We all want to be the parent who “sets the kids up,” right? But between savings accounts, offsets, and “future nest egg” fantasies it's hard to know what to do. So this week we’re breaking down how to actually make your money work harder (for you and your mini-me). Then things get spicy with a DM that split the community: she’s saved $150K, he’s got $64K, and they both want to own the house 50/50. Do you still go halves? Do you lawyer up? Or do you just call it “love tax”? We get into what’s fair, what’s smart, and how to buy a house together without starting a civil war.Just another Friday of money wins, rogue broke tips, and a little financial drama to keep things spicy.
Need the team’s take on your money dilemma? Send us a voicemail here.
Or if it's more of a spicy money drama and you want the communities verdict? Slide into our DMs here.
Ready for more laughs, lessons, and unhinged money chats? Check out our oh-so-bingeable Friday Drinks playlist. Listen here.
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Acknowledgement of Country By Nartarsha Bamblett aka Queen Acknowledgements.
The advice shared on She's On The Money is general in nature and does not consider your individual circumstances. She's On The Money exists purely for educational purposes and should not be relied upon to make an investment or financial decision. If you do choose to buy a financial product, read the PDS, TMD and obtain appropriate financial advice tailored towards your needs. Victoria Devine and She's On The Money are authorised representatives of Money Sherpa PTY LTD ABN - 321649 27708, AFSL - 451289.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
My name's Tasha Bamblet. I'm a proud First Nations woman
and I'm here to acknowledge country t Glenn Young Ganya, Niana,
Kaka yah y and Binahaka Nian our gay In Nimbini
yakarum Jar Dominyamiga Umagahawaka Woman Damon Imlan Bumba ban Gadabomba
in and now in wakah ghan On yak rum Jar
(00:20):
water Nadaa. Hello, beautiful friends, we gather on the lands
of the Aboriginal people. We thank, acknowledge and respect the
Aberiginal people's land that we're gathering on today. Take pleasure
in all the land and respect all that you see.
She's on the Money podcast acknowledges culture, country, community and connections,
(00:40):
bringing you the tools, knowledge and resources for you to thrive.
Speaker 2 (00:45):
She's on the Money.
Speaker 3 (00:47):
She's on the Money.
Speaker 4 (01:08):
Hello and welcome to She's on the Money, the podcast
that makes personal finance fun according to us, especially on Fridays.
Welcome back to our favorite day of the week because
we get our small team together to celebrate you, our
incredible She's on the Money community now. This week is
just j Just Griccy and I once again She's obviously
going to share her favorite money wins from the community.
(01:30):
Beck's away again, and I'll be sharing broke tips, and
we're going to be helping to answer a money dilemma,
which is all about, well, what happens when you give
your kids large gifts of money? Hasn't happened to me,
but I know I do know how to prepare you,
so we can have a chat about that. And then
something that you slid into our DMS about buying house
with a partner when there is a big difference in
(01:51):
the amount you are putting in for the deposit, which
I think can get a little bit juicy as well.
And I know that the comments on that one kind
of pop off. But before we get there, Miss Jessurci,
it's mid October, you've probably got a countdown to Halloween.
Speaker 5 (02:06):
Absolutely, how have you been. I think good. I finished
up my sewing course recently and I've taken the next
step up, so now I'm doing advance, which is not
that advanced.
Speaker 4 (02:17):
It's just like it's like advance and you're like, I
made pants, who do I think I am? I'm surprised
you're not still wearing them every single day.
Speaker 5 (02:24):
They're so comfy. I'm a big fan. So I think
this we get to kind of pick what we want
to work on. I want to try making a pair
of pants that's not actually jeans, but like this, you know,
with the zipper and the button and whereas the last
ones are kind of like PJ pants style.
Speaker 4 (02:38):
Yeah, that's fine.
Speaker 5 (02:39):
So I want to do that and maybe learn how
to line clothing and make a little.
Speaker 4 (02:43):
Dress or some Yeah that's cute.
Speaker 5 (02:45):
So we're just learning.
Speaker 4 (02:45):
Are you using patterns or are you like just draw
so in it?
Speaker 5 (02:50):
No, do we use patterns. So I bought a bunch
of Etsy because they're really good and really affordable, little
money in for anybody, Like you can get them a
lot of the places and them onself, like five dollars
a pattern, whereas they're so much more expensive to get
them at Spotlight. Obviously if you get them on it,
see you've got to print them and tape them together
and stuff. Okay, but I mean to save the money,
I'm happy to do it.
Speaker 4 (03:10):
There's a TikTok girl that shares her patterns online, and
I'll have to send it to you because there's the
cutest little sum address that I saw and I was like, oh,
this is so jess coded, and I can't believe I
didn't send it to you in the moment. But that
is okay, I can go back and find it for you.
Speaker 5 (03:23):
You how's your week been? Busy?
Speaker 4 (03:25):
Busy, busy, But like that's a really good thing. We
have been very lucky over the last few weeks with
like some travel and some work and just I'm excited
to dive back into work. I keep saying to the
girls in the office, like I'm excited for nothing. Yeah,
if that makes sense, Like I'm excited to be able
to sit in my office and not have to zip
(03:45):
out to go and meet a different client or you know,
bank together a whole heap of work because I'm going
to be not in the office for the next few days.
Like I just now, for me, I feel like it's
that countdown to Christmas. Yeah, where I'm like, okay, cool,
Like I know that the Christmas break is coming and
I'll be off from this particular date. I've booked in
the work Christmas party, and Kiara and I are like
(04:07):
working out what we do this year for it. So
if you've got any good suggestions for like fun things
that we could do at our work Christmas party. Please
slide into my DMS and let me know because I'm
trying to be creative. Yeah, and like, just for a
little bit of context, last year, yes, we did a
pass the parcel.
Speaker 5 (04:26):
I was just gonna say, bring back the jelly Cat
past the parcel that was brilliant or a Sunny Angel
past the parcel.
Speaker 4 (04:31):
Yeah, but the Sunny Angels is not as exciting as
a jelly Cat. But then also, do you want to
do the same thing every year? And like one of
my favorite parts of that was you guys didn't know
that was coming. Yeah, So it was like I pull
out a pass the parcel and you guys are what's
going on? And I was like, we're playing past the
parcel and everyone was so excited, and then it was
like layer after layer, we just didn't know what was next.
Like if I do it again, the anticipation blown.
Speaker 5 (04:54):
I see you want the shock factor.
Speaker 4 (04:55):
So we're going out for a bougie lunch together, yes,
and just flex it'll be on work hours, as it
should be. We always do a lunch on a Friday
during work hours because sorry, nobody wants to go to
your Christmas party after hours, especially on a Friday when
they probably have Christmas shopping, family commitments, friends, drinks because
like you know what happens at the end of the year.
Speaker 5 (05:17):
Everyone gets busy.
Speaker 4 (05:18):
No, everybody wants to finally catch up because they've been like,
oh my god, yess, I haven't seen you all year.
We have to do drinks before Christmas? No we don't.
Speaker 5 (05:26):
Yeah, it's very conscientious. We love a conscientious queen.
Speaker 4 (05:29):
I love that. But I also am booked and busy,
you know anyway, so I want your Christmas ideas. That's
all I've been thinking about this week.
Speaker 5 (05:37):
The Christmas things are out at the shop. It's very exciting.
Speaker 4 (05:39):
It is very exciting. I mean they've been out since
what August. Like I feel like they jump the gun
every single year. But every single year I say the
same thing, and then every single year I am like, oh,
I need to get some new Christmas decorations and they're
all sold out.
Speaker 2 (05:52):
Yeah.
Speaker 5 (05:53):
Yeah, they get you every time. Every time give a
five star. Have you to share with us this week?
Speaker 4 (05:58):
I do? I do. Would you like to hear it?
Speaker 5 (06:00):
Absolutely?
Speaker 4 (06:01):
This is from k Town.
Speaker 5 (06:03):
Oh.
Speaker 4 (06:03):
There's a lot of ends on the interview, and I
feel like that was the only appropriate way to introduce them,
they said five stars, inspired and encouraged. I started listening
to She's on the Money when I was struggling in
the thick of postpartum and struggling financially. I love listening
to Money Diaries and the Friday Apps because they make
me feel seen and inspired, that things won't be like
(06:25):
this forever, and small amounts and little changes can snowball.
The three girls are a great mix of personalities, and
I always leave feeling pumped up. Thank you.
Speaker 5 (06:34):
Oh that's so lovely. I hope that you little Bubba
are doing really well.
Speaker 4 (06:39):
Oh my god. And like the postpartum mix is just
so challenging.
Speaker 5 (06:46):
Yeah, big chaos energy too, between the hormones and the
adapting and the like a lot.
Speaker 4 (06:51):
I feel like there's such a priority on Like when
you're pregnant, people are so much like, oh my god,
I'm so excited for when the baby arrives, and like
you're just in the thick of planning the birth that
you forget that like those twelve weeks after and like
that chaos is literally chaos. Yeah, So you know, I
guess that's my advice if you're planning on postpartum. Let's
(07:12):
like properly plan I would say, the first twenty weeks
of that baby's life. Wow, like to make your life easy.
Speaking of easy and good and fun, Mistress Agricci, when
it comes to favorite money wins and confessions, what have
you picked out for the week?
Speaker 5 (07:26):
Alrighty, first of this week, I've got money in from
Emily who said money whin. I do online delivery from
Coals and they had a two extra boxes of apples
and a four pack of burgers that they didn't order.
I just love the thought of opening online delivery and
be like, wow, I did not of this, but I'll
take it.
Speaker 4 (07:41):
I saw a TikTok the other day, which I feel
like I do all the time, of someone being like
walking past the girl doing the click and collect orders
and she like threw in a bag of caramels and
she's like you're welcome. She didn't work it like woolli's
or whatever. Yeah, she was just like adding random stuff
to people's bags. So maybe that's how this stuff happened.
Speaker 5 (08:00):
Ah, not all heroes wear capes.
Speaker 4 (08:02):
Yeah, so someone ended up with a twelve pack of
karramel like q walas and I'd be like I would
be stoked with.
Speaker 5 (08:06):
That, absolutely. Next, I've got a money in from Kelly,
who said she donated some old clothes to Vinnie's and
while she was there found a fifteen dollar learning tower
in perfect condition and a thirty dollars indoor gym set,
so her and her friends toddler are all set.
Speaker 4 (08:21):
I'm actually really envious the learning towers are so expensive.
Speaker 5 (08:24):
What's a learning tower?
Speaker 4 (08:25):
So the you know what this is. It's the little
step stool that little kids have in the kitchen that
kind of keeps them contained so they can kind of
like climb up and be at the bench height. But
they're hundreds of dollars, are they? Yes?
Speaker 5 (08:39):
Why is everything for kids so expensive? Oh, don't get
me started too, all right. Next, I've got a money
win from Alisha, who said she bought a shower filter
twelve months ago, noticed it was chipping internally and emailed
the company to see if that was normal. She said
it didn't really feel right to have a shower filter
if it was just going to be leaking plastic particles anyway.
They responded and immediately sent out a new shower filter
(09:01):
for free.
Speaker 4 (09:01):
That is a good deal.
Speaker 5 (09:03):
Yeah, it pays to follow up when something's not working. Next,
I've got a money lost from Alicia. She said her
cat had a urinary blockage and spent the weekend in emergency.
It cost her over six thousand dollars, but she still
has her beautiful little boy, and she says she really
can't complain or put a price on love. She's very
grateful that they had the money to pay for it,
as they know, for a lot of people, it would
(09:24):
have been a very difficult decision to look at She
to provide a pet tax photo of too beautiful.
Speaker 4 (09:29):
Babies, Oh, that would actually kill me.
Speaker 5 (09:32):
I know. I just want to say, Oh, I hope
that they're doing a kay Leisha. Also, my cat had
urinary issues at start of the yard and if you
probably told you, but if they didn't, you can put
them on a special prescription diet that prevents that in
future or can help prevent that.
Speaker 4 (09:45):
Oh my god, cats are so expensive. Ah they are.
And the anxiety I have over one of my specific
cats just because he's like old. Yeah, like Bailey is sixteen? Yeah,
what do you mean?
Speaker 5 (09:57):
Sweet little angels? Oh?
Speaker 4 (09:59):
And you may move on. I need another money win.
Speaker 5 (10:01):
And lastly, we spoke about this last week, what have
any coincidentce But I've got money win from Kiro who
said she came back from the city after two years
of working really discuptured fifteen dollars on her Zaphro's membership
card and a free birthday drink.
Speaker 4 (10:12):
Money win. I feel like she maybe has been spamming
that everywhere in our group. Yeah, familiar, check your accounts,
like if you have any type of loyalty, yeah, go
make them pay their loyalty tax to you.
Speaker 5 (10:25):
Absolutely, you might as well got to lose, all.
Speaker 4 (10:27):
Right, I have to do Beck segment justice. So you
ready for some very very good broke teas?
Speaker 2 (10:32):
Oh?
Speaker 4 (10:33):
Absolutely? Okay, So the first one we've got, and I've
gone with a theme this week tech. Okay, right, So
this one is from Madison. She says, circular economy for kids' clothes.
I got so overspending money on cheap clothes like Camar
and Big w only for them to be completely destroyed
after a few washes or stretched out of shape. Now
(10:53):
I buy secondhand bundles from Facebook Marketplace or different Facebook
groups in gorgeous brands like Country and Seed. When I
purchased bundles of good quality clothes, they last through normal
wash and wear so much better. And when the little
ones grow out of them, I can just bundle them
back up and sell them for the same price I
paid most of the time. So I'm dressing my kids
(11:15):
well and I am doing it for free.
Speaker 5 (11:18):
Genius.
Speaker 4 (11:19):
My tech like theme that was Facebook Marketplace was on
the internet. I was thinking, Okay, that makes sense, and
I feel like for the stretch, but the next two
might make more sense in that theme. Yeah, well, I
feel like for parents, it's like, you don't want to
individually list twenty different little kids tops, but like if
you do it in a bundle, so easy, so good, yea,
so good. And also I find it really hard picking outfits.
(11:41):
I'm like, oh, I'll get another top few and then
I don't like anything else in the store. If someone
like curated a little collection of cute tops, especially once,
I could put my kid in for daycare money win.
Speaker 5 (11:51):
Yeah.
Speaker 4 (11:51):
All right, So the next one is from Simone. She says,
my husband and I had a bit of financial trouble recently,
but he remembered that last year when he up graded
his phone, he put his old one away in the
original box. So he decided to go to a cash
Converters type shop to see if he could sell this
old phone because he kept it in the original box,
the phone was in good condition, and even the original
(12:13):
charger was in there. We actually got a fair bit
of money for it. I always told him to get
rid of the packaging, but it ended up working out
in our favor this time. I never realized how important
that packaging would be if you're trying to sell something.
Speaker 5 (12:27):
There, Go, that's very true. I guess when you're looking
to buy something, it's always appealing to go, Oh it's
brand or or it's on the box, or with the
instructions or whatever.
Speaker 4 (12:35):
Tells me it's like more looked after. Yeah, like you
clearly cared. I am the worst at throwing literally every
single box under the sun out, so that wouldn't work
for me. But like Jess, I know you're a low
key hoarder, so you probably have the first box from
your first iPod from high school.
Speaker 5 (12:49):
I literally went through I like it's just a big
old basket of tech stuff, and I was like, oh,
I probably don't need these six iPhone boxes that I'm
doing absolutely nothing with. Probably don't even have the phones anymore.
I just kept them for no, Greason.
Speaker 4 (12:59):
See, I don't have the boxes, but I have my
hot pink Motorola raser.
Speaker 5 (13:03):
Oh that's such a flat.
Speaker 4 (13:04):
She doesn't turn on. But I don't need her to.
Speaker 5 (13:06):
I really want to get like a flip phone. Bring
back the flip phone.
Speaker 4 (13:09):
Oh, I've got one for you at home.
Speaker 5 (13:11):
If I could key that to work off my phone?
Catch me taking business calls off my Motorola pink one.
Speaker 4 (13:16):
Stop it. How do we get this turning back on?
I don't know if I own the charger. We should try.
Speaker 5 (13:21):
We'll figure it out.
Speaker 4 (13:21):
Oh my god, it could become the shees on the
money phone and when you call, that's who you're calling.
Speaker 5 (13:25):
That would be really cool.
Speaker 4 (13:25):
Yeah, we'll put it on the table in the office.
I get to answer first though.
Speaker 5 (13:29):
Okay, that seems fair. All right.
Speaker 4 (13:30):
Next and last one, I've got on my tech theme
I tried. I'll give Beck her slot back soon, I promise.
Is from Ebony, she says, out of warranty repairs. Instead
of buying a new Garmin watch for five hundred dollars plus,
Garman offered that they swapped my broken watch with a
refurbished one the ninety three dollars. This is for a
(13:51):
six year old watch and the new one has a
two year warranty.
Speaker 5 (13:55):
That's so good. That's great, customer sir, feel like.
Speaker 4 (13:57):
That is a very good deal.
Speaker 5 (14:00):
Stuff too if you're getting it from the like I
know that Apple does refurbished iPads and iPhones and stuff like.
It's coming from the people that make it, do you
know what I mean? Like, I think they're replacing it with
new parts. Yeah, yeah, surely that's on the up and
up and all good.
Speaker 4 (14:14):
Yeah, absolutely, all right. Let's go to a really quick
break on the flip side. We're going to be talking
about what actually happens when you give your kids a
large gift of money. We're just actively looking at my
parents here. If you want to gift us a lot
of money, I wouldn't be mad. And something that you
slid into our dms about this week buying a house
with a partner when there's a really big difference in
the amount of deposit that you both contribute. So guys,
(14:38):
don't go anywhere.
Speaker 5 (14:43):
Welcome back, everybody. Let's take a listen to this week's
money dilemma.
Speaker 6 (14:48):
Hi, there, have you got a money dilemma you just
can't solve? The Sheese on the Money team is here
to help. Every week, we tackle your dilemmas, both big
and small, to answer your most burning money, career, and
life questions. To get involved, simply head to our website
and leave us a short voice recording and you might
just find yourself on the show. Now, let's take a
listen to this week's money dilemma.
Speaker 2 (15:12):
Hi, she's on the money. Me and my partner have
been putting money away for our kids since they were born,
and we recently transferred that out of their own accounts
and into an offset account for our mortgage, which has
been helping us to pay off the mortgage. My question
relates to when they get to an age where we
want to give them the money back. How do we
(15:37):
go about that? Because we've putt the money aside for them,
but I'm aware of the gifting rules of I think
it's ten thousand dollars a year, so I'm not quite
sure if we can just give them the money back.
I'd love you to explain this to us. Thank you.
Speaker 5 (15:51):
What do you reckon, Jess, I'll be honest, I don't
know much about it. Very exciting congratulations and saying that that's
so fantastic that you're doing that for them. The only
thing I can think of is that you would set
up the account in their name from the beginning, because
children can hold bank accounts, it just has to be
like co signed or however that works with a parent.
But then, obviously if you were to do that, it
(16:12):
would not be offsetting your mortgage, which I know is
obviously a very appealing thing. I don't know that there
would be a way around them having to pay tax
on receiving it unless you run it through a trust
or something like that. But then again, like it's not
sitting in your offset, I've got no idea. I think
I'm just gonna handle it to the finance person.
Speaker 4 (16:32):
Okay, I'll take the wheel. Not because I want to, yes,
I do want to. Got so much on this, so
saving few kids is fantastic. Obviously you're putting it in
your offset, and you're making that money work as hard
as you do. The other thing I would say is
most parents, when they are saving money for their children,
they wait until their kids are eighteen years and over
(16:53):
to then actually give them access to that money, which,
for a lot of reasons tax mainly makes the most
sense also their adults, but Also, you've got eighteen years
of compounding that you're missing out on. Can we maybe
have a talk about the opportunity and what it might
look like to invest. So you've got lots of time.
There's lots of episodes on investing for kids that I
would love to direct you towards. But what happens logically
(17:16):
when you gift that money to your child? Okay, so
first things first, if you gift it to them outright
and they are over the age of eighteen here in Australia,
there is no gift tax payable. The caveat on that though,
is if you are on benefits, So if you are
on centilink, that's where that ten thousand dollar rule comes
(17:37):
into play. So if you're on Centilink, gifting more than
ten thousand dollars in one financial year or thirty thousand
dollars over five years might actually affect your entitlements because
it's treated as deprived assets. That doesn't matter so much
to you. But if you are on sent link, that's
when we would be careful. Also being careful if your
(17:58):
child has gone away and does like oz study or
something and they're getting some benefit that way, you don't
want to shoot them in the foot and have all
of their benefits taken away because you're trying to help
them as well with just being smart and strategic. If
that money gets invested, any capital gains tax or CGT
actually applies to ever owned the asset at the time
(18:19):
of the sale, i e. Your parents, So the kid
isn't going to necessarily get taxed because you would just
be gifting it to them, But you would be taxed, Jess,
because you saved that money. You're now paying tax on
the amount of money that you earned you or maybe
later them if it's an investment and it gets transferred, etc. Etc.
(18:41):
The best advice I have here is talk to your accountant.
But those are the rules. So no, you can gift
it to them once they turn eighteen tax free, no
worries because you actually already paid tax on that you've
basically just been holding it. But the sticky thing is
when you have sent link getting involved and you've got
that ten thousand dollars or the five years slash thirty
thousand dollars cap. Okay, there you go, So it's not
(19:03):
as complex as you think it is. And also to clarify,
CGT doesn't mean oh, you've had all of this money
sitting there. You only ever pay capital gains tax on
the money that the money earned, so on the interest.
So it's not like let's say you saved ten thousand
dollars and then you know you made one thousand dollars,
because that's a ten percent return, you'd only pay capital
(19:24):
gains tax on that thousand dollars. And if you owned
that asset for longer than twelve months, you get that
fifty percent discount on the CGT. So I promise it's
not nearly as bad. And honestly, your investment returns would
outweigh what tax you had to pay, so still in
the wash, come out better.
Speaker 5 (19:42):
Can I ask a question, no, not on this show,
not allowed an offset account?
Speaker 2 (19:48):
Yes?
Speaker 5 (19:48):
Am I right in assuming that a money kept in
an offset does not accrue interest because it is off
setting a mortgage. So if they were to go down
the route, and we're not saying this is the right
rabbit something to consider it, if they kept it in
their offset account, yes, there wouldn't technically be any gains
to pay CGT, or wouldn't be when they were because
(20:09):
you're not making money, you're saving money, and this is
where a conversation around the differences between a redraw and
an offset come up.
Speaker 4 (20:16):
So people will be like, Oh, what's the difference between
a redraw and an offset, or what's the difference in
putting my money in an offset account or a high
interest savings account. So if you put your money in
a high interest savings account, and let's pretend the investment
return or the return on those things are equal. Right,
Let's let's pretend it's just five percent. So in your
high interest savings account you're making five percent. That five
(20:37):
percent is added to your income every single year, and
you need to pay tax on that. Jess On the
flip side, you put that money into your offset account
to offset the interest payable on your mortgage. The bank
isn't giving you money. They're just going, oh, she's got
some cash older sitting over there, we're not going to
charge her as much, so there's no tax payable. Which
is why I sometimes think it's a little bit like
(21:00):
silly to have a high interest savings account and a
mortgage with an offset and then be putting all your
money in the high interest savings account because you're gonna
be paying tax on that five percent of income.
Speaker 5 (21:10):
There you go.
Speaker 4 (21:11):
So anyway, that's no thank.
Speaker 5 (21:13):
You sad question. Have we got a juicy DM this week?
Speaker 4 (21:16):
Girl? You know we do. We always have juicy dms,
and I find one of the hardest parts of my
jobs is actually picking which one goes on the podcast
every week. All right, are you ready for this one?
This week? Let's go hit me high icons.
Speaker 5 (21:29):
Great, start to start great.
Speaker 4 (21:31):
That's how you get on the show. That's how you
get on the show. My partner and I are buying
our first home. We currently split everything fifty to fifty,
but I have way more deposit ready to go than
he does. We're talking my one hundred and fifty thousand
dollars saved versus sixty four thousand dollars saved, and we're
both drawing from the first home super saver a scheme.
We're both happy to not be fifty to fifty on this.
(21:54):
Waiting for him to match me does not make sense
to us, but we are not sure how to reflect
this in our money. We both want our own home
fifty to fifty and we'll split expenses accordingly, so a
different ownership split just doesn't feel right. We're talking about
him paying me back the extra, but I don't want
to disadvantage myself in interest or anything else for a
(22:15):
little bit of extra spice. We're also considering that he
might be able to throw more cash at that than
me in five years from now as his income increases.
I'm so keen to hear your thoughts.
Speaker 5 (22:26):
Very exciting. I think that if it was me, let
me roll around in my brain for a second, I
think that I would approach it. I understand not wanting
to lose out on the like what you're saying, but
you're technically not actually losing out on interest. So like,
I assume you would be contributing this one hundred and
(22:47):
fifty thousand dollars deposit regardless of whether your partner had
the same amount of money to contribute as you or not.
So like, in my mind, you're not really losing anything
out by putting that money in. That's what you were
always in intending on doing, That's what you've been saving
it for. So I would treat it personally as just yeah,
I guess quote unquote alone. So maybe I would reduce
(23:12):
my mortgage repayments if that's stable. It really depends on too,
are your deposits. So vastly different because your income's a
vastly different So are you earning double what your partner's earning,
so like you have the capacity to save more, And
that's how it's worked out. Because if so, maybe this
wouldn't work. But like, if it was me, if it
was doable, I probably would just say, okay, well i'll
reduce my mortgage payments you pay slightly more until we've
(23:34):
evened out that difference. Yeah, or I would consider, yeah,
a slightly different ownership structure until it's paid off, because
obviously they would need to pay you back what like
almost one hundred thousand dollars, like ninety thousand dollars or
which is a lot of money. Like, I don't think
that they're going to your partner's going to have that
suddenly out of nowhere, at least not until, as you said,
they increase their income significantly. So yeah, potentially, I know
(23:58):
that it makes sense logically to want to own it
fifty to fifty, and it makes sense logically to want
to like split it all fifty to fifty, But could
you look at having a structure set up whereby the
difference in contributions doesn't really matter unless God forbid you
were to break up and sell the house, in which
case you would both be returned the amount you contributed,
(24:22):
and then you know, fifty percent of the profits. So
I speak afterwards, but I don't know if I've explained
that very well.
Speaker 4 (24:29):
I know that's where my brain.
Speaker 5 (24:30):
Yeah, you've probably got a better take on that than me.
Speaker 4 (24:33):
No, it's about the same one brain. Sell well, I
would actually reverse up a little bit. Why are you
buying a house together? Like, are you madly in love
and want to live the rest of your lives together?
At which point this shouldn't matter too much. Please don't
get me wrong. Yes, it's a lot of money when
and I always go back to examples about myself because
I feel like it's a hard decision to have and
(24:54):
I've been through this experience and everyone experiences it differently.
But hopefully this helps. But when my husband and I
were purchasing our first home, he had a lot more
deposit than I did. That's just how it worked. We
didn't do anything about that. We didn't have like a
financial agreement to say, you know, if we sold, this happens,
and you know whatever that looks like. And now I
(25:17):
am the breadwinner in our family, and I earned significantly
more than my husband and therefore can contribute significantly more
to the mortgage in our lifestyle, and that's okay, but
from our perspective, we're not fifty to fifty. And that
was a conversation that we had to have when we
were starting to buy a house because before that we
were absolutely fair and even and split because we just
(25:37):
rented together. There wasn't any real like there's no liabilities,
Like the cat that we had was my cat, so
he was my expense. We hadn't gotten additional pets yet,
we hadn't had a family, we hadn't gotten married. But
we were like, well that's where we're heading, Like that's
the plan. So what's yours is mine and what's mine
is mine was how I saw it. But you know
(25:58):
what I mean, we had this conversation about, well, it
all kind of comes out in the wash, like there
are going to be periods of my life where I
maybe don't earn as much as Steve and vice versa,
and like we're there to support each other through that,
Like it's never been of Victoria earns all the money.
That doesn't change the way we make decisions. We still
fifty to fifty make decisions, but now all of our
money goes into our offset account and it's just our money. Yes,
(26:22):
I still believe in all of those things that are important,
like having your own emergency fund, having access to your
own money, having autonomy, having control all of those things.
I'm just saying this is how it worked for me.
But if that is of concern to you, I'd be
stepping back and having a look at the bigger picture
and like, well, how's this meant to come out in
the wash? But then also, if the plan is to
own it fifty to fifty, can we just set up
(26:43):
an agreement now that.
Speaker 5 (26:44):
Says, if we sell this house, you'll get.
Speaker 4 (26:46):
Back you one hundred and fifty thousand dollars deposit, and
he'll get back his sixty four thousand deposit, and then
everything will be split equally from then on in I
think it becomes quite messy if you're trying to set
up a structure where one of you ows another one
of you a certain amount of money, but then you
know you're going to potentially take and this is just
maybe a bit gendered, you're going to take maternity leave,
(27:08):
and then he might take a sabbatical to do some
study or whatever. Like, you're in it together. How are
you managing this together? Is my question? Like I want
you to both feel like it's fair and that neither
of you were disadvantaged, But I also want you to
look at well, why are you buying a house with
another person? That's a very big financial commitment, and like,
(27:28):
to me, I don't know. I felt like buying our
house was a bigger commitment in general than getting married,
which we bought our house and then we got married.
But I remember being like, well, we've already got a house,
And to me, that's deeper doodoo than you know, getting married,
because I can just walk out on this and deal
with that later. But being a de facto being joint
(27:50):
in debt, to me, I was like, that's terrifying. Yeah,
so I think, why are you doing this in the
first place? What does that look like in the grand
scheme of things? What does this mortgage look like in
thirty years is probably where my train of thought would
be going.
Speaker 5 (28:02):
Yeah, Like, I totally understand the desire to protect yourself,
and I think that's so important and we say that
all the time, but at the same time, the chances
throughout you know, theoretically the entirety of your lives, that
you guys will always be earning exactly the same and
therefore contributing exactly the same is relatively low. I would say.
We talk a lot about contributing based on equity, not equality. Yeah,
(28:24):
and so yeah, I think if you can protect yourself
in the case that you know you would have to
sell because maybe you were no longer together or you
were selling down the asset for whatever reason, fine, but yeah,
I think that I personally wouldn't be stressing about it
if that. Yeah.
Speaker 4 (28:41):
Yeah, and you're coming together to buy this house like
it's a joint goal. Yeah, it's a joint thing. I
don't know. Maybe other people have colorful opinions, and that's
why we put it to the community. So we did
ask them a few questions. The first one I asked was,
if you have purchased property, how did you do it.
Forty percent of you said I had an uneven deposit
with somebody else, so this is common. Twenty three percent
(29:03):
of you said haven't purchased property yet, twenty percent of
you said I bought solo, and seventeen percent of you
said I had a fifty to fifty deposit with someone else.
We then asked how would you handle an uneven deposit,
and a whopping sixty percent of you said, we're partners,
so it doesn't matter. I mean that to me is
really validating because I was like, what if people are
like Victoria, it matters. I'm like, oh, wellful, at least
(29:26):
sixty percent of you and I are on the same beam.
Twenty nine percent of you said we'd just reflect it
in the ownership split. Nine percent of you said I
would have an io you for an exact amount, and
three percent of you said loan with interest. So everybody
is going to do it differently, and like that's the
cool thing about money. It's also frustrating, right because you
just sometimes want a clean answer, like Jess, this is
(29:46):
the right thing, and over there all the wrong things.
Don't do that. But like, we're all different. So we
did ask the community, guys, what is your two cents?
First person, a woman after my own heart, seek legal
advice as the should be reflected in their ownership.
Speaker 5 (30:01):
Yeah.
Speaker 4 (30:01):
Next person said, is he able to contribute in another way,
like to make it more even? Maybe he could fund
any DIY improvements over the life of the property. Next
person said, if they are doing the first home super
Savor scheme, then she should just match his deposit instead
of putting in her full one fifty k, which is
also an option. But it does limit your buying capacity. Yeah,
(30:23):
and it does stop your borrowing capacity as well. Next
person said, you never know what the future holds. No
one ever plans for a divorce, but you do need
to protect your assets. Totally agree, and that's why I
think if it is a priority to you right now,
we would be putting a structure in place that you
get back what you put in.
Speaker 5 (30:39):
Absolutely.
Speaker 4 (30:40):
Next person said, we split our deposit equally then kept
the leftover in our savings in separate offsets.
Speaker 5 (30:46):
Okay, that must be.
Speaker 4 (30:47):
Nice to have even more savings than what you needed
for the house.
Speaker 5 (30:50):
That's actually very clever. Yes, how did idea a lot?
Speaker 4 (30:53):
I agree? Maybe you just contribute sixty four thousand and
have a nice savings account. Yeah. But also I don't
know about you, Jess, but as someone who owns a
mortgage breaking business and talks to first home buyers, most
of us are throwing literally everything we have at out opposit,
like we don't have you know, one hundred and fifty
grand and we only need half. Like that's unrelatable content
to me, So I don't want to be like.
Speaker 5 (31:13):
Oh, good idea, you should definitely do that.
Speaker 4 (31:15):
Like let's acknowledge that minor work. That might not work,
but like, in theory, that's really good. Another person said,
you can split the loan in half and then pay
your share. Another person said, and I've got just three more. Sorry, sorry,
I just felt like there were a lot of good
ones today. We recorded it so that if we did
break up, and so we would just get back that share, yeap.
Kind of like that. Another person said, my partner bought
(31:38):
everything for the house to make up a bit of
the difference in deposit, which I get. But also I'm
just assuming he doesn't have the cash to like furnish
the house or whatever.
Speaker 5 (31:47):
Well, yeah, if he had the money to buy the stuff,
it would probably be going into the deposit, you would assume.
Speaker 4 (31:52):
Yeah, or we could just maybe buy it over a
period of time.
Speaker 5 (31:56):
True, over the first couple of years or something like that.
Speaker 4 (31:58):
Yeah, I don't know. I feel like there's no one
size fits all. And then the last one I've got
is I would match his deposit and keep extra in savings.
Something will break in the first year and you'll need
some savings anyway. So true, Well, it is true. And
if you see a good mortgage broker, they will be like,
I want you to have this much buffer in your
offset or this much buffer in your savings before you buy,
(32:18):
because like something somewhere, somehow is going to happen and
you're going to need some cash and you do not
want to be up that creek without a paddle.
Speaker 5 (32:25):
Absolutely not.
Speaker 4 (32:26):
So anyway, that's where we'll leave it for today. It's
just grichi, thanks for having me.
Speaker 5 (32:31):
Oh it's fun.
Speaker 4 (32:31):
I love this. I mean, it's going to be more
fun when Beck comes back. But I think we're good together.
Speaker 5 (32:36):
Yeah, we had a little vibe.
Speaker 4 (32:37):
Yeah, we've been here from the start. Guys, all right,
have a really good week and we'll see you bright
and early on Monday morning for our money diaries. Bye bye?
Speaker 6 (32:51):
Did buy shared on She's on the Money is general
in nature and does not consider your individual circumstances. She's
on the Money exists purely for education purposes and should
not be relied upon to make an investment or financial decision.
If you do choose to buy a financial product, read
the PDS TMD and obtain appropriate financial.
Speaker 4 (33:10):
Advice tailored towards your needs.
Speaker 6 (33:12):
Victoria Divine and Sheese on the Money are authorized representatives
of Money showper Pty Ltd. A BN three two one
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My name's Tasha Bamblet. I'm a proud First Nations woman
and I'm here to acknowledge country t Glenn Young Ganya, Niana,
Kaka yah y and Binahaka Nian our gay In Nimbini
yakarum Jar Dominyamiga Umagahawaka Woman Damon Imlan Bumba ban Gadabomba
in and now in wakah ghan On yak rum Jar
(00:20):
water Nadaa. Hello, beautiful friends, we gather on the lands
of the Aboriginal people. We thank, acknowledge and respect the
Aberiginal people's land that we're gathering on today. Take pleasure
in all the land and respect all that you see.
She's on the Money podcast acknowledges culture, country, community and connections,
(00:40):
bringing you the tools, knowledge and resources for you to thrive.
Speaker 2 (00:45):
She's on the Money.
Speaker 3 (00:47):
She's on the Money.
Speaker 4 (01:08):
Hello and welcome to She's on the Money, the podcast
that makes personal finance fun according to us, especially on Fridays.
Welcome back to our favorite day of the week because
we get our small team together to celebrate you, our
incredible She's on the Money community now. This week is
just j Just Griccy and I once again She's obviously
going to share her favorite money wins from the community.
(01:30):
Beck's away again, and I'll be sharing broke tips, and
we're going to be helping to answer a money dilemma,
which is all about, well, what happens when you give
your kids large gifts of money? Hasn't happened to me,
but I know I do know how to prepare you,
so we can have a chat about that. And then
something that you slid into our DMS about buying house
with a partner when there is a big difference in
(01:51):
the amount you are putting in for the deposit, which
I think can get a little bit juicy as well.
And I know that the comments on that one kind
of pop off. But before we get there, Miss Jessurci,
it's mid October, you've probably got a countdown to Halloween.
Speaker 5 (02:06):
Absolutely, how have you been. I think good. I finished
up my sewing course recently and I've taken the next
step up, so now I'm doing advance, which is not
that advanced.
Speaker 4 (02:17):
It's just like it's like advance and you're like, I
made pants, who do I think I am? I'm surprised
you're not still wearing them every single day.
Speaker 5 (02:24):
They're so comfy. I'm a big fan. So I think
this we get to kind of pick what we want
to work on. I want to try making a pair
of pants that's not actually jeans, but like this, you know,
with the zipper and the button and whereas the last
ones are kind of like PJ pants style.
Speaker 4 (02:38):
Yeah, that's fine.
Speaker 5 (02:39):
So I want to do that and maybe learn how
to line clothing and make a little.
Speaker 4 (02:43):
Dress or some Yeah that's cute.
Speaker 5 (02:45):
So we're just learning.
Speaker 4 (02:45):
Are you using patterns or are you like just draw
so in it?
Speaker 5 (02:50):
No, do we use patterns. So I bought a bunch
of Etsy because they're really good and really affordable, little
money in for anybody, Like you can get them a
lot of the places and them onself, like five dollars
a pattern, whereas they're so much more expensive to get
them at Spotlight. Obviously if you get them on it,
see you've got to print them and tape them together
and stuff. Okay, but I mean to save the money,
I'm happy to do it.
Speaker 4 (03:10):
There's a TikTok girl that shares her patterns online, and
I'll have to send it to you because there's the
cutest little sum address that I saw and I was like, oh,
this is so jess coded, and I can't believe I
didn't send it to you in the moment. But that
is okay, I can go back and find it for you.
Speaker 5 (03:23):
You how's your week been? Busy?
Speaker 4 (03:25):
Busy, busy, But like that's a really good thing. We
have been very lucky over the last few weeks with
like some travel and some work and just I'm excited
to dive back into work. I keep saying to the
girls in the office, like I'm excited for nothing. Yeah,
if that makes sense, Like I'm excited to be able
to sit in my office and not have to zip
(03:45):
out to go and meet a different client or you know,
bank together a whole heap of work because I'm going
to be not in the office for the next few days.
Like I just now, for me, I feel like it's
that countdown to Christmas. Yeah, where I'm like, okay, cool,
Like I know that the Christmas break is coming and
I'll be off from this particular date. I've booked in
the work Christmas party, and Kiara and I are like
(04:07):
working out what we do this year for it. So
if you've got any good suggestions for like fun things
that we could do at our work Christmas party. Please
slide into my DMS and let me know because I'm
trying to be creative. Yeah, and like, just for a
little bit of context, last year, yes, we did a
pass the parcel.
Speaker 5 (04:26):
I was just gonna say, bring back the jelly Cat
past the parcel that was brilliant or a Sunny Angel
past the parcel.
Speaker 4 (04:31):
Yeah, but the Sunny Angels is not as exciting as
a jelly Cat. But then also, do you want to
do the same thing every year? And like one of
my favorite parts of that was you guys didn't know
that was coming. Yeah, So it was like I pull
out a pass the parcel and you guys are what's
going on? And I was like, we're playing past the
parcel and everyone was so excited, and then it was
like layer after layer, we just didn't know what was next.
Like if I do it again, the anticipation blown.
Speaker 5 (04:54):
I see you want the shock factor.
Speaker 4 (04:55):
So we're going out for a bougie lunch together, yes,
and just flex it'll be on work hours, as it
should be. We always do a lunch on a Friday
during work hours because sorry, nobody wants to go to
your Christmas party after hours, especially on a Friday when
they probably have Christmas shopping, family commitments, friends, drinks because
like you know what happens at the end of the year.
Speaker 5 (05:17):
Everyone gets busy.
Speaker 4 (05:18):
No, everybody wants to finally catch up because they've been like,
oh my god, yess, I haven't seen you all year.
We have to do drinks before Christmas? No we don't.
Speaker 5 (05:26):
Yeah, it's very conscientious. We love a conscientious queen.
Speaker 4 (05:29):
I love that. But I also am booked and busy,
you know anyway, so I want your Christmas ideas. That's
all I've been thinking about this week.
Speaker 5 (05:37):
The Christmas things are out at the shop. It's very exciting.
Speaker 4 (05:39):
It is very exciting. I mean they've been out since
what August. Like I feel like they jump the gun
every single year. But every single year I say the
same thing, and then every single year I am like, oh,
I need to get some new Christmas decorations and they're
all sold out.
Speaker 2 (05:52):
Yeah.
Speaker 5 (05:53):
Yeah, they get you every time. Every time give a
five star. Have you to share with us this week?
Speaker 4 (05:58):
I do? I do. Would you like to hear it?
Speaker 5 (06:00):
Absolutely?
Speaker 4 (06:01):
This is from k Town.
Speaker 5 (06:03):
Oh.
Speaker 4 (06:03):
There's a lot of ends on the interview, and I
feel like that was the only appropriate way to introduce them,
they said five stars, inspired and encouraged. I started listening
to She's on the Money when I was struggling in
the thick of postpartum and struggling financially. I love listening
to Money Diaries and the Friday Apps because they make
me feel seen and inspired, that things won't be like
(06:25):
this forever, and small amounts and little changes can snowball.
The three girls are a great mix of personalities, and
I always leave feeling pumped up. Thank you.
Speaker 5 (06:34):
Oh that's so lovely. I hope that you little Bubba
are doing really well.
Speaker 4 (06:39):
Oh my god. And like the postpartum mix is just
so challenging.
Speaker 5 (06:46):
Yeah, big chaos energy too, between the hormones and the
adapting and the like a lot.
Speaker 4 (06:51):
I feel like there's such a priority on Like when
you're pregnant, people are so much like, oh my god,
I'm so excited for when the baby arrives, and like
you're just in the thick of planning the birth that
you forget that like those twelve weeks after and like
that chaos is literally chaos. Yeah, So you know, I
guess that's my advice if you're planning on postpartum. Let's
(07:12):
like properly plan I would say, the first twenty weeks
of that baby's life. Wow, like to make your life easy.
Speaking of easy and good and fun, Mistress Agricci, when
it comes to favorite money wins and confessions, what have
you picked out for the week?
Speaker 5 (07:26):
Alrighty, first of this week, I've got money in from
Emily who said money whin. I do online delivery from
Coals and they had a two extra boxes of apples
and a four pack of burgers that they didn't order.
I just love the thought of opening online delivery and
be like, wow, I did not of this, but I'll
take it.
Speaker 4 (07:41):
I saw a TikTok the other day, which I feel
like I do all the time, of someone being like
walking past the girl doing the click and collect orders
and she like threw in a bag of caramels and
she's like you're welcome. She didn't work it like woolli's
or whatever. Yeah, she was just like adding random stuff
to people's bags. So maybe that's how this stuff happened.
Speaker 5 (08:00):
Ah, not all heroes wear capes.
Speaker 4 (08:02):
Yeah, so someone ended up with a twelve pack of
karramel like q walas and I'd be like I would
be stoked with.
Speaker 5 (08:06):
That, absolutely. Next, I've got a money in from Kelly,
who said she donated some old clothes to Vinnie's and
while she was there found a fifteen dollar learning tower
in perfect condition and a thirty dollars indoor gym set,
so her and her friends toddler are all set.
Speaker 4 (08:21):
I'm actually really envious the learning towers are so expensive.
Speaker 5 (08:24):
What's a learning tower?
Speaker 4 (08:25):
So the you know what this is. It's the little
step stool that little kids have in the kitchen that
kind of keeps them contained so they can kind of
like climb up and be at the bench height. But
they're hundreds of dollars, are they? Yes?
Speaker 5 (08:39):
Why is everything for kids so expensive? Oh, don't get
me started too, all right. Next, I've got a money
win from Alisha, who said she bought a shower filter
twelve months ago, noticed it was chipping internally and emailed
the company to see if that was normal. She said
it didn't really feel right to have a shower filter
if it was just going to be leaking plastic particles anyway.
They responded and immediately sent out a new shower filter
(09:01):
for free.
Speaker 4 (09:01):
That is a good deal.
Speaker 5 (09:03):
Yeah, it pays to follow up when something's not working. Next,
I've got a money lost from Alicia. She said her
cat had a urinary blockage and spent the weekend in emergency.
It cost her over six thousand dollars, but she still
has her beautiful little boy, and she says she really
can't complain or put a price on love. She's very
grateful that they had the money to pay for it,
as they know, for a lot of people, it would
(09:24):
have been a very difficult decision to look at She
to provide a pet tax photo of too beautiful.
Speaker 4 (09:29):
Babies, Oh, that would actually kill me.
Speaker 5 (09:32):
I know. I just want to say, Oh, I hope
that they're doing a kay Leisha. Also, my cat had
urinary issues at start of the yard and if you
probably told you, but if they didn't, you can put
them on a special prescription diet that prevents that in
future or can help prevent that.
Speaker 4 (09:45):
Oh my god, cats are so expensive. Ah they are.
And the anxiety I have over one of my specific
cats just because he's like old. Yeah, like Bailey is sixteen? Yeah,
what do you mean?
Speaker 5 (09:57):
Sweet little angels? Oh?
Speaker 4 (09:59):
And you may move on. I need another money win.
Speaker 5 (10:01):
And lastly, we spoke about this last week, what have
any coincidentce But I've got money win from Kiro who
said she came back from the city after two years
of working really discuptured fifteen dollars on her Zaphro's membership
card and a free birthday drink.
Speaker 4 (10:12):
Money win. I feel like she maybe has been spamming
that everywhere in our group. Yeah, familiar, check your accounts,
like if you have any type of loyalty, yeah, go
make them pay their loyalty tax to you.
Speaker 5 (10:25):
Absolutely, you might as well got to lose, all.
Speaker 4 (10:27):
Right, I have to do Beck segment justice. So you
ready for some very very good broke teas?
Speaker 2 (10:32):
Oh?
Speaker 4 (10:33):
Absolutely? Okay, So the first one we've got, and I've
gone with a theme this week tech. Okay, right, So
this one is from Madison. She says, circular economy for kids' clothes.
I got so overspending money on cheap clothes like Camar
and Big w only for them to be completely destroyed
after a few washes or stretched out of shape. Now
(10:53):
I buy secondhand bundles from Facebook Marketplace or different Facebook
groups in gorgeous brands like Country and Seed. When I
purchased bundles of good quality clothes, they last through normal
wash and wear so much better. And when the little
ones grow out of them, I can just bundle them
back up and sell them for the same price I
paid most of the time. So I'm dressing my kids
(11:15):
well and I am doing it for free.
Speaker 5 (11:18):
Genius.
Speaker 4 (11:19):
My tech like theme that was Facebook Marketplace was on
the internet. I was thinking, Okay, that makes sense, and
I feel like for the stretch, but the next two
might make more sense in that theme. Yeah, well, I
feel like for parents, it's like, you don't want to
individually list twenty different little kids tops, but like if
you do it in a bundle, so easy, so good, yea,
so good. And also I find it really hard picking outfits.
(11:41):
I'm like, oh, I'll get another top few and then
I don't like anything else in the store. If someone
like curated a little collection of cute tops, especially once,
I could put my kid in for daycare money win.
Speaker 5 (11:51):
Yeah.
Speaker 4 (11:51):
All right, So the next one is from Simone. She says,
my husband and I had a bit of financial trouble recently,
but he remembered that last year when he up graded
his phone, he put his old one away in the
original box. So he decided to go to a cash
Converters type shop to see if he could sell this
old phone because he kept it in the original box,
the phone was in good condition, and even the original
(12:13):
charger was in there. We actually got a fair bit
of money for it. I always told him to get
rid of the packaging, but it ended up working out
in our favor this time. I never realized how important
that packaging would be if you're trying to sell something.
Speaker 5 (12:27):
There, Go, that's very true. I guess when you're looking
to buy something, it's always appealing to go, Oh it's
brand or or it's on the box, or with the
instructions or whatever.
Speaker 4 (12:35):
Tells me it's like more looked after. Yeah, like you
clearly cared. I am the worst at throwing literally every
single box under the sun out, so that wouldn't work
for me. But like Jess, I know you're a low
key hoarder, so you probably have the first box from
your first iPod from high school.
Speaker 5 (12:49):
I literally went through I like it's just a big
old basket of tech stuff, and I was like, oh,
I probably don't need these six iPhone boxes that I'm
doing absolutely nothing with. Probably don't even have the phones anymore.
I just kept them for no, Greason.
Speaker 4 (12:59):
See, I don't have the boxes, but I have my
hot pink Motorola raser.
Speaker 5 (13:03):
Oh that's such a flat.
Speaker 4 (13:04):
She doesn't turn on. But I don't need her to.
Speaker 5 (13:06):
I really want to get like a flip phone. Bring
back the flip phone.
Speaker 4 (13:09):
Oh, I've got one for you at home.
Speaker 5 (13:11):
If I could key that to work off my phone?
Catch me taking business calls off my Motorola pink one.
Speaker 4 (13:16):
Stop it. How do we get this turning back on?
I don't know if I own the charger. We should try.
Speaker 5 (13:21):
We'll figure it out.
Speaker 4 (13:21):
Oh my god, it could become the shees on the
money phone and when you call, that's who you're calling.
Speaker 5 (13:25):
That would be really cool.
Speaker 4 (13:25):
Yeah, we'll put it on the table in the office.
I get to answer first though.
Speaker 5 (13:29):
Okay, that seems fair. All right.
Speaker 4 (13:30):
Next and last one, I've got on my tech theme
I tried. I'll give Beck her slot back soon, I promise.
Is from Ebony, she says, out of warranty repairs. Instead
of buying a new Garmin watch for five hundred dollars plus,
Garman offered that they swapped my broken watch with a
refurbished one the ninety three dollars. This is for a
(13:51):
six year old watch and the new one has a
two year warranty.
Speaker 5 (13:55):
That's so good. That's great, customer sir, feel like.
Speaker 4 (13:57):
That is a very good deal.
Speaker 5 (14:00):
Stuff too if you're getting it from the like I
know that Apple does refurbished iPads and iPhones and stuff like.
It's coming from the people that make it, do you
know what I mean? Like, I think they're replacing it with
new parts. Yeah, yeah, surely that's on the up and
up and all good.
Speaker 4 (14:14):
Yeah, absolutely, all right. Let's go to a really quick
break on the flip side. We're going to be talking
about what actually happens when you give your kids a
large gift of money. We're just actively looking at my
parents here. If you want to gift us a lot
of money, I wouldn't be mad. And something that you
slid into our dms about this week buying a house
with a partner when there's a really big difference in
the amount of deposit that you both contribute. So guys,
(14:38):
don't go anywhere.
Speaker 5 (14:43):
Welcome back, everybody. Let's take a listen to this week's
money dilemma.
Speaker 6 (14:48):
Hi, there, have you got a money dilemma you just
can't solve? The Sheese on the Money team is here
to help. Every week, we tackle your dilemmas, both big
and small, to answer your most burning money, career, and
life questions. To get involved, simply head to our website
and leave us a short voice recording and you might
just find yourself on the show. Now, let's take a
listen to this week's money dilemma.
Speaker 2 (15:12):
Hi, she's on the money. Me and my partner have
been putting money away for our kids since they were born,
and we recently transferred that out of their own accounts
and into an offset account for our mortgage, which has
been helping us to pay off the mortgage. My question
relates to when they get to an age where we
want to give them the money back. How do we
(15:37):
go about that? Because we've putt the money aside for them,
but I'm aware of the gifting rules of I think
it's ten thousand dollars a year, so I'm not quite
sure if we can just give them the money back.
I'd love you to explain this to us. Thank you.
Speaker 5 (15:51):
What do you reckon, Jess, I'll be honest, I don't
know much about it. Very exciting congratulations and saying that that's
so fantastic that you're doing that for them. The only
thing I can think of is that you would set
up the account in their name from the beginning, because
children can hold bank accounts, it just has to be
like co signed or however that works with a parent.
But then, obviously if you were to do that, it
(16:12):
would not be offsetting your mortgage, which I know is
obviously a very appealing thing. I don't know that there
would be a way around them having to pay tax
on receiving it unless you run it through a trust
or something like that. But then again, like it's not
sitting in your offset, I've got no idea. I think
I'm just gonna handle it to the finance person.
Speaker 4 (16:32):
Okay, I'll take the wheel. Not because I want to, yes,
I do want to. Got so much on this, so
saving few kids is fantastic. Obviously you're putting it in
your offset, and you're making that money work as hard
as you do. The other thing I would say is
most parents, when they are saving money for their children,
they wait until their kids are eighteen years and over
(16:53):
to then actually give them access to that money, which,
for a lot of reasons tax mainly makes the most
sense also their adults, but Also, you've got eighteen years
of compounding that you're missing out on. Can we maybe
have a talk about the opportunity and what it might
look like to invest. So you've got lots of time.
There's lots of episodes on investing for kids that I
would love to direct you towards. But what happens logically
(17:16):
when you gift that money to your child? Okay, so
first things first, if you gift it to them outright
and they are over the age of eighteen here in Australia,
there is no gift tax payable. The caveat on that though,
is if you are on benefits, So if you are
on centilink, that's where that ten thousand dollar rule comes
(17:37):
into play. So if you're on Centilink, gifting more than
ten thousand dollars in one financial year or thirty thousand
dollars over five years might actually affect your entitlements because
it's treated as deprived assets. That doesn't matter so much
to you. But if you are on sent link, that's
when we would be careful. Also being careful if your
(17:58):
child has gone away and does like oz study or
something and they're getting some benefit that way, you don't
want to shoot them in the foot and have all
of their benefits taken away because you're trying to help
them as well with just being smart and strategic. If
that money gets invested, any capital gains tax or CGT
actually applies to ever owned the asset at the time
(18:19):
of the sale, i e. Your parents, So the kid
isn't going to necessarily get taxed because you would just
be gifting it to them, But you would be taxed, Jess,
because you saved that money. You're now paying tax on
the amount of money that you earned you or maybe
later them if it's an investment and it gets transferred, etc. Etc.
(18:41):
The best advice I have here is talk to your accountant.
But those are the rules. So no, you can gift
it to them once they turn eighteen tax free, no
worries because you actually already paid tax on that you've
basically just been holding it. But the sticky thing is
when you have sent link getting involved and you've got
that ten thousand dollars or the five years slash thirty
thousand dollars cap. Okay, there you go, So it's not
(19:03):
as complex as you think it is. And also to clarify,
CGT doesn't mean oh, you've had all of this money
sitting there. You only ever pay capital gains tax on
the money that the money earned, so on the interest.
So it's not like let's say you saved ten thousand
dollars and then you know you made one thousand dollars,
because that's a ten percent return, you'd only pay capital
(19:24):
gains tax on that thousand dollars. And if you owned
that asset for longer than twelve months, you get that
fifty percent discount on the CGT. So I promise it's
not nearly as bad. And honestly, your investment returns would
outweigh what tax you had to pay, so still in
the wash, come out better.
Speaker 5 (19:42):
Can I ask a question, no, not on this show,
not allowed an offset account?
Speaker 2 (19:48):
Yes?
Speaker 5 (19:48):
Am I right in assuming that a money kept in
an offset does not accrue interest because it is off
setting a mortgage. So if they were to go down
the route, and we're not saying this is the right
rabbit something to consider it, if they kept it in
their offset account, yes, there wouldn't technically be any gains
to pay CGT, or wouldn't be when they were because
(20:09):
you're not making money, you're saving money, and this is
where a conversation around the differences between a redraw and
an offset come up.
Speaker 4 (20:16):
So people will be like, Oh, what's the difference between
a redraw and an offset, or what's the difference in
putting my money in an offset account or a high
interest savings account. So if you put your money in
a high interest savings account, and let's pretend the investment
return or the return on those things are equal. Right,
Let's let's pretend it's just five percent. So in your
high interest savings account you're making five percent. That five
(20:37):
percent is added to your income every single year, and
you need to pay tax on that. Jess On the
flip side, you put that money into your offset account
to offset the interest payable on your mortgage. The bank
isn't giving you money. They're just going, oh, she's got
some cash older sitting over there, we're not going to
charge her as much, so there's no tax payable. Which
is why I sometimes think it's a little bit like
(21:00):
silly to have a high interest savings account and a
mortgage with an offset and then be putting all your
money in the high interest savings account because you're gonna
be paying tax on that five percent of income.
Speaker 5 (21:10):
There you go.
Speaker 4 (21:11):
So anyway, that's no thank.
Speaker 5 (21:13):
You sad question. Have we got a juicy DM this week?
Speaker 4 (21:16):
Girl? You know we do. We always have juicy dms,
and I find one of the hardest parts of my
jobs is actually picking which one goes on the podcast
every week. All right, are you ready for this one?
This week? Let's go hit me high icons.
Speaker 5 (21:29):
Great, start to start great.
Speaker 4 (21:31):
That's how you get on the show. That's how you
get on the show. My partner and I are buying
our first home. We currently split everything fifty to fifty,
but I have way more deposit ready to go than
he does. We're talking my one hundred and fifty thousand
dollars saved versus sixty four thousand dollars saved, and we're
both drawing from the first home super saver a scheme.
We're both happy to not be fifty to fifty on this.
(21:54):
Waiting for him to match me does not make sense
to us, but we are not sure how to reflect
this in our money. We both want our own home
fifty to fifty and we'll split expenses accordingly, so a
different ownership split just doesn't feel right. We're talking about
him paying me back the extra, but I don't want
to disadvantage myself in interest or anything else for a
(22:15):
little bit of extra spice. We're also considering that he
might be able to throw more cash at that than
me in five years from now as his income increases.
I'm so keen to hear your thoughts.
Speaker 5 (22:26):
Very exciting. I think that if it was me, let
me roll around in my brain for a second, I
think that I would approach it. I understand not wanting
to lose out on the like what you're saying, but
you're technically not actually losing out on interest. So like,
I assume you would be contributing this one hundred and
(22:47):
fifty thousand dollars deposit regardless of whether your partner had
the same amount of money to contribute as you or not.
So like, in my mind, you're not really losing anything
out by putting that money in. That's what you were
always in intending on doing, That's what you've been saving
it for. So I would treat it personally as just yeah,
I guess quote unquote alone. So maybe I would reduce
(23:12):
my mortgage repayments if that's stable. It really depends on too,
are your deposits. So vastly different because your income's a
vastly different So are you earning double what your partner's earning,
so like you have the capacity to save more, And
that's how it's worked out. Because if so, maybe this
wouldn't work. But like, if it was me, if it
was doable, I probably would just say, okay, well i'll
reduce my mortgage payments you pay slightly more until we've
(23:34):
evened out that difference. Yeah, or I would consider, yeah,
a slightly different ownership structure until it's paid off, because
obviously they would need to pay you back what like
almost one hundred thousand dollars, like ninety thousand dollars or
which is a lot of money. Like, I don't think
that they're going to your partner's going to have that
suddenly out of nowhere, at least not until, as you said,
they increase their income significantly. So yeah, potentially, I know
(23:58):
that it makes sense logically to want to own it
fifty to fifty, and it makes sense logically to want
to like split it all fifty to fifty, But could
you look at having a structure set up whereby the
difference in contributions doesn't really matter unless God forbid you
were to break up and sell the house, in which
case you would both be returned the amount you contributed,
(24:22):
and then you know, fifty percent of the profits. So
I speak afterwards, but I don't know if I've explained
that very well.
Speaker 4 (24:29):
I know that's where my brain.
Speaker 5 (24:30):
Yeah, you've probably got a better take on that than me.
Speaker 4 (24:33):
No, it's about the same one brain. Sell well, I
would actually reverse up a little bit. Why are you
buying a house together? Like, are you madly in love
and want to live the rest of your lives together?
At which point this shouldn't matter too much. Please don't
get me wrong. Yes, it's a lot of money when
and I always go back to examples about myself because
I feel like it's a hard decision to have and
(24:54):
I've been through this experience and everyone experiences it differently.
But hopefully this helps. But when my husband and I
were purchasing our first home, he had a lot more
deposit than I did. That's just how it worked. We
didn't do anything about that. We didn't have like a
financial agreement to say, you know, if we sold, this happens,
and you know whatever that looks like. And now I
(25:17):
am the breadwinner in our family, and I earned significantly
more than my husband and therefore can contribute significantly more
to the mortgage in our lifestyle, and that's okay, but
from our perspective, we're not fifty to fifty. And that
was a conversation that we had to have when we
were starting to buy a house because before that we
were absolutely fair and even and split because we just
(25:37):
rented together. There wasn't any real like there's no liabilities,
Like the cat that we had was my cat, so
he was my expense. We hadn't gotten additional pets yet,
we hadn't had a family, we hadn't gotten married. But
we were like, well that's where we're heading, Like that's
the plan. So what's yours is mine and what's mine
is mine was how I saw it. But you know
(25:58):
what I mean, we had this conversation about, well, it
all kind of comes out in the wash, like there
are going to be periods of my life where I
maybe don't earn as much as Steve and vice versa,
and like we're there to support each other through that,
Like it's never been of Victoria earns all the money.
That doesn't change the way we make decisions. We still
fifty to fifty make decisions, but now all of our
money goes into our offset account and it's just our money. Yes,
(26:22):
I still believe in all of those things that are important,
like having your own emergency fund, having access to your
own money, having autonomy, having control all of those things.
I'm just saying this is how it worked for me.
But if that is of concern to you, I'd be
stepping back and having a look at the bigger picture
and like, well, how's this meant to come out in
the wash? But then also, if the plan is to
own it fifty to fifty, can we just set up
(26:43):
an agreement now that.
Speaker 5 (26:44):
Says, if we sell this house, you'll get.
Speaker 4 (26:46):
Back you one hundred and fifty thousand dollars deposit, and
he'll get back his sixty four thousand deposit, and then
everything will be split equally from then on in I
think it becomes quite messy if you're trying to set
up a structure where one of you ows another one
of you a certain amount of money, but then you
know you're going to potentially take and this is just
maybe a bit gendered, you're going to take maternity leave,
(27:08):
and then he might take a sabbatical to do some
study or whatever. Like, you're in it together. How are
you managing this together? Is my question? Like I want
you to both feel like it's fair and that neither
of you were disadvantaged, But I also want you to
look at well, why are you buying a house with
another person? That's a very big financial commitment, and like,
(27:28):
to me, I don't know. I felt like buying our
house was a bigger commitment in general than getting married,
which we bought our house and then we got married.
But I remember being like, well, we've already got a house,
And to me, that's deeper doodoo than you know, getting married,
because I can just walk out on this and deal
with that later. But being a de facto being joint
(27:50):
in debt, to me, I was like, that's terrifying. Yeah,
so I think, why are you doing this in the
first place? What does that look like in the grand
scheme of things? What does this mortgage look like in
thirty years is probably where my train of thought would
be going.
Speaker 5 (28:02):
Yeah, Like, I totally understand the desire to protect yourself,
and I think that's so important and we say that
all the time, but at the same time, the chances
throughout you know, theoretically the entirety of your lives, that
you guys will always be earning exactly the same and
therefore contributing exactly the same is relatively low. I would say.
We talk a lot about contributing based on equity, not equality. Yeah,
(28:24):
and so yeah, I think if you can protect yourself
in the case that you know you would have to
sell because maybe you were no longer together or you
were selling down the asset for whatever reason, fine, but yeah,
I think that I personally wouldn't be stressing about it
if that. Yeah.
Speaker 4 (28:41):
Yeah, and you're coming together to buy this house like
it's a joint goal. Yeah, it's a joint thing. I
don't know. Maybe other people have colorful opinions, and that's
why we put it to the community. So we did
ask them a few questions. The first one I asked was,
if you have purchased property, how did you do it.
Forty percent of you said I had an uneven deposit
with somebody else, so this is common. Twenty three percent
(29:03):
of you said haven't purchased property yet, twenty percent of
you said I bought solo, and seventeen percent of you
said I had a fifty to fifty deposit with someone else.
We then asked how would you handle an uneven deposit,
and a whopping sixty percent of you said, we're partners,
so it doesn't matter. I mean that to me is
really validating because I was like, what if people are
like Victoria, it matters. I'm like, oh, wellful, at least
(29:26):
sixty percent of you and I are on the same beam.
Twenty nine percent of you said we'd just reflect it
in the ownership split. Nine percent of you said I
would have an io you for an exact amount, and
three percent of you said loan with interest. So everybody
is going to do it differently, and like that's the
cool thing about money. It's also frustrating, right because you
just sometimes want a clean answer, like Jess, this is
(29:46):
the right thing, and over there all the wrong things.
Don't do that. But like, we're all different. So we
did ask the community, guys, what is your two cents?
First person, a woman after my own heart, seek legal
advice as the should be reflected in their ownership.
Speaker 5 (30:01):
Yeah.
Speaker 4 (30:01):
Next person said, is he able to contribute in another way,
like to make it more even? Maybe he could fund
any DIY improvements over the life of the property. Next
person said, if they are doing the first home super
Savor scheme, then she should just match his deposit instead
of putting in her full one fifty k, which is
also an option. But it does limit your buying capacity. Yeah,
(30:23):
and it does stop your borrowing capacity as well. Next
person said, you never know what the future holds. No
one ever plans for a divorce, but you do need
to protect your assets. Totally agree, and that's why I
think if it is a priority to you right now,
we would be putting a structure in place that you
get back what you put in.
Speaker 5 (30:39):
Absolutely.
Speaker 4 (30:40):
Next person said, we split our deposit equally then kept
the leftover in our savings in separate offsets.
Speaker 5 (30:46):
Okay, that must be.
Speaker 4 (30:47):
Nice to have even more savings than what you needed
for the house.
Speaker 5 (30:50):
That's actually very clever. Yes, how did idea a lot?
Speaker 4 (30:53):
I agree? Maybe you just contribute sixty four thousand and
have a nice savings account. Yeah. But also I don't
know about you, Jess, but as someone who owns a
mortgage breaking business and talks to first home buyers, most
of us are throwing literally everything we have at out opposit,
like we don't have you know, one hundred and fifty
grand and we only need half. Like that's unrelatable content
to me, So I don't want to be like.
Speaker 5 (31:13):
Oh, good idea, you should definitely do that.
Speaker 4 (31:15):
Like let's acknowledge that minor work. That might not work,
but like, in theory, that's really good. Another person said,
you can split the loan in half and then pay
your share. Another person said, and I've got just three more. Sorry, sorry,
I just felt like there were a lot of good
ones today. We recorded it so that if we did
break up, and so we would just get back that share, yeap.
Kind of like that. Another person said, my partner bought
(31:38):
everything for the house to make up a bit of
the difference in deposit, which I get. But also I'm
just assuming he doesn't have the cash to like furnish
the house or whatever.
Speaker 5 (31:47):
Well, yeah, if he had the money to buy the stuff,
it would probably be going into the deposit, you would assume.
Speaker 4 (31:52):
Yeah, or we could just maybe buy it over a
period of time.
Speaker 5 (31:56):
True, over the first couple of years or something like that.
Speaker 4 (31:58):
Yeah, I don't know. I feel like there's no one
size fits all. And then the last one I've got
is I would match his deposit and keep extra in savings.
Something will break in the first year and you'll need
some savings anyway. So true, Well, it is true. And
if you see a good mortgage broker, they will be like,
I want you to have this much buffer in your
offset or this much buffer in your savings before you buy,
(32:18):
because like something somewhere, somehow is going to happen and
you're going to need some cash and you do not
want to be up that creek without a paddle.
Speaker 5 (32:25):
Absolutely not.
Speaker 4 (32:26):
So anyway, that's where we'll leave it for today. It's
just grichi, thanks for having me.
Speaker 5 (32:31):
Oh it's fun.
Speaker 4 (32:31):
I love this. I mean, it's going to be more
fun when Beck comes back. But I think we're good together.
Speaker 5 (32:36):
Yeah, we had a little vibe.
Speaker 4 (32:37):
Yeah, we've been here from the start. Guys, all right,
have a really good week and we'll see you bright
and early on Monday morning for our money diaries. Bye bye?
Speaker 6 (32:51):
Did buy shared on She's on the Money is general
in nature and does not consider your individual circumstances. She's
on the Money exists purely for education purposes and should
not be relied upon to make an investment or financial decision.
If you do choose to buy a financial product, read
the PDS TMD and obtain appropriate financial.
Speaker 4 (33:10):
Advice tailored towards your needs.
Speaker 6 (33:12):
Victoria Divine and Sheese on the Money are authorized representatives
of Money showper Pty Ltd. A BN three two one
IS six four nine two seven seven zero eight AFSL
four five one two eight nine
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