Women taking control

With International Women’s Day celebrated on March 8th, we thought it important to re-visit and focus in on the successes and learnings of a female entrepreneur.

As she launched an app that changes the way people order from cafes, Rebekah Campbell also learned the value of great financial advice.

Female-run small businesses have blossomed over the past decade, giving rise to the term ‘mumpreneur’. But in the technology world, only a very small percentage of businesses have a female founder. Rebekah Campbell, co-founder and CEO of Hey You, Australia’s largest mobile ordering app for cafes, says only around four per cent of tech businesses are founded by women.

She thinks she knows why.

Why are there so few tech start-ups by women?

There is a lot of evidence of a difference in risk profile between genders. Boys are brought up to jump off cliffs and climb trees etc, so risk-taking becomes fun. Girls are brought up to take care of things and be more cautious.

How have you succeeded so far?

I haven’t always succeeded. After starting up a small radio station in New Zealand then a music management company in Sydney, I wanted a new challenge. I had an idea for a music website which I built and sold, and in doing so I lost money.

But it was good learning. I realised I could build something similar and apply it to shopping. In developing the app Hey You, I took what I had learned from music, about the way fans interact with bands and the way online communities work, and applied it to the way customers relate to cafes.

Have you learned personal money lessons along the way?

Absolutely! I made money in my first business and spent a lot of it on my second, but had some left over. I just kept it in a bank account, not even a term deposit!

Then I met my partner and got serious about building a life and having a family – we have a mortgage and   our first child is due any day now! So I have had to change the way I think about money.

How did you do that?

Financial advice became very important. What if something happened to one of us? That was something we had to think about. As an entrepreneur you are wired to be very optimistic, but we had to think about a series of outcomes. It was really about becoming more responsible.

So what changed?

We ended up with personal insurance we didn’t have before. I also realised I have a lot of energy and investment tied up in my own business, which is high risk/high reward. So I put money into other investments and paying off our home, which was just about balancing the risk.


Disclaimer: This article has been prepared by Count Financial Limited ABN 19 001 974 625, AFSL 227232, (Count) a wholly-owned, non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124.

Information in this article is based on current regulatory requirements and laws, which may be subject to change. While care has been taken in the preparation of this document, no liability is accepted by Count, its related entities, agents and employees for any loss arising from reliance on this document.

This document contains general advice. It does not take account of your individual objectives, financial situation or needs. You should consider talking to a financial adviser before making a financial decision.

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Money lessons for your adult children

Couple, Married

For decades Australians have expected that they will live a better life than the generation before them but that might all be about to change.  For the current cohort of young adults, good financial advice could make all the difference.

‘Give a man a fish and you feed him for a day. Teach a man to fish and you feed him In Focus-Summer 2016-Money lessons for your adult childrenfor a lifetime.’ The proverb is just as applicable to the world of wealth as it is to health. We can give our children all they need in life including financial security. But if we want them to thrive we must encourage them to learn their own lessons about investing.

Some of the finest financial advice begins with parents’ guidance around good money habits, particularly when children are very young. The developing minds of youngsters happily digest examples of monetary management demonstrated by their parents. But what happens when those children become adults, find jobs and begin their own financial journeys?

Let’s start with what research tells us, the fact that life is expensive for young adults. ASIC MoneySmart1 says single Australians under 35 spend an average of $869 per week (over $45,000 per year), including $278 on housing, $142 on transport, $104 on food and drinks, $24 on medical expenses and $23 on clothing and footwear. All of these costs will, of course, rise as younger Australians move through life stages.

Families with teenage children, for example, spend $314 weekly on food and drinks, $104 on medical expenses and $332 on transport.

Compounding the pain of this increasing expenditure is the fact that the younger generation, for the first time in Australian history, could be poorer in relative terms than their parents were at a similar age. A Grattan Institute report from 2014 titled The Wealth of Generations2 has revealed that “older Australians are capturing a growing share of Australia’s wealth, while the wealth of younger Australians has stagnated”.

This has partly been caused by the fact that older generations have profited handsomely from the housing boom. At the same time, increases in government payments to older people mean today’s younger Australians risk facing a lower standard of living than their parents.

The report states that increased government spending leads to an increased budget deficit. The deficit must be paid down by future taxpayers. But within the top-heavy, ageing population there will be less future taxpayers than ever when compared to the number of retirees and pensioners also supported by those taxes.

So what can parents do? Few adult children will react kindly to a financial lecture. But parents leading a discussion around their adult childrens’ future lifestyle and the financing of that lifestyle can lead to positive outcomes.

At the same time it is important to recognise the boundaries of parents’ financial advice. What worked for you may not work for your adult children thanks to individual preferences, goals and risk profiles, differing economic environments, changing regulations, higher house prices and costs of living as well as different market trends and new strategies. At the right time, it is a financial adviser’s role to provide practical direction to your adult children’s financial matters.

A financial adviser can help young adults with topics such as utilising their bonuses, pay rises and tax returns effectively, managing debt and paying it off more quickly and protecting assets and lifestyle. A financial adviser’s understanding of current market trends and different investment options also means they are best placed to help a young adult set up an appropriate investment portfolio.

You have experienced the benefits your financial adviser can deliver. Your adult children, who have the great advantage of time, are likely to benefit from professional financial advice too.

1 MoneySmart website (Source: www.moneysmart.gov.au/managing-your-money/budgeting/spending/australian-spending-habits, 30 November 2015, figures from 2012).

2 grattan.edu.au/report/the-wealth-of-generations/

Source: Count Financial-InFocus

Disclaimer: This article has been prepared by Count Financial Limited ABN 19 001 974 625, AFSL 227232, (Count) a wholly-owned, non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124.

Information in this article is based on current regulatory requirements and laws, which may be subject to change. While care has been taken in the preparation of this document, no liability is accepted by Count, its related entities, agents and employees for any loss arising from reliance on this document.

This document contains general advice. It does not take account of your individual objectives, financial situation or needs. You should consider talking to a financial adviser before making a financial decision.