This is a sample of The Echidna newsletter sent out each weekday morning. To sign up for FREE, go to theechidna.com.au

Subscribe now for unlimited access.

Login or signup to continue reading

Thought about downsizing?

That's when you sell the house you've lived in for donkey's years and buy something smaller and, with any luck, cheaper. That means you can pocket a tidy margin.

Not everyone wants to buy something cheaper. I've known people who've said to me, "we're right-sizing not down-sizing". In our case, we've gone for something three bedrooms. One for us, one for the grandkids and a room in which to work. I'm a noisy interviewer and so it will be nice for the rest of my family to have a break from me talking to people endlessly on the phone.

But what are you doing with your "tidy margin"? Sure, the sensible thing to do is to use the government's downsizer contribution so you can top up your superannuation. A great idea - and one large industry fund HESTA says it has hit record levels of those contributions increasing by more than eight per cent from 2024 figures and up 45 per cent from 2023 levels.

It's good to top up your super as a way to make your retirement as secure as it can be.

But the next best thing you can do? Give money to your kids. Give enough money to your kids to get them into the housing market wherever they are. Yes, of course, I'd love an actual government policy which made the system fairer for everyone and made it possible for our kids to get into the housing market: reforming negative gearing, reducing the capital gains tax discount, maybe even a touch of land tax here and there. But we can't wait for governments forever.

I asked Bob Breunig, director of the Tax and Transfer Policy Institute at the Australian National University, whether he thought it was sensible. Why did I ring him? I figured he would have a responsible approach - as opposed to me trying to rescue everyone.

And guess what? He and his wife have given their two children enough money to get into the property market. His advice on giving kids money?

"Watch your children lead a good life while you are alive." Amen.

Mozo, a comparison site and a financial research company, puts out an annual report on the Bank of Mum and Dad (BoMaD). Guess what? It's no longer a bank because it never expects to get the money back. It says parents are giving, not lending. In 2025, three quarters (75%) of parents are offering money with no expectation of getting it back. Back in 2021, just one third (33%) of parents didn't expect repayment. As Mozo put it, that's a big change in just four years. Turns out parents are also giving more than they used to - and they are happy to do it.

I have a few acquaintances who tell me their children should do everything themselves rather than expecting handouts because "we did it ourselves". That is such a misunderstanding of the current housing market. Spending money on your kids and your grandkids and making their lives more comfortable is the best investment you can ever make. Pay for the footy fees. Take them all on holidays.

As one wise old bloke said: "Memories are made with that money." And always better from a warm hand than a cold one.

Jenna Price is a guest Echidna and a regular columnist.

HAVE YOUR SAY: Have you given money to your kids? Was it a loan or a gift? Did you feel relieved or worried? Have you ever taken your grandkids (and kids) away on holidays? Was it noisy as hell? Email us: echidna@theechidna.com.au

SHARE THE LOVE: If you enjoy The Echidna, forward it to a friend so they can sign up, too.

IN CASE YOU MISSED IT:

- After a WA Supreme Court decision, Australia's richest person, Gina Rinehart, could be forced to share some of her iron ore riches with two rival mining dynasties after losing parts of a bitter legal stoush: Hancock Prospecting vs the heirs of mining pioneer Peter Wright and engineer Don Rhodes.

- New research finds summers are expanding 50 per cent faster in many areas than previously reported, with quicker transitions between seasons, according to the University of British Columbia. A new study by UBC researchers has found that between 1990 and 2023, the average summer between the tropics and the polar circles grew about six days longer per decade. That's up from roughly four days per decade found in past research investigating up until the early 2010s.

- Researchers at Edith Cowan University tell us what those of us playing sport and/or watching sport on television already know: ACL injuries are becoming increasingly common across all age groups. Terrifyingly, children as young as ten are rupturing their ACLs, with many never regaining their pre-injury strength or ability.

THEY SAID IT: Generosity during life is a very different thing from generosity in the hour of death; one proceeds from genuine liberality and benevolence, the other from pride or fear. Horace Mann

YOU SAID IT: I asked you how you would feel if your political leaders started criticising your religious leaders? How would you respond? Were Trump's images blasphemous? And will Trump's actions be the death of us?

Jennifer describes the US president as Toddler Trump. She says he hasn't learned that insults, bullying, biff & force exposes his lack of high level skills in diplomacy & strategic thinking. Attacking religious or admired leaders alienates supporters.

Marie writes: "Whatever our opinion of the Catholic Church, at least the Pope is one completely independent world leader who can stand up to Trump. That he's also an American is just delicious!"

Daniel asks if Donald 'Jesus' Trump would pass the Liberal Party's new immigration 'Australian Values' test. " I suspect not. I'm pretty sure starting a war and threatening to blast a civilization back to the Stone Age is un-Australian, not to mention, blasphemous behavior against the Pope and all Christians."

And Derek sums up what many of you feel: "I just wish, perhaps in vain, that Trump and his supporters represent a dying political movement in the world."

A special shoutout from Sue and from Mig for Peter Broelman's cartoon of an inflated Trump. And a reprimand from Felicity for my blasphemy.

More from Business and Finance

A lack of staff led to 68 lunch lockdowns at Canberra's youth justice centre

Canberra cafes add fuel levies to food bills as delivery costs soar

How many prisoners are eligible for jobs in jail?

The alchemy and the agony: why Onzieme's end is a warning shot for Canberra

Man stole money from businesses, exchanged into gold to avoid detection

Yes, we need big changes to tax, but here's why the budget isn't the place for it

Voice of Real Australia

Get real, Australia! Let the ACM network's editors and journalists bring you news and views from all over.

Today's top stories curated by our news team. Also includes evening update.

Your essential national news digest: all the big issues on Wednesday and great reading every Saturday.

Grab a quick bite of today's latest news from around the region and the nation.

Sharp. Close to the ground. Digging deep. Your weekday morning newsletter on national affairs, politics and more.

Catch up on the news of the day and unwind with great reading for your evening.

Get news, reviews and expert insights every Thursday from CarGuide, ACM's exclusive motoring partner.

Get the latest property and development news here.

Every Saturday and Tuesday, explore destinations deals, tips & travel writing to transport you around the globe.

Get the editor's insights: what's happening & why it matters.

Stay in the know on news that matters to you with twice weekly newsletters from The Senior.

Going out or staying in? Find out what's on.

The latest news, results & expert analysis.

Don't miss updates on news about the Public Service.

Early Look At David Pope

Your exclusive preview of David Pope's latest cartoon.

Join our weekly poll for Canberra Times readers.

We've selected the best reading for your weekend.

Be the first to know when news breaks.

Your digital replica of Today's Paper. Ready to read from 5am!

Your favourite puzzles

Test your skills with interactive crosswords, sudoku & trivia. Fresh daily!

Get the very best journalism from The Canberra Times by signing up to our special reports.

© Canberra Times