Jacqueline Barton

How generosity can be part of your financial plan

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It’s the season for gifts, sharing meals and spreading cheer. But what if your festive generosity could do more? What if it could ripple through generations, perhaps shaping futures and maybe reduce your tax bill?

Giving isn’t just an act of kindness; it can also be a smart financial move. From helping loved ones today to creating a legacy for future generations, strategic gifting can align with your broader financial goals.

After all, Australians are generous. We consistently rank among the most charitable in the world with a study showing that, in the past year, 56 per cent of Australians have donated money and 31 per cent have donated their time.i

Australia, as a wealthy but ageing nation, is well-placed to grow charitable bequests, but the reality is less encouraging. The number of people leaving bequests to charities is low and the size of the bequests also “falls far short of international peers”, according to The Bequest Report by JBWere.ii

Why planned giving matters

Often, giving is reactive rather than planned. We might respond to a donation drive, an emotional TV ad, a friend’s fundraiser or gift property or shares to a family member.

But giving can also be intentional. Some people choose to set aside a portion of their annual income, commit to monthly donations or include charities in their wills. Others join workplace giving programs or support causes that reflect their values. In this way, generosity becomes less about impulse and more of a conscious decision.

There may be advantages in taking a more strategic approach. It can amplify your impact, build your reputation, open doors to new networks and potentially deliver tax benefits. Donations to organisations with deductible gift recipient (DGR) status can help to manage your tax position by reducing taxable income. If you give more than $2 to an organisation with DGR status, you can claim a 100 per cent tax deduction for your donation.iii

Planned giving can help to create a lasting impact, building a legacy for family and community. It integrates generosity into financial planning, ensuring investments reflect personal or family values. In this way, it becomes a tool for involving younger generations in financial governance, teaching responsibility and shared purpose.

Strategic gifting can include early inheritance, education funding or contributions to a family trust. These approaches can reduce future taxes on your estate.

Structured giving options for lasting impact

For those looking to make a lasting impact on their communities, structured giving vehicles offer flexibility and control.

It can create long-term financial stability to favourite causes, providing predictable funding for charities. It can potentially reduce complexity in estate planning and ensure your wishes are carried out; and donating assets may offset capital gains tax liabilities.

Unlike mass market or other forms of giving, such as direct donations to charities, crowd funding and volunteering, structured giving involves using a vehicle designed to enable giving such as:

  • Private Ancillary Funds – often used by families and individuals able to make a minimum initial contribution of $500,000 with a plan to grow the fund beyond $1 million.
  • Public Ancillary Funds – suitable for those with a lower entry point of $20,000
  • Community foundations or giving circles – enable donors to pool resources for local impact. Entry levels can be as low as $2,000.
  • Donor Advised Funds or sub funds – a simpler, more flexible structure allowing donors to distribute funds over time. They can be established relatively quickly with some recommending an initial donation of a minimum $20,000.

Structured giving can also occur without using a dedicated vehicle through, for example, corporate cash donations or larger scale and planned contributions from individuals and families.

Giving isn’t just about generosity, it’s about creating a lasting impact.

We can help to create a giving strategy that supports your family and backs the causes you care about.

i World Giving Index | CAF

ii Bequest Report | JBWere

iii Inquiry Report – Future Foundations for giving | Productivity Commission

Building better money habits with your kids

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Generally speaking, we Australians are pretty financially savvy, that is, we understand the how and why of effectively managing our money. Unfortunately, that doesn’t mean we put that know-how into practice to make astute financial decisions.

According to the Australian Bureau of Statistics (ABS), the average Australian household debt has risen by 7.3% (over $260,000) in the 2021-2022 financial year[1]. As of July 2023, Australians were paying $18.4 billion[2] – that’s billion with a B – in credit card interest every year.

As parents, we are role models, integral to shaping our children’s values and beliefs. Like little sponges, they absorb our behavioural patterns, pick up on signals, and mimic our actions.

For us to replace bad money habits with good ones may be a big ask, particularly as they’ve evolved throughout our lives. But the trouble is that kids are a cluey bunch, eager to learn from us, and not surprisingly, our money habits are among many characteristics we unintentionally pass onto them.

Of course, we all want the best for our children. But in this busy world, we’re pulled in so many directions at once that sometimes juggling our daily work, family, school, and social lives is all we can do. Who has time to consider the inadvertent messages we could be sending?

Yet, when it comes to ensuring our children are equipped to build themselves a secure financial future, it’s worth the effort, right?

The table below shows a list of poor money habits and alternative better money habits that we can aim to model for our kids[3].

Poor money habitsBetter money habits
Impulse buying

We regularly make spur-of-the-moment

purchases. Additionally, we tend to indulge

our kids – we want them to be happy.

Impulsive or indulgent behaviour can

inadvertently foster in children an

attitude of instant gratification,

normalising impulse buying.

 

 

Lead by example

As a family, we discuss the difference

between needs and wants.

When we see something we want,

we walk away and give ourselves a

cooling-off period to determine

whether we genuinely need the item.

We encourage our kids to wait for

things they want, and suggest that

delaying the purchase can lead to

smarter choices and savings.

When shopping we compare prices

and identify items that offer better value.

Not budgeting

We don’t have a household budget,

preferring to manage our money

as it comes in.

But even though we know what bills are due,

we often seem to have trouble getting

the money together. Sometimes, we run out

of money before payday.

Not budgeting can engender a culture of

living pay-to-pay and children can grow up

not understanding the importance

of tracking spending and living

within their means.

 

Family budgeting / Mindful spending

We involve our children in creating and

monitoring our household budget.

We discuss decisions around allocating

money for different

purposes so that when our kids receive

pocket money or gift money,

they can practice budgeting by setting

amounts aside for saving, spending,

investing, etc.

Credit card misuse

We rarely use cash; using a card is fast and

convenient. Although occasionally

we max the card out, we make sure

we pay off as much as we can every month.

Some months, depending on expenses,

we can’t manage the full balance.

Cards, while useful, can cause children

to perceive them as a source

of unlimited money.

No free money

We have taught our children how to read our

card statements. They know how to check

purchases against receipts and understand

how interest adds to the card balance.

We involve our kids in making card payments

and explain the consequences of not paying

the full balance each month.

Not saving

We’ve never set up a structured savings plan,

so we have little-to-no savings. We’d like to

take a holiday or have a nest egg

for emergencies, but there never seems

to be any money left over at the end

of the pay cycle.

Children seeing parents struggling to save

may not learn the value of saving

or setting goals.

 

 

Set goals, save

We stick to our budget and always try to

allocate a portion of income towards savings,

and investing and encourage our kids

to do the same.

We get them to set short-term goals like

saving for a new toy or book, and long-term

goals like an outing or a larger purchase, and

then help them create a savings plan to

achieve their goals.

We make it fun by using a visual chart to

track progress. When they reach their goal,

we celebrate the achievement, making a

special occasion out of buying the

item or attending the event.

Failing to discuss / Money is taboo

We never talk about money with our kids.

They have a limited understanding of how

money is earned and how we use it.

Failing to discuss how money is earned

can lead to children not grasping the concept

of money as a finite resource, and

appreciating its value.

Widespread use of credit cards or taking

cash from ATMs suggests that money

is readily accessible.

Have the conversation

We have always been open with our kids

about the household finances. We want them

to understand that money needs

to be earned and that if not used

wisely and allocated

appropriately, it can run out.

We have also provided the opportunity for

them to earn pocket money for doing

age-appropriate household chores.

If we can make time to examine the way we view and use money and replace poor habits with better ones, we can positively influence our kids by:

  • emphasising the importance of planning early in life,
  • encouraging them to make informed decisions,
  • empowering them to set goals and work towards achieving them.

As parents, we have a limited opportunity to equip our children with tools like, knowledge, confidence and forward-planning skills – before they decide they know more than us!

So, by modelling good financial behaviour ourselves, we can instil the habits that will set our children up for a life of financial freedom.

I don’t know about you, but if I can achieve that, I’ll know that I’ve done what I can to enable the next generation to succeed and thrive.

What a legacy!

The information contained in this article is general information only. It is not intended to be a recommendation, offer, advice or invitation to purchase, sell or otherwise deal in securities or other investments. Before making any decision in respect to a financial product, you should seek advice from an appropriately qualified professional.  We believe that the information contained in this document is accurate. However, we are not specifically licensed to provide tax or legal advice and any information that may relate to you should be confirmed with your tax or legal adviser.

 

[1] www.abs.gov.au “Average household debt grows by 7.3 per cent”, 13 December 2022

[2] www.finder.com “Australian credit card and debit card statistics

[3] https://moneysmart.gov.au/family-and-relationships/teaching-kids-about-money

Celebrate the festive season without financial stress

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The festive season can be a time of joy, connection and celebration. But it’s also a season that can put real pressure on household budgets. Australians spent $30 billion on Christmas in 2024, a 10% increase from the previous year, with the average Australian spending $1,479 on presents, food, alcohol, eating out and travel.

The good news? You don’t need to choose between enjoying the festive season and maintaining financial stability. With some thoughtful planning and practical strategies, you can create memorable celebrations, without the January financial hangover.

Start with a realistic budget

The foundation of stress-free spending is knowing what you can afford. While 32% of Australians intended to stick closely to a holiday budget in 2024, up from 23% the previous year, setting a budget is only half the battle – sticking to it is what matters.

Begin by listing all your Christmas expenses, including gifts, food, decorations, travel, and social events. Be honest about what you can comfortably spend without compromising your essential bills or savings.

Shop smart, not last-minute

Timing matters when it comes to Christmas shopping. More than one in four Australians (26%) plan to shop during Black Friday sales to save money, while 25% start buying food and presents early to help control spending. A majority of shoppers (53%) had already purchased gifts by mid-October 2024, demonstrating a trend toward earlier, more deliberate purchasing decisions.

Australians spent a record $6.7 billion during the four days of Black Friday and Cyber Monday sales—an increase of 5.5% compared to the previous year. If you’re planning to shop during these sales periods, go in with a clear list to spot genuine bargains without overspending on unnecessary items.

Don’t overlook loyalty programs and reward points you may have accumulated throughout the year. These can help reduce your out-of-pocket expenses without requiring any additional spending.

Rethink gift-giving traditions

Gift-giving doesn’t have to mean individual presents for everyone. Almost one in five Australians (18%) implement a gift-giving limit with loved ones to help manage costs. Consider Secret Santa arrangements with a set budget, pooled gifts where family members contribute to one larger present, or experience-based gifts such as offering your time or skills.

Manage the food budget

Australians spent a projected $28 billion on festive food in 2024, an increase of 4.2% on the previous year. Planning your menu in detail helps you avoid over-catering and food waste. Consider dividing up responsibilities so each person or household brings a specific dish or course.

Starting to buy non-perishable items early spreads the cost and takes advantage of specials you encounter along the way.

Set boundaries and avoid the credit trap

From office parties to catch-ups with friends, the festive season brings multiple opportunities to spend. It’s perfectly acceptable to be selective about which events you attend. Consider inviting fewer people to events as a tactic to lessen the financial impact.

Choose your payment method before you start shopping and stick to it. Using cash or debit cards wherever possible helps you avoid debt that carries into the new year. Have you considered starting a side hustle or taking on a second job to help tackle end-of-year expenses?

Remember what matters most

More than two-thirds of Australians (69%) are slashing their spending to get the most out of their festive dollar, showing a collective shift toward more mindful celebration. The festive season is fundamentally about connection, not consumption.

The most meaningful celebrations often come from time spent together rather than money spent on things. Planning, setting realistic limits, and making conscious choices about where your money goes help you enjoy the festive season on your terms. Your future self will thank you for the thoughtfulness you showed today.

Source: Finder Christmas Spending Survey 2024, Fifth Quadrant Consumer Insights Tracker 2024, Roy Morgan/Australian Retailers Association Christmas Spending Report 2024, Deloitte Retail Holiday Report 2025

Retirement isn’t what it used to be, and that’s great news for you

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If you’re approaching retirement and wondering whether you’ll be ready to stop working completely, you’re not alone. The reality is, retirement in Australia is changing, and it will likely look quite different from what your parents experienced.

Recent analysis by KPMG of the Australian Bureau of Statistics labour force survey data[1] shows that Australians are working longer than ever before. Men now expect to retire at 67, while women anticipate finishing work at 65.3 years. That’s up by more than two years for men and over a year for women in just the past decade.

But here’s what’s interesting: this isn’t just about the rising Age Pension age. There’s a growing group of older Australians who genuinely want to work well past traditional retirement age, and experts are calling them ‘ageless workers’.

Twenty years ago, only one in ten men was still working at the age of 70. Today, it’s one in four. Even among men in their late seventies, almost one in ten remains in the workforce. For women, the shift has been even more dramatic, with participation rates for those in their seventies nearly doubling over the past decade.

Why the change?

The nature of work itself has evolved. If you’re in a professional or office-based role, working into your seventies is much more feasible than it would be in physically demanding jobs. As KPMG Urban Economist Terry Rawnsley aptly put it: pulling out a laptop at 75 is considerably easier than laying bricks.

The pandemic also played a role. Many workers delayed retirement plans due to travel restrictions, and after ticking off their bucket-list adventures, they’ve returned to the workforce refreshed and engaged.

The rise of semi-retirement

Perhaps the most encouraging trend is what’s happening between full-time work and complete retirement. Most men now spend about 2.8 years in this transition phase, while women typically spend around three years.

This “semi-retirement” phase – working part-time with flexibility – offers the best of both worlds. You can supplement your retirement savings, maintain social connections, stay mentally engaged, and potentially help support your children or grandchildren, all while enjoying more freedom than full-time work allows.

The message? You don’t have to choose between all-or-nothing anymore. Many Australians are discovering that a gradual transition into retirement, on their terms, can lead to a more fulfilling and financially comfortable lifestyle.

Call us to find out how we can help you transition to your retirement on your terms.

[1] https://kpmg.com/au/en/media/media-releases/2025/09/retirement-age-rises-as-older-australians-keep-working.html