don't think that there's a catch twenty two.
16:16
Speaker 1: I think it's really fun. Shares used to be completely
16:19
Speaker 1: out of reach, like it used to be something where
16:21
Speaker 1: it had a really high hurdle to get into. And
16:24
Speaker 1: these platforms and our friends shares is I believe are
16:27
Speaker 1: doing this as well, Jess. But on up Street it
16:29
Speaker 1: starts at ten dollars, like that's probably what you were
16:32
Speaker 1: going to spend anyway on a Christmas present. We're not saying, oh,
16:35
Speaker 1: you now need to go buy this really expensive Christmas present.
16:39
Speaker 1: You do have to keep in mind that with shares,
16:42
Speaker 1: So say you go and buy a Tesla's share, any
16:45
Speaker 1: income that you derive from owning that share does need
16:49
Speaker 1: to be declared as income because it is taxable. But
16:53
Speaker 1: that is okay. You just need to do the right
16:54
Speaker 1: thing when it comes to doing your tax return, and
16:57
Speaker 1: at the end of the day, you're only going to
16:59
Speaker 1: be taxed on money that you are earning from that share,
17:01
Speaker 1: so it's all okay. We just need to be aware
17:03
Speaker 1: that when we gift someone to share, you are actually
17:06
Speaker 1: gifting them the need to declare that on their tax
17:08
Speaker 1: as well, so it's not just like gifting them a
17:12
Speaker 1: Jarra strawberry jam that they pop in the cupboard and
17:15
Speaker 1: forget about it is definitely something that they need to
17:18
Speaker 1: maintain and make sure that they look after. And I'm
17:20
Speaker 1: sure that there is a pretty arduous registration process for
17:25
Speaker 1: the person you gift it to. So while you might
17:28
Speaker 1: find it really easy to jump on board and purchase
17:31
Speaker 1: a share and send it off and you've got this
17:33
Speaker 1: beautiful gift card, I'm assuming that there is a registration
17:37
Speaker 1: process where your family member or friend or whoever you're
17:40
Speaker 1: gifting it to is going to need to then verify
17:43
Speaker 1: their identity and all of that, because that would be
17:45
Speaker 1: in line with Australian law of owning shares. So I
17:48
Speaker 1: think that that's just worth keeping in mind. I don't
17:50
Speaker 1: think it's a deterrent by any stretch of the imagination.
17:53
Speaker 1: I'm just excited that we can gift people shares.
17:55
Speaker 2: Yes, Georgia King, you don't need to raise your hands
17:59
Speaker 2: is also your.
18:01
Speaker 4: No.
18:02
Speaker 3: So I'm just wondering who this would make a good
18:06
Speaker 3: gift for, because I feel like you would need to
18:09
Speaker 3: have some understanding of how shares work to make the
18:14
Speaker 3: most of this, right, And if you just gave that
18:15
Speaker 3: to like your sister Janine, who you know is not
18:19
Speaker 3: good with money, but you're like, here's this, this will
18:22
Speaker 3: help you out, and it'll just kind of go to
18:24
Speaker 3: waste slash. I don't know, maybe be a bit patronizing.
18:27
Speaker 3: Who do you think is the right market for this gift?
18:29
Speaker 3: I feel like she's all the money listeners would be
18:31
Speaker 3: into it.
18:31
Speaker 1: Yeah, look, I think that she's on the money listeners
18:33
Speaker 1: would be totally into it. But I also think it's
18:36
Speaker 1: really important to just remember the tax implications and remember
18:40
Speaker 1: that if you're planning on purchasing shares for children. Yes,
18:44
Speaker 1: it sounds really really good, but children under the age
18:47
Speaker 1: of eighteen cannot legally buy or wholly own shares, So
18:51
Speaker 1: it might be possible to open a minor account with these.
18:54
Speaker 1: I haven't looked into it, but it would need to
18:56
Speaker 1: be registered under an adult's name until they're old enough,
18:59
Speaker 1: and then when that minor turns eighteen, you can then
19:01
Speaker 1: transfer ownership solely to them. Because you're not officially transferring ownership,
19:07
Speaker 1: you shouldn't have to pay like capital gains tax when
19:09
Speaker 1: you do. But the most important thing there would be
19:11
Speaker 1: to get some tax advice. So yes, I think that's
19:14
Speaker 1: actually a really good question when you say who's this for?
19:18
Speaker 1: Because I think a lot of people would do potentially
19:21
Speaker 1: what I did. And the first thing that I thought was, oh,
19:24
Speaker 1: my gosh, how cool would it be to give this
19:26
Speaker 1: to my nieces and nephews, Like that's epic. But that's
19:29
Speaker 1: actually not going to be as feasible as you think
19:32
Speaker 1: it is. And you might want to go the long
19:34
Speaker 1: way around and have a listen to our episode about
19:36
Speaker 1: investing for children, because this is probably not that appropriate.
19:41
Speaker 1: But I would say people over the age of eighteen,
19:43
Speaker 1: it is a solid present and I think it's a
19:45
Speaker 1: very exciting thing that we have access to.
19:48
Speaker 2: An interesting point there, my partner actually has never invested himself. However,
19:54
Speaker 2: his I think it was potentially an aunt and uncle
19:57
Speaker 2: or maybe his grandparents did purchase him a number of shares,
20:01
Speaker 2: like when he was born, and so they I believe
20:03
Speaker 2: they were held by his parents and transferred when he
20:06
Speaker 2: turned eighteen from memory. Don't quote me, but what you
20:09
Speaker 2: said George about it potentially going to waste, I think.
20:12
Speaker 2: I mean, obviously it's going to depend on the fees
20:15
Speaker 2: that are associated with wherever it's hosted. But for him,
20:18
Speaker 2: like he never added to that, he's just held these
20:21
Speaker 2: shares for you know, eighteen years by the time he
20:23
Speaker 2: got it, and it wasn't a huge amount of money
20:26
Speaker 2: that was put in, but it had still increased, like
20:28
Speaker 2: it had just ticked away in the background. Obviously there
20:32
Speaker 2: was enough in there that either it wasn't being hit
20:34
Speaker 2: with fees or it was very nominal and there was
20:37
Speaker 2: more there than when they purchased it, which I would
20:39
Speaker 2: consider a win. And obviously not every share is going
20:42
Speaker 2: to do that. We can't predict it. But if it
20:45
Speaker 2: just sits there, there is the potential, right that it
20:47
Speaker 2: will just kind of accumulate a little bit of compounding interest.
20:51
Speaker 1: Yeah, of course. And that's the point of investing over
20:53
Speaker 1: the long term, right, Like you're not gifting someone to share,
20:56
Speaker 1: so you'd be like, hey, here's a piece of Tesler,
21:00
Speaker 1: so that you give them long term, a asset that
21:03
Speaker 1: will increase in value and hopefully pay them over the
21:07
Speaker 1: long term. And I think that's the beauty of long
21:10
Speaker 1: term investing. But I guess it's also important to say, well, yes,
21:14
Speaker 1: you can still invest for kids. I'm not saying it's
21:16
Speaker 1: not impossible. There are actually you know, I'm going on
21:18
Speaker 1: a bit of a tangent here, only because I know
21:20
Speaker 1: people are going to be like, well, Vitria, how do
21:22
Speaker 1: we invest for children? There are two ways to invest
21:25
Speaker 1: on behalf of kids who are under the age of eighteen,
21:27
Speaker 1: which is actually all kids, because anyone over the age
21:29
Speaker 1: of eighteen is actually an adult. So I don't know
21:31
Speaker 1: where I'm going with that. But either a parent or
21:34
Speaker 1: a relative is the client, they actually have the investment
21:38
Speaker 1: portfolio held legally in their hame, or in a more
21:41
Speaker 1: complicated way, you could actually use a family trust and
21:44
Speaker 1: set up a discretionary family trust where the child is
21:48
Speaker 1: the beneficiary and then the trust invests via a certain platform.
21:52
Speaker 1: It's a little bit more complicated, but talk to your
21:54
Speaker 1: financial advisor or talk to an accountant about that. I
21:58
Speaker 1: think it's really important to know your options if that's
22:01
Speaker 1: your plan. But unfortunately, I don't think gifting shares is
22:03
Speaker 1: going to be the best thing to do for kids.
22:05
Speaker 1: I also don't want to be too negative about it,
22:07
Speaker 1: because it sounds really exciting and it's really potentially a
22:10
Speaker 1: good way to get kids really interested in shares as well,
22:13
Speaker 1: So I'm not saying don't do it, but you know,
22:16
Speaker 1: as I said before, there are a fair few implications.
22:19
Speaker 1: But also if you're purchasing a shared gift card and
22:22
Speaker 1: then these kids have to wait until they're eighteen. Are
22:25
Speaker 1: you still going to have that gift card? Are they
22:27
Speaker 1: actually going to keep track of it? Or would have
22:29
Speaker 1: been better to potentially do that in appearance name to
22:31
Speaker 1: be transferred over A really good point.
22:35
Speaker 3: It's just a.
22:38
Speaker 1: Yeah, like I would have lost it. Like I've been
22:40
Speaker 1: given multiple gift cards over my lifetime and I don't
22:43
Speaker 1: know if they've even used them all.
22:45
Speaker 3: While we're on the hot topic of investing miladies, let's
22:49
Speaker 3: hear from this week's listener question.
22:52
Speaker 4: Hi guys, I've got two questions. One is what are
22:56
Speaker 4: franking credits? And the other is when I'm looking at
23:01
Speaker 4: buying shares, what should I be researching and what should
23:03
Speaker 4: I be looking into to make sure that I'm getting
23:06
Speaker 4: the best shares?
23:07
Speaker 3: Okay, take it away, VD, franking? What now? What's the
23:12
Speaker 3: franking credit?
23:13
Speaker 1: Franking credits are arguably one of the sexiest things in
23:16
Speaker 1: the entire investment world. Yes, are you ready? Frank? Come
23:23
Speaker 1: on over. If you've been dabbling in the investment world,
23:25
Speaker 1: is very likely that you have come across the word
23:28
Speaker 1: franked or unfranked dividends. So a franked dividend is one
23:33
Speaker 1: that carries a franking credit. So that sounds very complex,
23:38
Speaker 1: but I promise you it's not. It's also called an
23:41
Speaker 1: imputation credit, not really even more complex. So essentially it's
23:47
Speaker 1: a tax credit. So it is a tax credit that
23:50
Speaker 1: exists to prevent double taxation over the long term. A
23:55
Speaker 1: franked credit means that a company has paid tax on
23:59
Speaker 1: that to share already, and that is a money win.
24:03
Speaker 1: So double taxation is kind of like getting two pieces
24:06
Speaker 1: out of one pie. And as the name suggests, it
24:09
Speaker 1: usually occurs when the same income or asset is subject
24:12
Speaker 1: to tax twice. And typically this happens when corporate and
24:16
Speaker 1: personal profits intersect, as is the case when you have
24:19
Speaker 1: a dividend. So a dividend is the profit that you
24:22
Speaker 1: were paid for owning that share. So I use the
24:25
Speaker 1: example of Tesla before. So we'll say Tesla made one
24:28
Speaker 1: hundred dollars profit last year and they had one hundred investors,
24:31
Speaker 1: So they divided that one hundred dollars between that one
24:34
Speaker 1: hundred investors, and you made one dollar in dividends, which
24:37
Speaker 1: is the profit you made for holding that share. Because
24:40
Speaker 1: as a shareholder, you're a minor owner in that company,
24:44
Speaker 1: which actually entitles you to part of the profit of
24:48
Speaker 1: that company. So when you get a dividend paid to you,
24:51
Speaker 1: it could be franked or unfranked, and when you get
24:54
Speaker 1: paid to this dividend, it's really important to know the
24:56
Speaker 1: difference because no one wants to be double taxed. So
25:00
Speaker 1: under this system, the ATO recognizes that corporate tax has
25:04
Speaker 1: already been paid on the profits, which means that you
25:08
Speaker 1: only have to pay the different syntax. Say you own
25:11
Speaker 1: a share and it pays you a dividend of seventy dollars.
25:16
Speaker 1: Let's use the example of somebody. Her name is Brittany,
25:21
Speaker 1: and Brittany earns thirty thousand dollars each and every single year,
25:24
Speaker 1: and that puts her taxable income nineteen cents for every
25:27
Speaker 1: dollar over eighteen thousand, two hundred dollars that she earns
25:30
Speaker 1: each and every single year. So let's say she earns
25:34
Speaker 1: a fully franked dividend of seventy dollars. Then because it
25:39
Speaker 1: is a fully franked dividend, she gets given a franking credit,
25:43
Speaker 1: and that franking credit on seventy dollars based on her
25:45
Speaker 1: personal tax rate, will be thirty dollars. So her total
25:49
Speaker 1: dividend income is actually going to be one hundred dollars,
25:53
Speaker 1: meaning that her personal tax on dividend income is going
25:57
Speaker 1: to be nineteen dollars. Then you take way that franking credit,
26:01
Speaker 1: which means that the total tax refund that Britney receives
26:05
Speaker 1: for her dividend will actually be eleven dollars. So essentially
26:08
Speaker 1: she's going to end up with a refund. So businesses
26:11
Speaker 1: are usually taxed at thirty percent, but because this person's
26:14
Speaker 1: marginal tax rate is actually nineteen percent, they're going to
26:18
Speaker 1: end up with a refund because they're not earning the
26:21
Speaker 1: same amount of tax that the corporate entity is paying,
26:24
Speaker 1: so they actually get a refund on that amount. Therefore
26:27
Speaker 1: they make more money. And if you kind of like
26:30
Speaker 1: extrapolate that out, that example was on one share. If
26:33
Speaker 1: you extrapolate that out, franking credits are actually really really
26:37
Speaker 1: powerful because one, it means you don't get double taxed.
26:40
Speaker 1: But two, think about this, guys. Obviously, not everybody earns
26:44
Speaker 1: under forty five thousand dollars to have nineteen cents for
26:47
Speaker 1: every dollar over eighteeny two hundred dollars to pay each
26:51
Speaker 1: and every single year. But where do we pay less
26:54
Speaker 1: tax guys the answers in superannuation. As you look at
26:59
Speaker 1: me like dull, it's yes, you genius, but yes, so
27:07
Speaker 1: our supranuation tax environment is taxed at fifteen percent instead
27:12
Speaker 1: of our marginal tax rate, which for a lot of
27:15
Speaker 1: people on an average salary is about thirty two cents
27:19
Speaker 1: for every dollar over forty five thousand dollars. So that's
27:22
Speaker 1: that's reasonable. But if our marginal tax rate is about
27:26
Speaker 1: thirty two cents, and then businesses are paying thirty cents
27:30
Speaker 1: ish per dollar on tax, and then in our supranuation
27:34
Speaker 1: environment we're only taxed at fifteen percent. Do you know
27:36
Speaker 1: what that means? Are sweet sweet fifteen cents refund on
27:41
Speaker 1: every dividend that was taxed, which means that you're making
27:45
Speaker 1: more money in supranuation by holding an asset that is
27:48
Speaker 1: franked there, which is why in the superannuation environment, franked
27:52
Speaker 1: shares are very very sexy because they provide a number
27:56
Speaker 1: of benefits above and beyond just holding them outside of
27:59
Speaker 1: super Because, as you can probably understand, Jess, for example,
28:04
Speaker 1: average salary, normal salary, I would say, very very good salary.
28:08
Speaker 1: I'm your boss, what a legend, very well paid, but
28:11
Speaker 1: thirty two cents in the dollar. That would then mean
28:15
Speaker 1: that you're not really going to be able to benefit
28:17
Speaker 1: from a refund because you actually pay more tax personally
28:20
Speaker 1: than that business did. So franked not very helpful for you,
28:23
Speaker 1: but in stuberinuation, very helpful because you are taxed at
28:26
Speaker 1: a lower amount. So I'm really excited about this because
28:29
Speaker 1: I think it's really important for us to understand that
28:31
Speaker 1: it's not just about how much we get paid in
28:34
Speaker 1: dividend each and every single year, and it's not just
28:37
Speaker 1: how much our share increases in price, but there are
28:40
Speaker 1: other things that play into this, like franking. So hopefully
28:44
Speaker 1: that answered the question I reckon you did doll that
28:46
Speaker 1: was did I do a good job or did I
28:48
Speaker 1: just get too complicated? But I'm very excited about it.
28:51
Speaker 1: But essentially, if you earn fully franked credits, it means
28:55
Speaker 1: that the shareholder is getting a lot more bang for
28:57
Speaker 1: their bucket in terms of dividends and investment returns. So
29:01
Speaker 1: if you take any from that, fully franked credits are
29:04
Speaker 1: very very sexy.
29:06
Speaker 3: Okay, that's the takeaway.
29:07
Speaker 1: Thank you for coming to tech Talk.
29:09
Speaker 3: What about the second part of her question?
29:11
Speaker 1: Oh, I was going to avoid that because I can't
29:13
Speaker 1: give personal advice at the end of the day. As
29:15
Speaker 1: we've said before, start by listening to our podcast and
29:18
Speaker 1: reading my book and understanding what investment is. It's not
29:22
Speaker 1: about picking the perfect company. It's actually about understanding what
29:25
Speaker 1: your goals are, what your values are, how long you're
29:27
Speaker 1: planning on holding those shares, what your ethics are, what
29:31
Speaker 1: values are you going to overarch onto your share portfolio,
29:35
Speaker 1: how are you going to get a well diversified portfolio.
29:38
Speaker 1: Because it's not just about going and picking up one share,
29:41
Speaker 1: it's about going and picking up a basket of shares
29:44
Speaker 1: that work for you over the long term. And this
29:46
Speaker 1: is often why our community really values and turns to
29:50
Speaker 1: things like ETFs and managed funds because they don't have
29:53
Speaker 1: to make these decisions on purchasing a direct share or
29:58
Speaker 1: picking the shares themselves. They get to to essentially pick
30:01
Speaker 1: a fund manager that makes those decisions for them, and
30:03
Speaker 1: they put their trust in that. It's also why I'm
30:06
Speaker 1: so passionate about my partnership with six Park, because they
30:09
Speaker 1: do that hard work for you, and picking shares is
30:12
Speaker 1: really hard, and it's not about picking one and then
30:15
Speaker 1: having it forever. You've got to know when should I
30:18
Speaker 1: sell this share? Is this share still serving me? Is
30:21
Speaker 1: other board papers correct? Have you read there and your reports?
30:24
Speaker 1: Do you fully understand them? Is my portfolio performing the
30:28
Speaker 1: way it should? So there's look, there's lots of questions
30:31
Speaker 1: when it comes to how do I pick the right company,
30:34
Speaker 1: And to be honest, the way you pick the right
30:36
Speaker 1: company for Victoria Devine is very different to how you
30:39
Speaker 1: would pick it for Georgia and how you would pick
30:41
Speaker 1: it for Jess because we are all different people. So
30:44
Speaker 1: unfortunately I can't answer the question of how do you
30:47
Speaker 1: pick a share? But the best place for you to
30:49
Speaker 1: start is researching and understanding your own values and why
30:53
Speaker 1: you're investing and what your investment timeframe is, as well
30:56
Speaker 1: as really understanding your investment risk tolerance, so really understand
31:00
Speaker 1: what that looks like for you, because you might be
31:02
Speaker 1: super conservative, in which case the TELA shares probably not
31:05
Speaker 1: the one for you, or you might be a really
31:07
Speaker 1: high growth investor, in which case a completely different portfolio
31:12
Speaker 1: is going to exist. So it's more about understanding you
31:15
Speaker 1: and doing some research about what aligns to your values.
31:18
Speaker 3: If people do.
31:19
Speaker 2: When I have a squize at those annual reports, which
31:22
Speaker 2: kind of detail what the company's done in terms of
31:25
Speaker 2: product development and performance and finances. They're very long for
31:28
Speaker 2: anyone who's never seen one. Where can people look to
31:31
Speaker 2: find those You.
31:32
Speaker 1: Can find them on the company's website. So if they're
31:34
Speaker 1: an ASX listed company, they will be a publicly listed company,
31:38
Speaker 1: which means all of their records public for you to
31:40
Speaker 1: go and view. So you just head to their website
31:43
Speaker 1: and if you scroll down to the bottom of most websites,
31:46
Speaker 1: you'll have either shareholder information or investor information. Some places
31:50
Speaker 1: have investor portals and all of that information will be there.
31:53
Speaker 2: Amazing.
31:54
Speaker 1: With that rant, I think it is time to wrap, guys,
31:57
Speaker 1: but before that, have the best day tomorrow. Enjoy Christmas.
32:03
Speaker 1: We cannot believe that we have been lucky enough to
32:05
Speaker 1: spend another is it another year hanging out with you guys.
32:09
Speaker 1: Festive episodes are literally my favorite because we're all very excited.
32:13
Speaker 1: As you guys could probably tell from the start of
32:15
Speaker 1: this episode, we're a little bit loopie, we've lost it
32:18
Speaker 1: a little bit. We're all very excited, But enjoy the
32:21
Speaker 1: festive season. Be kind to one another and most importantly,
32:24
Speaker 1: be kind to yourself. But as always, just before we
32:28
Speaker 1: head off, we'd like to acknowledge and pay respect to
32:31
Speaker 1: Australia's Aboriginal and Tory Straight Islander people's they're the traditional
32:35
Speaker 1: custodians of the lands, the waterways and the skies all
32:39
Speaker 1: across Australia. We thank you for sharing and for caring
32:42
Speaker 1: for the land on which we are able to learn.
32:44
Speaker 1: We pay respect to elders past and present, and we
32:47
Speaker 1: share our friendship and our kindness.
32:50
Speaker 3: And remember, guys, that the advice shared on She's on
32:52
Speaker 3: the Money is general in nature and does not consider
32:55
Speaker 3: your individual's circumstances. She's on the Money exists purely for
32:59
Speaker 3: edge occasional purposes and should not be relied upon to
33:02
Speaker 3: make an investment or a financial decision. And we promise
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33:10
Speaker 3: Management Proprietary Limited ABN three four one three two four
33:14
Speaker 3: six three two five seven AFOSL three three nine one
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Speaker 3: five one.
33:18
Speaker 1: See you next week, guys.
33:19
Speaker 2: Merry Christmas, Merry Christmastmas.