Before we are able to drive, we must learn the road rules and sit a test to make sure we are competent behind the wheel - but we’re never given the same advice when it comes to managing our own money.
Instead, once we start work and warmly welcome hefty sums in our bank account each month, we are left to make our own financial decisions.
Australians are seemingly more affluent than previous generations thanks to rising wages, but that hasn’t made us wiser with our money.
Despite our newfound wealth, an alarming 46 per cent of Australians live pay-cheque to pay-cheque according to MLC’s Australia Today report.
While low income earners are often touted as the income bracket to most feel the pinch of living costs, over 20 per cent of the households which earn greater than $150,000 per annum are reliant on their monthly pay to meet expenses.
An interest rate rise of 1 per cent on the average mortgage balance of $461,000 would add more than $250 per month to the repayment, forcing many people to readjust their spending habits.
As shocking as the idea of spending everything earned in a month is, unless people know the benefits of spending less than they earn it’s unsurprising.
These statistics are reflective of an overwhelming trend towards consumption - say, having the latest technology and eating out - over saving and investing.
A staggering 76 per cent of survey respondents defined a comfortable life as being able to afford what they want, when they want.
This attitude blurs the lines between the basic costs of of living and the lifestyle we choose to lead.
As empowering as it may be to spend your entire pay-cheque on what you want, it could be setting you up for financial disaster down the track.
The stress that comes with living from pay-cheque to pay-cheque hasn’t been enough to encourage those living a comfortable lifestyle to wind back their spending on things including travel and entertainment.
Another way to think about the importance of managing your monthly pay-cheque wisely is to add up the money spent on education, or to protect what we have saved by insuring homes and cars.
Taking the time to understand the basics of spending and saving will change your financial fortunes.
If the MLC report is indicative of the state of financial literacy in Australia, we are in desperate need of greater education on the benefits of living within our means.
However, we can’t be expected to know any better with what we spend our money on unless it’s clear what the benefit of saving or investing is.
If you’re living month to month, giving up something small - for example, staying in once a month instead of eating out - could be the start of funding six months of backpacking around the world in a few years time, buying a home or sending children to a school of your choice.
While it’s common for Australians to be eagerly waiting for their pay each month, making changes to your lifestyle could mean you don’t have to live your life like this.