This post is based on an interview we conducted with Ava in July 2019.
Real Money Talk is our series where we interview Australians from all walks of life about their personal finances. The views expressed are those of the interviewees, based on their experiences with money, and as such are not necessarily representative of Spaceship's views.
We have changed the name of the interviewee for their privacy.
Overview
Name: Ava
Age: 17
Where do you live? Sydney.
What is your current net worth?
I’ve got $12,000 in my savings account.
Any debts? (including HELP from Uni)
Not yet!
How did you accumulate your net worth?
Babysitting, helping out at my mum's shop, and putting most of the money I got for my birthdays and Christmas away. My mum opened a bank account for me when I was young and I put money in there on my birthdays, as did my grandparents. I could only access it when I was 16, so by then I had a few thousand dollars already. I don’t carry around my debit card most of the time, so I’m not tempted to spend too much.
Earn
Tell us a bit about your career:
I don’t have one yet. I’m not sure what I want to do after high school. I’ll go to uni but I might also help my mum with her shop. It’s been going really well lately, and I might take it over eventually.
Do you have income sources outside of your job? If so, how much do you earn from each and how did you develop them?
Just odd babysitting jobs; I usually get $20-$25 an hour. Some weeks I’ll get nothing, some weeks I might get $100 or $150.
What advice do you have for people who want to earn more money?
I’ll get back to you when I know! I think getting into property is the way to go. My grandma tells me that cash and objects come and go but people will always need somewhere to live.
Save
What is your savings rate? And how has it changed over time?
I try put half of whatever I earn from my shifts at my mum’s shop into my savings account and let myself spend the rest. I don’t always spend half of it though. Sometimes my mum gives me money to spend or buys me clothes, so I mostly spend it on movie tickets and stuff like that.
Do you have a budget?
No.
How much do you spend per year?
Not too much… but that might change when I get older.
Do you make purchase decisions carefully, or are you loose with your money?
A mix of both.
How is your work-life balance?
More like my study-life balance. It’s okay, but HSC is killing my life a bit!
What is your favourite thing to spend money on?
Movie tickets and clothes.
Invest
How do you invest?
I don’t.
How are you building wealth?
Saving most of my money. If I’m careful, I might have a deposit for a property when I’m still relatively young, like 25. Depends on whether I work through uni or study full-time. I haven’t decided yet.
What are your main roadblocks? And how are you addressing them?
Youth and indecision. Other than that, the world is my oyster.
Do you have a target net worth you want?
I don’t know… maybe $5 million.
When did you make your first significant behavioural shift towards wealth building?
Well, my mum did it for me, by opening that bank account!
If you could start again, what would you do differently?
I think I’m still at the age where I should be receiving advice, not giving it. I don’t know if I’ve made any mistakes yet.
Do you have any worries about retirement? If so, how are you planning to address them?
Not really on my mind just yet.
How are you learning about building wealth?
My mum bought me “The Barefoot Investor” but I haven’t read it yet. I learned the value of saving money and investing in property from my family.
Do you give to charity? If you do, what percent of time/money do you give?
I give coins (if I have them in my pocket) when I see people collecting for the Cancer Council or the Salvos.
