It was a full house at the national launch of our Better Money Management program in Orange last week, signalling strong demand for financial education among regional women.
The launch featured a free, half-day money management and investment education workshop, which we will replicate in 15 other regional towns and cities across Australia as part of the program over the next two years, with the next one in Young on Saturday 29 August.
Regional women from various walks of life, occupations and ages attended the Orange workshop to hear from 10thousandgirl founder and CEO Zoe Lamont about her inspiration for the program and to learn financial skills and tools.
“Women in regional towns are very active in their local community. They are natural investors when it comes to their families, schools, community groups and local businesses, however we’re finding this investment is not always extending to their own financial education and long term financial security,” said Zoe.
“10thousandgirl wants to strengthen the financial outlook for women across Australia, and living in a regional area shouldn’t be a barrier. Our objective is to create the opportunity for women, no matter where they live, to learn the skills and build the confidence to become better at managing the money they have, so they have the financial acumen to achieve their dreams.”
The workshop generated much discussion and open conversation. Zoe asked participants: “What does financial freedom mean to you?” leading to discussion around the importance of setting goals and planning how to achieve them.
A panel of local finance specialists presented their insights into financial management fundamentals, covering investing, insurance, superannuation, the ‘Golden Rules’ to staying out of debt, and gave participants the opportunity to ask specific questions to further their knowledge.
The local experts were:
- Danielle Ludowyke: Member Education Manager, HESTA, NSW Regional
- Monica Maguire: CERTIFIED FINANCIAL PLANNER®MDM Financial Services, Cowra
- Deirdre May: Senior Associate of Campbell Paton & Taylor Solicitors, Orange
- Dani Millynn: Certified Practising Account, Grenfell & Cowra
- Paul Morrison: Branch Manager, Rabobank Orange
- Joanne Stephens: Financial Planner, Enrich SMSF, Orange
Proving to be more than just an educational forum, the workshop was a buzz of networking opportunities. Discussion and questions were plenty, featuring how to get started as an investor, growing your super, succession planning, and knowing what “good debt” is. Participants benefited not only from the workshop’s itinerary but also from each other, swapping their own experiences and knowledge.
In addition to the 16 regional workshops being rolled out nationally, the Better Money Management program comprises a suite of online financial tools and bi-monthly webinars. It is being funded by an Australian Securities and Investments Commission (ASIC), Financial Literacy Australia grant and national partner, global agribusiness bank, Rabobank. Industry super fund HESTA, the Australian Taxation Office, the Financial Planning Association and the Insurance Council of Australia also support the program.
Workshops to follow the event in Orange, include:
- Young, NSW on Saturday 29 August 2015
- Shepparton, Victoria on Tuesday 8 September 2015
- Geelong, VIC on Tuesday 6 October 2015
- Toowoomba, Queensland in November 2015
- Hobart, Tasmania in February 2015
Want to help us organise a workshop in your town? Let us know! Register your interest, here.
Here’s three things to review when choosing to invest in a stock.
First of all, what is a share? What are you paying for, and what are you getting in return when purchasing a “stock”? How does one determine which stocks to invest in?
When one buys a company’s stock, they actually become a part owner of the company. The “share” or “stock” is called such because all share-holders are investing their money to buy a piece of ownership in the company; and in return believe that the company will use the invested money effectively to perform well in it’s particular industry. Depending on how a company allocates the money brought in by investors, and many other variables, the company’s value will either increase or decrease. As a company’s value increases or decreases, so will the value of its shares. As a stock appreciates in value, one can choose to sell their stock for a profit (known as stock appreciation). A second way to profit from investing in a stock is the issuance of dividends. Dividends are simply the sharing of profits by a company to its investors.
With that being said, there are a few key things to look at when choosing a stock to invest in.
1. Performance history of the stock
With today’s technology, information on every publicly traded company is readily available. There are years of information on stocks traded today which will help in deciding which are good investments and those which are not. Looking at a stocks trading price over time can be indicative of its future performance, especially when compared to the market overall.
2. Stock volatility
For example, if a particular stock has consistently outperformed the market by decreasing less than, or even increasing, when the market average price is decreasing, odds are that the stock will continue to outperform the market in the future. The measure of how drastically a stock’s price changes up or down, especially when compared to the market as a whole, is known as volatility. A safer investment is in a stock with less volatility.
3. P/E ratios
The standard measurement of a stocks value is the P/E ratio, which stands for price to earnings. To calculate this ratio, one must take the price of the stock and divide it by the company’s annual net income. For example, a company with a stock price of $100 and net income per share of $5 will have a P/E ratio of $20; which is the recent average market P/E of United States stocks and slightly higher than the long-term average of Australian stocks.
Typically, stocks with a higher P/E ratio than the market average are considered expensive, while the stocks with a lower ratio are considered cheap. Either type can be considered a “good investment”, depending on how a person prefers to invest. The stocks considered expensive could be a company with a high stock price and low earnings, but may be growing very rapidly and will be increasing in value in the future. Conversely, a stock that may appear cheap because of a lower price or higher earnings per share could appear as such because many believe that a company’s future earnings will be less than they presently are; making what appears to be a good investment what is known as a value trap.
The cardinal rule for investing is to make the best decision with the information one has at the time. Through stock information now available online and the use of financial ratios, especially the P/E ratio, everyone is capable of investing intelligently in today’s markets.
10thousandgirl would like to thank Aaron Cunningham, for writing this article.
Name: Neelan Sornalingam
Organisation: Sense to Dollars
Service: Financial Planner
Specialties: financial planning, life planning
Area serviced: Sydney, NSW
Phone: 0420 940 805
Address: Level 4 / 175 Macquarie Street, Sydney NSW 2000
A personal note: Sense To Dollars is a Financial Life Planning practice designed to help individuals or couples achieve their life and financial goals while building wealth to ensure financial security in your later years. I act as a financial educator, coach; accountability coach and adviser to ensure you are living out your ideal life. A life that is richly and completely yours.
Name: Claire Carton, Partner
Organisation: Griffin Legal
Area serviced: Canberra, ACT
Service: Conveyancing, estate planning
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Service: Financial planning
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Area serviced: Sydney, NSW
Organisation: Roberts & Morrow
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Area Serviced: Armidale, NSW
Biography: Karen Tromp is a Chartered Accountant and Partner at Roberts & Morrow who enjoys proactive engagement with clients to help them to achieve their wealth and business goals. Karen joined Roberts & Morrow (as a mother of 2) in the position of Admin Assistant, attained her CA qualification 11 years later, and partnership in 2004. Being an accountant is all about people-helping them to achieve their goals and solve problems. As a member of Zonta for 8 years, she s passionate about advancing the status of women worldwide through service and advocacy.
Phone (work): (02) 6774 8400
Phone (mobile): 0427 748 411
Physical Address: 137 Beardy St, Armidale 2350
Personal Note: What are the best financial words of wisdom you’ve been given?
“If you pay peanuts, you get monkeys”
Service: Accountants and Financial Advisers
Specialties: Forsyths specialise in agribusiness, insolvency and reconstruction, superannuation, financial planning, accountancy, business solutions, audit and insurance, insurance services, tax and human resources.
Area Serviced: Armidale, NSW
Biography: Kylie Alcorn is an economist and a licensed financial adviser with Forsyths. With over 23 years experience in the investment, superannuation and financial services industry, Kylie has a passion for informed decision-making via education.
Phone: (02) 6773 8400
Phone (Mobile): 0429 300 710
Organisation: Wilson & Co Lawyers
Specialties: With offices in Newcastle and Armidale, Wilson & Co Lawyers provide clients with a broad range of legal services. Our solicitors boast a wealth of experience in specialist areas of legal practise, from conveyancing and family law, to probate and commercial law.
Area/s Serviced: Newcastle, NSW and Armidale, NSW
Biography: Fiona Miron is a solicitor with over 15 years experience in property and insurance law in the ACT and NSW. Fiona graduated with Honours from the ANU in 1996 and also holds a post-graduate qualification in arbitration. Fiona has extensive experience in property, leasing and estate matters, and insurance law. She is actively involved in the New England community and enjoys netball and gardening outside of work.
Phone: (02) 6738 9900
Physical Address: 117 Faulkner St, Armidale 2350
Organisation: Roan Financial Group Pty Ltd
Service: Financial Planning
Specialities: Roan Financial Group is an independently owned and operated financial planning business and holds its own Australian Financial Services Licence. It has no institutional or products ties. Roan Financial Group also has an Australian Credit Licence with a subsidary accounting firm as well. Roan Financial Group is one of the leading financial planning practices in Central West NSW.
Area Serviced: Orange, NSW
Biography: Joanne Stephens as an authorised representative with Roan Financial Group specialising in the major facets of financial planning and in particular the protection and well being of women in the workforce as they develop their career, their families and their wealth.
Joanne has completed her Diploma of Financial Services and is completing a Graduate Certificate of Commerce (Financial Planning) at UWS leading to a Masters Degree. Once completed this will allow her to embark on the pathway to holding the Certified Financial Planner® designation.
Phone: (02) 6361 8100
Physical Address: Level 1 Suite 2, 179a Anson Street, Orange, 2800