With more than two decades of experience in consumer finance topics including banking, finance and property, author and freelance editor Effie Zahos is one of Australia’s leading personal finance commentators.
Renowned for her ability to make money matters simple, Effie wears many hats. She is Editor-at-Large for Canstar and the prior editor of Money magazine, the institution Effie helped establish after her start in finance journalism on Channel Nine’s Money show. She is also the author of a series of popular self-help finance guides including ‘The Great $20 Adventure’, ‘A Real Girl’s Guide to Money’, and, ‘Ditch the Debt and Get Rich’.
Effie is passionate about building financial literacy and delivering unbiased financial knowledge. To pursue this goal she contributes to a variety of media channels, including the Today show. She is also an independent Director of InvestSMART and currently sits on the board of directors for Ecstra, a not-for-profit organisation committed to building the financial capability of all Australians.
Mark Bouris and Effie Zahos get together in this episode of Property Insights to chat about her work and consider the importance of financial literacy within the context and challenges of the current financial market.
Key Takeaways:
- It’s important to improve your financial literacy and ensure you know how your financial products work. Effie discusses her books and her goal of encouraging consumers to understand their bills and make informed choices to improve their financial situation.
- “Fear of jumping in”? Economics and investment strategy conversations need to be prioritised. Mark and Effie emphasise the need for consumers to understand the behavioural drivers behind spending.
- Spending behaviours are changing in response to the RBAs rate changes. Mark and Effie delve into the relationships between these behaviours as they consider the potential future direction of interest rates based on global trends and house price stability.
- Significant refinancing has already occurred in the home loan industry but what about the challenges faced by individuals who may struggle to refinance due to age restrictions or buffer rates? Mark and Effie discuss how buffer rates work and the potential for “common sense” changes in regulations.
- While interest rate hikes have potential for those looking to save, quality financial products can be difficult to find. Effie highlights the importance of understanding deposit accounts, recommending spreading money across different institutions to stay under the deposit guarantee threshold. Hot tip: consider short (4 month) term deposits to take advantage of rising interest rates.
