Hello, my name's Santasha Nabananga Bamblet. I'm a proud yr
the Order Kerni Whoalbury and a waddery woman. And before we get started on She's on the Money podcast, I would like to acknowledge the traditional custodians of the land of which this podcast is recorded on a wondery country, acknowledging the elders, the ancestors and the next generation coming through as this podcast is about connecting, empowering, knowledge sharing and the storytelling of you to make a difference for today and lasting impactful tomorrow.
Let's get into it.
She's on the Money, She's on the Money.
Hello, and welcome to She's on the Money the podcast. It's all about giving gifts that are thoughtful, meaningful and maybe even finance empowering. Are you overgiving the same old gifts every year? Let's be real, how many candles and bath bombs can one person actually use?
Many?
Like, probably go twelve a day?
You know what, I have a bath maybe every couple of days. There's nothing like it, nothing, but I love a bath. I love a bath bomb. I don't love the bath bombs that change your skin color though, you know how sometimes you get in and then you get out with like a shiny pink ting Like that's not for me. So if you're going to give bath bombs, be really thoughtful about the ones you give. Absolutely, or you could just give them money.
This year, what if you could give something that actually grows? And I don't mean like houseplant or like houseplants though, this is the thing, just in case people are stening they don't know who I am. I'm excited and today we're not just talking about holiday presents. We're talking about gifts that can actually build a future. Enjoining me as always is Victoria Divide, whose love language is a perfect mix of financial literacy, which I know is not a love language any thoughtful gift giving.
I feel like financial literacy is a love language. I think it should be.
Let's make it because like the love languages were made by some dude.
Yeah, like we're updating them love language find.
Financial literacy, yeah, refe.
I also do definitely have the love language of gift giving, Like I love giving, do you do? I have a creepy list on my phone of just like ideas for presents for people that sometimes I put down and I'm like, I would never buy that person a present, but I need to put it on the list because that would be really thoughtful.
That's I need too.
But I guess today is not about house plants, it's not about bath bombs. We're actually going to be rethinking the idea of the gift that keeps on giving. Okay, so what if beck instead of a present that gets tossed decided by the time New Year's rolls around, we could actually give people something that builds wealth over time. And obviously I'm talking about investing.
Honestly, I know that there are probably people listening, and I'm not gonna lie this is me, but investing as a gift kind of sounds too serious or complicated. But also, you know when someone's like, I've given you a present, it's a donation to your favorite charity, Like, oh, that's actually really nice, but I wanted a box of chocolates.
Actually, so when I bought everyone in the team last year a goat from Oxfam, you were like, that's cool, but I wanted the money I wanted. Sorry, sorry, I got the goats from Oxfam were really cool. You're probably still going to get a goat this year because it's a milind to my love language, totally listen, mentally prepared. But I feel like it's not that deep, right, like investing men used to do it, So how hard could it be?
Back?
Sure, exactly right. So I think it's more exciting than you think it is. Plus I'm going to show you how you could get a little bit creative with it, So it feels, I guess, just as personal as any other gift you might give it this type of the year.
I love getting a little bit crafty, a little bit creative.
I'm very crafty, very into cross stitch at the moment, very into needle point, very into embroidery. I feel like I've aged probably like thirty years since having a baby.
We don't look it.
That's because I stopped breastfeeding and I was able to get my botox.
Oh yeah, would actually combine the two cross stitching and investing, I'm sure so tells Why is it a good idea and not just like a finance person thing.
You're a finance person. Everyone is a finance person. I don't throw one person who doesn't use money. Yeah, you're a finance people. He just didn't know it yet. He actually uses money, like he goes into the bush. That is a next level privilege. Right, you have to be like, I'm going off grid. Okay, cool, you have to pay to get there. On that anyway, completely different story. But
let's think about it like this. So when you give an investment as a gift, you're actually giving someone a really tiny piece of financial freedom, unless you're giving them like millions invested, in which case you're giving them entire financial freedom. If you would like to give that to me, totally open. My address is actually on our website. But
it's not just money, right, it's potential. It's something that could grow over time and contribute to a future goal, whether it's I don't know, buying a home or them traveling, or just building a safety net or a urgency fund.
Right.
And for anyone who's new to investing, it's also like a really gentle nudge in the right direction so that they start hopefully learning about their finances, but without the pressure, because you didn't have to cough up the money to begin with. Right. It's a classic example of I don't know, teaching a man to fish or a person to fish,
rather than just giving them a fish. Yeah, I just don't think that fish for Christmas is a good idea, though, Like I would be really disappointed if, like Christmas morning rolls around and there was a fish in my Santa Sac.
A raw fish, possibly smelly by that point.
Yet one out of ten. But I do think that it is a really great present to think about, especially when you're like, oh my gosh, this person has literally everything, but they're also a little bit financially irresponsible.
Maybe yeah, like maybe they have everything because they're financially it's.
Exactly like me, exactly better. Imagine if I turned around and said, beck, I got you an investment, You'd be like, what the hell? But then maybe you'd have to work out how to redeem that gift card, or like you'd have to work out how to invested, or you might get a little bit interested in it. And that's like
the snowballs starting. And I know that you've already started investing, right, so, like you already invest Imagine if I said, hey, here's a contribution to this because I knew what platform you're on and bought like a gift card for your investing platform, you'd be like, oh my gosh, because I know you've only been starting small. Imagine if I gave you fifty bucks, you'd like double your investment. We feel exciting.
That would be so motivating. I feel how a snowball effect might be created from that. But I sound like a thowtful way to kickstart someone's financial journey if they're not, you know, fully there yet. Plus I love that it's a gift that could get bigger and bigger, you.
Know, absolutely, like over time you feel like I could only afford a twenty dollars gift, Great, no worries, Like that's a fantastic gift. In the future, it's going to be worth way more.
But like, how do you actually do it?
So there are lots of different ways to go about it, depending on who you're giving gifts to, how much you
want to spend. So before we get there, I think it's also important to highlight here we have an episode on investing for children, because that's actually a completely different ball game then me gifting new money for investing, right beck, Because if I give you a gift, there's no tax implications, But if you are going to invest on behalf of a child because you are probably their guardian, you're going to have some tax implications there. And if it's in
the miner's name, those tax implications are even higher. So I'm not going to get into it too deeply because there's an entire episode on it, but essentially, small human beings get taxed astronomically, like over fifty percent when they invest, so a lot of the time it's smart to keep
it in your name. But that's a decision that you can make and work out because a lot of people in our community, they also go, oh, instead of you know, investing individually for my child, I'm actually going to buy what's called an investment bond, right, and that is a really tax effective way of investing for a child. So maybe an investment bond becomes a kid's Christmas present. It sounds less sexy, but we can frame it up and
you know what we can do. We could jump on like cam and make up like a little gift certificate, so a little bit more exciting, right, that's pretty cure. Yeah, I know anyway, So I just wanted to caveat it that way because obviously there's a few different ways we could invest, but for kids, it is a little bit different. Sure, there's a whole episode on it, but the first thing is shares right like shares stocks my favorite thing in
the entire world. You could use platforms like shares is where you can actually gift individual shares or contribute to a share portfolio. So that's when you know if someone has a specific holding or like I know Beck you invest with shares's because you told everybody on the podcast. So that makes it really simple. But if it's someone that you don't know invests yet, like you could purchase
shares in any way. To be honest, the best way that I would do it is actually to give them the money so that they can invest in their own name, because it's very hard to transfer a share to somebody else's name, whole heap of admin that you don't want to do. But you could draw them up a really cute like quote share certificate or like Canva or something, and then give them the money and be like, this money is intended for you to invest.
I imagine if you gave me cash, you know that's going to I.
Know you're not going to do it, yes, so you could get an investment gift card. So platforms like Chaz's and other platforms as well, and like this isn't me just promoting chair Za's it's just because I know what the best At this point in time. They offer investment gift cards. So if I give you an investment gift card, you can choose your investments, but you can't spend it on anything else.
Beck, that's very helfl Actually that's great.
It locks and loads you, right, that's all. You could talk to the person that you're gifting about an ETF, right, so you could do some research for them, and I could say, Beck, I know your likes and dislikes, and I've picked out this ETF and here's a gift card. I'd love you to buy this particular ETF because it aligns to your values. It's ethical, it's moral. Oh my gosh, Beck, they only have women on their boards. I think you'd be like, oh, thanks for the research. That does sound
aligned to me. And I think it's just a really fun way to go about it. Also, an ETF, it's a bucket of shares, right, so and ETF Lots of people throw that term around because they like to confuse us. In the investing world, it's called an exchange traded fund, which feels even more complicated, but essentially it's a bucket of shares that someone who has the knowledge and the power and is an investment manager has picked this list
of shares. It could be twenty shares, it could be two hundred shares, it could be any amount, right, but they've picked this specific amount of shares and put it all in this bucket and said, if you put your money in our bucket, you'll get instant access to all of these shares. So you get the average return of that list as opposed to just me giving you one bank share. Yeah, does that make sense.
Definitely.
So that's a good way of making it a little bit less risky, a little bit more diversified, and I don't know, it feels a little bit personal. Yeah, very thoughtful for your friends who are maybe a little bit more conservative. You could pick a bond. My favorite way of explaining a bond is like an IOU note. Okay, So if I gave you an IOU note, you have this little piece of paper and you go, my cash is in one day, and I go, you wait ten years, beck.
But essentially what happens is the government usually issues what's called a bond, and they go out to market and they say, hey, Beck, we want to build some new roads, or we want to build some public hospitals or some infrastructure for our community, but we need some funding, Like, we don't have the cash for it today, but we know that if we do this, we'll have the cash in ten years. Right, So they go, Beck, could we borrow your cash and we'll give you an IOU note?
So we give all your cash back when we're done with it ten years and along the way we'll pay you five percent. Is that cool? And you go, Okay, take my cash. Can I have my IOU note and I'll cash it in later? When this term ex bias per year? Yeah, often often so it just depends on what the bond is and how much it's paying. But it is usually a safer option or a less quote risks ski option than an ETF or buying shares because here in Australia bonds are triple A rated. So what's
that mean back? It means that in Australia, historically a bond that has been issued by our government has never not been returned, right, So they always, always, always have historically given our money back. Can't say the same for the Greek government though, Oh they don't really like giving their money back, how do they get away with that what their entire economy is in a lot of debt.
I see, yeah, I see like.
They're in a bit of a pickle. You could say back, sure, but in Australia, bonds do return, so they are seen to be a less risky gift that if your friend's not ready to invest in shares or in you know, ds, they might feel a little bit more comfortable with that.
Also, that's cute.
In most investing portfolios, a bond makes up a really good portion of like a stable investment. Think about an investing portfolio as a pie chart. Usually you would, you know, draw some lines through the pie chart and then fill in the blanks. Right, So, like for somebody who's a bit more of an aggressive investor, like me, I have my pie chart, but most of that pie is actually made up of shares, and I do have some bonds,
but most of my assets are in shares. But if someone's a bit more conservative, they're like, oh, put the rakes on, I'm not ready to invest in shares as aggressively as Victoria is. They're seem to be a more conservative investor. They still have their pie, right, but their pis cut up and most of it is made up of bonds and cash and.
Less risky things.
Yeah, less risky things. And they might still have shares, and they might be identical to mine, they just own less of them. The pires cut up in different ways. Yeah, but it doesn't mean that the asset is more risky. It's just seen to be a more risky portfolio because it has more shares instead of the stable things. Yes, so don't make sense totally. I think it's really cool.
Imagine like I gave one hundred bucks in a bond right now, and then in ten years time, because right now it's like, oh thanks, Like I can't even see this money for like a decade.
Yeah, but it's starting to pay off.
They're getting the back maybe double exactly.
Money should double every ten years and in an average rate of return based on the Australian share market, your money should double if you're investing in the Australian share market every seven years.
That's that's real. That's really a good deal.
Bet.
So you can actually make this gift as big or as little as you want. You can tailor it to how involved with the person wants to get and for someone who's totally new, maybe starting with a little bit and shares could be exciting without being overwhelming. And as you just explain, like investing can be a little bit different for kids, So just keep that in mind. We do have a whole episode on that.
Yeah, and I mean it can be really cool. So I have had you know, Glenn James, my friend from this is Money or money, Money, money, Okay, he has lots of different pod names floating around at the moment. He talks about how he invests for his niece and his nephew and he has an investment bond for them that every year, instead of Christmas and Birthday presents, he just contributes more to that investment bond. And so that's something that Steve and I have set up for Harvey,
and that's what we will be doing. Because I won't say it's the most tax effective for everybody, right, Like, this is a very privileged thing for me to be able to say and do, right, I'm just being completely transparent.
Sure, But because.
Steve and I are high income earnest and our tax is at the highest marginal tax bracket, an investment bond works best for us, Okay, Right, So we've decided that we want to invest for Harvey, and we've done all of the maths in the background and gone, well, what does this mean? We really want to invest for him, But it actually isn't financially a very smart decision for
us to invest in Harvey's name. Nor is it a smart decision for me to go and buy shares that I know pretend to Harvey's and I'll transfer to him one day, because I'll have a whole heap of transfer fees that I need to pay, because you can't just transfer easily and be like, oh, here's this gift. Like the taxman's going to be like, hey see how you had these shares because Harvey has been investing now for
eighteen years. So what you're going to have to do is pay capital gains tax as you transfer that over. And I'm just looking into the future and going, I know, I don't want to do that because what did I say before, beck, money is on average going to double every seventy yeares.
Yeah, yeah, yeah, we're going to.
Have hopefully a really big capital gains issue because we've made heap of money. But I don't want to pay their tax man. I do love paying tax don't get me wrong. It is an absolute privilege.
Beck.
The more money you make, the more tax you pay, and the more tax you pay, the more privilege you are. That's a good deal. But if I can avoid it in the future, that's a good deal too.
That's good.
So an investment bond has made the most sense for Steve and I in our personal situation, but it doesn't mean that all work for everybody. You might go, it just makes sense for me to have a few shares in my own name, and I will deal with it. In fact, the entire reason I have shares in my own name is because I really want to teach my kid about the concept of investing rather than have them you have a house deposit when they are eighteen years old,
because that's just not financially viable for me. And so I think it's important to work out what works for you, which is why we have that episode. But I don't know. I feel like I owe you guys transparency as well, to be like, well, this is what I'm doing, but also this is why I'm doing it. Yes, because if I just said, oh, Beck, well we've chosen an investment bond, you might go, well, that makes the most sense then,
because if they did. It must be the best decision, right, Like, if Victoria is doing something and she's you know, a money person, an investment bond must be the best outcome. But that doesn't mean it is for you. Does that make sense?
Yeah, definitely, And from memory, I know this is in the episode, but it's a higher tax bracket. So people don't kind of like take advantage of like putting money in their children's names.
You great, me so proud, thank you. Yeah, it's come into play because rich people can be really dodgy. But ha, And what they do is they set up these family trusts because they've got fancy pants accountants and they can afford to set these structures up. And they go, all right, I'm going to put my kid Beck in this structure and every year I'm going to distribute income to Beck, because as you know, the first eighteen or so thousand
dollars you earn, you don't pay tax on. Right, So if I paid my kid eighteen grand, tax free money coming out, and then they just go into their kids' bank account, pull it out tax free, okay, dodgy, dodgy, that is not okay. So to get around all of this the ater is gone, no, no, no, no, no. What we're going to do is miners can only earn up to four hundred and sixteen dollars per year from investment income,
so that's a pretty good deal. They could absolutely earn, you know, a couple of hundred bucks before this comes into play, before facing tax rates of sixty six percent.
Whoa, that is astronomical, right, that's higher than the highest marginal tax rate in Australia.
Literally, they're doing it so that you're turned off doing that rate.
See pretty well.
I think there needs to be like more flexibility in this area because like some of us, we're just doing the best that we can and we're genuinely investing for our kid. Like what if your kid was one of those like Target models, like you know the kids in the Target catalog. Yeah, but what if they go and they're earning their own money and then mum and dad are being smart about it and they're investing it, like they shouldn't be crucified by the money that they're earning.
But the richie riches of the world took the mickey and now the ATO were like, we're just going to ban that. Oh yeah, so anyone under ateen that applies to However, Beck, that doesn't apply if they've earned the money from paid employment. So like if a kid is you know, fourteen years and nine months and got their first job, obviously different tax rates apply. This is just for passively earned income.
Oh okay, gotcha, gotcha, got cha?
Okay, So what about you just stop the sneaky fancy pantss. But at the same time, I think it's important that we understand why that exists, so then you can pick a structure that makes sense. Because if you were just investing pocket money, Beck, maybe it's of absolutely no consequence to you. And you're like, I don't mind if my kid has you know, fifteen dollars worth of shares in their name and they're trading and making you know, less than a dollar a year on it, like it's their
financial edge. You just have to be aware when you're making more than the four hundred ishmark. Right. But Beck, as you said in the intro to this podcast, one of my love languages is thoughtful gift giving, and you weren't making that up. So let's take a really quick break because afterwards, I'm going to give you some ideas on how to choose the right investment for your gift and make it more thoughtful and more meaningful.
All right, we are back everybody. But before the break V you did promise us some tips on how to choose the right investment for your gift. I think again, like you, Beck, I wouldn't go, all right, well, I've just purchased you some shares on self Wealth, because you'd be like, oh my gosh, that is an overwhelming, confusing platform.
It's a great platform. I have used that platform and still hold assets on that platform, and I really like it. But I was an ex financial advisor and I really like the way things work on there. However, you're a Shares's girl, right like, and you just like the fact that it's on an app. I can almost guarantee you've never logged into your Shares's account on a computer, have you, Yeah, exactly. So we need to think about picking the right investment
for the right person. Because self Wealth it doesn't have a very good ap like it's very much a desktop user experience, so that doesn't make a lot of sense. But the first thing I'd really want to think about here is time period. Like, if somebody is investing, how long are they going to be investing for So if you're like, oh, I really want to get Beck to invest, and like, let's pretend that you're a rich boomer, rich boomer, Okay, channel your rich boomer energy. You want to invest one
thousand dollars for Beck? Right, yep, yeah, we really want to do that, But Beck is currently saving for a first home. Is that the best decision to bank?
Like you see, if.
I invested one thousand dollars for you as a rich boomer, because that's you know, who can afford to give in my head presents that are to the value of a thousand dollars in if we were doing that, does that then mean that you're going to pull that money out pretty quickly to put towards your home deposit?
Right? Yeah?
Yeah, because you might go, shit, like that's one thousand dollars and I'm really aggressively saving for a house, Like that would be much better used here. I think we've got to put our thinking caps on and think about the timeframe if you are investing for them, or if you are purchasing a gift card for them to invest, like how long are they going to hold it? And then how easy is it going to be for them
to manage it. I think we need to have a good think about that, because I know that if I purchased you something like a gift card where you could pick your own investments on the platform you're already used, that's thoughtful, that's meaningful. Me picking something completely rogue, that just feels controlling, you know what I mean?
Right, And I might never actually be able to use it because I don't know what to do with it. I don't know where to go exactly. I see, and how can we add some personalized touches to make the gift even more meaningful?
So here's a few different ways that you could make this gift really resonate supposed so relating to long term goals. So say you're again rich boomer. It's a good example, and you are saving for your first homeback, but you're not very close, Like you know it's going to take
another seven to ten years to purchase that. You could write a really beautiful card and be like, I know that this is hopefully going to grow into part of your home deposit, so like you know it could be for like an eighteen or a nineteen year old and you're like, I want you to put this away because it doesn't make any sense right now for you to purchase property. But I'd like to give you this money in the hopes that by the time you purchase it's doubled. Yeah,
wouldn't that be cool? That's pretty cute exactly. And then I think going back to what I was telling you before about choosing investments with meanings, so like, if you're going to pick a share or an ETF, I would relate it to that person's interests. So like, if they love tech, maybe you could buy them like a tech company.
Yeah.
Like, wouldn't it be so cool to like make up a fake Apple gift card that then set on the back ha ha these are shares?
Yeah, yea cool, that's pretty cute.
You could also always include a personal note. I'm a very big fan of like writing proper Christmas cards for people. Yes, so you could write a Christmas card for somebody that says, here's a little start to your future. I chose this book as the lines with something I know you're passionate about, like and tell them how much you love them all of that. Like, to be honest, all I want for Christmas is Christmas cards. Anyway, here's a good idea veck.
You could include it in an investing book, huh, So you couldmpare an investment like a little like investing gift card with I don't know, maybe like a beginner friendly investing book that's won some awards, Like I don't know, investing's on the money. So this like sets some I guess realistic expectations. It explains markets ups and downs, and it really emphasizes that this gift is all about long term wealth creation and growth and helping them be the
best version of themselves. Yes, but like I don't know any investing.
Books, No, I don't know a single one.
But hypothetically, if you were to pair it with an investing book, yes, I'm in a link one in the show notes that you guys.
Might like pathetically that I might have written maybe no pressure, no pressure.
But it's a gift. And also, like low Key, we spent so long beck on the covers of those books, So if you wanted to buy multiple, they look really great as a little set, they do. They look lovely as a coffee table book. Yeah, bedside table books, bedside table book. Any stylists purchase this book put it on people's bedside tables, when you're selling homes.
Yes, yes, yes, I mean it's just a care.
It just makes sense.
That just makes sense.
You could use it as I don't know, a month older if you're not into.
Readings, beautiful coast stuff, fantastic at stop.
Same anyway, I think that that's probably the best Christmas present you could get someone is basically you know my books.
Yeah that's true. Okay, so that's our guy to giving a gift that's way more exciting than socks or any of the candle.
I love a candle.
I do love a.
Candles Sunday blue candle. If you're looking for candles this Christmas data paid sponsorship, they just have this Mediterranean blood orange can.
Oh that's doning.
I guess okay, we're done.
Sorry, Well okay, this holiday season, why not give something that grows with the person or maybe even inspires them to learn about money. That's a really idea.
And think of it as like a little financial seed that you're planning for someone, whether it's shares and ETF, an investment bond, a book, an investing course that you might want to give to someone for Christmas. I think it's a gift that could turn into something much bigger over time, and there's literally nothing more festive than the idea of a future that's a little brighter. Beck. And who knows, you might even spark a lifelong interest in investing.
Can you imagine? I know you dragged them into my community.
You could literally.
Change Merry Christmas. Beck, I'm going to add all your friends to my Facebook group.
Thank you so much. That is a great You could change the trajectory of someone's life in a good way. That's my plan. That's literally what I've been trying to do this whole time. Fantastic be Oh that's what you're trying to do. Okay, Okay, I get it out. If you're feeling extra generous this season and want to give the shees on the Money team a little holiday cheer, consider leaving us a love note in the form of a review.
But also probably just put the actual love note in the review.
A love note might actually be nice if you call it, but seriously, it gives us a warm and fuzzy feeling.
Absolutely, and on our Friday episodes, we have started reading out our favorite five star reviews so that you might find yourself on the show. Reviews actually make a really huge difference to the performance of our show as well, which helps more people find Sheese on the Money and join our incredible community. So if you do have a few moments, we would love to hear what you think. It's the best gift you could actually give us this year.
That's so true. Okay, happy for giving everyone. Here's to thoughtful presents, bright futures and maybe a five star review.
Wow, just a cheeky one. Anyway, have a good week, guys, and we will see you for five star reviews on Friday.
Who by guys.
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