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Speaker 1: Hello.

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Speaker 2: My name's Santasha Nabananga Bamblet. I'm a proud Yr the

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Speaker 2: Order Kerney Whalbury and a waddery woman. And before we

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Speaker 2: get started on She's on the Money podcast, I would

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Speaker 2: like to acknowledge the traditional custodians of the land of

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Speaker 2: which this podcast is recorded on a wondery country, acknowledging

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Speaker 2: the elders, the ancestors and the next generation coming through

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Speaker 2: as this podcast is about connecting, empowering, knowledge sharing and

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Speaker 2: the storytelling of you to make a difference for today

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Speaker 2: and lasting impact for tomorrow.

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Speaker 1: Let's get into it.

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Speaker 3: She's on the Money, She's on the Money.

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Speaker 4: Hello, and welcome to She's on the Money, the podcast

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Speaker 4: for millennials who want financial freedom today for a change.

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Speaker 4: I'm joined by Victoria Divine A. Yeah, thank you so

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Speaker 4: much for people, I mean, yeah, thank you so much

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Speaker 4: for joining me.

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Speaker 1: No worries, thanks for having me. What are we talking

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Speaker 1: about today?

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Speaker 4: There's a term we've been hearing a lot of lately

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Speaker 4: in the media in everyday conversation. You guys have been

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Speaker 4: messaging us. I think you know what I'm going to say, Yeah, inflation.

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Speaker 4: It's not inflation. It is close kind of Not really,

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Speaker 4: it's not even close. I can see what we're talking about.

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Speaker 4: And you know what, that was a stab in the duck.

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Speaker 4: What are we talking about today? Back today, we're talking

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Speaker 4: about the bank of mum and dad.

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Speaker 1: I would like a bank of mum and dad.

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Speaker 4: It would be so nice.

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Speaker 1: Did you grow up with a bank of mum and dad? God? No, neither,

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Speaker 1: you know, no, no, no, no. I mean in a

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Speaker 1: small way, potentially, yes, and we'll get into that. But

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Speaker 1: I don't think I have a bank of mum and

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Speaker 1: dad in the way that people are assuming a bank

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Speaker 1: of mum and dad. I more have the financial security

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Speaker 1: of knowing that if I was ever up, you know,

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Speaker 1: sh one t Creek without a paddle, my parents would

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Speaker 1: come and do absolutely everything that they could. But yeah, no,

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Speaker 1: I don't have parents that are going to give me

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Speaker 1: a house to shop at any time soon.

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Speaker 4: Sure that is interesting. So there's like security of mom

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Speaker 4: and dad.

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Speaker 1: I feel like I feel like there's lots of different levels,

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Speaker 1: and we'll get into that today.

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Speaker 4: Sure. I guess what we'll start with is what is

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Speaker 4: the bank of mum Dad? What does it mean? Why

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Speaker 4: is everyone talking about it? Yeah?

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Speaker 1: Yeah, yeah, So, as I said, before. I think that

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Speaker 1: there are a number of different levels of it, and

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Speaker 1: we'll talk about that, but the bank of Mum and

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Speaker 1: Dad is quite literally just getting money from your parents

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Speaker 1: instead of the bank. And obviously then each individual arrangement

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Speaker 1: is very different, but they can look like lots of things, right.

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Speaker 1: They can look like having access to money from your

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Speaker 1: parents if you get into an emergency or you're in

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Speaker 1: a bit of a pickle. It could be having less

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Speaker 1: financial anxiety because you aren't afraid to miss out on

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Speaker 1: a shift at work because if you fall short, there's

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Speaker 1: going to be some help there. You might be able

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Speaker 1: to take on a really valuable unpaid internship, which is

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Speaker 1: a different story because I don't think unpaid internships should exist. Yes,

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Speaker 1: but you might have that privilege while at university because

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Speaker 1: there's no pressure to support yourself one hundred percent by working. Obviously,

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Speaker 1: other specific support could also look like having an allowance

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Speaker 1: from your parents or rent, or having your bills or

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Speaker 1: your car or any other type of expenses paid for.

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Speaker 1: It could be literally anything. It could be your parents

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Speaker 1: gift a new money for a house deposit, or paying

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Speaker 1: for holidays, or I went to university with people where

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Speaker 1: their parents paid all their rent and all their bills

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Speaker 1: until they graduated, and then they started paying for things

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Speaker 1: if they got a job. Mustiness in Mumba Na's. It's

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Speaker 1: one of those things that everybody's individual circumstances are really different.

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Speaker 1: And I'm quite ambivalent about it, Like I don't actually

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Speaker 1: care if you have a bank of mum and dad

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Speaker 1: or not, but I think if you have that, we

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Speaker 1: should be acknowledging that privilege and we should be talking

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Speaker 1: about it. Because we keep throwing this term of the

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Speaker 1: bank of mum and Dad around as though it's a

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Speaker 1: really big thing. It's because it actually is, and we're

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Speaker 1: going to talk about it. So when it comes to

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Speaker 1: property ownership, we hear that term a lot, especially in

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Speaker 1: the media because I feel like you saw that article

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Speaker 1: the other day where the like dad in Sydney got

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Speaker 1: frustrated that his kid couldn't get accepted for a rental

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Speaker 1: so he bought him like a three million dollar house.

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Speaker 4: To see that that is not real.

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Speaker 1: I thought that was a Bituda advocate title yessnews dot

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Speaker 1: com and I was like, oh, okay, that's legit happening.

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Speaker 1: It's just so far from my reality that I just

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Speaker 1: thought it was a joke, but it could look like

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Speaker 1: a lot of different things. Obviously your parents buying house

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Speaker 1: for you, all the way through to things like being

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Speaker 1: a garran Taur where there's not actually an exchange of money,

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Speaker 1: but your parents have assets that you can then rely

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Speaker 1: on to get yourself ahead in life. It's not always

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Speaker 1: a straight line of Mum and Dad have money and

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Speaker 1: they gave it to you. Mum and Dad might not

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Speaker 1: actually have cash, but they have assets that you can

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Speaker 1: then rely on, so there's a lot to it.

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Speaker 4: God, they must be so nice, Emma benadh my gosh.

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Speaker 4: The reality is that for many people the bank of

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Speaker 4: mum and dad or bomad.

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Speaker 1: You've just come up with that bomad.

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Speaker 4: Do you want to Can we call it that?

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Speaker 1: Yeah, that's good bomad.

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Speaker 4: It saves like a nanosecond, so you know, yeah, that's

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Speaker 4: actually really efficient.

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Speaker 1: This conversation has not been ralroaded at all but introduction. Yeah, bomad.

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Speaker 4: But no, the reality is that a lot of people

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Speaker 4: don't have access to bomad. No, but let's talk about

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Speaker 4: some of the practical and mental health realities of.

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Speaker 1: This totally, and it can present in a number of

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Speaker 1: different ways. So children who don't rely on the bank

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Speaker 1: of mom and dad often have to prioritize work over

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Speaker 1: other things such as social outings and I feel like

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Speaker 1: you've probably got some really good experiences here back to

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Speaker 1: share a little bit later. But they might also have

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Speaker 1: to prioritize a solid paycheck over a learning opportunity that

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Speaker 1: might put them into further debt, like they might have

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Speaker 1: to take out some more hex loans and that might

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Speaker 1: increase their prospects later on, but they don't actually have

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Speaker 1: that opportunity. They might feel really guilty if they do

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Speaker 1: need to ask for money or feel as though they're

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Speaker 1: in debt for asking their parents for help. And it's

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Speaker 1: obviously tough too for parents who are willing to help

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Speaker 1: then can't. And I think that needs to be addressed too,

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Speaker 1: because I think a lot of people put pressure on

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Speaker 1: themselves if their parents and feel really awful that they

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Speaker 1: can't then be that bank of mom and dad, like

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Speaker 1: maybe their friends can be to their children. And I

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Speaker 1: just I don't think that's a judgment that anybody should

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Speaker 1: carry on themselves, Like it is what it is, and

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Speaker 1: you shouldn't feel bad about it. At the end of

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Speaker 1: the day, kids need love and that is it, but

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Speaker 1: they will often feel guilty if their child struggling and

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Speaker 1: they just don't have the opportunity to help, which would

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Speaker 1: make anyone feel bad, right like you just want to

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Speaker 1: swoop in and look after people.

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Speaker 4: I know that would actually be really tough. I know

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Speaker 4: that my mom struggled without a fair bit growing up.

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Speaker 4: I kind of had to pay rent very early on,

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Speaker 4: which is like, no, you know, not a big deal.

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Speaker 4: But I ended up kind of being in this vicious

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Speaker 4: cycle of having to pay my way to live very young,

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Speaker 4: not being able to go out and study instead of work.

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Speaker 4: So I tried to balance both from a young age,

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Speaker 4: ended up just immediately in the workforce. Still to this day,

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Speaker 4: I kind of, you know, I don't have any qualifications.

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Speaker 4: I never really had time to had to work full

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Speaker 4: time immediately, and I feel like that's something a lot

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Speaker 4: of people can relate to. But here I am, and

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Speaker 4: I'm happy about it. I feel like it, you know,

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Speaker 4: it makes us all strong, resilient people having to kind

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Speaker 4: of find your own way financially. Hope that doesn't sound

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Speaker 4: silly proud, but.

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Speaker 1: I don't think it sounds silly at all. I feel

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Speaker 1: like there's a level of independence that comes from you

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Speaker 1: as well, that a lot of people would be envyous off,

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Speaker 1: like you're so easy to just go oh, I want

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Speaker 1: to do this or I want to do that. And

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Speaker 1: I think another thing that a lot of people, you know,

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Speaker 1: listening to this are going to go, oh, yeah, I

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Speaker 1: have bank of mom and dad, but there's a lot

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Speaker 1: of guild associated with it, or it could actually transpire

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Speaker 1: into financial control or you know, you feel like you

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Speaker 1: owe your parents for that. And I know that a

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Speaker 1: lot of this sounds airy fairy. I'm like, oh, mom

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Speaker 1: and Dad just gave you some money, but that could

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Speaker 1: actually be a motion of control. And we've seen that

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Speaker 1: in our community before, where parents are like, well, I

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Speaker 1: give you money, and I give you this life, and

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Speaker 1: I have made you and I've done this, and you

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Speaker 1: need to do these things for me. So it actually

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Speaker 1: isn't always a good thing. We just want to talk

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Speaker 1: about it a little bit more holistically and I think,

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Speaker 1: you know, cast a little bit more light on it

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Speaker 1: because I feel like if you have access to the

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Speaker 1: bank of mum and Dad, you don't usually talk about it.

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Speaker 1: But it's been really large, Yeah, like in Australia it's massive.

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Speaker 4: Yeah, absolutely That actually brings me to my next point.

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Speaker 4: How common is it in Australia?

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Speaker 1: So BOMAD, the Bank of Mum and Dad was actually

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Speaker 1: in twenty twenty one the ninth largest Australian lender. Why

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Speaker 1: isn't that wild? And we know that the top four

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Speaker 1: banks obviously take out the first four positions, but the

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Speaker 1: Bank of Mum and Dad dished out get this, thirty

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Speaker 1: four billion dollars in loans throughout the year, according to

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Speaker 1: an analysis by the Research of Digital Finance Analytics or DFA.

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Speaker 1: Isn't that wild?

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Speaker 4: That is so outrageous.

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Speaker 1: But I was also talking to the team about this

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Speaker 1: and like, a couple of people on our team do

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Speaker 1: have parents that you know have lent them money historically?

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Speaker 1: And I was like, how did they measure that? And

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Speaker 1: then I asked one of our team members, I was like,

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Speaker 1: did your parents, like would your parents ever like you know,

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Speaker 1: were survey on that. No, So, like, thirty four billion

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Speaker 1: dollars is massive, But that's what they tracked, not what's

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Speaker 1: going in and out or the financial security that these

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Speaker 1: parents are providing. And thirty four billion dollars is more

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Speaker 1: than what actual lenders like the Bank of Queensland HSBC AMP,

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Speaker 1: the Heritage Bank, Beyond Bank and the Greater Bank actually

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Speaker 1: currently have in outstanding loans. What those are big banks?

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Speaker 2: Yeah.

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Speaker 1: And it also found that sixty percent of first time

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Speaker 1: home buyers are getting financial help from their parents, with

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Speaker 1: parents contributing an average of ninety two thousand dollars in

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Speaker 1: twenty twenty one, which is enough for a twenty percent

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Speaker 1: deposit in most parts of Australia. Wow, that's a lot

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Speaker 1: of money.

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Speaker 4: It's a lot of money.

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Speaker 1: It is so much money.

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Speaker 4: Yeah, I am curious about how they tracked that, contracked

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Speaker 4: that shared spreadsheet that only rich parents use.

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Speaker 1: Do you know how much money mum and dad were

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Speaker 1: looking after me with at Union, like when I was like, hell,

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Speaker 1: I need money for grocer. Like, they're not tracking that stuff.

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Speaker 1: It's just the official stuff. Yeah, like that maybe the

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Speaker 1: property stuff, but obviously so much more. Only get what

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Speaker 1: you get when you look at analysis than they give

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Speaker 1: you absolutely everything. But it's one of those things and

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Speaker 1: I was like, it has to be more than that.

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Speaker 4: It has to be has to be. Well, it seems

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Speaker 4: like it is such a big thing, So why are

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Speaker 4: we just hearing about it more lately?

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Speaker 1: Because the world's getting more expensive. Beck the world is

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Speaker 1: getting more expensive. We're talking about the rising cost of living.

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Speaker 1: We're talking about I feel like during periods of rising

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Speaker 1: cost of living, which this isn't the first time the

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Speaker 1: cost of living has increased. We have been through ebbs

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Speaker 1: and flows and recessions before. But during that period of time,

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Speaker 1: people are more likely to want to point out privilege,

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Speaker 1: and this is a very good way of doing it.

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Speaker 1: Talking about the bank of Mum and Dad is often

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Speaker 1: not just a pragmatic thing of us being like, Wow,

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Speaker 1: here's how people get into their first homes, here's how

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Speaker 1: people finance their lives. As you can tell from the

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Speaker 1: way the media is talking about it, there's a sense

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Speaker 1: of entitlement, like oh, well, the bank of Mum and

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Speaker 1: Dad will cover that, and like I don't think I've

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Speaker 1: ever used personally, and this is probably not a good thing,

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Speaker 1: but I've never used the term bank of mum and

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Speaker 1: Dad as a flippant term. It's always been like, oh, well,

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Speaker 1: it might have been coming from the bank of Mum

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Speaker 1: and Dad if there was a question around, Oh, I

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Speaker 1: wonder how that person got into that one point two

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Speaker 1: million dollar house. I didn't realize they were saving a

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Speaker 1: deposit kind of vibes. So I feel like there's a

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Speaker 1: lot of judgment and it usually comes during times of stress.

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Speaker 1: And obviously the property market is absolutely booming, and home

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Speaker 1: prizes push ownership further out of reach for first home buyers.

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Speaker 1: So we start going, well, how on earth up these

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Speaker 1: other people who I thought were in the same position

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Speaker 1: as me getting into that property, and I think we

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Speaker 1: just start talking about it more.

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Speaker 4: It's not a new or novel concept, right, that makes sense.

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Speaker 4: That makes sense, and I guess it kind of makes

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Speaker 4: people feel better, like if you can't get to yourself,

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Speaker 4: don't worry. Maybe some people have a bit of a helpy.

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Speaker 1: Heck, yeah exactly. And I feel like it makes us

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Speaker 1: genuinely feel better to know, Okay, it's not just me struggling.

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Speaker 1: Everyone's struggling, but if they're doing well, I don't know.

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Speaker 1: It's an interesting concept and I had I was actually

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Speaker 1: doing a presentation yesterday. I do a lot of speaking engagements.

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Speaker 1: When I was at one and we were talking about

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Speaker 1: tall poppy syndrome. Someone asks like, you know, how do

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Speaker 1: you deal with that? What does that mean? How does

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Speaker 1: that work? And I said, it's interesting because the more

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Speaker 1: successful you get. And I guess this really ties into

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Speaker 1: the bank of mum and dad. People want to really

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Speaker 1: support you when you're the same as them, we're on

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Speaker 1: exactly the same page. But I find the more successful

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Speaker 1: you get, the less people want to see you be

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Speaker 1: successful because others. And this is such an Australian thing,

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Speaker 1: and I find it really gross. People want to see

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Speaker 1: you do well, but they don't want to see you

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Speaker 1: do better than them, and I find that's so gross.

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Speaker 1: And that plays into this tall poppy Australia thing. And

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Speaker 1: I feel like this is where the mum and dad

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Speaker 1: thing comes in, where you go, I want to see

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Speaker 1: you do really well, Beck, But then if your parents

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Speaker 1: went and bought you a house, I don't want to

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Speaker 1: see that. That's rude, that's entitled, you know, cut you

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Speaker 1: down for that. I just think that's not the way

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Speaker 1: that she's on the money community acts like. I don't

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Speaker 1: think any of us feel that. We know we're not

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Speaker 1: like that. Oh, but it's an interesting concept that I

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Speaker 1: think in Australia we talk a lot more about the

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Speaker 1: bank of mum and Dad than they would internationally, because internationally,

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Speaker 1: cultures are different. Internationally, there are a lot of different

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Speaker 1: cultures where it's actually expected your parents move in with you,

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Speaker 1: it's actually expected that you provide for your Like, there

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Speaker 1: are just so many different ways of approaching money. But

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Speaker 1: I genuinely feel like people want to see you do well,

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Speaker 1: but they don't want to see you do better than them.

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Speaker 4: Yeah yeah yeah, or at least if you do well,

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Speaker 4: people kind of want to see you struggle to get that.

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Speaker 1: It's so frustrating, and it happens in every aspect of life,

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Speaker 1: right whether you are at UNI, people really want you

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Speaker 1: to do well, but then if you go get a

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Speaker 1: better job than them, they're not that impressed by it all.

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Speaker 1: They feel like that's some type of personal attack, you know,

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Speaker 1: even with She's on the money, Like you see some

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Speaker 1: people wanting us to do really well when we were

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Speaker 1: tiny and struggling, and I couldn't favor episodes to be

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Speaker 1: edited to now they're like, oh they're terrible. Rah ah,

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Speaker 1: they're so commercial. It's like, no, we're the same people

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Speaker 1: doing the same things, and we're just passionate about it.

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Speaker 1: So it's an interesting concept, and I think the Australian

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Speaker 1: tall poppy syndrome really plays into why maybe we are

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Speaker 1: talking so much today about the Bank of Mum and Dad,

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Speaker 1: and the media gets on it so much because the

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Speaker 1: Australian media in particular, I think, really love a good

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Speaker 1: tall poppy syndrome story, classic, classic.

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Speaker 4: And we were just saying, like, you know, in different

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Speaker 4: cultures and stuff, the I suppose like the dynamics, so

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Speaker 4: just dynamics a little different. Do you feel like this

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Speaker 4: would maybe be a thing for you know, in Britain

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Speaker 4: for example, like in England or Yeah, so in England

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Speaker 4: there is a from my understanding, a tall poppy syndrome

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Speaker 4: thing going on too, But in America it's not that prevalent.

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Speaker 4: It's just the you know, the land of the Great,

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Speaker 4: Land of the Free. Everyone wants to do well. It's

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Speaker 4: an interesting concept. I don't think it's international. But I

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Speaker 4: think also like if you looked up the Bank of

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Speaker 4: Mum and Dad and wanted to see what type of

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Speaker 4: American media there is around that, I really don't think

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Speaker 4: that there is much. It's a very Australian term. So interesting.

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Speaker 1: I think it's a judgmental term too.

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Speaker 4: Oh.

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Speaker 1: I genuinely feel like it's quite judgmental, Like as I

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Speaker 1: said before, like it's not coming from a place of love.

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Speaker 1: It's coming from a place of us trying to give

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Speaker 1: reason to why that person might be doing well right,

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Speaker 1: because like the bank of mum and dad, that term

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Speaker 1: there's a real sick got a real stigma to it, right,

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Speaker 1: And they're doing that on purpose, not like, oh, she

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Speaker 1: bought her first home. That's so beautiful. Yeah, her mum

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Speaker 1: and dad were so supportive, Like, oh, I'm so proud

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Speaker 1: of her and her parents worked really hard and they

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Speaker 1: must be so proud to see her get into for

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Speaker 1: her first home, like they've worked hard all their lives.

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Speaker 1: How good is it that they can see their child,

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Speaker 1: you know, being really successful too. That's not how we talk,

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Speaker 1: is it. And beck I guess to take it a

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Speaker 1: step further, we're not going, oh my gosh, that family

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Speaker 1: is so smart. They've created this beautiful intergenerationational wealth. You know,

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Speaker 1: they're buying properties and really supporting their children, but they're

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Speaker 1: not relying on commercial entities to do that. They're just

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Speaker 1: being self sufficient. Isn't that sexy? No one's saying that.

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Speaker 1: They're saying it's entitled and intergenerational wealth is ekey and disgusting,

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Speaker 1: and you know, someone would have been compromised along that process, Like,

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Speaker 1: I just think it's so interesting because having come from

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Speaker 1: a space where I worked with intergenerational wealth. So my

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Speaker 1: experience historically as a financial advisor before starting She's on

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Speaker 1: the money and before you know, actually getting to work

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Speaker 1: on my passion project was working with multimillion dollar families

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Speaker 1: and even billion dollar families and talking about family constitutions

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Speaker 1: and how they would lend money to children to buy

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Speaker 1: their properties or start their businesses. And it's really interesting

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Speaker 1: seeing that dynamic because you get to sit in these

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Speaker 1: meetings and I had no like I felt like a

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Speaker 1: fly on the wall because that was so not my experience.

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Speaker 1: Like if I needed to borrow fifty bucks from dad,

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Speaker 1: I felt a bit sick asking. And I'm not saying

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Speaker 1: Mum and Dad didn't do well. I just that was

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Speaker 1: never something that made me feel good. Whereas these families

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Speaker 1: are talking about, okay, cool, my son is bringing me

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Speaker 1: a business plan in a couple of weeks and he

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Speaker 1: wants to start this brewery and it's going to cost

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Speaker 1: five million dollars and I think that's a good investment.

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Speaker 1: I'm like, far out there are families having conversations like that,

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Speaker 1: and again no judgment, like how cool is it that

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Speaker 1: they can be self sufficient and create this life that

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Speaker 1: they want to create. Like imagine just waking up being like,

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Speaker 1: you know what, start a brewery. I'll just ask Dad,

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Speaker 1: what what I know?

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Speaker 4: I know?

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Speaker 5: Do you know what?

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Speaker 1: I've always wanted to own a cafe?

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Speaker 6: How about I just own a cafe? How about I

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Speaker 6: just start a series of them? Because we've got the

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Speaker 6: funding to do that. It's interesting as well, and I

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Speaker 6: mean to go in another tangent. It's one of those

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Speaker 6: things where I have always said from that experience that

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Speaker 6: there are two really big differences between the wealthy and

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Speaker 6: the not wealthy, and that's the wealthy have the ability

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Speaker 6: to seize an opportunity. So you know, if they saw

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Speaker 6: something for sale that would create more wealth, they have

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Speaker 6: the ability to seize it. But you or I might

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Speaker 6: sit down it might be a cafe, And I think

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Speaker 6: that's a good example. You and I sit down and go, oh, well,

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Speaker 6: that cafe is for sale far out it would be

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Speaker 6: a goodbye. That cafe earns so much money. We do

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Speaker 6: not have the opportunity to seize that. But then also

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Speaker 6: the networking connections, you and I would never know that

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Speaker 6: that cafe was for sale to begin with. So it's

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Speaker 6: for me the ability to seize an opportunity and the

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Speaker 6: people that you were surrounded by is often what, from

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Speaker 6: my experience, differentiates the ultra high net wealth from even

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Speaker 6: just the wealthy. And when you and I talk about wealthy,

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Speaker 6: I'm saying, you know, you might become financially independent, you

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Speaker 6: might have an investment portfolio that pays you an income.

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Speaker 6: There's actually an entirely other.

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Speaker 1: Level to that, and it's so interesting to learn more

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Speaker 1: about it, right, Yeah, And the cafe example, I think

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Speaker 1: is a very diluted down version of that. But you

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Speaker 1: and I would never hear about the cafe because we're

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Speaker 1: not the type of people that are in those circles

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Speaker 1: to have those conversations. And even if we were, we'd

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Speaker 1: be like, I don't know why I'm here because I

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Speaker 1: can't afford to play here. But let's go back to

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Speaker 1: the bank of Mum and Dad. But I think that's

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Speaker 1: an interesting, I guess addition on what wealth looks like.

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Speaker 4: Yeah, that's a really really good way to look at it.

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Speaker 4: And it's it's so true. Like I remember I was

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Speaker 4: thinking the other day, like, why you know, right now

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Speaker 4: we are trying to become financially free, and maybe if

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Speaker 4: we have children one day, we would like to pass

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Speaker 4: not money straight onto them, but the knowledge on you know,

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Speaker 4: how to better yourself and be you know, financially free

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Speaker 4: and all this kind of thing. That's what I'm going

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Speaker 4: to use this term very loosely. NEPO baby's parents done,

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Speaker 4: not parents done.

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Speaker 1: It's't that T shirt that says NEPO baby. I'm not

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Speaker 1: on NEPO. I just feel like it might be nice

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Speaker 1: to wear that T shirt.

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Speaker 4: I feel like I'm saying it was the word wrong too, NEPO.

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Speaker 1: I don't know you no, I know what you mean

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Speaker 1: in nepotism.

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Speaker 4: And their parents wanted that for them, and they worked

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Speaker 4: hard for that, and like, why has it got such

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Speaker 4: a stigma? Why is it such a negative term, Like

435
00:20:06,280 --> 00:20:08,399
Speaker 4: someone somewhere worked very hard for this.

436
00:20:08,400 --> 00:20:11,280
Speaker 1: One hundred percent, and I think that their stigma actually,

437
00:20:11,600 --> 00:20:14,360
Speaker 1: you know, breaking this down and having this conversation now,

438
00:20:14,400 --> 00:20:17,399
Speaker 1: I think it actually comes from this concept of hard work.

439
00:20:18,200 --> 00:20:21,359
Speaker 1: Your mum worked hard, Yeah, Like she probably worked harder

440
00:20:21,400 --> 00:20:23,639
Speaker 1: than the average bear to put food on the table

441
00:20:23,720 --> 00:20:26,600
Speaker 1: and look after you and like provide for you. So

442
00:20:26,720 --> 00:20:30,760
Speaker 1: it's not actually that somebody worked really hard, because everybody

443
00:20:30,840 --> 00:20:33,199
Speaker 1: works really hard. Like, and I've said it before, you

444
00:20:33,280 --> 00:20:37,200
Speaker 1: cannot budget your way out of poverty. It's about education,

445
00:20:37,480 --> 00:20:41,560
Speaker 1: It's about understanding, it's about access to resources. It's about

446
00:20:41,960 --> 00:20:45,040
Speaker 1: you know, being educated to even know that you need

447
00:20:45,080 --> 00:20:48,320
Speaker 1: to be educated to get to that next level. So

448
00:20:48,640 --> 00:20:51,080
Speaker 1: I think when we say, oh, someone worked really hard,

449
00:20:51,600 --> 00:20:55,160
Speaker 1: like taking it back, your mum worked really hard, and

450
00:20:55,480 --> 00:20:58,160
Speaker 1: so did that person who has a ten million dollar business.

451
00:20:58,160 --> 00:21:00,800
Speaker 1: But I guarantee you that person who has that ten

452
00:21:00,880 --> 00:21:04,720
Speaker 1: million dollar business might have had access to different resources

453
00:21:04,920 --> 00:21:09,040
Speaker 1: and different information and different ways of working. Because you know,

454
00:21:09,119 --> 00:21:11,720
Speaker 1: you just don't know what you don't know. And it's

455
00:21:11,760 --> 00:21:15,080
Speaker 1: not just oh, hey, here's this concept of compound interest

456
00:21:15,119 --> 00:21:17,720
Speaker 1: and here's what superanuation is, and here's why you should

457
00:21:17,760 --> 00:21:20,760
Speaker 1: be saving. It's not that it's access to opportunity. It's

458
00:21:20,840 --> 00:21:23,960
Speaker 1: access to those things that you know. Your mum didn't

459
00:21:24,000 --> 00:21:25,720
Speaker 1: have that. No one sat her down and said, hey,

460
00:21:25,760 --> 00:21:27,280
Speaker 1: did you know that if you did this, this and

461
00:21:27,359 --> 00:21:30,439
Speaker 1: this and this, like your entire situation would change. But

462
00:21:30,640 --> 00:21:34,400
Speaker 1: what she did was work her butt off. So now

463
00:21:34,440 --> 00:21:37,359
Speaker 1: you're in the position to learn that. And that's beautiful,

464
00:21:37,400 --> 00:21:40,439
Speaker 1: and that's amazing, But I think that the judgment comes

465
00:21:40,440 --> 00:21:43,679
Speaker 1: from people blaming it on hard work and then being like, no,

466
00:21:43,760 --> 00:21:47,240
Speaker 1: but I work hard too, you do, you absolutely do.

467
00:21:47,560 --> 00:21:50,440
Speaker 1: So I don't think we can say, oh, someone worked

468
00:21:50,480 --> 00:21:53,000
Speaker 1: really hard for that. I think that's really good, but

469
00:21:53,040 --> 00:21:57,840
Speaker 1: it really distills down the reality of the situation they did.

470
00:21:58,160 --> 00:22:00,240
Speaker 1: But there's a lot of privilege there as well. Well,

471
00:22:00,359 --> 00:22:03,520
Speaker 1: what opportunities did they have? What opportunities did they see

472
00:22:03,560 --> 00:22:06,280
Speaker 1: that they knew to seize, Because there are opportunities that

473
00:22:06,320 --> 00:22:10,000
Speaker 1: literally pass us every single day that we just don't

474
00:22:10,000 --> 00:22:11,840
Speaker 1: see because we don't know that's an opportunity.

475
00:22:11,920 --> 00:22:13,560
Speaker 4: Wow, I never even thought about like that.

476
00:22:13,600 --> 00:22:17,919
Speaker 1: You can goose They just pass us by every day

477
00:22:17,960 --> 00:22:20,920
Speaker 1: and you have absolutely no idea. So when someone invents something,

478
00:22:21,000 --> 00:22:23,160
Speaker 1: you're like, oh my gosh, I've literally struggled.

479
00:22:22,720 --> 00:22:23,800
Speaker 4: With that issue for ages.

480
00:22:24,440 --> 00:22:29,600
Speaker 1: That opportunity to invent that existed before they thought about it.

481
00:22:29,920 --> 00:22:32,400
Speaker 1: But they thought about it. What was their education? Where

482
00:22:32,400 --> 00:22:35,480
Speaker 1: did that come from? It's even about thought processes, right,

483
00:22:35,560 --> 00:22:37,600
Speaker 1: it's even you know, going back to an episode we

484
00:22:37,640 --> 00:22:42,400
Speaker 1: did earlier this year, mindset being more optimistic instead of pessimistic,

485
00:22:42,720 --> 00:22:46,600
Speaker 1: having a mind frame of abundance, literally changes the way

486
00:22:46,640 --> 00:22:50,280
Speaker 1: that you see opportunities. So it's one of those things that, yeah,

487
00:22:50,359 --> 00:22:52,520
Speaker 1: let's get back on track. But I think that that's

488
00:22:52,520 --> 00:22:55,600
Speaker 1: worth calling out because it's not just hard work. Yeah, perfect, Ye,

489
00:22:55,680 --> 00:22:58,320
Speaker 1: I feel like we need to really absorb everything. How

490
00:22:58,320 --> 00:23:00,840
Speaker 1: about we go for a really quick break a cup

491
00:23:00,880 --> 00:23:01,760
Speaker 1: of tea after that.

492
00:23:01,880 --> 00:23:02,919
Speaker 4: I think a cup might be nice.

493
00:23:02,960 --> 00:23:04,000
Speaker 1: Yeah, do that.

494
00:23:08,040 --> 00:23:10,280
Speaker 4: Welcome back? Was it nice?

495
00:23:10,440 --> 00:23:10,520
Speaker 2: No?

496
00:23:10,640 --> 00:23:11,400
Speaker 1: I didn't get a tea.

497
00:23:12,680 --> 00:23:13,639
Speaker 4: I'm going to get right to that.

498
00:23:13,760 --> 00:23:16,040
Speaker 1: I don't want to ruin the magic for people. But

499
00:23:16,160 --> 00:23:19,320
Speaker 1: it was a fake break for us when we're recording. Yeah,

500
00:23:19,440 --> 00:23:21,679
Speaker 1: like we say brain true and then they put the

501
00:23:21,760 --> 00:23:24,359
Speaker 1: ad in so that I can pay you and I

502
00:23:24,359 --> 00:23:26,639
Speaker 1: can pay the rest of the team. But yeah, I

503
00:23:26,720 --> 00:23:30,080
Speaker 1: sat here for three seconds and then we started recording again.

504
00:23:30,359 --> 00:23:31,760
Speaker 4: Wow, everyone's our secret now.

505
00:23:31,880 --> 00:23:34,200
Speaker 1: But after this episode is recorded, I will be getting

506
00:23:34,200 --> 00:23:37,480
Speaker 1: a cup of in between we're recording another episode.

507
00:23:37,520 --> 00:23:38,480
Speaker 4: So I hope you get that tea.

508
00:23:38,480 --> 00:23:40,880
Speaker 1: Eventually I'll get you a tea too. I'm really good

509
00:23:40,920 --> 00:23:42,199
Speaker 1: at tea.

510
00:23:42,400 --> 00:23:44,080
Speaker 4: Were talking about the Bank of Mum and Dad. We

511
00:23:44,160 --> 00:23:46,840
Speaker 4: are so mad. You're talking about like the undercurrents and

512
00:23:46,920 --> 00:23:49,360
Speaker 4: how it's kind of like secretly you know. Yeah, it's

513
00:23:49,400 --> 00:23:52,480
Speaker 4: not just hard work. It's not just hard work. Yeah,

514
00:23:52,520 --> 00:23:54,680
Speaker 4: there are many aspects and elements to this, So I'd

515
00:23:54,680 --> 00:23:57,480
Speaker 4: imagine that the true nature and the impact of bank

516
00:23:57,520 --> 00:23:59,320
Speaker 4: of Mum and Dad would be hard to measure though.

517
00:23:59,400 --> 00:24:01,560
Speaker 1: Yeah, that's why I was talking about that stat earlier

518
00:24:01,600 --> 00:24:03,720
Speaker 1: when we said that Bomad had dished out what was

519
00:24:03,720 --> 00:24:06,800
Speaker 1: at thirty four billion dollars. But how do you measure that? Like,

520
00:24:06,880 --> 00:24:11,159
Speaker 1: there are so many families that would not talk about that, right, Like,

521
00:24:11,240 --> 00:24:13,240
Speaker 1: and to go back to my wealth days and when

522
00:24:13,240 --> 00:24:15,359
Speaker 1: I used to work, we worked with this client and

523
00:24:15,440 --> 00:24:18,160
Speaker 1: he was really beautiful and like he was just one

524
00:24:18,200 --> 00:24:20,639
Speaker 1: of the kindest human beings in the entire world. Had

525
00:24:20,720 --> 00:24:23,359
Speaker 1: six kids. That's not actually true, he didn't have six,

526
00:24:23,359 --> 00:24:24,760
Speaker 1: But I don't want you to be able to pinpoint

527
00:24:24,760 --> 00:24:28,760
Speaker 1: this individual, so trying to change it. But he had

528
00:24:28,800 --> 00:24:30,959
Speaker 1: a lot of kids, right, And he spent most of

529
00:24:31,000 --> 00:24:34,560
Speaker 1: his time not in Australia because he had international companies

530
00:24:34,560 --> 00:24:38,600
Speaker 1: that he ran, had you know, family here. His family

531
00:24:38,640 --> 00:24:41,800
Speaker 1: didn't know that he was a billionaire. So we ran

532
00:24:41,880 --> 00:24:45,280
Speaker 1: his family wealth division. We talked about, you know, what

533
00:24:45,359 --> 00:24:48,000
Speaker 1: he wanted from his wealth, what he wanted through his kids.

534
00:24:48,040 --> 00:24:50,400
Speaker 1: His kids obviously knew that Dad did well. He did

535
00:24:50,400 --> 00:24:52,600
Speaker 1: all of these things, but Dad also owned a whole

536
00:24:52,600 --> 00:24:55,760
Speaker 1: heap of companies and really like parts of really big

537
00:24:55,800 --> 00:24:57,960
Speaker 1: companies that if I talked to you about them, you'd

538
00:24:58,000 --> 00:25:01,520
Speaker 1: be like, I know that, I know this, that makes sense? Yeah, wow,

539
00:25:01,600 --> 00:25:04,720
Speaker 1: far out that is big dog stuff. His kids didn't

540
00:25:04,760 --> 00:25:07,440
Speaker 1: know that. And it got to a point where his

541
00:25:07,560 --> 00:25:10,600
Speaker 1: kids were at university and a few of them were,

542
00:25:10,720 --> 00:25:12,680
Speaker 1: you know, at that stage where they were talking about

543
00:25:12,680 --> 00:25:15,439
Speaker 1: what their jobs would be next, and he kind of

544
00:25:15,440 --> 00:25:18,320
Speaker 1: had realized he wanted to extend the opportunity for his

545
00:25:18,480 --> 00:25:22,000
Speaker 1: kids to potentially either run some of those businesses or

546
00:25:22,040 --> 00:25:24,600
Speaker 1: be involved in those businesses because they were kind of

547
00:25:24,640 --> 00:25:27,200
Speaker 1: family businesses and epic opportunities. But how do you bring

548
00:25:27,240 --> 00:25:29,679
Speaker 1: that up? How do you go, Hey, so I've been

549
00:25:29,720 --> 00:25:32,359
Speaker 1: trying to keep you humble for a little while, and

550
00:25:32,520 --> 00:25:35,960
Speaker 1: actually we're billionaires. Yeah, so if you don't want to work,

551
00:25:36,119 --> 00:25:39,320
Speaker 1: you don't actually have to. I just really wanted to

552
00:25:39,320 --> 00:25:42,399
Speaker 1: teach you to be humble and self sufficient. That's actually

553
00:25:42,400 --> 00:25:45,159
Speaker 1: a conversation that ended up happening. Wow, where you know

554
00:25:45,240 --> 00:25:47,240
Speaker 1: they knew Mum and Dad were doing very well. Like,

555
00:25:47,280 --> 00:25:49,520
Speaker 1: I mean, you don't accidentally own as many homes as

556
00:25:49,560 --> 00:25:51,680
Speaker 1: they do, and you don't accidentally go to the best

557
00:25:51,680 --> 00:25:53,840
Speaker 1: schools in the country and all of that other stuff.

558
00:25:53,880 --> 00:25:55,960
Speaker 1: So they knew that they were privileged, but I don't

559
00:25:56,000 --> 00:25:58,639
Speaker 1: think they knew to the extent. But what I do

560
00:25:58,760 --> 00:26:01,480
Speaker 1: know for sure is that person never ever, ever, would

561
00:26:01,560 --> 00:26:05,679
Speaker 1: have ever consented to doing a survey about wealth and

562
00:26:05,720 --> 00:26:08,400
Speaker 1: how much that they had or how much that they shared. Yeah,

563
00:26:08,440 --> 00:26:09,080
Speaker 1: absolutely not.

564
00:26:09,359 --> 00:26:11,320
Speaker 4: Yeah, that makes sense. Also, I think you've narrowed it down.

565
00:26:11,359 --> 00:26:12,560
Speaker 4: I know exactly who took him.

566
00:26:12,720 --> 00:26:13,879
Speaker 1: Yeah, good good.

567
00:26:13,960 --> 00:26:14,600
Speaker 4: I don't I don't know.

568
00:26:14,600 --> 00:26:16,600
Speaker 1: It wasn't even a male. It sucks to me.

569
00:26:17,440 --> 00:26:20,360
Speaker 4: My gosh, that was the internal misogyny in me.

570
00:26:20,680 --> 00:26:22,760
Speaker 1: I said he, I said hey, I said, hey.

571
00:26:22,560 --> 00:26:24,919
Speaker 4: Oh good, Okay, wasn't the internals and such any then?

572
00:26:25,000 --> 00:26:26,240
Speaker 1: But did I just make that pot?

573
00:26:26,359 --> 00:26:30,159
Speaker 4: Oh gosh, wow, this is a You're right, you're right.

574
00:26:30,240 --> 00:26:33,080
Speaker 1: Let's get back on track, because you're right. The true

575
00:26:33,160 --> 00:26:36,880
Speaker 1: nature an impact of bloomad I just don't believe can

576
00:26:36,960 --> 00:26:40,240
Speaker 1: be measured because in those circumstances, especially in high net

577
00:26:40,280 --> 00:26:42,720
Speaker 1: wealthare lists, they're not going to share it. It's interesting

578
00:26:42,760 --> 00:26:45,199
Speaker 1: because you see those lists come out on Forbes, like

579
00:26:45,240 --> 00:26:48,760
Speaker 1: the Forbes Rich List, which side note, I got a

580
00:26:48,800 --> 00:26:51,920
Speaker 1: message from a family member ages ago when I made

581
00:26:52,040 --> 00:26:55,159
Speaker 1: the Forbes thirty under thirty, and that was thank you.

582
00:26:55,200 --> 00:26:56,760
Speaker 1: It was twenty twenty one and it was like the

583
00:26:56,880 --> 00:27:00,159
Speaker 1: highlight of my entire life. But they didn't know the

584
00:27:00,160 --> 00:27:03,159
Speaker 1: difference between Forbes thirty under thirty, which is like, you know,

585
00:27:03,359 --> 00:27:06,159
Speaker 1: people crushing it in their careers, not necessarily rich, and

586
00:27:06,200 --> 00:27:08,640
Speaker 1: the Forbes Rich List. And they thought that I'd made

587
00:27:08,680 --> 00:27:11,359
Speaker 1: the Rich List, and I was like, no, but thank

588
00:27:11,400 --> 00:27:14,159
Speaker 1: you for assuming and believing that maybe I could have.

589
00:27:14,359 --> 00:27:17,240
Speaker 4: It's like the opposite of that conversation of telling someone

590
00:27:17,280 --> 00:27:19,639
Speaker 4: you've been secretly rich. Now you tell your family I'm

591
00:27:19,680 --> 00:27:20,720
Speaker 4: actually secretly poor.

592
00:27:20,800 --> 00:27:23,920
Speaker 1: But the Forbes Rich List, right like lists the richest

593
00:27:23,920 --> 00:27:26,840
Speaker 1: people in the world. And I remember seeing the Australian

594
00:27:26,920 --> 00:27:30,160
Speaker 1: Forbes Rich List and going through it and being like, Coop,

595
00:27:30,240 --> 00:27:32,760
Speaker 1: I've got clients richer than them. Coop got clients like

596
00:27:32,960 --> 00:27:34,280
Speaker 1: met people richer than them.

597
00:27:34,680 --> 00:27:35,840
Speaker 4: That's what's visible.

598
00:27:36,160 --> 00:27:39,480
Speaker 1: That's when people are very happy to share their net wealth,

599
00:27:39,640 --> 00:27:42,520
Speaker 1: or their net wealth is so obvious that you know

600
00:27:42,600 --> 00:27:45,159
Speaker 1: you could work out, okay, they own this big listed

601
00:27:45,200 --> 00:27:48,439
Speaker 1: company that's worth X. Therefore they're probably worth a minimum

602
00:27:48,480 --> 00:27:50,919
Speaker 1: of ten million dollars. And plus, oh we know that

603
00:27:51,000 --> 00:27:53,800
Speaker 1: they have you know, family beach house, importsy we know

604
00:27:54,040 --> 00:27:56,320
Speaker 1: we can just google that that's worth seven million dollars.

605
00:27:56,359 --> 00:27:58,640
Speaker 1: Like do you know what I mean? So some people's

606
00:27:58,680 --> 00:28:01,240
Speaker 1: wealth is really and you can put them on a

607
00:28:01,320 --> 00:28:03,680
Speaker 1: rich list and we can talk about the richest man

608
00:28:03,720 --> 00:28:06,399
Speaker 1: in Australia and you don't actually know who the richest

609
00:28:06,400 --> 00:28:09,520
Speaker 1: man in Australia is because wealth can be very secretive

610
00:28:09,680 --> 00:28:12,160
Speaker 1: and with the right structures, you will not find it,

611
00:28:12,720 --> 00:28:15,399
Speaker 1: like you will not be able to see who's worth

612
00:28:15,440 --> 00:28:18,240
Speaker 1: what and when and where? Insane, right, But when you

613
00:28:18,280 --> 00:28:20,240
Speaker 1: start talking about stuff like that, you're like, wait, I

614
00:28:20,240 --> 00:28:21,639
Speaker 1: thought that was the rich list and it is what

615
00:28:21,680 --> 00:28:23,200
Speaker 1: it is. No, that's not how it works.

616
00:28:23,480 --> 00:28:26,480
Speaker 4: Wowow, well a lot of modest people out there, one.

617
00:28:26,440 --> 00:28:29,040
Speaker 1: Hundred percent, And that's why we can never judge anybody.

618
00:28:29,080 --> 00:28:31,639
Speaker 4: No, and you shouldn't. I guess we kind of you

619
00:28:31,720 --> 00:28:33,199
Speaker 4: just kind of went over this. But do you know

620
00:28:33,240 --> 00:28:36,480
Speaker 4: if there are any studies or metrics available for how

621
00:28:36,520 --> 00:28:39,680
Speaker 4: it kind of impacts the property market and first home ownership?

622
00:28:39,800 --> 00:28:41,880
Speaker 1: Yeah? Look, I did a little bit of research, and

623
00:28:41,880 --> 00:28:45,880
Speaker 1: I'm obviously very jaded by my experience to be like,

624
00:28:46,160 --> 00:28:49,080
Speaker 1: that's not everything. So there was actually a research article

625
00:28:49,120 --> 00:28:51,680
Speaker 1: published last year by a couple of economists from the

626
00:28:51,720 --> 00:28:56,320
Speaker 1: Curtain University and also from the California Center for Population Research,

627
00:28:56,360 --> 00:28:58,360
Speaker 1: and it found out a few interesting things and I've

628
00:28:58,400 --> 00:29:00,520
Speaker 1: not pointed them here to read them out to you today.

629
00:29:00,560 --> 00:29:00,800
Speaker 4: Back.

630
00:29:01,280 --> 00:29:03,719
Speaker 1: So first things first, it found out that living in

631
00:29:03,760 --> 00:29:08,160
Speaker 1: a rent free home led to a threefold increase in

632
00:29:08,240 --> 00:29:12,120
Speaker 1: the chance of entering home ownership compared to someone in

633
00:29:12,160 --> 00:29:14,600
Speaker 1: the private rental market trying to save up a deposit.

634
00:29:14,840 --> 00:29:18,840
Speaker 1: Checks out, story checks out. That's actual research. I like that.

635
00:29:19,720 --> 00:29:25,120
Speaker 1: Using data from the longest running longitudinal study of Australian households,

636
00:29:25,360 --> 00:29:28,440
Speaker 1: the Household Income and Labor Dynamics in Australia, or the

637
00:29:28,520 --> 00:29:30,480
Speaker 1: hill To Survey, which I've spoken about a couple of

638
00:29:30,520 --> 00:29:33,560
Speaker 1: times on the Pod, the researchers were able to isolate

639
00:29:33,720 --> 00:29:38,480
Speaker 1: just over eight thousand instances of survey respondents moving from

640
00:29:38,560 --> 00:29:42,160
Speaker 1: non home ownership to home ownership in any year. They

641
00:29:42,200 --> 00:29:45,760
Speaker 1: then looked at the parental assistance received by these homeowners

642
00:29:45,960 --> 00:29:48,440
Speaker 1: and the role it played in increasing their chances of

643
00:29:48,440 --> 00:29:51,200
Speaker 1: making the transition compared to someone else with the same

644
00:29:51,280 --> 00:29:55,760
Speaker 1: characteristics who didn't buy property, And interestingly, they found that

645
00:29:55,840 --> 00:29:59,800
Speaker 1: only a small proportion four point five percent of successful

646
00:30:00,000 --> 00:30:03,480
Speaker 1: first home buyers received an outright cash transfer of more

647
00:30:03,520 --> 00:30:05,960
Speaker 1: than five thousand dollars from their parents around the time

648
00:30:06,000 --> 00:30:08,840
Speaker 1: of their home purchase. So that's less than what I thought.

649
00:30:08,840 --> 00:30:11,920
Speaker 1: But that doesn't include like that's actual cash. Remember how

650
00:30:11,960 --> 00:30:14,160
Speaker 1: I said that you don't have to just get money

651
00:30:14,200 --> 00:30:16,360
Speaker 1: from your parents. You can also have a garran tore

652
00:30:16,480 --> 00:30:18,680
Speaker 1: and just lean on their assets. That doesn't take that

653
00:30:18,720 --> 00:30:23,080
Speaker 1: into consideration. A further two point six however, benefited from

654
00:30:23,080 --> 00:30:27,480
Speaker 1: an inheritance around that time, not many, which actually is

655
00:30:27,520 --> 00:30:31,000
Speaker 1: really good to Inheritance is a thing that I don't

656
00:30:31,000 --> 00:30:33,880
Speaker 1: think is a blessing. Can change your life, but I

657
00:30:33,880 --> 00:30:37,920
Speaker 1: would prefer to have the person there. While seventy four

658
00:30:38,040 --> 00:30:40,960
Speaker 1: percent of first home buyers lived in private rentals before

659
00:30:40,960 --> 00:30:44,440
Speaker 1: their purchase, thirteen point four percent had been co reciding

660
00:30:44,440 --> 00:30:46,720
Speaker 1: with their parents. It's just kind of interesting.

661
00:30:46,920 --> 00:30:47,160
Speaker 5: Yeah.

662
00:30:47,280 --> 00:30:49,640
Speaker 1: A further four point five percent had been living in

663
00:30:49,680 --> 00:30:52,760
Speaker 1: rent free dwellings provided by family or friends, like an

664
00:30:52,800 --> 00:30:57,360
Speaker 1: investment property or a holiday home in Melbourners and their

665
00:30:57,400 --> 00:31:00,280
Speaker 1: remaining first home buyers had either been renting in public

666
00:31:00,360 --> 00:31:03,240
Speaker 1: housing or living rent free in homes provided by non

667
00:31:03,280 --> 00:31:08,760
Speaker 1: family members or friends. And interestingly, in kind transfers like

668
00:31:08,880 --> 00:31:12,040
Speaker 1: these from parents or family members to aspiring buyers were

669
00:31:12,080 --> 00:31:15,600
Speaker 1: found by the researchers to play a critical role in

670
00:31:15,720 --> 00:31:18,280
Speaker 1: helping them into the market, so they wouldn't have been

671
00:31:18,280 --> 00:31:21,200
Speaker 1: able to do it without them. Yeah, okay, interesting, right,

672
00:31:21,320 --> 00:31:24,480
Speaker 1: very interesting? Interesting right? But also I just feel like

673
00:31:24,560 --> 00:31:29,920
Speaker 1: the Hilda study doesn't take into consideration guarantors because distilling

674
00:31:29,920 --> 00:31:35,240
Speaker 1: it back down again talking about smart financial decisions. If hypothetically, Beck,

675
00:31:35,440 --> 00:31:39,360
Speaker 1: i'm your mother, hab nice, I'll adopt to you. It's fine.

676
00:31:39,480 --> 00:31:42,280
Speaker 1: But if hypothetically i'm your mum and you and I

677
00:31:42,320 --> 00:31:43,640
Speaker 1: sit down and go all right, Beck, you want to

678
00:31:43,640 --> 00:31:45,640
Speaker 1: buy a house, and I have one hundred thousand dollars

679
00:31:45,680 --> 00:31:48,040
Speaker 1: in my bank account and I also own some property,

680
00:31:48,040 --> 00:31:49,880
Speaker 1: and you say, all right, Victoria, I really want to

681
00:31:49,880 --> 00:31:52,160
Speaker 1: buy a house. I need fifty thousand dollars as a deposit.

682
00:31:52,680 --> 00:31:55,760
Speaker 1: It is a smarter financial decision for me as your mum,

683
00:31:56,080 --> 00:31:59,360
Speaker 1: to let you put a guarranteur on my home, as

684
00:31:59,400 --> 00:32:01,680
Speaker 1: opposed to giving you the fifty thousand dollars in cash,

685
00:32:01,760 --> 00:32:05,040
Speaker 1: even though I've got it. So it makes more financial

686
00:32:05,080 --> 00:32:08,080
Speaker 1: sense for me to hold onto cash because obviously cash

687
00:32:08,120 --> 00:32:10,200
Speaker 1: can help me pay off the loan that I might

688
00:32:10,240 --> 00:32:12,240
Speaker 1: have on that property, it can give me a bit

689
00:32:12,240 --> 00:32:14,960
Speaker 1: more financial security I could invest it, and we know

690
00:32:15,160 --> 00:32:17,840
Speaker 1: that the average return of the Australian share markets just

691
00:32:17,920 --> 00:32:21,000
Speaker 1: over nine percent, So that's actually a better choice in

692
00:32:21,080 --> 00:32:24,760
Speaker 1: this moment, in this very very simple example for me

693
00:32:24,920 --> 00:32:28,400
Speaker 1: to give you a part of equity that doesn't actually

694
00:32:28,480 --> 00:32:31,200
Speaker 1: impact my financial circumstances. All it does is put a

695
00:32:31,200 --> 00:32:34,440
Speaker 1: caveat over that property to say, okay, well, Beck's you know,

696
00:32:34,680 --> 00:32:36,880
Speaker 1: using some of that equity to buy a home because

697
00:32:36,880 --> 00:32:39,040
Speaker 1: I'm there not out that cash. So to me, it

698
00:32:39,120 --> 00:32:41,360
Speaker 1: makes sense that the hill To study is showing that

699
00:32:41,400 --> 00:32:44,720
Speaker 1: there's actually a low amount of people that have cash

700
00:32:44,760 --> 00:32:47,680
Speaker 1: being transferred to them. Because if your parents can actually

701
00:32:47,720 --> 00:32:51,040
Speaker 1: afford cash, I'm just shot in the dark. They probably

702
00:32:51,040 --> 00:32:53,160
Speaker 1: also have some assets that you could rely on, and

703
00:32:53,200 --> 00:32:55,160
Speaker 1: I'd really like to see those statistics, but.

704
00:32:55,160 --> 00:32:58,480
Speaker 4: They're not there, and they're also probably very financially servious.

705
00:32:58,560 --> 00:33:00,560
Speaker 4: They know that that's the bitter choice.

706
00:33:00,640 --> 00:33:02,800
Speaker 1: Yeah, exactly, And like if you go to a mortgage

707
00:33:02,800 --> 00:33:05,080
Speaker 1: broker as well, they'll help you through that. Like if

708
00:33:05,080 --> 00:33:06,800
Speaker 1: you're at a point where you're like, hey, v I

709
00:33:06,840 --> 00:33:09,400
Speaker 1: know we're talking about our bomad, but I'd actually like

710
00:33:09,440 --> 00:33:11,680
Speaker 1: to make use of bomad, talk to a broker. Go

711
00:33:11,720 --> 00:33:14,080
Speaker 1: talk to Kate from Zella Money, and she can actually

712
00:33:14,080 --> 00:33:16,000
Speaker 1: help you through that one. How do you talk to

713
00:33:16,000 --> 00:33:18,240
Speaker 1: your parents? What does that look like? What are the

714
00:33:18,280 --> 00:33:20,880
Speaker 1: best options, Because sometimes your parents will be like, oh, Beck,

715
00:33:20,960 --> 00:33:23,280
Speaker 1: I actually have some cash saved. I'd love to be

716
00:33:23,320 --> 00:33:25,600
Speaker 1: able to help, and they actually haven't thought about the

717
00:33:25,600 --> 00:33:27,840
Speaker 1: implications of that, and it might actually be better to

718
00:33:27,880 --> 00:33:30,360
Speaker 1: get a guaranteur as well because of your parents and

719
00:33:30,400 --> 00:33:33,320
Speaker 1: like you know, again, another example, we had a client

720
00:33:33,360 --> 00:33:35,240
Speaker 1: whose parents were like, Oh, we really want to help.

721
00:33:35,280 --> 00:33:37,480
Speaker 1: We've got some savings that you know, we've been putting

722
00:33:37,520 --> 00:33:39,760
Speaker 1: aside for you. It's like twenty grand to go towards

723
00:33:39,760 --> 00:33:42,960
Speaker 1: a house deposit. Keep your cash. Can I actually just

724
00:33:43,080 --> 00:33:46,720
Speaker 1: have that guarranteur? Because that way, it was a guaranteur

725
00:33:46,800 --> 00:33:49,280
Speaker 1: of about one hundred thousand dollars, they got immediately into

726
00:33:49,280 --> 00:33:52,360
Speaker 1: the property and everyone was actually in a better financial position.

727
00:33:52,920 --> 00:33:55,720
Speaker 1: So it's definitely worth talking to a good broker about that,

728
00:33:56,080 --> 00:33:58,280
Speaker 1: because sometimes your parents are like, oh, here's this cash,

729
00:33:58,360 --> 00:34:01,000
Speaker 1: like that's really sexy. We've tried really hard. Yeah you have,

730
00:34:01,480 --> 00:34:04,080
Speaker 1: but there's actually a better outcome for literally everybody in

731
00:34:04,080 --> 00:34:04,920
Speaker 1: this circumstance.

732
00:34:05,720 --> 00:34:10,560
Speaker 4: Interesting, very interesting. So from where I'm sitting, it looks

733
00:34:10,600 --> 00:34:13,560
Speaker 4: like there are only benefits to having a bank of

734
00:34:13,640 --> 00:34:14,160
Speaker 4: mum and dad.

735
00:34:14,239 --> 00:34:17,600
Speaker 1: No, that's not true. Yeah, if we didn't talk about

736
00:34:17,600 --> 00:34:21,200
Speaker 1: the cons, I guarantee my DMS would absolutely blow up

737
00:34:21,200 --> 00:34:24,000
Speaker 1: with people being like, it's not all sunshine and roses.

738
00:34:24,000 --> 00:34:26,320
Speaker 1: And I get that. I totally get that there's a

739
00:34:26,360 --> 00:34:29,239
Speaker 1: lot of upside, but in this position, there's also a

740
00:34:29,239 --> 00:34:31,839
Speaker 1: lot of downside and we covered a few of them

741
00:34:31,880 --> 00:34:33,719
Speaker 1: at the very start of this episode when I talked

742
00:34:33,719 --> 00:34:37,520
Speaker 1: about financial control, but obviously having financial control was one

743
00:34:37,560 --> 00:34:39,680
Speaker 1: of them that I mentioned really early on. But also

744
00:34:39,760 --> 00:34:41,880
Speaker 1: having a bank of mum and dad actually can delay

745
00:34:41,920 --> 00:34:45,280
Speaker 1: your financial literacy until later in life when you're forced

746
00:34:45,680 --> 00:34:48,120
Speaker 1: to learn instead of learning along the way, because why

747
00:34:48,120 --> 00:34:50,120
Speaker 1: would you learn how to budget and why would you

748
00:34:50,160 --> 00:34:52,319
Speaker 1: learn how to do cash flow if mum and dadd

749
00:34:52,360 --> 00:34:54,799
Speaker 1: are just giving you cash. Like, to be honest, if

750
00:34:54,800 --> 00:34:58,080
Speaker 1: my parents did that, I wouldn't be interested in budgeting either.

751
00:34:58,400 --> 00:35:00,919
Speaker 4: No, that's why would I.

752
00:35:00,080 --> 00:35:02,799
Speaker 1: If my dad could just step up, get a job

753
00:35:02,840 --> 00:35:04,879
Speaker 1: where he can get a black Amex and then give

754
00:35:04,920 --> 00:35:08,279
Speaker 1: me a copy, so I have unlimited funds, I need

755
00:35:08,320 --> 00:35:09,480
Speaker 1: a budget.

756
00:35:09,600 --> 00:35:11,280
Speaker 4: That hard is too much, dads.

757
00:35:11,960 --> 00:35:14,520
Speaker 1: Apparently it is. Apparently it is, but it can delay

758
00:35:14,560 --> 00:35:17,520
Speaker 1: financial literacy, which is obviously going to put you backwards.

759
00:35:17,880 --> 00:35:20,120
Speaker 1: People who grow up with the support from their parents

760
00:35:20,120 --> 00:35:22,839
Speaker 1: can actually often be a little bit more reckless with

761
00:35:22,880 --> 00:35:25,400
Speaker 1: their spending as they know that they have their parents

762
00:35:25,400 --> 00:35:27,600
Speaker 1: to fall back on. So, for example, they might view

763
00:35:27,640 --> 00:35:30,319
Speaker 1: their parents as their emergency fund and never build one

764
00:35:30,400 --> 00:35:33,880
Speaker 1: up themselves. Or and it's a very privileged position to

765
00:35:33,880 --> 00:35:36,239
Speaker 1: be in, right beck. Or they might just go, oh,

766
00:35:36,239 --> 00:35:37,920
Speaker 1: there's five grand in my account, that can be a

767
00:35:38,000 --> 00:35:41,520
Speaker 1: UROP trip. Yeah, great. Like they're not thinking about the future,

768
00:35:41,520 --> 00:35:45,120
Speaker 1: they're not thinking about wealth creation, whereas somebody who doesn't

769
00:35:45,120 --> 00:35:47,279
Speaker 1: have that to fall back on is not going to

770
00:35:47,280 --> 00:35:49,719
Speaker 1: make that decision. Like I guarantee today, if you had

771
00:35:49,760 --> 00:35:52,120
Speaker 1: five grand in your bank account, you're going I'm going

772
00:35:52,200 --> 00:35:54,800
Speaker 1: to blow it on and just a holiday. In general,

773
00:35:55,000 --> 00:35:58,440
Speaker 1: it wouldn't happen with it probably not no, no, So

774
00:35:58,520 --> 00:36:00,319
Speaker 1: it's one of those things where you are a bit

775
00:36:00,320 --> 00:36:04,200
Speaker 1: more reckless. Again, not judgmental, no, just a fact it

776
00:36:04,480 --> 00:36:07,480
Speaker 1: actually eats into parents' retirement savings. So parents can actually

777
00:36:07,560 --> 00:36:10,640
Speaker 1: be overly generous. I think we need to be really

778
00:36:10,680 --> 00:36:13,319
Speaker 1: aware that the bank of mum and dad. While it

779
00:36:13,360 --> 00:36:16,720
Speaker 1: can be really sexy, you don't actually know their financial position.

780
00:36:16,760 --> 00:36:19,319
Speaker 1: Your parents might just be being super generous because they

781
00:36:19,360 --> 00:36:22,480
Speaker 1: love you so much, and it might actually be negative

782
00:36:22,840 --> 00:36:26,360
Speaker 1: financially for them. So I think it's also really responsible

783
00:36:26,400 --> 00:36:28,200
Speaker 1: to go, Okay, well, where is this coming from, how

784
00:36:28,239 --> 00:36:30,319
Speaker 1: does this work, and actually step up and be an

785
00:36:30,320 --> 00:36:33,120
Speaker 1: adult and learn a little bit about financial literacy. I'm

786
00:36:33,120 --> 00:36:35,960
Speaker 1: not saying don't do it if that's your family life,

787
00:36:36,120 --> 00:36:38,440
Speaker 1: because you know what, again, there are heaps of cultures

788
00:36:38,440 --> 00:36:40,200
Speaker 1: where their parents are like, no, you will take my

789
00:36:40,280 --> 00:36:43,760
Speaker 1: money or offend me greatly. I want to be adopted

790
00:36:43,800 --> 00:36:46,879
Speaker 1: by them. If you're here going to adopt me, let

791
00:36:46,880 --> 00:36:49,520
Speaker 1: me know. I'm putting my hand up exactly. And if

792
00:36:49,560 --> 00:36:53,000
Speaker 1: the relationship sours amongst your family, things get really pickly

793
00:36:53,160 --> 00:36:57,280
Speaker 1: really quickly. Money and obviously we're not talking about things

794
00:36:57,280 --> 00:36:59,680
Speaker 1: like financial abuse and financial control, all of which are

795
00:36:59,680 --> 00:37:03,160
Speaker 1: really to take into consideration there too, and I think

796
00:37:03,160 --> 00:37:05,640
Speaker 1: that people don't see that as abuse because they're in

797
00:37:06,000 --> 00:37:08,759
Speaker 1: quote well off situations. But it is like if your

798
00:37:08,800 --> 00:37:10,960
Speaker 1: parents give you money and then lord something over you,

799
00:37:11,040 --> 00:37:14,600
Speaker 1: that is actually abusive. Yeah, so that's really shitty to learn,

800
00:37:15,000 --> 00:37:16,680
Speaker 1: and I think that a lot of people would be like,

801
00:37:17,200 --> 00:37:19,319
Speaker 1: I need to be grateful, and like, we've heard it before.

802
00:37:19,360 --> 00:37:21,440
Speaker 1: There was a money diary, I think in twenty twenty

803
00:37:21,440 --> 00:37:24,200
Speaker 1: one or very very early twenty twenty two, where we

804
00:37:24,239 --> 00:37:27,360
Speaker 1: spoke to somebody who was in a financially abusive relationship,

805
00:37:27,360 --> 00:37:29,160
Speaker 1: and we'll find that and put that actually in the

806
00:37:29,160 --> 00:37:31,760
Speaker 1: show notes, because I think it's a really good listen

807
00:37:31,840 --> 00:37:35,280
Speaker 1: off the back of this where she really didn't feel

808
00:37:35,280 --> 00:37:37,480
Speaker 1: like she could reach out to her family or friends

809
00:37:37,560 --> 00:37:40,040
Speaker 1: because she had this really big house in this really

810
00:37:40,080 --> 00:37:43,879
Speaker 1: fancy area, and you know, she had everything she could

811
00:37:43,880 --> 00:37:47,560
Speaker 1: ever want, but her mum was financially abusive and lauded

812
00:37:47,560 --> 00:37:50,240
Speaker 1: that over her and it really ate into her mental

813
00:37:50,239 --> 00:37:52,319
Speaker 1: health and she's still in therapy for that and trying

814
00:37:52,360 --> 00:37:54,480
Speaker 1: to get through that. And like, even though mum is

815
00:37:54,520 --> 00:37:57,400
Speaker 1: now worth millions, she now doesn't have the education she

816
00:37:57,440 --> 00:37:59,680
Speaker 1: wants because like she just didn't go out and get

817
00:37:59,680 --> 00:38:02,920
Speaker 1: the edge she wanted. And it's an interesting story that

818
00:38:03,000 --> 00:38:05,480
Speaker 1: I think really plays into it because I think if

819
00:38:05,520 --> 00:38:08,960
Speaker 1: I said, to your name, a financially abusive relationship can go,

820
00:38:09,360 --> 00:38:12,359
Speaker 1: you'd be like, oh, husband and wife immediately instead of

821
00:38:12,440 --> 00:38:15,320
Speaker 1: thinking okay, cool. It could be a moment, could be

822
00:38:15,360 --> 00:38:18,120
Speaker 1: a dad. It could be you know, a child abusing

823
00:38:18,120 --> 00:38:20,680
Speaker 1: an elder. It could be so many different things. And

824
00:38:20,719 --> 00:38:22,640
Speaker 1: I think we really need to open that part of

825
00:38:22,680 --> 00:38:25,359
Speaker 1: the conversation up as well, because as much as you're right,

826
00:38:25,880 --> 00:38:28,520
Speaker 1: bo mad sounds so sexy, like the bank of mom

827
00:38:28,520 --> 00:38:31,040
Speaker 1: and dad. I would love to have stupidly rich parents

828
00:38:31,280 --> 00:38:33,479
Speaker 1: great ten out of ten because I know that they'd

829
00:38:33,480 --> 00:38:35,480
Speaker 1: be so much less stressed, Like imagine if your mum

830
00:38:35,560 --> 00:38:38,799
Speaker 1: was real rich. So I want that for everybody.

831
00:38:38,880 --> 00:38:40,879
Speaker 4: I'm actually hoping that she sits me down one day

832
00:38:40,880 --> 00:38:43,399
Speaker 4: and says, I've been secretly a billionaire your.

833
00:38:43,320 --> 00:38:46,360
Speaker 1: Whole Yeah right. I've been teaching you Beck to just

834
00:38:46,440 --> 00:38:49,480
Speaker 1: be humble. I've been giving you life experience. I have

835
00:38:49,560 --> 00:38:53,080
Speaker 1: been making you the best person ever. Don't worry about

836
00:38:53,080 --> 00:38:53,439
Speaker 1: it now.

837
00:38:53,600 --> 00:38:56,400
Speaker 4: Oh my gosh, wouldn't that be nice? Can someday what

838
00:38:56,480 --> 00:38:57,040
Speaker 4: took you so long?

839
00:38:57,040 --> 00:38:59,280
Speaker 1: Do you know what if that is your money story

840
00:38:59,360 --> 00:39:02,000
Speaker 1: and you had a parent turn around at some point, Instaid, Actually,

841
00:39:02,120 --> 00:39:03,960
Speaker 1: we've been teaching you to be humble for a really

842
00:39:04,040 --> 00:39:08,040
Speaker 1: long time. Please site into that story so much, because

843
00:39:08,040 --> 00:39:09,880
Speaker 1: it's just a pipe dream for us, that would be

844
00:39:11,560 --> 00:39:13,520
Speaker 1: it's a pipe dream. All right. Well, I think that's

845
00:39:13,560 --> 00:39:16,080
Speaker 1: all we have time for today. Beck what do you reckon?

846
00:39:16,280 --> 00:39:16,840
Speaker 4: I reckon?

847
00:39:17,080 --> 00:39:17,759
Speaker 1: Let's get out here.

848
00:39:17,800 --> 00:39:19,319
Speaker 4: Let's make that tea once and for all.

849
00:39:19,400 --> 00:39:21,560
Speaker 1: My gosh, yes, all right, I hope there's oat milk

850
00:39:21,560 --> 00:39:23,920
Speaker 1: in the fridge in this office. Otherwise I'm gonna ris

851
00:39:24,080 --> 00:39:26,600
Speaker 1: I'm gonna run, all right, See you guys on Friday.

852
00:39:26,600 --> 00:39:27,560
Speaker 1: Have a good week.

853
00:39:33,640 --> 00:39:36,160
Speaker 5: The advice shared on She's on the Money is general

854
00:39:36,239 --> 00:39:40,080
Speaker 5: in nature and does not consider your individual circumstances. She's

855
00:39:40,120 --> 00:39:43,600
Speaker 5: on the Money exists purely for educational purposes and should

856
00:39:43,640 --> 00:39:46,800
Speaker 5: not be relied upon to make an investment or financial decision.

857
00:39:47,160 --> 00:39:49,640
Speaker 1: If you do choose to buy a financial product.

858
00:39:49,440 --> 00:39:53,440
Speaker 5: Read the PDS TMD and obtain appropriate financial advice tailored

859
00:39:53,480 --> 00:39:56,920
Speaker 5: towards your needs. Victoria Divine and She's on the Money

860
00:39:56,960 --> 00:40:00,560
Speaker 5: are authorized representatives of money. Sheper pt I l T

861
00:40:00,680 --> 00:40:03,439
Speaker 5: D A B N three two one six four nine

862
00:40:03,560 --> 00:40:06,520
Speaker 5: two seven seven zero eight A F s L four

863
00:40:06,560 --> 00:40:09,120
Speaker 5: five one two eight nine