Latest news with #wealthyparents
News.com.au
2 days ago
- Business
- News.com.au
‘Severely yes': Nationwide feeling exposes cost of living crisis
If you stopped and asked an Aussie how they're feeling right now there's a good chance they'll tell you that, besides being cold, they are also feeling broke. Feeling broke - which used to be reserved for people struggling on government benefits, working minimum wage jobs, or studying at university – is now a nationwide feeling. Not only are Australians not feeling rich right now, but the general consensus is that many are struggling. There's no question that feeling broke or poor is relative. Not having enough money to buy a $200 jacket at the end of the pay cycle might make one person feel broke but, for another, it might mean not having enough to cover groceries. There's a big sliding scale but, no matter where Aussies seem to sit on it, they're feeling the same way. When hit the streets of Sydney and asked Aussies if they were feeling broke, the answer was unflinchingly yes. Even people that didn't want to be filmed confirmed they weren't feeling very rich right now before actively fleeing to go live their inflated lives. There was one exception: a young guy that said he didn't want to answer because his parents were wealthy and he was living at home. But, apart from the one roaming nepotism baby, everyone else felt skint and weren't bothering with bravado. When asked, 'Do you feel broke right now?', most Aussies just straight out said 'yes' without attaching any caveats or feeling the need to justify it. Anyone who did choose to elaborate merely just doubled down on the feeling. 'Severely yes,' one said. 'Eternally,' another said before revealing that she worked in the arts, which made it even harder. 'If you were to consult our bank balances, yes,' one man said. A young woman said she was picking up more shifts to feel less broke, but even working more doesn't seem to change how people are feeling. A man in a trendy all-black outfit and admitted he was actually earning more this year than the last, but that was being offset by rising costs. 'My income has gone up (but) everything like groceries has gone up as well. I don't feel like I'm making much more money,' he said. Similarly, another person explained that he is actually doing more work this year and is feeling just as poor. 'I feel pretty broke this year. I'm working more and I somehow have less money,' he said. Australia has been battling a severe cost-of-living crisis since the end of 2021. It has become expensive just to exist. Mortgage holders and renters are feeling the pinch – the median rent is now over $600 weekly and house prices continue to boom. The Australian Bureau of Statistics reported this month that the national average dwelling price has hit $1 million for the first time. If that isn't enough to make you feel financially anxious, wage growth has only risen by 3.4 per cent over the last 12 months. Financial comparison website Finder has also found that 37 per cent of Australians have less than $1000 in their savings accounts, and 59 per cent are experiencing financial stress. Financial expert Julian Finch said that he has noticed a trend of Aussies feeling financially strapped. 'I feel poor myself,' he said. 'The cost of everything has gone up and our wages don't keep up.' Mr Finch has clients that ring him and claim they feel like they're going 'backwards' and are worrying they're falling behind. The financial expert said that there's now a common theme of people really grappling with feeling increased financial pressure and Mr Finch argued that, when you consider inflation, that isn't surprising. 'While the government will tell us that inflation is on its way down – this is a myth of mega proportions as costs (have) gone up between 10 and 40 per cent over the past three years,' he said. Mr Finch said that, even if inflation slows, prices are never going to go back to what they were before. 'The rate of price increases might be coming down to a more manageable level but the cost will never be as low as it was ever again,' he said. On the other hand, Mr Finch stressed that he has also noticed a big divide, with the rich getting richer and the poor getting poorer. 'For everyone who is doing it tough, there are people out there doing it easily,' he said. 'For every person going bad, someone is going good. It is one of those situations where there is a class divide where the rich are getting rich, and the poor are poorer.'
Yahoo
31-05-2025
- Business
- Yahoo
5 Money Challenges Wealthy Parents Face, According to Rachel Cruze
If you're not wealthy, it's hard to feel bad for wealthy people. You may even experience a spell of schadenfreude — or joy at their misfortunes — but not much in terms of compassion. But problems are problems, and rich people have them just as those belonging to the middle class and under do. And this includes money problems. We see this profoundly in the realm of parenting as wealthy parents face some unique financial challenges with their kids. Find Out: Read Next: Financial expert Rachel Cruze recently tackled this issue in a YouTube video. What are these challenges and how do you address them in order to raise financially responsible and resilient kids? In a household where all your needs are fully met and then some, it can be easy for kids to take everything for granted and not experience gratitude. 'This heart of gratitude, of being present where you are, is such a model of your character,' Cruze said. 'Teaching our kids that — to be grateful — even like, making them say 'thank you' and understanding where things are coming from, and the fact that not everyone has what you have.' It's up to parents to exemplify gratitude and to encourage their kids to reflect on their good fortune. Learn More: Wealthy parents may not need their kids to do things around the house. Perhaps they themselves don't need to do things around the house to a great extent and can turn to housekeepers and nannies to keep things in order. Cruze believes that kids must be tasked with contributing to the home at a young age. 'There's something that happens when your kids have a level of responsibility — and it can be something small, like just keeping their room clean,' Cruze said. 'When they complete tasks, around the home, there is a level of confidence that actually gets put into your kids.' If money isn't a concern at all, your kids probably have more toys, more extracurricular activities and more opportunities than kids in homes where money is tight. They probably hear 'yes' a lot more frequently than they hear 'no.' Parents, as Cruze sees it, need to bring some discipline to the home by telling their kids 'no' in certain situations. 'When you have the ability to say no and to stand your ground, get the repercussions of the tantrum or whatever the thing is, it is so key, because our kids have to learn boundaries,' Cruze said. 'The idea that money is just limitless is not an option.' Most of us in today's digitally addicted society could benefit from a refresher on patience. And parents need to be teaching their kids that gratification isn't always an instant thing. We need to model patience by not succumbing to impulse buys, just as we need to discourage our kids from getting whatever they want when they want it. 'Having the patience to save up and pay for something is huge,' Cruze said. 'This is true as adults, but your kids should do the same. Have them have a goal of something that they're saving up for.' Cruze added that in her home, they do no-spend months. This is a great exercise for parents trying to raise financially responsible and savvy kids. Who wants to sit in disappointment? Not a grownup and certainly not a kid. But sitting in disappointment and accepting, without a fight, that you are not getting what you want, whatever that may be, or that you have failed, is crucial because disappointment is a part of real life. Kids who are, for lack of a better word, spoiled, may not have a lot of opportunity to sit with disappointment because their parents are so quick to clean up every mess and spare their kids from painful consequences. 'A lot of parents are 'snowplow' parents, meaning they go through and pave the way so there's no bumps, no grooves, no 'oh gosh, am I going to fall down?'' Cruze said. 'It's like this perfect slope for your kids to go down with no issues.' Life is not a perfect slope, even if you never have to worry about making money or building wealth. Ensure that your kids understand — and personally experience — this reality, otherwise they'll grow up without knowing how to get back up from a fall, financial or otherwise. More From GOBankingRates 8 Common Mistakes Retirees Make With Their Social Security Checks 7 Luxury SUVs That Will Become Affordable in 2025 This article originally appeared on 5 Money Challenges Wealthy Parents Face, According to Rachel Cruze Sign in to access your portfolio
