Another video produced with the Central Bank of Malta in our budgeting series.
I am Tony – I am 42 years old. My wife, Maria, is 40 years old. We have two kids. The eldest is Angele, who will be 17 soon and our youngest is Matthias, who is 11.
I work in the services industry. Every day, during the lunch break together with some colleagues we go to the Café next door to have a small snack and a cappuccino or so. I spend around €2 – normally small change that is running around in the car, or my wallet, or picked from somewhere from home.
The other day Matthias came up to me and asked what I do for lunch. So I explained to him that I meet some friends and have a lite bite, using small change that is running around. ‘You are have the Latte Affect’ he stated. Latte Affect??????? I told Matthias to speak in Maltese … on plain language for the matter.
‘You have the Latte Affect,’ he repeated. Ok. Hhmmm. What is he on about. So I said, ok young man – sit down and tell what you are on about because this is Alien speak to me☹☹☹☹.
Well he said – you spend €2 daily on eating out daily. So? It is only small change running around everywhere. That is he replied. You see he said – in yesterday’s class we had a lesson where we calculated the cost of having a small snack and drink as against taking your own lunch and coffee to work on the family’s budget. Now: €2 a day – 5 days a week is €10. Now multiply that by 52 weeks: that’s €520 a year. Dad – that’s the Latte Affect.
For emphasis Matthias added €2 a day from small change doesn’t sound like much – but over a year it comes to €520.
A lesson learnt! The Latte Affect: money leakage resulting from little expenses carried out daily.
You wish to learn more about the Latter Affect? View the ĠEMMA- Central Bank of Malta video to know more. Also click here to download the ĠEMMA Latte Calculator.
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