Message From The CEO

13 July 2009

It is during times such as these that we need to remember the lessons of our past to be more aware of our own budgets and spending.

Fundamental economics is that over the period you cannot spend more than you earn and it brings back into focus the benefit of savings which I think is one of the biggest issues we have in society and tragically I think it's all around the world.

Credit has been so easy to get over the last few years with our every day life being bombarded constantly with offers to sign up for more debt and instant offers to qualify for more debt appearing in our mailbox, on the TV and on the radio. It's just too simple to get credit these days, yet the repercussions of our spending habits with this seemingly endless supply of credit available has landed many consumers in a lot of financial difficulties.

We have become so reliant on credit and so reliant on the credit card and with that the question begs to be asked as to what message are we teaching the youth of today? That seeing in exchange for a trolley load of groceries we just have to hand over a bit of plastic card? Yet they do not fully understand what is behind that plastic card; which is the ability to repay the debt, nor are they learning the value of having a budget and saving for the things they want and stay out of that credit merry-go-round.

Budgeting. It's a word that makes many people think of rigid rules, tightening your belt and doing without the things you enjoy.

In fact, budgeting can be quite the opposite. It's about knowing how you spend your money, so that you can afford more of the things you like. A budget should be realistic and useful and help you to achieve the things you want out of life. It should also be flexible and adaptable to your changing circumstances.

Recently some figures came out that showed that Credit Card debt was at an all-time high in Australia, and the amount of credit card debt per head of population is quickly increasing. Another growing debt having a major impact on our kids at least is mobile phones. It's all part of budgeting I know, but mobile phones seem to be a big drain on the limited money kids have and unpaid mobile bills is one of the first introduction many young people experience when they find themselves listed with a bad credit history that is hard to shake off that could work against them when they go looking for their first loan.

All of this just reinforces the need to recognise that good fundamentals as far as budgeting and saving is concerned is important and that's what you can get through the Holiday Coast Credit Union.

Right from day one back in 1967 when Holiday Coast Credit Union was formed, teaching budgeting and saving tips has been a very key part in how we look after our members.

When I first joined the credit union it was all about encouraging thrift and the wise use of credit and that lesson and requirement is still very much there today.

Budgeting and saving go hand in hand. Careful budgeting makes saving possible and regular saving allows you to plan for the future. It's satisfying to watch your savings increase and rewarding to use your savings for things that make your life more enjoyable.

Budgeting and saving are not hard to do, but take a little planning. This booklet explains the basics of budgeting and saving and gives you the tools you need to get started. Take control of your money and watch your effort pay off.

Contact us today to arrange for your free copy of "Dollars & Cents, A practical guide to budgeting & saving" or you may prefer to download this booklet from our website at http://www.hccu.com.au/community_education.html