Presentation about that basics of personal finances prepared for year 11 high school students at Hale School in Perth, Western Australia

2. disclaimer
This seminar is presented by Brett Surman as an Authorised Representative of AMP
Financial Planning Pty Limited, ABN 89 051 208 327 (“AMPFP”), AFS License No.
232706.
Any advice contained in this seminar is of a general nature only and does not constitute
personal advice. In preparing the advice no account was taken of the objectives, financial
situation or particular needs of any particular person or group. Therefore, before making
any decision, readers should consider the appropriateness of the information with regard
to their own situation.
Although the information provided in this seminar was obtained from sources considered
to be reliable, AMPFP and Provident Financial Services do not guarantee that it is
accurate or complete. Therefore readers should not rely upon this information when
making decisions. AMP does not accept any liability for any resulting loss or damage
suffered by a reader or by any other person.

3. Whoever said money can’t
buy happiness
was obviously spending it on the
wrong things!
- Some rich guy

4. DETERMINE
YOUR GOALS

5. 1
What things are
important to you?
2
When do you want to
achieve them?
3
How much money will
you need?
4
Write it all down!

6. Future goals
GOAL COST WHEN
1 Buy Samsung Galaxy S4 mobile $400 6 months
2 Contiki trip to Europe for 3 weeks $3,000 2 years
3 Buy second-hand car $6,000 3 years
4 Move out of home into own apartment $5,000 6 years
5 Save deposit to buy first property $60,000 10 years

7. GOOD MONEY
MANAGEMENT

8. Meet
Callie Rogers
she won
$3,000,000
at the age of 16!

9. • Use separate bank
accounts
• Setup automatic
transfers
• Out of sight out of
mind
Bank smarter
• Living Expenses
• Lifestyle Expenses
• Future Expenses
Create a budget
Good money management
• Know where your money is
going
• www.getpocketbook.com
Track your spending

10. TIME IS
MONEY

11. $0
$5,000
$10,000
$15,000
$20,000
$25,000
21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55
Mark David
… David starts later but invests $1,000 a year for 25 years
Mark starts early and invests $1,000 a year for 10 years …

12. $0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
Mark David
Growth (8%)
Savings
Mark starts early and uses $10,000 to make $107,144
David starts later and uses $25,000 to make $78,954

13. Government
co-contribution
If you earn up to $31,920pa the Federal Government pays 50 cents for
every dollar you contribute to your super fund in after-tax dollars, up to a
maximum of $500 a year.
To get the maximum $500 per year, you need to put in $1,000 per year as
an after tax contribution.
If you earn between $31,920 - $46,920pa, your co-contribution
entitlement reduces by 3.33 cents for every dollar you earn over $31,920.

14. $0
$30,000
$60,000
$90,000
$120,000
$150,000
$180,000
With Without
Growth (8%)
Co-Contribution
Savings
$160,722
$107,144
The effect of Mark receiving the co-contribution for first 10 years…

15. BEWARE THE
DEBT TRAP

16. Bad debt
is money you
borrow to buy
things which
decline in value
such as clothes,
cars and beer!
Good debt
is money you
borrow to invest in
assets that
produce income or
grow in value such
as property and
shares.

17. The longer the term of the loan the more you pay.
$0
$250,000
$500,000
$750,000
$1,000,000
$1,250,000
Home Loan - 30yrs Home Loan - 25yrs
Interest (6.0%)
Loan
Adding just 5 years onto the loan term adds $112,739

18. PROTECT
YOURSELF

19. By the age of 85, 1 in 2 men and 1 in 3 women
will have been diagnosed with cancer at some
stage of their life
For every 1home lost to fire there are 4 homes
lost to death and 48 homes lost to disability
What are the chances?
Car being stolen
and not
recovered…
1 in 800
Making a claim
on your home or
contents…
1 in 13
Being diagnosed
with a serious
illness…
3 in 4

20. GET HELP FROM
YOUR TEAM

21. What do you need
to remember?
Determine your goals1 Beware the debt trap4
Time is money3 Get help from your team6
Protect yourself5Good money management2

22. Fortune
favours the
brave!