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Readers response: What are your thoughts on the increasing use of digital payments?

While technology continues to advance, so does the way we pay for things. Many shopping outlets have turned to using digital payment methods rather than cash, which has divided many who find it easier to use cold hard cash than rely on technology. We asked our readers their thoughts on digital payments and the response was overwhelming. Here's what they said. Joan Hughes - Couldn’t go shopping due to bad pains in my leg and back, so my grandson did an online shop. Tried to use my card 5 times but wouldn’t accept it, so had to use my granddaughter's. This is the 3rd time my card has been rejected. Rubbish system, cash is definitely best. Johanna Shakes - Very hard to adjust for elderly. Debra Walker - Hate it! Cash is king. Lex Jordan - I think we should all stand and boycott these companies that don't accept cash. Patricia Tebbit - Don't mind using cards but access to cash is imperative. Think of small charity raffles, garage sales & countless other things where cash is required. Lyn Bradford - I love it, I use 95% card, 5% cash. So much easier. David Taylor - Just making it easier for hackers. Jennifer Bucktin - Cash is best. If digital goes down, you can't use anything. Steve Smith - The digital age is here to stay so it's going to be better for all to get used to it. Quentin Brown - Love them both, digital and cash as it's much easier to pay bills etc. Of course you have to be smart and not gullible. Why can't we have both? Kath Sheppard - Cash is king, a lot safer as well, can't overspend either or be charged fees. Image credits: Shutterstock

Money & Banking

Fighting for change: how much cash Olympic medallists actually win at Paris 2024

As the world soaks up the glitz and glamour of Paris 2024, athletes are not just eyeing the podium – they're also thinking about the cash they might pocket. Or, in some cases, the cash they might not pocket. Because while the Olympics is a billion-dollar spectacle, the earnings for athletes can range from princely sums to pocket change. Australia: A Gold Medal and a Discount Coupon Let’s start with the Aussies. Winning gold at the Olympics might be the pinnacle of an athlete's career, but for Australian athletes, it also means... $20,000. Yes, you heard that right. In a land where a house deposit will likely cost you a LOT more, Aussie Olympians are basically getting paid in Monopoly money. Silver and bronze medalists get $15,000 and $10,000 respectively. That's enough for a decent holiday, but you might still need a GoFundMe for the flights. Singapore: the million-dollar carrot On the other end of the spectrum, athletes from Singapore are practically diving into pools of gold – like Scrooge McDuck, but in real life. A gold medal will earn them a staggering AU$1.13 million. That’s the kind of money that makes you forget about the gruelling four-year training cycle and instead think about which colour Lamborghini matches your national flag. Hong Kong: fencing your way to riches Hong Kong, not to be outdone, will reward its fencing champion Vivian Kong with AU$1.17 million for her gold. That’s enough to make you consider taking up fencing, even if you’re as coordinated as a baby giraffe. Malaysia and Kazakhstan: cars and apartments In Malaysia, winning athletes might not get cold hard cash, but they do get a new car. And in Kazakhstan, you can literally earn a place to call home – with more rooms depending on the colour of your medal. A gold gets you a penthouse, a silver a two-bedroom, and a bronze... well, maybe a studio with a view of the parking lot. France: host with the most (ish) The host nation, France, offers a more modest reward of $108,000 for a gold medal. That’s enough to cover a year's rent in Paris, or a really good wine collection. But let’s face it, in the land of fine dining, they might just spend it all on cheese. New Zealand, Norway and the UK: the love of the game Athletes from New Zealand, Norway and the UK? Well, they’ll have to make do with a pat on the back and a hearty “well done”, because there’s no financial incentive for winning a medal in these countries. Just the satisfaction of representing your nation, which, as any athlete will tell you, doesn't pay the bills. The United States: the great divide The US offers $37,500 for a gold medal, but that's chump change compared to the endorsement deals top athletes like swimmer Katie Ledecky pull in. She's reportedly earning $1 million a year from swimwear endorsements. Meanwhile, many other American athletes are scraping by, with some earning less than $15,000 a year. That's barely enough for a year's supply of Weet-Bix, let alone world-class training. Jamaica: sharing the love Jamaica’s Olympic team will share a pot of about AU$3,500 each, regardless of their results. It's the ultimate participation trophy – except it’s not enough to buy a trophy, or even a decent pair of running shoes. World Athletics: the global jackpot World Athletics is offering a $3.6 million prize pool for track and field events, with $76,000 per gold medalist. It's a model that some athletes, like Australia’s Arianne Titmus, think other sports should follow. After all, nothing says “thank you for your hard work” like a big, fat cheque. So, whether they’re racing for millions or just a modest thank you, athletes at Paris 2024 will be giving it their all. Because at the end of the day, it's not just about the money. It's about the glory, the honour, and ... well, okay, it’s mostly about the money. Images: Instagram \ Shutterstock

Money & Banking

Where did money come from?

<a href="https://theconversation.com/profiles/steven-hail-1302961">Steven Hail</a>, <a href="https://www.torrens.edu.au/">Torrens University Australia</a> For the most part, economists continue to believe a story of money told to generations of students by a series of textbooks over the past 150 years. This story asks us to imagine a pre-monetary barter economy, where people bought goods and services by trading them for other goods and services. Eventually a suitable commodity – perhaps gold or silver – emerged as both an acceptable means of exchange for conducting trade and a convenient unit of account for expressing value. Later, coins were issued – eventually to be monopolised by governments – and later still paper money, credit, and banking systems. The problem with this story is that there is no historical evidence to support it. As was <a href="https://www.jstor.org/stable/2802221?seq=1#page_scan_tab_contents">noted</a> by prominent anthropologist Caroline Humphreys: <blockquote> No example of a barter economy, pure and simple, has ever been described, let alone the emergence from it of money … all available ethnography suggests that there has never been such a thing. </blockquote> So where did money come from exactly? One difficulty we face is that writing about money – what gives it value, and how monetary systems work – is not something young economists are generally encouraged to do. As a consequence, among the best articles ever written about money are two now more than 100 years old by British economist Alfred Mitchell-Innes, entitled “<a href="https://www.community-exchange.org/docs/what%20is%20money.htm">What is Money</a>?” and “<a href="https://cooperative-individualism.org/innes-a-mitchell_credit-theory-of-money-1914-dec-jan.pdf">The Credit Theory of Money</a>”. These papers, until recently almost completely ignored by the economics profession, tell a different story, rejecting the idea that money evolved naturally from barter. We can now be confident this version is closer to the truth. And it has big implications for how we think about the role of governments within monetary systems, and what gives money value. Acknowledging the true story of money would force a paradigm shift among economists – no wonder a lot of them don’t want to think about it. <h2>Actually, early governments invented money</h2> The truth is that money predates markets. <a href="https://youtu.be/7cLDFjTt4Bs?si=fDTafcZD_u1S23kD">Governments invented money</a> – it did not emerge independently from pre-existing barter systems. Market economies simply could not develop until money existed. For much of history, the currency tokens people regarded as money had little or no intrinsic value, taking the form of clay tablets, hazelwood tally sticks, base metals, shells or paper. The earliest forms of what Keynes called “modern money” – to distinguish it from gift tokens used for ceremonial purposes in communal groups – go back to the origins of taxation, accounting, and even literacy and numeracy. These early currencies were units of account used to assess the tributes that had to be paid to early governmental institutions in the Middle East. The word shekel is still used as a currency unit, but dates to ancient Babylon and the emergence of money itself, over 5,000 years ago. The idea that the need to pay taxes is what creates a demand for a currency was well understood by colonial governments. They knew how to introduce their currencies into countries they had invaded. To force locals to supply labour or goods to the government, they imposed a tax liability – often, a hut tax. This tax could only be paid using the currency of the colony. Locals had to either work for the colonial government or supply goods to others who did, else they wouldn’t have the specific currency needed to pay taxes. This created a demand for the colonial power’s currency, which the government could then spend. If such a government spent more overall than it withdrew in taxation – running a budget deficit – the community could add the remaining currency to its savings. Taxation and the legal system created a demand for the government’s money and provided the impetus for the development of a monetary economy. Even today, it’s the tax system that drives the monetary system. Demand for a government’s money is guaranteed because people need it to pay federal taxes. <h2>But banks create money too</h2> Actual physical cash makes up a tiny proportion of the money in circulation. Most of what we regard as money is held in our bank deposits, effectively a bunch of numbers on a ledger. Most of these bank deposits are created by banks when they make loans to us, and this is not government money at all – it is private money, created by the banks themselves. When a bank makes a loan to you, that loan becomes an asset for the bank, because you have to pay it back with interest. But at the same time, the loan appears as a deposit of funds in your account, which is a liability for the bank. Technically, you both owe each other. On paper, this means there’s now money in the system that wasn’t there before. The bank hasn’t actually lent you someone else’s money, the loan deposited in your account represents the bank’s IOU to you. Both the loan and the deposit are created by the bank, using nothing more than a computer keyboard. The bank has promised to use its holdings of government money to make payments on your behalf, including tax payments to the government, or to provide you with government money in the form of physical cash. As economist Hyman Minsky once said, “anyone can create money – the problem lies in getting it accepted”. Obviously, private banks don’t issue government currency. The Commonwealth government and its agent, the Reserve Bank of Australia, sit at the top of our own monetary system. Government-issued currency will always have value because it’s the unit of account needed to assess and pay our taxes. How much value the currency holds depends on how much the economy produces, how difficult it is to obtain the currency and on how much tax we have to pay. Here is some food for thought. If we accept that money and markets did not emerge naturally but had to be created by governmental institutions and legal systems, this means that there is no such thing as a genuinely free market, no such thing as a natural rate of unemployment, and no such thing as a natural distribution of income and wealth. The theory that money emerged naturally in the private sector encourages people to believe that free markets are natural systems in which governments only interfere. But in truth, early governments invented the very institutions of money and markets, and the regulatory frameworks that determined how those markets work and in whose interests. Exchange economies have always depended on systems of law and they always will. The more pertinent question concerns who writes those laws – and in whose interests those regulations are applied. <hr /> Correction: This article has been amended to reflect that a loan deposit represents a bank’s IOU to the customer, not to a bank’s other customers, as originally reported.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/229481/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <hr /> <a href="https://theconversation.com/profiles/steven-hail-1302961">Steven Hail</a>, Associate Professor, <a href="https://www.torrens.edu.au/">Torrens University Australia</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/where-did-money-come-from-229481">original article</a>.

Money & Banking

Bold idea sees hotel offer thousands in cash back if it rains

In a move that's making waves in the travel industry, a posh hotel in the heart of Singapore has rolled out a revolutionary offer: rain insurance. Yes, you heard it right – rain insurance! InterContinental Singapore, a sanctuary for jet-setters seeking respite from both the humidity and the occasional tropical deluge, has unleashed a game-changer for travellers. Dubbed the "Rain Resist Bliss Package", this offer promises to keep your spirits high even when the rain gods decide to throw a dampener on your plans. Picture this: you've booked your suite at this 5-star haven, eagerly anticipating your Singapore escapade. But lo and behold, the forecast takes a turn for the soggy, threatening to rain on your parade – quite literally. Fear not, dear traveller, for with the Rain Resist Bliss Package, you can breathe easy knowing that if your plans get drenched, your wallet won't. Now, you might be wondering, how does this rain insurance work? Well, it's as simple as Singapore Sling on a sunny day. If the heavens decide to open up and rain on your parade for a cumulative 120 minutes within any four-hour block of daylight hours (that's 8am to 7pm for those not on island time), you're entitled to a refund equivalent to your single-night room rate. The package is available exclusively for suite room bookings starting from $SGD850 per night – so that’s around $965 rain-soaked dollars back in your pocket, no questions asked. No need to jump through hoops or perform a rain dance – just sit back, relax, and let the rain do its thing. And fret not about having to keep an eye on the sky – the clever folks at InterContinental Singapore have got you covered. They're tapping into the data from the National Environmental Agency Weather Station to automatically trigger those rain refunds. It's like having your own personal meteorologist ensuring that your plans stay as dry as your martini. But hey, if the rain does decide to crash your party, fear not! The hotel has an array of dining options to keep your tastebuds entertained while you wait for the clouds to part. And let's not forget, Singapore isn't just about sunshine and rainbows – there are plenty of indoor activities to keep you occupied, from feasting at Lau Pa Sat for an authentic hawker experience to retail therapy at Takashimaya. And here's a silver lining to those rain clouds: fewer tourists! That's right, while others might be scrambling for cover, you could be enjoying shorter lines, less crowded attractions, and even snagging better deals on accommodations. Plus, let's not overlook the fact that the rain brings a welcome respite from the tropical heat, making outdoor adventures all the more enjoyable once the showers subside. So, pack your umbrella and leave your worries behind. With InterContinental Singapore's Rain Resist Bliss Package, you can embrace the unpredictable and turn even the rainiest of days into a memorable adventure. After all, as they say, when life gives you lemons, make Singapore Slings and dance in the rain! Images: InterContinental Singapore / Getty Images

International Travel

12 super simple ways to save some cash

Saving money is a lot easier said than done. Whether you’ve got a holiday you’re thinking about taking, or you just want to make day to day life a little less stressful, there is a range of strategies you can employ to put a couple of dimes together. Here are 12 tips to cut costs: 1. Don't buy luxury, sometimes the budget brands are just as good and save you heaps. 2. Read the junk mail and compare offers because you can get a better deal where you didn't think you could. 3. Cut unnecessary expenses and reduce, if possible, the necessary expenses as well. 4. Buy used goods, it's cheaper and you can haggle. 5. See if you can switch power companies. I'm aware of several people who are saving $250 a year. 6. Borrow books and movies from the library or movie store - it's free or low cost compared to buying new and it's fast. 7. Barter with family and friends, it's free and everyone wins. 8. Take advantage of specials, sales and deals including buying in bulk, it can save you more than you realise. 9. Walk, bike or car pool or use other public transport, it's good for the environment and saves you money. 10. Shop around for the best deal, it might be better elsewhere. 11. Follow insurance company advice: Don't smoke, do have alarms and do get multi policies - it protects you and saves cash. 12. Have a savings account with all the savings from this and don't touch it, you will be amazed at what you have saved in a short time. Written by John Murphy. Republished with permission of <a href="http://www.stuff.co.nz/" target="_blank" rel="noopener">Stuff.co.nz</a>. Image credits: Getty Images

Money & Banking

5 super simple ways to save cash for retirement

During the lead-in to retirement, money management becomes more important than ever. And while we often get lost pondering over in the major financial decisions, getting the minor financial decisions right can be just as important. We’re going to run through five simple ways any soon-to-be-retiree can save cash for their golden years. Sometimes the smallest changes make the biggest difference. 1. Set targets Saving can be difficult if you don’t know where the goalposts are placed. But how much do you really need to retire? As <a href="http://119.9.30.84/blog/are-you-retirement-ready" target="_blank">Equip notes</a>, “According to ASFA (the Association of Superannuation Funds of Australia), a couple needs approximately $640,000 in retirement savings for a comfortable lifestyle. For a single person that number is $545,000.” Setting minor saving targets, even if it’s just a little bit of money here and there every week, can get the ball rolling and start putting yourself in a position to prop up your nest egg. 2. Shop smarter While you don’t want to be living like a miser, smarter shopping choices can add up. Keeping your ear to the ground for discounts, taking advantage of specials and avoiding any discretionary purchases will help keep you in the black. 3. Clear any outstanding debt Debt can be an inconvenient drain on your income in the lead-in to retirement. If you’re set to take the plunge and find yourself in a mire of debt, it’s important to take necessary steps as soon as possible, which might mean finding a financial planner. <a href="http://119.9.30.84/blog/are-you-retirement-ready" target="_blank">Equip says</a>, “Having outstanding debts as you approach retirement isn’t necessarily a problem, but it does require some planning. For example - do you use your super to pay off your mortgage? There’s no simple answer, but speaking to a financial planner can help you understand your options and what they mean in the long term.” 4. Change spending habits Ultimately, if you’re looking to save some extra cash for retirement you’re going to have to change your spending habits. Little things like drinking coffee at home, or staying in for lunch and dinner can make a big difference in the long run. 5. Explore your options Taking the measures listed above is a good start, but you’re only scratching the surface of what you can do to prop up your retirement income. <a href="https://www.equipsuper.com.au/financial-planning/meet-our-financial-planners" target="_blank">Qualified financial planners</a> can give you advice and guidance on little things you can do in your day to day life that will ensure you’re in a better position when you’ve reached retirement. What measures do you take to save cash? <a href="https://www.equipsuper.com.au/" target="_blank">Equip</a> manages $7 billion of investments for members working across a wide range of Australian industry sectors. This <a href="https://www.equipsuper.com.au/" target="_blank">superannuation fund</a> has been providing strong investment performance and has been a reliable provider of retirement benefits for over 80 years. This article is for general information only. You should seek formal financial advice on your specific circumstances.

Money & Banking

Ways you’re wasting money without knowing it

Airline fees You’re paying extra for almost everything when you fly these days, from your bags to your seat. So be sure to compare not only the prices of flights but what they’re charging in extra fees. You may also want to weigh your bag before you go to avoid any additional charges. Bank fees Not keeping enough money in your bank account could cost you some serious cash. How much? ATM and other maintenance fees can also add up to $1,000 over ten years. To avoid them, look for banks with free ATMs that don’t charge monthly maintenance fees. Buying things new Sure, a shiny new car is tempting. But as soon as you drive it off the lot, the car loses 11 percent of its value. A better option? Opt for a reliable used car and a short-term loan you can pay off quickly. The same goes for electronics and other items. Convenience foods Pre-cut fruit and vegetables can save time, but they can also dent your wallet. Instead, buy food as close to its natural form as possible, and divide it up into portion sizes yourself. The same concept applies for all those fancy lattes. Even if you buy just three $5 drinks each week, that’s $780 per year. Over a decade, it’s $7,800. Credit card interest It’s not uncommon to be charged 20 percent annually, although some people face even steeper rates. If you carry $25,000 in debt, paying 20 percent on it will cost you a whopping $5,000 annually – just in interest. To avoid paying extra money for old debts, try the snowball method. Pay off the card with the lowest balance first, then move on to the next one. Dry cleaning A typical trip to the cleaners for your pants and shirts can cost you more than $10. With a weekly visit, that could add up to more than $500 per year. To save that money, clean your shirts in the delicate cycle in your washer or hand wash them. Eating out Going out to dinner with the family can be a nice treat, but doing it regularly really adds up. Instead of buying your lunch every day, save money by packing it. And before you go out, look for specials like coupons or happy hours or get entrees instead of full meals. Extended warranties Getting an extended warranty on that refrigerator or car you bought sounds like a good idea. But most extended warranties aren’t worth the money. Why? The fine print may not include likely problems, or you may be buying duplicate coverage. A better plan? Open a savings account and sock away money for any repairs that might come up. Impulse buys Spur-of-the-moment buys can cost you more in the long term, because you may not really need them, or you haven’t shopped around for better deals. Really want something? Take a 24-hour breather and see if you still do. Name brands Brand names can be tempting when it comes to consumer products like cereals and soaps. But the generic versions work just as well. And when it comes to medications, generic versions can cost between 30 and 80 percent less than brand-name drugs. Ask your doctor to specify on the prescription that generic medications should be substituted for name brands. Phantom electricity Everyone wants to make sure their electronic devices are charged. But keeping your laptop and phone plugged in once they’re at full power is costing you – especially with high energy prices. To save money, make sure to power down your devices when you’re not using them and use a power strip to easily turn off several electronics at once. Procrastinating You might think it’s a good idea to wait for last-minute deals, but procrastinating can cost you in the long run. Plane tickets and hotel rooms can get more expensive the closer to the date. And procrastinating on saving money will mean less down the road. Speeding Rushing to get somewhere may be tempting, but it can also add up. On the highway, speeding can decrease your fuel mileage by up to 30 percent. That’s not counting what it will cost you if you get stopped for your leadfoot or hit another vehicle. So slow down and save. Subscription boxes The average subscription box costs between $10 and $40 per month, which means you could be spending well over $100 a year – on just one service. Think about whether you’re really using (and enjoying) the majority of the items in the box on a regular basis. If not, it might be time to cancel your subscription. Unused memberships You signed up for that gym membership with the best of intentions, but if you’re part of the 67 percent of people with a membership who never set foot in the gym, you could be wasting more than $700 a year. And if you’re a member of one of the fancier gyms, you’re wasting even more. Tax deductions you're missing Earned income tax credits were designed to help keep money in people’s pockets. But 20 percent of people who qualify for the deductions don’t take advantage of them. To make sure you get the deductions you’re entitled to, use an online tax program or hire a professional. Wasted food A trip to the grocery store may cost you money in more ways than one. Because of lack of planning, impulse buying, and cooking too much food, an average of one in five bags of groceries goes to waste. To save, make a plan before you go shopping, don’t go to the store hungry, and eat/freeze your leftovers. Image credits: Getty Images This article originally appeared on <a href="https://www.readersdigest.co.nz/food-home-garden/money/ways-youre-wasting-money-without-knowing-it?pages=1" target="_blank" rel="noopener">Reader's Digest</a>.

Money & Banking

Chokepoint Capitalism: why we’ll all lose unless we stop Amazon, Spotify and other platforms squeezing cash from creators

In 2020, the independent authors and small publishers whose audiobooks reach their readers via Audible’s <a href="https://www.acx.com/">ACX platform</a> smelled a rat. Audiobooks were booming, but sales of their own books – produced at great expense and well-reviewed – were plummeting. Some of their royalty statements reported negative sales, as readers returned more books than they bought. This was hard to make sense of, because Audible only reported net sales, refusing to reveal the sales and refunds that made them up. Perth-based writer <a href="https://www.susanmaywriter.net/single-post/audiblegate-the-incredible-story-of-missing-sales">Susan May</a> wondered whether those returns might be the reason for her dwindling net sales. She pressed Audible to tell her how many of her sales were being negated by returns, but the company stonewalled. Then, in October 2020, a glitch caused three weeks of returns data to be reported in a single day, and authors discovered that hundreds (and even thousands) of their sales had been wiped out by returns. Suddenly, the scam came into focus: the Amazon-owned Audible had been offering an extraordinarily generous returns policy, encouraging subscribers to return books they’d had on their devices for months, even if they had listened to them the whole way through, even if they had loved them – no questions asked. Encouraged by the policy, some subscribers had been treating the service like a library – returning books for fresh credits they could swap for new ones. Few would have realised that Audible clawed back the royalties from the book’s authors every time a book was returned. Good for Amazon, bad for authors It was good for Amazon – it helped Audible gain and hold onto subscribers – but bad for the authors and the performers who created the audiobooks, who barely got paid. Understanding Amazon’s motivation helps us understand a phenomenon we call <a href="https://scribepublications.com.au/books-authors/books/chokepoint-capitalism-9781761380075">chokepoint capitalism</a>, a modern plague on creative industries and many other industries too. Orthodox economics tells us not to worry about corporations dominating markets because that will attract competitors, who will put things back in balance. But many of today’s big corporations and billionaire investors have perfected ways to make those supposedly-temporary advantages permanent. Warren Buffett salivates over businesses with “<a href="https://markets.businessinsider.com/news/stocks/warren-buffett-moat-etf-simple-explanation-for-how-he-invests-and-its-easy-to-replicate-2017-10-1005613232">wide, sustainable moats</a>”. Peter Thiel scoffs that “<a href="https://www.wsj.com/articles/peter-thiel-competition-is-for-losers-1410535536">competition is for losers</a>”. Business schools teach students ways to lock in customers and suppliers and eliminate competition, so they can shake down the people who make what they supply and buy what they sell. Locking in customers and creators Amazon is the poster child for chokepoint capitalism. It boasts of its “<a href="https://feedvisor.com/resources/amazon-trends/amazon-flywheel-explained/">flywheel</a>” – a self-described “<a href="https://fourweekmba.com/amazon-flywheel/">virtuous cycle</a>” where its lower cost leads to lower prices and a better customer experience, which leads to more traffic, which leads to more sellers, and a better selection – which further propels the flywheel. <hr /> <figure class="align-center zoomable"><a href="https://images.theconversation.com/files/494907/original/file-20221111-21-lnbmh1.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/494907/original/file-20221111-21-lnbmh1.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/494907/original/file-20221111-21-lnbmh1.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=379&fit=crop&dpr=1 600w, https://images.theconversation.com/files/494907/original/file-20221111-21-lnbmh1.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=379&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/494907/original/file-20221111-21-lnbmh1.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=379&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/494907/original/file-20221111-21-lnbmh1.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=477&fit=crop&dpr=1 754w, https://images.theconversation.com/files/494907/original/file-20221111-21-lnbmh1.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=477&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/494907/original/file-20221111-21-lnbmh1.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=477&fit=crop&dpr=3 2262w" alt="" /></a><figcaption></figcaption></figure> <hr /> But the way the cycle works isn’t virtuous – it’s vicious and anti-competitive. Amazon openly admits to doing everything it can to lock in its customers. That’s why Audible encourages book returns: its generous offer only applies to ongoing subscribers. Audible wants the money from monthly subscribers and wants the fact that they are subscribed to prevent them from shopping elsewhere. Paying the people who actually made the product it sells a fair share of earnings isn’t Amazon’s priority. Because Amazon founder Jeff Bezos’ famous maxim is “<a href="https://www.marketplacepulse.com/articles/the-cost-of-your-margin-is-my-opportunity">your margin is my opportunity</a>”, the executive who figured out how to make authors foot the bill for retaining subscribers probably got a bonus. Another way Audible locks customers in is by ensuring the books it sells are protected by <a href="https://www.fortinet.com/resources/cyberglossary/digital-rights-management-drm">digital rights management</a> (DRM) which means they are encrypted, and can only be read by software with the decryption key. Amazon claims DRM stops listeners from stealing from creators by pirating their books. But tools to strip away those locks are freely available online, and it’s easy for readers who can’t or won’t pay for books to find illegal versions. While DRM doesn’t prevent infringement, it does prevent competition. Startups that want to challenge Audible’s dominance – including those that would pay fairly – have to persuade potential customers to give up their Audible titles or to inconveniently maintain separate libraries. In this way, laws that were intended to protect against infringement of copyright have become tools to protect against infringement of corporate dominance. Once customers are locked in, suppliers (authors and publishers) are locked in too. It’s incredibly difficult to reach audiobook buyers unless you’re on Audible. When the suppliers are locked in, they can be shaken down for an ever-greater share of what the buyers hand over. <hr /> <figure class="align-center zoomable"><a href="https://images.theconversation.com/files/494908/original/file-20221111-16-pua9cp.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/494908/original/file-20221111-16-pua9cp.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/494908/original/file-20221111-16-pua9cp.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=377&fit=crop&dpr=1 600w, https://images.theconversation.com/files/494908/original/file-20221111-16-pua9cp.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=377&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/494908/original/file-20221111-16-pua9cp.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=377&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/494908/original/file-20221111-16-pua9cp.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=474&fit=crop&dpr=1 754w, https://images.theconversation.com/files/494908/original/file-20221111-16-pua9cp.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=474&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/494908/original/file-20221111-16-pua9cp.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=474&fit=crop&dpr=3 2262w" alt="" /></a><figcaption></figcaption></figure> <hr /> How a few big buyers can control whole markets The problem isn’t with middlemen as such: book shops, record labels, book and music publishers, agents and myriad others provide valuable services that help keep creative wheels turning. The problem arises when these middlemen grow powerful enough to bend markets into hourglass shapes, with audiences at one end, masses of creators at the other, and themselves operating as a chokepoint in the middle. Since everyone has to go through them, they’re able to control the terms on which creative goods and services are exchanged - and extract more than their fair share of value. The corporations who create these chokepoints are trying to “monopsonise” their markets. “Monopsony” isn’t a pretty word, but it’s one we are going to have to get familiar with to understand why so many of us are feeling squeezed. <a href="https://www.wallstreetmojo.com/monopoly">Monopoly</a> (or near-monopoly) is where there is only one big seller, leaving buyers with few other places to turn. <a href="https://www.wallstreetmojo.com/monopsony/">Monopsony</a> is where there is only one big buyer, leaving sellers with few other places to turn. In our book, we quote William Deresiewicz, a former professor of English at Yale University, who points out in his book <a href="https://www.chicagoreview.org/william-deresiewicz-the-death-of-the-artist/">The Death of the Artist</a> that “if you can only sell your product to a single entity, it’s not your customer; it’s your boss”. Increasingly, it is how the creative industries are structured. There’s Audible for audiobooks, Amazon for physical and digital versions, YouTube for video, Google and Facebook for online news advertising, the <a href="https://www.liveabout.com/big-three-record-labels-2460743">Big Three record labels</a> (who own the big three music publishers) for recorded music, <a href="https://pluralistic.net/2022/09/12/streaming-doesnt-pay/">Spotify</a> for streaming, Live Nation for live music and ticketing – and that’s just the start. But as corporate concentration increases across the board, monopsony is becoming a problem for the rest of us. For a glimpse into what happens to labour markets when buyers become too powerful, just think about how monopsonistic supermarkets bully food manufacturers and farmers. <figure class="align-right "><img src="https://images.theconversation.com/files/494912/original/file-20221112-11-u879gw.png?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/494912/original/file-20221112-11-u879gw.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=966&fit=crop&dpr=1 600w, https://images.theconversation.com/files/494912/original/file-20221112-11-u879gw.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=966&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/494912/original/file-20221112-11-u879gw.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=966&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/494912/original/file-20221112-11-u879gw.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=1214&fit=crop&dpr=1 754w, https://images.theconversation.com/files/494912/original/file-20221112-11-u879gw.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=1214&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/494912/original/file-20221112-11-u879gw.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=1214&fit=crop&dpr=3 2262w" alt="" /><figcaption><a class="source" href="https://scribepublications.com.au/books-authors/books/chokepoint-capitalism-9781761380075">Scribe Publications</a></figcaption></figure> A fairer deal for consumers and creators The good news is that we don’t have to put up with it. <a href="https://scribepublications.com.au/books-authors/books/chokepoint-capitalism-9781761380075">Chokepoint Capitalism</a> isn’t one of those “Chapter 11 books” – ten chapters about how terrible everything is, plus a conclusion with some vague suggestions about what can be done. The whole second half is devoted to detailed proposals for widening these chokepoints out – such as transparency rights, among others. Audible’s sly trick only finally came to light because of the glitch that let authors see the scope of returns. That glitch enabled writers, led by Susan May, to organise a campaign that eventually forced Audible to reform some of its more egregious practices. But we need more light in dark corners. And we need reforms to contract law to level the playing field in negotiations, interoperability rights to prevent lock-in to platforms, copyrights being better secured to creators rather than publishers, and minimum wages for creative work. These and the other things we suggest would do much to empower artists and get them paid. And they would provide inspiration for the increasing rest of us who are supplying our goods or our labour to increasingly powerful corporations that can’t seem to keep their hands out of our pockets. <hr /> Chokepoint Capitalism: how big tech and big content captured creative labour markets, and how we’ll win them back is published on <a href="https://scribepublications.com.au/books-authors/books/chokepoint-capitalism-9781761380075">Tuesday November 15</a> by Scribe.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/194069/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> Writen by Rebecca Giblin and Cory Doctorow. Republished with permission from <a href="https://theconversation.com/chokepoint-capitalism-why-well-all-lose-unless-we-stop-amazon-spotify-and-other-platforms-squeezing-cash-from-creators-194069" target="_blank" rel="noopener">The Conversation</a>. Image: Getty Images

Money & Banking

Seven simple ways to save money now!

Could you do with a few extra dollars in your pocket each week? These handy hints make it all too easy. A few extra dollars in the kitty each week would be handy for any of us. It’s possible! It’s just a matter of finding ways to trim the fat on your expenses and stretch your dollar further. We’ve compiled some simple tricks to start today to get money in your pocket fast. They’re achievable for everyone! Grow your own food Save at the supermarket by growing your own fruit and vegies. If you have a bit of extra space out in the backyard, why not utilise it with an apple tree, a few vegies and if you have the room, why not some chickens? For beginners, mint, silverbeet, leafy greens, zucchini and cherry tomatoes are great because they don’t need too much love and attention to grow. If you’d like to start out small, a lovely planter box against the kitchen windowsill to grow herbs could be a good starting point. Basil, oregano and parsley are all simple to start with and can all be grown indoors during winter. By growing your own food you’ll save on your weekly grocery bill and be engaging your mind and moving the body. <a href="http://littleveggiepatchco.com.au/" target="_blank" rel="noopener">The Little Veggie Patch Co</a> is a Melbourne-based business dedicated to helping people grow food. Their website offers some great videos on useful tips and tricks to help you grow a vegie patch in no time. Shop online Not only could you bag yourself some great bargains that you might not be able to find in a store, you can also cut out impulse buying. This can save you a lot at the supermarket if you’re a shopper who loves to buy what’s on special. While you may think you’re saving money by doing this, you’re actually just buying items you may not have necessarily bought if you were buying your groceries online. Before buying any item online, whether it’s a new bed for your pet pooch or your grocery essentials for the week, make sure you understand the company’s shipping costs and policies. Many places offer free delivery or shipping when you buy their items but it’s best to check first. Know your concessions If you’re on the pension, you could save on utility bills, travel expenses and many other every day costs. Many companies offer discounts for Aussies on the pension, which could put a few extra dollars in your pocket each week. However, you have to tell them. They won’t apply the discounts automatically. You could save money on books, magazines and travel. For those over 60, you can apply for a seniors’ card in your state or territory. This nifty little card offers a range of discounts, such as cruises or travel insurance, magazine subscriptions, cinema and event tickets, plus a lot more. The eligibility requirements and discounts differ between states, so it’s best to contact your local social services department to find out more. Sign up for customer reward programs If you’re buying products from a particular store, you should be rewarded right? You can be, but you’ll need to sign up to a store’s loyalty or rewards program. Generally, these work by rewarding you with points each time you shop in a particular store, and then once you reach a certain amount, you get a reward. It could be a voucher, a special deal or a product. Keep a money diary or download a budget app It’s hard to save without knowing where your money is going. Nip this in the bud by keeping a record of where your money goes in one week. Be disciplined and write down every expense. If you have a smartphone, iPhone, tablet or iPad, why not download a budget app? There are plenty out there in either the Apple Store or Google Play for those wanting to take control of their savings and take note of their spending habits. Make your own gifts Do you spend a lot of money buying gifts for your kids and grandchildren? What about friends and colleagues? Birthdays, anniversaries, school achievements and other events you may buy gifts for can quickly add up to be a huge expense. To save money, why not put your skills to the test and make your own gifts? With so many material things in the world, being given a gift personally made by you could be a much nicer way of showing your affection for someone. Whether you’re great at painting or drawing, cross-stitching, making candles or baking, put your skills to the test by creating a gift that has more heart than anything you could possibly buy in a store. Cut back for one month Why not try one month without something you regularly buy but don’t need. It could be a morning coffee or tea, a magazine you buy every fortnight or your weekly indulgence of potato crisps on a Saturday night. Whatever it is, try to give it up for one month. Put aside the money you would normally use to buy this item, and deposit it into a money box at home. While this isn’t going to buy you a round-the-world airplane ticket after one month, if you do this a few times a year, you’ll soon see results. Image: Getty Images

Money & Banking

“Goodbye Little Darlin’”: Johnny Cash fan snaps up singer’s former home

After just two months on the market, the sprawling ranch Johnny Cash built in the hills of California has been snagged by a generous local fan. <a href="https://www.oversixty.com.au/property/real-estate/walk-the-rooms-inside-the-house-that-johnny-cash-built" target="_blank" rel="noopener">With an asking price of $US 1.795 million</a> ($NZ 3.16 million), the home’s new owner paid an extra $55,000 ($NZ 96,000) for the keys to the six-acre ranch. The Ring of Fire singer reportedly built the ‘60s style compound in Ventura, California, in 1961 as an escape from Los Angeles and a place where he and his wife, Vivian, could raise their two daughters. Unlike other celebrity neighbours, it seems that Cash was on friendly terms with the locals, with residents from the nearby village of Casitas Springs recalling Cash setting up speakers on the hillside outside his home and playing concerts for the people living below, per <a href="https://www.realtor.com/news/celebrity-real-estate/johnny-cash-fan-buys-the-singers-former-ranch-in-ventura/" target="_blank" rel="noopener">realtor.com</a>. In 1966, the couple divorced, with Cash marrying June Carter two years later and relocating to Nashville. Vivian later offloaded the five-bedroom home in the 1970s. Even after all these years, the property still features details from when Cash called it home, including a wall-mounted timetable and painted ceilings “imbued with glitter”, according to <a href="https://www.realtor.com/realestateandhomes-detail/8736-Nye-Rd_Ventura_CA_93001_M13740-10847" target="_blank" rel="noopener">the listing</a>. His wood-panelled studio has also been preserved. Built with high windows, the studio was designed so the six-foot singer could look out without others being able to see in. The panelled walls, wagon wheel chandeliers and curved brick fireplace in the living room also add to the rustic feel of the home’s interior. Outside, you’ll find cypresses and oak trees, a large pool and spa, and a hillside barbecue area where Cash taught his daughters to shoot - with spent shells still being found there sometimes. With the property being zoned for livestock and plenty of fields ready for planting, it’ll be up to the new owner to decide on the fate of the iconic home. Images: Realtor.com / Getty Images

Real Estate

Stranded opera singer busks to earn cash after cancelled flights

After her flight home was cancelled, one Jestar passenger said she was forced to busk for money until she could get home. Edit Pali had travelled to a remote resort in Phuket with her husband Tibor to celebrate her 50th birthday when a cancelled flight saw their stay extend for another five days. Having spent a large portion of their savings on their trip, the couple were faced with the problem of paying for their additional days in the resort. Ms Pali told <a href="https://9now.nine.com.au/a-current-affair/stranded-aussie-jetstar-passengers-speak-out/04c064ba-f60c-43dd-8ba8-640595f8ddc9" target="_blank" rel="noopener">A Current Affair</a> that the airline had offered them $30 for meals and $150 for accommodation each day in compensation - but the money failed to arrive. “I’m a tough chook but I cried, I really cried,” she said. Taking advantage of her skills as an opera singer, Ms Pali decided to sing for her supper at breakfast, lunch and dinner while they waited for the funds to come through. "We're just average people, we don't make a lot of money, so for us to go away to Thailand for a week to a luxury resort, that was a big enough chunk into our savings,” she added. A Jetstar spokesperson said they were aware of Ms Pali’s situation and were doing “everything we can”. But Ms Pali isn’t the only person affected by a cancelled flight, as six out of 11 of Jetstar’s 787 planes were grounded earlier this month. At least 4,000 passengers travelling on popular winter routes, including to Bali, Thailand, and Japan, have been affected by delays and cancellations, with the airline blaming lightning, bird strikes and parts shortages. "Our teams work around the clock to get passengers on their way as soon as possible and we provide a range of support, including help to cover accommodation and meals costs as well as other reasonable expenses," the airline said. In a statement, Jetstar said Ms Pali and her husband were due to have their expense claim paid by September 27. Image: A Current Affair

Travel Trouble

Savings accounts or term deposits: where should you put your cash?

Whether you’re saving money for the short or the long term, choosing between a <a href="http://mozo.com.au/savings-accounts-" target="_blank" rel="noopener">savings account</a> or a <a href="http://mozo.com.au/term-deposits" target="_blank" rel="noopener">term deposit</a> should be a considered decision. The key differences between the two need to be balanced against your financial goals to help you decide which way to go. Access to your money –Term deposits lock your money away for a period of time starting at a minimum of one month and up to as long as several years. So make sure you won’t need to get your hands on your cash for a while. Savings accounts give you more direct access to your money but generally offer a lower interest rate than their term deposit counterparts. They let you take your money out when you need or want it. Interest rates –Savings accounts have variable interest rates, so they can change. Some rates are introductory so they’re only held for a certain amount of time, then they drop to a lower variable rate. Read the fine print to see if and when the rate changes, and to what amount. Some savings accounts give you bonus interest if you don’t make a withdrawal or you make a minimum monthly deposit. Be aware too that some accounts might reduce your interest if you withdraw too much or too often. Term deposits offer fixed interest for the length of your term. So once you’ve opened a term deposit, if rates go down, your money isn’t affected because the rates are locked in. Usually the longer the term you choose, the higher the interest rate on offer (although it’s not always the case). It’s worth keeping an eye out for special interest rate offers, too. Starting amounts –Term deposits generally have a minimum amount that you need to start with – often it’s at least $1,000. You can start a savings account from zero. Image: Getty Images Flexibility –Savings accounts let you add more money whenever you like. Term deposits generally don’t. Which suits –You need to ask yourself what your savings objectives are. Accessible cash for immediate requirements through a savings account is attractive but for longer-term objectives such as that trip or new car you’ve been eyeing off, the term deposit attracting higher interest and forcing you to refrain from dipping into your account will have you winning in the long run. If you open a term deposit, it’s good to maintain a savings account as well. That way you can keep adding to your savings and when you reach a certain amount, you’ve got the option of possibly starting another term deposit. If you’ve got enough for a term deposit now, shop around for the best deal. There are savings account and term deposit comparison websites which can help make this easier, but it’s also worth checking out different banks and other providers too.

Money & Banking

Surprising differences in how we use credit cards and cash

With more credit cards used by Kiwis than ever is definitely seems as though New Zealanders are addicted to the convenience of not having to pay with cash. But what is the impact of this on New Zealand consumer behaviour? Since the late 1990’s researchers have been interested in understanding the psychology behind credit card use, not least because of the proliferation of debt in the consumer market and the concern of the ease with which to gains these cards (and debt) preys on vulnerable consumers. A 1998 study conducted by George Lowenstein and his colleagues that was published in 2001 made the finding that payments with cash elicited quite a different emotional response to payments made with credit cards or any other payment methods where the actual payment is to a certain extent “delayed”. The suggestion is paying by traditional methods with cash requires a physical transaction that can be more painful than paying for something with credit, where you see a figure on the receipt but you’re not actually handing over a physical amount of money in real life. In another experiment as part of the project, Mr Lowenstein observed that people were willing to pay much more for a particular event with credit cards than with cash, with the premium ranging anywhere between 60 and 113 per cent more, which represents quite a significant difference. Similar research has also found people are more likely to spend money when given $50 in cash rather than $50 in a gift voucher, they were more likely to spend a higher proportion of that in the latter rather than the former, which is again probably because of the lack of physical exchange. So what does this mean for you? Well, if you’re looking to tighten your purse strings around the house, opting to make more purchases with cash might just be the best way to do it. By making your purchase with cash you’re statistically likely to be less likely to overspend and more mindful of the items you are actually buying, which could lead to significant savings down the track. Willpower can be hard, especially when shopping, but this is an easier way to make willpower happen. Image: Getty Images

Money & Banking

Three-time lottery winner reveals her secrets to cash in

A woman from the US has won her third lottery in five years, and while she has some tips and tricks up her sleeve, she insists her victories are still down to the luck of the draw. The 30-year-old stay-at-home mum recently won $100,000 off a lucky scratch ticket, according to Maryland Lottery officials. “I couldn’t believe it when I saw how much I’d won,” she told lottery officials, “I immediately called my husband and said, ‘We did it again.’” When asked by the lottery officials how she had managed to win for the third time, she said she had done her research. “We figure out which scratch-off games have been on sale for a long time but still have a lot of big-money prizes,” she said. The information that helped her win is available on the Maryland Lottery website. The $100,000 Lucky game, for example, debuted last September and still has more than 40 top prizes available. Still, the woman said there’s an element of luck, especially when it comes to choosing where to buy the ticket. She picked a certain convenience store in her town based on sheer intuition. “I knew that they sold a big-ticket a few weeks ago,” she said. “I hoped that there was still some luck hanging around there.” As for the prize money, the lucky woman says she’s putting it all in the bank for her children. Despite her repeated wins, she’s still in shock, saying, “This is as crazy as it was the other times. It’s unbelievable.” Image credits: Getty Images

Money & Banking

"Walk the rooms": Inside the house that Johnny Cash built

Johnny Cash's former home has hit the market, with the California property expected to sell for up to $1.8 million. Cash, who passed away in 2003 at the age of 71, shared the property with his first wife, Vivian Liberto, and the home is adorned with the relics of Johnny's love for music. The house features a wood-panelled recording studio, wall-mounted turn tables and a country motif living room. The artist reportedly built the 4,500 sq. ft. home in Casitas Springs, California, back in 1961 as an escape from his demanding lifestyle. Johnny and Vivian, along with their three daughters, spent six years in the homestead retreat, which was rumoured to be built to Cash's exact wishes. According to the listing agents of Douglas Elliman, "Johnny bought the land and built the house to his exact specifications, walking the rooms and deciding on exact placement and layout. He created a secluded sanctuary, unique to this rural small-town enclave. Longtime locals recount stories of Johnny setting up speakers on the hillside outside the house and playing concerts for the townspeople down below." Inside the five bedroom home, most rooms remain original to Johnny and Vivian's vision, with painted ceilings featuring a touch of glitter, an original wall-mounted turntable and intercom system, and curved brick fireplace in the family room. Despite a modern uplift in the his and hers suites, the property is undeniably Cash's with custom wood built-ins, exposed brick walls, natural wooden beams and a country motif living room. The grounds are equally mesmerizing with live oaks, verdant gardens, a sparkling swimming pool, and corrals and fields ready for horses, pigs, goats, chickens or other rural uses. Image credits: Douglas Elliman Realty

Real Estate

Prince Charles denies wrongdoing for reportedly accepting bags of cash

Prince Charles reportedly accepted a suitcase containing €1 million ($NZD 1.67 million) in cash from a Qatari sheikh in 2015, according to recent reports - and it is one of three payments that will be reviewed by the UK’s Charity Commission. According to The Sunday Times, the senior royal received a total of €3 million ($NZD 5.02 million) from Sheikh Hamad bin Jassim bin Jaber Al Thani, the former prime minister of Qatar, between 2011 and 2015. Clarence House has denied that there was any wrongdoing in Charles’ acceptance of the money as charity donations and said the money was “passed immediately to one of the prince’s charities who carried out the appropriate covenants and assured us that all the correct processes were followed”. On one occasion, Charles reportedly received €1 million in carrier bags from high-end grocer Fortnum & Mason. At another, in 2015, Charles accepted another €1 million in a holdall during a one-on-one meeting at Clarence House. Two advisors from the royal household reportedly counted the cash by hand, which was said to be made up of now-discontinued €500 notes, which earned the nickname “bin Laden” because of links to funding terrorism, per <a href="https://honey.nine.com.au/royals/prince-charles-denies-any-wrongdoing-over-bags-of-cash-claim/0face1c8-1ebb-4139-a91c-9c9aa0dee13c" target="_blank" rel="noopener">9Honey</a>. The money was understood to have been collected by private bank Coutts, with each payment being deposited into the accounts of the Prince of Wales’ Charitable Fund (PWCF). As the prince’s meetings with Hamad were private, they don’t appear in the Court Circular - the official record of court engagements - but they do raise questions about how much Charles knew about the cash and where it came from. Sir Ian Cheshire, the chairman of PWCF, said on Friday that “there was no failure of governance” in relation to the organisation receiving the funds. “At a few hours’ notice from The Sunday Times, we have checked into this event in the past, and confirm that the previous trustees of PWCF discussed the governance and donor relationship, (confirming that the donor was a legitimate and verified counterparty) and our auditors signed off on the donation after a specific enquiry during the audit. There was no failure of governance.” After confirming that he was referring to the 2015 payment, Sir Cheshire added: “I believe the same assurance applied to earlier donations and look forward to confirming that in due course.” Though there is no suggestion that the payments were illegal, a Charity Commission spokesperson said on Sunday that they will be reviewed by the Commission. “We are aware of reports about donations received by the Prince of Wales’ Charitable Foundation,” they said in a statement. “We will review the information to determine whether there is any role for the Commission in this matter.” It comes as London police continue to investigate a separate allegation that the prince’s top aide, Michael Fawcett, offered to help a Saudi billionaire secure a knighthood and British citizenship if he donated to The Prince’s Foundation, another of Charles’ charities. Fawcett resigned from his role as chief executive of the foundation in light of the allegations. “We are disappointed not to have been given more time to look into this matter, which dates from a decade ago,” Clarence House said in relation to reports from The Sunday Times. “In the few hours we have had on a Saturday, we have confirmed that Charitable donations were received from sheikh Hamad bin Jassim, and these were passed immediately to one of the prince’s charities who carried out the appropriate governance and have assured us that all the correct processes were followed.” Image: @clarencehouse (Instagram)

Legal

Man accused of stealing $16,000 from wedding functions

A man has been accused of allegedly gatecrashing eight weddings and stealing a total of $16,000 and other gifts. The 24-year-old Melbourne man pretended to be a wedding guest at eight events from between April 2 and May 22. He allegedly stole $16,000 cash, jewellery and gift cards from at least three of the events. Bride Kellee Pace said she felt violated when she found out that the man had allegedly stolen some of her and her husband’s gifts and even wrote in their guest book. "It was the best wedding he'd apparently ever attended and he was feeling awesome and lucky on the night, three quarters of our wishing well was missing," she told Nine News. "We definitely felt really violated, we were mingling with people and he was downstairs drinking in the bar and we had no idea he was even there." The wedding industry shared his photo around before he was spotted at a Macedonian wedding by wedding planner Jasmine Arapovic. "My dad then put him in a bit of a headlock to make sure he didn't try and escape before I could have a chat with the venue manager to get them to put him in a room." Police arrested the man and he was slapped with 27 charges, including aggravated burglary, burglary, theft and going equipped to steal. Police will allege they found jewellery and gift cards when they searched a property on Tuesday. He has been granted bail and will appear before Melbourne Magistrates' Court on October 18. Images: Nine News

Money & Banking

Why the use of cash is rapidly declining

When was the last time you used cash to pay for something? Do you even have cash in your wallet right now? The way we pay has drastically changed over the past few years with so many new options available, such as buy-now-pay-later and contactless payments. According to the annual <a href="https://worldpay.globalpaymentsreport.com/en" target="_blank" rel="noopener">Global Payments Report</a>, cash payments in Australia will amount to just two per cent of transactions by 2025. The report also predicts that digital wallets that are readily available with just two clicks on a smartphone, will be the preferred method of payment in just two years. This will overtake the use of credit and debit cards. About 40 per cent of transactions across the country are composed of debit cards, following closely with credit cards at 35 per cent, digital wallets sitting at 11 per cent, cash seven percent, and buy-now-pay-later options at a mere four per cent. Thanks to Covid-19 and periods of lockdown, most Aussies opted out of using cash, with the Australian Banking Association reporting a decline in use of ATMs by 20 per cent. "Covid-19 accelerated trends in our society and changed the way we live our lives. Working from home will forever be more prominent within the workforce, we have steered away from using cash and as a result are seeing an increase in card and technology payments and the existing trend of doing banking online instead of in a branch has only continued," ABA chief executive Anna Bligh told <a href="https://www.9news.com.au/national/australia-cash-use-declining-predicted-to-be-two-per-cent-value-in-2025/29a6febb-f8ab-49cf-9462-56fd20a22a33" target="_blank" rel="noopener">Nine News</a>. "As we have seen more people go away from using branches, it's no surprise to see banks invest in areas where customers prefer to bank, such as in their online platforms and apps.” The ABA also showed that one in 10 Aussies regularly leaves their home without their wallet, while more than one in three use digital wallets weekly. Image: Shutterstock

Money & Banking

11 things to stop buying that’ll save you tons of cash

You can save a heap of money when you’re a little more savvy about where, and what you’re spending it on. Cut these simple things out of your life and you’ll be amazed how much you can save. Lunch bags Sure, your plastic lunch bags are convenient, and we’ve gotten into the habit of buying box after box. But the frequent buying of single-use plastic bags does add up at the end of the year. And they are contributing (negatively) to our mounting plastic pollution problem.<a rel="noopener" href="https://www.torontoenvironment.org/how_long_does_it_take_for_a_plastic_bag_to_break_down" target="_blank"> In fact, plastic bags may spend 500 to 1,000 years or longer in landfill</a>. Although you will have to outlay more for reusable silicon sandwich bags initially, they are endlessly useful. Easy to wash (you can even stack them upside down in the dishwasher) and re-use, these non-toxic bags seal well, are biodegradable (when they have finally passed their use-by-date) and are also microwave safe. As we’ve discussed, the world is drowning in plastic, but there are <a rel="noopener" href="https://www.readersdigest.com.au/home-tipsscience-technology/9-brilliant-ways-other-countries-are-replacing-plastic" target="_blank">many countries that are leading the way in how they deal with the plastic pandemic</a>. Impulse buys We’re not just talking about the items that catch your eye when you shop hungry or wait in the checkout line – but certainly resist those too. The amount of time we spend online makes it easy to see something we never knew we wanted and then, thanks to a few touches and swipes, have it heading our way within minutes. To resist impulse buys, make a rule that all items must sit in an online shopping cart for a minimum of one day before buying. Bonus: some companies offer you a discount when they notice you haven’t yet popped in your credit card details. But, be sure in the end, that need, not the discount, informs your decision. Cleaning products So many of the store-bought cleaning products taking up your cupboard space really could be replaced with a few pantry items (cleaning vinegar and baking soda are two that top the list). <a rel="noopener" href="https://www.readersdigest.com.au/home-tips/why-clean-with-herbs" target="_blank">DIYing your own </a>is easier than you think – it’s mostly a matter of getting into the habit – and the right formulas really do work. Commit to replacing just one of your regular cleaning products with a homemade option. Get used to that, then keep going! Unnecessary groceries One third of all food produced for human consumption ends up being uneaten and discarded every year – around 1.3 billion tonnes of food – costing the global economy close to $940 billion. That’s bad news for your wallet and the environment. Some tips to help: <ul> <li>Check the fridge before you shop, plan your meals and make a shopping list.</li> <li>Get creative with leftovers – overripe fruit and veggies make great smoothies. If you don’t want a smoothie right there and then, pop the overripe fruit and veg in the freezer to use at a later date.</li> <li>When eating out and you don’t finish your food, ask for a ‘doggy bag’.</li> </ul> Paper towels While microfibre cloths will cost you more than paper towels, they will last you way longer. Invest in a stash of pretty cloth napkins, colour-coded for different cleaning jobs, and pop them in the washing machine when they get grotty. This way you will effectively keep paper products out of your kitchen. Greeting cards All those $3 and $5 purchases really do add up. Switching to free ecards instead of sending across the kilometres saves you money on postage, too. Can’t stand the thought of not giving them something to have and to hold? If making cards is up your alley, go for it! (Hold an afternoon card-making session to build up a stash.) Or, just buy an inexpensive box of all-occasion cards, and you’re good to go for years to come. New clothes Stop before you buy new and consider less expensive (and more eco-friendly) thrift and vintage items instead. When looking for current fashion, visit op shops. There are plenty of online alternatives to op shop, too. Vintage items – those 25 years or older – are great for special occasions and statement pieces. They’re easiest to score at local vintage stores or specialised online sites such as the Etsy vintage section. Eating out Dining out costs Australian households almost $5,000 a year, according to <a rel="noopener" href="http://www.the-drop.com.au/wp-content/uploads/2016/11/EatingOutinAustralia_2017_Respondent-Summary.compressed.pdf" target="_blank">Eating Out In Australia</a>. While no one wants to give up going out altogether, there are all kinds of ways you can bring that number down. Plan to take lunch to work or school more often. (Make it fun so it doesn’t feel like you’re skimping.) Go out during happy hour, meet for lunch instead of dinner, or opt for a potluck meal at home – using whatever food is available in your kitchen – instead of an evening out once in a while. App and in-app purchases Schedule some time to review your app subscriptions and quit any you no longer use. (Subscriptions that are automatically billed each month are easy to forget about.) If there are any you do use that have a particularly high in-app purchase rate, research free or low-cost replacements. You could also set a monthly limit that you’re comfortable with, and disable in-app purchases once you’ve met it. And here’s an idea: use apps to save money instead. Apps like You Need a Budget are designed to do just that. Bottled water If you haven’t already, it’s time to stop paying for bottled water when you can get it at home for virtually nothing. If you’re concerned about taste or quality, invest in a water filter. Sparkling water isn’t exactly cheap, either. If you’ve developed a fizzy-water habit, consider a Soda Stream and make your own. You’ll also be cutting down on piles of plastic. And you won’t have to lug home heavy shopping bags full of something you can get out of your tap or water filter. Also, invest in a reusable water bottle so you can take water with you while out and about, and refill at water stations. Name-brand items While it’s true that some generic items don’t compare quality-wise to their higher-priced brand-named counterparts, it’s also true that some generic products are literally identical. This is true of hundreds of items, including patent medicines, food and household items. Written by Elizabeth Flaherty. This article first appeared in <a rel="noopener" href="https://www.readersdigest.co.nz/food-home-garden/money/11-things-to-stop-buying-thatll-save-you-tons-of-cash" target="_blank">Reader’s Digest</a>. Find more of what you love from the world’s best-loved magazine, <a rel="noopener" href="https://readersdigest.innovations.co.nz/c/readersdigestemailsubscribe?utm_source=over60&utm_medium=articles&utm_campaign=RDSUB&keycode=WRA93V" target="_blank">here’s our best subscription offer</a>.

Retirement Income

13 money-saving tips that can be misleading

Differentiating bad advice from good People love giving advice, especially when it comes to saving money. However, that doesn’t mean you should believe in every piece of advice you hear. After all, following the wrong money-saving tips can actually cost you in the long run. To help you differentiate bad advice from the good, we made a list of 13 money-saving tips that actually don’t pay. Getting suckered into buy-one-get-one (BOGO) deals When it’s genuine, it is hard to resist. Whether it’s BOGO free or BOGO half price, you have to stop and ask yourself: would I really have bought this much of this item at this price anyway? If you’re shopping for jam and see BOGO free on jam, that’s probably a great time to stock up. But if you’re looking for a new pair of runners and see BOGO half off, stop and think. You went out looking to spend $60 on runners. Now you’re spending about $100. Did you even want two pairs? Will you wear them both? Do you even like the second pair? Building an emergency fund but not contributing to super It’s essential these days to have an emergency fund. Financial experts say you need six months to one year’s worth of expenses. But experts also agree that you need to look after your financial future. If you’re squirreling money away into an emergency fund or savings account but not putting money into a super fund or another long-term plan, you’re not preparing for something you know is coming: old age. And with compound interest being what it is, every day you put it off is dollars wasted. When it comes to saving, the simpler, the better. And what could be simpler than ‘The $5 Savings Plan,’ i.e. stashing every $5 note that comes your way? It’s a surprisingly effective way to put some money aside. A Boston Globe writer who stuck with the plan saved $12,000 in three years. Always choosing the cheapest price tag I’ve said it before, I’ll say it again – buy cheap, buy twice. If you buy a screwdriver set for $1 at a dollar shop or get your shoes for a few bucks at a flea market stall, chances are you’ll be buying them again real soon. Cheaply made, poor-quality items may save you a few bucks in the short term, but you’ll only have to pay more later to replace them. And if you replace them with more cheap junk, you’ll be repeating the cycle. The only time this is not true is when you’re buying generic brands in the supermarket – you’re often getting the same product that’s in the brand-name packaging. Taking store credit card offers for discounts but paying the minimum That 30 per cent off is a good deal, if you actually pay off the balance in full right away. Sadly, many people find it way too easy to pay the much smaller minimum payment. Before long, you’re paying the minimum every month and adding more to the store card, and you’re suddenly a credit card revolver who is paying hefty interest charges. Not putting money in the parking meter for quick outings You may be a world-class speedy shopper or errand runner, but everyone’s luck runs out sometime. Chances are you’ll eventually get a ticket, which can run you anywhere from $45 to well over $200 in some cities, depending on where you live. Buying food in bulk and throwing half of it away When you see a whole bunch of bananas on sale for less than half the regular price, you grab them. Then you watch them turn black because you bought too many. While buying in bulk is good for lots of things, be careful when buying perishables. It’s not a bargain if you throw them away. Avoiding regular visits to the dentist It’s something I did as a student when money was tight. Well, after skipping regular cleanings and check-ups for a few years, I needed a bunch of costly fillings. Now I have a dental plan that covers check-ups, but even if you don’t, get to the dentist. It’s a lot better to pay for a visit now than to pay for major work later. Putting off investing until you're 'rich' It might be hard to think about investing when you’re not making a lot of money. After all, shouldn’t you wait until you’re well-established in your career to start thinking about that? Well, not really. Even if you just started out in your career, it’s never too early to start an investment account. According to Listen Money Matters, a Betterment (fixed-term) account is a good option for people who are just starting their portfolio. Avoiding all debt You probably know that an unpaid credit card balance or high-interest loan can significantly hurt your credit score. However, that doesn’t mean all kinds of debt will. According to Fidelity, certain kinds of debt with low-interest rates (like mortgages) can actually help you achieve your personal goals without harming your credit score in the process. While you should still try and make sure you pay your credit balance in time every month, there’s no harm in keeping an open mind when looking at loan options. Trying to buy a house as soon as possible Most of us regard owning a property as a sure sign of being established. However, rushing into buying a home can actually do more harm than good. Ending up with a mortgage that you’re struggling to pay off, or receiving a great job offer in a different city when you’ve already bought a house can actually harm your finances. After all, there is no harm in renting an apartment until you’re absolutely sure about your future plans. Depending on credit cards instead of an emergency fund One of the biggest financial mistakes you can make is to depend on a credit card during an emergency. Yes, you can put an unforeseen expense, such as an emergency bill, on a credit card and pay it later. However, thanks to interest, you’ll end up paying back a lot more than you spend. Your best bet in preparing for a real financial emergency would be building up an emergency fund, preferably consisting of three to six months’ worth of living expenses. Not sticking to a budget When you’re making enough money to cover your expenses, budgeting can seem unnecessary. However, without a budget, it’s easy to lose track of how much money you’re spending. To avoid spending yourself into debt without realising make a monthly budget and stick to it. Avoiding credit cards There’s no denying that credit card debt is harmful to your finances. However, that doesn’t mean you should avoid getting a credit card. As long as you pay your balance in full each month, making purchases with your credit card can be worthwhile. Written by Paul Michael. This article first appeared in <a rel="noopener" href="https://www.readersdigest.co.nz/culture/13-money-saving-tips-that-can-be-misleading" target="_blank">Reader’s Digest</a>. For more of what you love from the world’s best-loved magazine, <a href="http://readersdigest.innovations.com.au/c/readersdigestemailsubscribe?utm_source=over60&utm_medium=articles&utm_campaign=RDSUB&keycode=WRA93V">here’s our best subscription offer.</a>

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Why the use of cash is rapidly declining

11 things to stop buying that’ll save you tons of cash

13 money-saving tips that can be misleading