People 'need to learn to live within their means'

It is very convenient for people who are in a financial mess to blame their troubles on the rising cost of living in Australia.

While it is true that many households are finding it difficult to cope with higher everyday expenses, a lot of Aussies have created their own problems.

Even when the global economy was thriving, too many people were still living way beyond their means and it is far too easy to run up a massive credit card debt.

Yvonne Goodwin – managing director of Yvonne Goodwin Wealth Management – believes that parents need to teach their children about the importance of budgeting at a young age.

She feels that too many youngsters are taking out credit cards and buying goods left, right and centre with no thought about how they will eventually settle the balance. More often than not, their parents are left to foot the bill.

When asked why so many people are in arrears, she said: "I don't think it is because everything is that much more expensive, I think it is just the fact that people aren't learning to live within their means."

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