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Being carers costs women more than $500,000 over a lifetime, leaving them with less in retirement than men

<a href="https://theconversation.com/profiles/myra-hamilton-8638">Myra Hamilton</a>, <a href="https://theconversation.com/institutions/university-of-sydney-841">University of Sydney</a> By the time they retire, women typically have about <a href="https://link.springer.com/book/10.1007/978-981-97-5461-8">one third</a> less superannuation than men. This can amount to more than <a href="https://www.carersaustralia.com.au/wp-content/uploads/2024/03/Final-Economic-impact-income-and-retirement-Evaluate-Report-March-2022_2024EDIT.pdf">$500,000</a> when wages and super are combined over their lifetime. The gendered super gap has narrowed over the last few decades, as women have joined the workforce <a href="https://www.abs.gov.au/articles/changing-female-employment-over-time#:%7E:text=Women's%20participation%20in%20paid%20work,women%20are%20also%20working%20longer.">in increasing numbers</a> and the superannuation system has matured. But progress is too slow. If we keep tracking as we are, we can’t expect parity until <a href="https://www.womeninsuper.com.au/application/files/3816/8782/3898/7._Not_up_for_discussion.pdf">2070</a>. So why is the gap so persistent? <h2>Making super compulsory</h2> For most of the 20th century, Australia’s retirement incomes system produced more equal outcomes because the age pension is not linked to a person’s lifetime earnings. But the introduction of <a href="https://www.australianretirementtrust.com.au/learn/education-hub/superannuation-history-australia">compulsory super</a> in 1992 linked lifetime earnings and retirement income. The gender super gap arises because women and men have different patterns of paid work and earning over their lifetimes. Women have <a href="https://www.wgea.gov.au/the-gender-pay-gap#:%7E:text=conscious%20and%20unconscious%20discrimination%20and,responsibilities%2C%20especially%20in%20senior%20roles">14% lower</a> average weekly earnings than men. This is due to <a href="https://www.wgea.gov.au/the-gender-pay-gap#:%7E:text=conscious%20and%20unconscious%20discrimination%20and,responsibilities%2C%20especially%20in%20senior%20roles">three factors</a>: <ul> <li> women are much more likely to have unpaid care responsibilities. As a result, they take career breaks, work fewer hours, or work in jobs incommensurate with their skills </li> <li> discrimination, bias and lack of workplace flexibility mean better pay and career outcomes for men and fewer opportunities for people to combine work and career with care responsibilities </li> <li> occupational segregation means women are concentrated in female-dominated industries, which tend to attract lower wages than male-dominated ones. </li> </ul> Over a lifetime, these factors limit women’s capacity to earn and to accumulate super. On average, a woman in full-time permanent employment accumulates <a href="https://www.wgea.gov.au/sites/default/files/documents/Women%27s%20economic%20security%20in%20retirement.pdf">17.7% less</a> superannuation per year than a man in an equivalent role. That amounts to A$1,540 less per year. This annual shortfall compounds over time resulting in a wide gender super gap by the time women retire. <h2>How does this work in practice?</h2> The interruptions to work caused by providing unpaid care reduces people’s opportunities for accumulating superannuation. For example, having a child leads to substantial reductions in mothers’ workforce participation and earnings. Women’s earnings <a href="https://treasury.gov.au/sites/default/files/2023-03/p2023-372004.pdf">fall</a> by an average of 55% in the first five years after entry into parenthood. In contrast, research suggests men’s earnings are <a href="https://treasury.gov.au/sites/default/files/2023-03/p2023-372004.pdf">unchanged</a>, or even <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5340267/#:%7E:text=Over%20time%2C%20unmarried%20but%20coresident,support%20for%20egalitarian%20gender%20roles.">increase</a>, after they become parents. So parenthood has a much greater impact on a mothers’ super than a fathers’. One <a href="https://melbourneinstitute.unimelb.edu.au/assets/documents/hilda-bibliography/hilda-conference-papers/2007/Parr,-Nicholas_final-paper.pdf">estimate</a> suggests having a child reduces a woman’s superannuation balance at age 60 by about $50,000 and a man’s by $5,000. It’s not just parenthood. <a href="https://www.aihw.gov.au/reports/australias-welfare/informal-carers">One in 10</a> Australians provide care for an ageing relative or person with a disability or chronic illness. Women do most of this unpaid care. Unpaid carers <a href="https://bristoluniversitypressdigital.com/view/journals/ijcc/6/3/article-p318.xml">often</a> reduce their working hours, withdraw from work, or put their careers on hold. Among primary carers <a href="https://www.wgea.gov.au/gender-equality-and-caring#:%7E:text=Primary%20carers%20are%20carers%20who,carers">only 58%</a> are in paid work. According to a <a href="https://www.carersaustralia.com.au/wp-content/uploads/2024/03/Final-Economic-impact-income-and-retirement-Evaluate-Report-March-2022_2024EDIT.pdf">recent study</a>, on average, by age 67, primary carers have lost $392,500 in lifetime earnings and $175,000 in super. Some older workers, especially women, also care for their grandchildren. More than a <a href="https://aifs.gov.au/sites/default/files/2022-07/Grandparents%20and%20child%20care%20in%20Australia_0.pdf">quarter</a> of grandparents of a child aged 13 or under provide care for the child in a typical week, usually while the parents work. In a <a href="https://nationalseniors.com.au/uploads/09151356PAC_GrandparentsChildcareLabourForceParticipation_Report_FINAL_Web_0.pdf">recent</a> study, 70% of grandparents, mostly grandmothers, providing regular childcare reported they adjusted their work to accommodate it. One in three reported it had negative impacts on their financial security as they aged. These factors compound over a lifetime. Many Australians provide care for multiple family members simultaneously, or at different times throughout their lives. Women in employment are more likely to be in lower paid positions, and lower paid industries and occupations. Employees in feminised industries such as community services (including paid care workers) and retail have among the <a href="https://www.superannuation.asn.au/wp-content/uploads/2024/01/2311_An_update_on_superannuation_account_balances_Paper_V2.pdf">lowest</a> median super balances, less than half of those of managers and professionals. <h2>What is the solution?</h2> The gender super gap reflects deep inequalities in the distribution of work, incomes and care responsibilities between women and men across their lives. How do we fix it? Policy and public debate has focused on boosting women’s workforce participation. More women in work, means higher incomes and more saving, reducing the gender super gap, right? Yes, up to a point and rates of <a href="https://www.abs.gov.au/articles/changing-female-employment-over-time">women’s workforce participation</a> are increasing. But we also know in Australia, we have a <a href="https://nationalseniors.com.au/uploads/09151356PAC_GrandparentsChildcareLabourForceParticipation_Report_FINAL_Web_0.pdf">preference</a> for some family care of young children, and for care of adults with disability and older people in the <a href="https://www.aihw.gov.au/reports/australias-welfare/australias-welfare-2017-in-brief/contents/ageing-aged-care">community</a>. This means many parents and carers will continue to have at least some interruptions to paid work, reducing their super contributions. We also know when women are encouraged to enter paid work, care responsibilities are often “redistributed” to other women. When mothers enter or re-enter paid work it’s often <a href="https://theconversation.com/caught-in-an-intergenerational-squeeze-grandparents-juggle-work-and-childcare-47939">grandmothers</a> who step in, frequently reducing their incomes and super. For care of ageing <a href="https://www.cambridge.org/core/journals/ageing-and-society/article/abs/an-integrative-analysis-of-sibling-influences-on-adult-childrens-caregiving-for-parents/038C6F299E62380F9C954A9A586A28CD">parents</a> it is often non-working female siblings that step in. As the savings potential of one group of women increases, the savings potential of another decreases. Where care can’t be redistributed to other women within the family, it is redistributed to paid early childhood education and care, disability support, and aged care services. All of these services are dominated by women. As a highly feminised industry, the caring roles are <a href="https://www.abc.net.au/news/2024-08-14/why-are-nurses-and-childcare-workers-so-poorly-paid/104218868">poorly remunerated</a>, so those doing the care, while paid, are themselves limited to save enough super. Boosting women’s workforce participation is an important step. But another is to pay super contributions to parents during the time they are off work providing childcare, as <a href="https://ministers.pmc.gov.au/gallagher/2024/super-boost-new-parents#:%7E:text=It%20means%20that%20eligible%20parents,to%20their%20nominated%20superannuation%20fund.">recently</a> agreed by the federal government. But we need an <a href="https://www.unsw.edu.au/newsroom/news/2015/04/carers-deserve-more-credit-in-the-retirement-incomes-debate">equivalent</a> for other kinds of unpaid carers. Even so, as long as care continues to circulate between different groups of women – older women, low paid women – and as long as care isn’t valued for the large social and economic contribution it makes, the gender super gap will persist. To close the persistent gender gap, we need to go further, encouraging greater men’s involvement in care, and providing better recognition and remuneration of unpaid and paid care. <hr /> This article is part of The Conversation’s retirement series, in which experts examine issues including how much money we need to retire, retiring with debt, the psychological impact of retiring and the benefits of getting financial advice. Read the rest of the series <a href="https://theconversation.com/au/topics/retirement-series-2024-168372">here</a>.<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/240323/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/myra-hamilton-8638">Myra Hamilton</a>, Associate Professor, gender, ageing and care, <a href="https://theconversation.com/institutions/university-of-sydney-841">University of Sydney</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/being-carers-costs-women-more-than-500-000-over-a-lifetime-leaving-them-with-less-in-retirement-than-men-240323">original article</a>.

Money & Banking

The cost of loving our pets – a guide for owners

Every year <a style="color: #0563c1;" href="https://southerncrosspet.co.nz">Southern Cross Pet Insurance</a> supports tens of thousands of pet parents and their furry friends to ensure they can access the healthcare their pets need to stay fit, well and active. Former vet nurse and Southern Cross expert Kerri Murray says there are countless reasons you might need to bring your pet to the vet, from routine checkups and vaccinations to more serious health concerns. She stresses the importance of knowing how to act in different situations. “Just like humans, pets need different vets for different reasons – your local vet will generally be able do all sorts of things including some surgeries, a little like an experienced family GP, whereas an emergency vet or specialist vet is advisable for treatment of major illness or trauma or things like knee reconstruction. The New Zealand Veterinary Association (NZVA) encourages pet owners to keep emergency veterinary clinics for emergencies only, so that pets needing urgent care can be seen as quickly as possible. They recommend you call your vet first and seek advice on whether your dog or cat may need emergency care. If you can wait a while, you can then see your usual vet, who has the advantage of knowing your pet’s health record and how your pet will probably respond to treatment. Vet visits can be costly as there’s no free public healthcare for pets. “Even the most well-behaved pets aren’t immune to having accidents or getting up to mischief – but there’s no such thing as ACC or publicly funded healthcare for cats and dogs,” says Murray. The SCPI team recently canvassed veterinary clinics up and down New Zealand to understand treatment costs. The numbers were independently verified and can be used by owners to understand what they may have to pay for Charlie or Loki (very popular names for pets insured with Southern Cross!) Your hound may develop arthritis as it ages, so expect to pay $1,000 to $4,500 for diagnosis and annual treatment. Likewise pets can develop allergies which can cost between $1,000 to $4000 for annual care. Grasses and some foods are often the culprits. A broken leg which can result from a high jump or accident could end up with costs to treat ranging from $1,000 to $7,000 When it comes to cats, wound treatment and surgical procedures resulting from a cat fight could set an owner back $500 to $1,800. Cancerous lump removal can cost between $900 to $3,000 and urinary infections can cost between $200 to $3,000. If your beloved is hit by a car, treatment and surgery costs could range from $800 to $3,000. Kerri Murray says, “Our experience shows it’s important not to underestimate how much vet bills can be. Pets give us so much joy, but when they are sick or injured there’s no safety net unless you have the peace of mind of pet insurance, especially when you end up at a specialist emergency vet. <h3 style="margin: 14pt 0cm 0cm; line-height: 17.12px; break-after: auto; font-size: 12pt; font-family: 'Calibri Light', sans-serif; color: #1f4d78; font-weight: normal;">More specialist care, less stress</h3> Southern Cross Pet Insurance customers can now access an exclusive 10% discount on treatment at VSA’s three hospitals in Auckland and Christchurch for both their specialist services and the 24 hour emergency care in Auckland. On top of that, they can take advantage of a service called <a style="color: #0563c1;" href="https://www.southerncrosspet.co.nz/pet-hub/news/partners-with-veterinary-specialists-aotearoa">Pet Easy-Claim</a>, which is available for treatment costs exceeding $1,000. The Pet Easy-Claim service streamlines the process at a time when pet parents are often feeling overwhelmed. “If your pet’s treatment qualifies, VSA will handle the claim directly with us,” Murray explains. “We’ll pay what’s covered under your policy straight to the provider, so you only need to cover the balance.” It’s a win-win for pet parents, prioritising the health and well-being of their animals while removing some of the financial stress. <h3 style="margin: 14pt 0cm 0cm; line-height: 17.12px; break-after: auto; font-size: 12pt; font-family: 'Calibri Light', sans-serif; color: #1f4d78; font-weight: normal;">Protecting pets just makes sense</h3> Southern Cross Pet Insurance currently helps care for the health of over 65,000 pets in New Zealand, highlighting the popularity—and necessity—of having a plan in place. “Pets bring us so much joy, but when they’re sick or injured, it can be tough emotionally and financially,” Murray reflects. While routine checkups and minor ailments are part of being a pet parent, emergencies can and do happen. Knowing how to act in different scenarios, whether it’s a trip to your family vet or an emergency clinic, is crucial. And having pet insurance takes it a step further, giving you the peace of mind that your pet’s health is in good hands—even when faced with unexpected costs. Sign up for pet insurance or find out more <a style="color: #0563c1;" href="http://www.scpi.co.nz/">here</a>. This is a sponsored article produced in partnership with Southern Cross Pet Insurance

Family & Pets

What cost-of-living crisis? Luxury travel is booming – and set to grow further

<a href="https://theconversation.com/profiles/anita-manfreda-1544057">Anita Manfreda</a>, <a href="https://theconversation.com/institutions/torrens-university-australia-899">Torrens University Australia</a> About ten years ago, while working at Badrutt’s Palace Hotel in the Swiss town of St Moritz, I was shocked to learn a guest once <a href="https://towerrevue.com/life-style/the-party-never-ends/">requested an elephant</a> be brought in to deliver a birthday gift to his wife. And the hotel made it happen, squeezing the elephant into the lobby. This over-the-top gesture symbolised what luxury travel once meant: wealth and power, expressed through grand displays. Think millionaires and billionaires in lavish suites and on private yachts, enjoying <a href="https://www.sciencedirect.com/science/article/pii/S2211973621001392">exclusive services</a> most of us would never dream of, let alone actually ask for. Consulting group McKinsey defines the luxury traveller as someone prepared to spend <a href="https://www.mckinsey.com/industries/travel-logistics-and-infrastructure/our-insights/updating-perceptions-about-todays-luxury-traveler">US$500 or more per night</a> on accommodation. But luxury tourism is evolving. Thanks to demographic shifts, sustainability concerns, and a post-pandemic desire for connection, luxury travel has become more personal and meaningful. And luxury travellers these days aren’t always the super rich elites. Despite the cost-of-living crisis, luxury travel is <a href="https://www.virtuoso.com/getmedia/8c9e8d73-7529-4989-a8c1-cc464d71a9d4/2024-Press-Conference_FINAL-(2).aspx">booming</a>. So, what’s driving this growth and how is luxury travel changing? <h2>A trillion dollar industry</h2> The luxury travel sector has shown remarkable resilience, even during economic downturns and the COVID pandemic. Globally, it is projected to grow from <a href="https://luxonomy.net/report-on-the-countries-contributing-the-most-luxury-tourists-globally-2024-2030/">US$1.4 trillion</a> in 2024 to $2.2 trillion by 2030. The Asia-Pacific region is leading the surge at a compound annual growth rate of <a href="https://www.grandviewresearch.com/industry-analysis/asia-pacific-luxury-travel-market-report">8.6%</a> (a way of measuring growth that assumes profits are reinvested) from 2024 to 2030. In Australia, the trend is similar: the luxury travel market generated US$37.4 billion in 2023 and is forecast to reach <a href="https://www.imarcgroup.com/australia-luxury-travel-market">US$70 billion</a> by 2032. This growth is driven not just by affluence among the wealthy but by younger travellers. As <a href="https://www.forbes.com/sites/suzannerowankelleher/2024/05/29/new-luxury-traveler-younger-less-affluent/">Forbes magazine</a> points out, these travellers are often non-millionaires who may not earn enormous salaries or even own their own homes – but are willing to pay top dollar for meaningful experiences. And some are splurging on trips to make up for time and opportunities lost due to the pandemic – a trend industry experts sometimes refer to as “revenge” and “<a href="https://latteluxurynews.com/2024/08/19/no-slow-down-in-luxury-experiences-belles/">revelry</a>” travel. As one <a href="https://latteluxurynews.com/2024/08/19/no-slow-down-in-luxury-experiences-belles/">luxury travel industry</a> observer put it: <blockquote> We’re seeing travel at all costs, where people are determined to have the experience they want, regardless of what that price is. </blockquote> Many consumers are <a href="https://www.bain.com/about/media-center/press-releases/2024/global-luxury-spending-to-land-near-1.5-trillion-in-2024-remaining-relatively-flat-as-consumers-prioritize-experiences-over-products-amid-uncertainty">prioritising luxury travel</a> experiences over other discretionary items, including luxury goods. <h2>Luxury can have many meanings</h2> Today’s luxury travel isn’t just about extravagance; it can also include forking out for meaningful experiences. Luxury travellers are willing to pay up for holidays that promise <a href="https://journals.sagepub.com/doi/abs/10.1177/13567667231172995">authenticity, wellness and connection</a> with people and places. It can mean access to something rare, like an uncrowded natural environment or an authentic cultural experience that feels deeply personal. It can also come from <a href="https://www.sciencedirect.com/science/article/pii/S2211973621001392">expertise</a> – like appreciating the nuances of a rare bottle of wine, or touring a place with an expert or celebrity guide who has been there many times before. Where it was once defined by price and status symbols, luxury travel today is about <a href="https://journals.sagepub.com/doi/abs/10.1177/13567667231172995">stories worth sharing</a> (on social media and in real life) and experiences that align with personal values. <h2>Wellness, adventure and the digital detox</h2> In my 17 years of working in and researching luxury travel, I have seen a lot of different luxury holidaymakers. Everything from humble retirees relishing the rewards of their hard work to VIP celebrities who send 32 pages of requests before even stepping foot in the hotel. While older high-net-worth individuals from North America and Europe remain a significant demographic, a growing proportion of luxury travellers are millennials, Gen Z, and tourists from <a href="https://www.mckinsey.com/industries/travel-logistics-and-infrastructure/our-insights/updating-perceptions-about-todays-luxury-traveler#/">emerging markets</a> like Asia and the Middle East. Traditional hallmarks of luxury travel – like presidential suites and private islands – are still popular among high-net-worth individuals. But a growing number of travellers seek cultural experiences, adventure, and <a href="https://www.mckinsey.com/industries/travel-logistics-and-infrastructure/our-insights/updating-perceptions-about-todays-luxury-traveler#/">small, intimate group</a> trips. These travellers are opting for <a href="https://www.virtuoso.com/getmedia/8c9e8d73-7529-4989-a8c1-cc464d71a9d4/2024-Press-Conference_FINAL-(2).aspx">off-peak seasons</a> and less-visited destinations to avoid crowds, and may be more vocal about sustainable tourism. The future of luxury travel lies in its ability to adapt to evolving consumer values. <a href="https://www.nytimes.com/2024/01/18/travel/luxury-travel-wellness.html">Wellness</a> retreats, <a href="https://www.cntraveler.com/story/luxury-train-travel-is-entering-another-golden-age">slow</a> travel (including by train), and <a href="https://www2.deloitte.com/content/dam/Deloitte/global/Documents/gx-the-future-of-luxury-travel-2-the-sustainability-imperative.pdf">sustainability-focused</a> experiences are becoming central to the luxury travel narrative. In a hyper-connected world, luxury travel marketing is now often linked with the idea of a <a href="https://www.forbes.com/sites/sandramacgregor/2024/08/05/peace-and-quiet-11-luxury-global-resorts-for-a-true-digital-detox/">digital detox</a>. The chance to disconnect and fully immerse in the moment has become a modern indulgence. Luxury travellers today use their trips to <a href="https://www.sciencedirect.com/science/article/pii/S1447677023000207">explore and learn</a>, and to <a href="https://www.thetimes.com/article/why-extreme-escapism-is-the-latest-luxury-travel-trend-pntgrsr8b?id=21336839644&gad_source=1&region=global">reconnect with the world</a>, their relationships, and themselves.<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/244727/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/anita-manfreda-1544057">Anita Manfreda</a>, Senior Lecturer in Tourism, <a href="https://theconversation.com/institutions/torrens-university-australia-899">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/what-cost-of-living-crisis-luxury-travel-is-booming-and-set-to-grow-further-244727">original article</a>.

International Travel

What is reformer pilates? And is it worth the cost?

<a href="https://theconversation.com/profiles/hunter-bennett-1053061">Hunter Bennett</a>, <a href="https://theconversation.com/institutions/university-of-south-australia-1180">University of South Australia</a>; <a href="https://theconversation.com/profiles/jacinta-brinsley-1419359">Jacinta Brinsley</a>, <a href="https://theconversation.com/institutions/university-of-south-australia-1180">University of South Australia</a>, and <a href="https://theconversation.com/profiles/lewis-ingram-1427671">Lewis Ingram</a>, <a href="https://theconversation.com/institutions/university-of-south-australia-1180">University of South Australia</a> Reformer pilates is <a href="https://www.globenewswire.com/news-release/2024/10/18/2965312/0/en/Pilates-Reformer-Market-Set-to-Reach-USD-11-848-3-Million-by-2031-Driven-by-Growing-Health-Awareness-and-Advancements-in-Portable-Equipment-FMI.html#:%7E:text=Key%20Takeaways%3A,8.2%25%20over%20the%20forecast%20period.">steadily growing in popularity</a>, with new studios opening regularly in major cities all over the world. But what exactly is reformer pilates? And how does it compare with regular pilates and other types of exercise? Classes aren’t cheap so let’s look at the potential benefits and drawbacks to help you decide if it’s right for you. <h2>Pilates with special equipment</h2> Pilates is a <a href="https://www.sciencedirect.com/science/article/abs/pii/S1360859201902372">mode of exercise</a> that focuses on core stability and flexibility, while also addressing muscular strength and endurance, balance and general fitness. At first glance, it might look a bit like yoga, with some more traditional weight training components thrown in. Reformer pilates uses a piece of equipment called a “reformer”. This looks like a narrow bed that slides along a carriage, has straps to hold onto, and has adjustable springs that add resistance to movement. You perform pilates on the reformer to target specific muscle groups and movement patterns. The reformer was first designed to help <a href="https://www.taylorfrancis.com/chapters/edit/10.4324/9781003524625-19/pilates-rehabilitation-brent-anderson">people recover from injuries</a>. However, it has now become common for general fitness and even <a href="https://journals.sagepub.com/doi/epdf/10.1177/1089313X06010003-406">sports performance</a>. Unlike normal pilates, also known as “mat pilates”, which only uses your body weight, the reformer adds resistance, meaning you can change the difficulty according to your current level of fitness. This not only provides a way to overload your muscles, but can make the exercise session more aerobically demanding, which has been proposed to <a href="https://figshare.utas.edu.au/articles/journal_contribution/Equipment-based_pilates_induces_a_cardiovascular_response_in_older_adults_an_observational_clinical_trial/22943213?file=40678763">improve cardiovascular fitness</a>. <h2>What are the benefits of reformer pilates?</h2> Despite being around for decades, there is surprisingly little research looking at the benefits of reformer pilates. However, what we have seen so far suggests it has a similar effect to other modes of exercise. Reformer pilates has been shown to help with <a href="https://files.eric.ed.gov/fulltext/EJ1250306.pdf">weight loss</a>, cause some <a href="https://www.tandfonline.com/doi/full/10.1080/03630242.2015.1118723?casa_token=weWacL5JmM8AAAAA%3AjlXtB-o29eDTHNegdvvfxa9FUT1iY18T0niXDdDpzgbn9AhMK4fgF1RQWLwyo3tVic49h9vhH4Ux">small increases in muscle mass</a>, and enhance <a href="https://www.sciencedirect.com/science/article/pii/S1360859224004558?casa_token=rEKoc-x8WoMAAAAA:Zvgqtp7SPNbWoTtxRb8-x5HCy0XD2M74Ky-7bBU2yFgGMOnyw2aJQDKCdep40AqRobWgR0V3yA">cognitive function</a>. All of these benefits are commonly seen when combining weight training and cardio into the same routine. Similarly, among <a href="https://www.sciencedirect.com/science/article/abs/pii/S1360859217302280?casa_token=txnU400G7DQAAAAA:KQLBRYBWuZ0asqaOJ4agUKZj2nFljuxFvCQFZeZQh53h0ZIp07qJ_4TuyCQto4c-BB1kzMpWug">older adults</a>, it has been shown to improve strength, enhance flexibility and may even reduce the risk of falling. From a rehabilitation perspective, there is some evidence indicating reformer pilates can improve <a href="https://www.sciencedirect.com/science/article/pii/S1360859216300857?casa_token=tQyxWGoPam8AAAAA:jlIpAr2ZuD3bjKKtT4qHbDz2dr_Tm2k4Cgb22qw_NQRb5gtLsJdYV7P0DuRlVWN04kI9p_dSOQ">shoulder health and function</a>, reduce <a href="http://www.jkspm.org/journal/view.html?uid=1105&&vmd=Full">lower back pain</a> and <a href="https://ksep-es.org/journal/view.php?number=1084">increase flexibility</a>. Finally, there is some evidence suggesting a single session of reformer pilates can improve two key markers of <a href="https://karger.com/ger/article-abstract/70/7/764/906990/Effect-of-60-Min-Single-Bout-of-Resistance">cardiovascular health</a>, being flow-mediated dilation and pulse wave velocity, while also <a href="https://pmc.ncbi.nlm.nih.gov/articles/PMC9098105/">improving cholesterol and insulin levels</a>. This suggests reformer pilates could lead to long-term improvements in heart and metabolic health, although more research is needed to confirm this. However, there are some key things to consider when discussing these benefits. Most of this research is quite exploratory and comes from a very small number of studies. So we do not know whether these findings will apply to everyone. Very few studies compared reformer pilates to other types of exercise. Therefore, while it can improve most aspects of health and function, it’s unlikely reformer pilates provides the optimal mode of exercise for each individual component of physical fitness. Traditional weight training, for example, will likely cause larger improvements in strength than reformer pilates. Similarly, stretching will <a href="https://theconversation.com/new-research-shows-how-long-hard-and-often-you-need-to-stretch-to-improve-your-flexibility-242488">probably make you more flexible</a>. And running or cycling will make you fitter. However, if you want a type of exercise that gives you broad overall health benefits, it could be a good option. <h2>What are the downsides of reformer pilates</h2> Reformer pilates is not for everyone. First and foremost, classes can be expensive compared to other fitness options. You need to be doing at least two to three sessions per week of any type of exercise to <a href="https://www.who.int/publications/i/item/9789240015128">maximise the benefits</a>. So even if you can find a class for A$20 or $30, paying for two or three classes a week (or buying a weekly or monthly subscription) is a significant outlay. Second, it’s not as accessible as other exercise. Even if you can afford it, not every town or suburb has a reformer pilates studio. Third, the effectiveness of your workout is likely to be impacted by how competent your instructor is. There are a host of different pilates qualifications you can get in Australia, and some take much less time than others. With this in mind, it might be best to look for <a href="https://www.pilates.org.au/about/">accredited pilates instructors</a>, although this will further reduce the number of options you have available. Finally, there is a learning curve. While you will get better over time, the exercise will likely be less effective during those first few weeks (or months) when you are getting used to the machine and the movements. <h2>Is it right for you?</h2> Reformer pilates can be a great addition to your fitness routine, especially if you’re looking for a low-impact way to build strength and flexibility. But if you have more specific goals, you might need a more specific mode of exercise. For example, if you need to get stronger to improve your ability to manage your daily life, then strength training is probably your best bet. Likewise, if your goal is to run a marathon, you will get more specific benefits from running. The cost and availability of reformer pilates make it less accessible for some people. With this in mind, if you are after similar benefits at a lower price point, mat pilates might be a better option. Not only does it have evidence suggesting it can improve <a href="https://journals.lww.com/ajpmr/FullText/2018/06000/Effects_of_Mat_Pilates_on_Physical_Functional.6.aspx?casa_token=7s6iayoW_s4AAAAA:ajVm-FSTsMeUsuUVH4fpv63bQb_eN0DgduCw7K83K4IlJ3OSQyNKCeoWb_tQZhEV3dRDa3dXwPYE7euORvMAwLM&casa_token=zUcAB1qT0a4AAAAA:KpwLVGmBXbLo0es1xEBF7SAJPIBy6mKoVzCWOLiFFHAnn4LbGHA3febsR9jhygDyNsNnobmKM2ukMJNPGixdypY">strength and fitness</a>, but it is something you can do at home if you find a good resource (<a href="https://www.youtube.com/watch?v=44HquH6QyXc">YouTube</a> could be a good starting point here). <a href="https://theconversation.com/profiles/hunter-bennett-1053061">Hunter Bennett</a>, Lecturer in Exercise Science, <a href="https://theconversation.com/institutions/university-of-south-australia-1180">University of South Australia</a>; <a href="https://theconversation.com/profiles/jacinta-brinsley-1419359">Jacinta Brinsley</a>, Exercise Physiologist and Postdoctoral Researcher in the Alliance for Research in Nutrition, Exercise and Activity, <a href="https://theconversation.com/institutions/university-of-south-australia-1180">University of South Australia</a>, and <a href="https://theconversation.com/profiles/lewis-ingram-1427671">Lewis Ingram</a>, Lecturer in Physiotherapy, <a href="https://theconversation.com/institutions/university-of-south-australia-1180">University of South 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/what-is-reformer-pilates-and-is-it-worth-the-cost-244634">original article</a>.

Body

Track your spending, use cash and DIY gifts: how to keep your costs down this Christmas

<a href="https://theconversation.com/profiles/angelique-nadia-sweetman-mcinnes-1361909">Angelique Nadia Sweetman McInnes</a>, <a href="https://theconversation.com/institutions/cquniversity-australia-2140">CQUniversity Australia</a> Australians are expected to spend more this Christmas than last, with spending projected to rise to <a href="https://www.shopassociation.org.au/sites/default/files/uploaded-content/field_f_content_file/2024-australian-christmas-shopping-intentions-research-report-cpmaustralia-retailsafari-1.pdf">A$69.7 billion</a>. This is a 2.7% increase on what we spent last year on gifts, food and other treats for ourselves and others. This is a lot at a time when many people are experiencing mortgage stress and high inflation. But by employing smart budgeting and spending strategies we can enjoy a festive Christmas season without huge financial stress. <h2>Know how much you are spending</h2> Being aware of what you are spending is important. So you don’t spend beyond your means, you need to decide what you are going to buy and track what you spend. Using budgeting tools in your banking app will help you monitor your spending. Your bank’s app or a <a href="https://www.savings.com.au/savings-accounts/budgeting-and-saving-apps">variety of budgeting apps</a>, can also help you find deals and stick to your financial goals. <a href="https://doi.org/10.1093/jcr/ucac024">Research</a> shows spending decreases when you use an online budgeting app by 15%. Christmas budgeting means setting clear limits, like a gift allowance for each person of, for example, under $10, $25, $50 or $100. This helps us stay on track. Before shopping, we should also ask ourselves: “Is this worth buying?” or “Do I really need this?”. <h2>How to bag a bargain</h2> About <a href="https://www.shopassociation.org.au/sites/default/files/uploaded-content/field_f_content_file/2024-australian-christmas-shopping-intentions-research-report-cpmaustralia-retailsafari-1.pdf">63% of Australian consumers</a> say they start their shopping in November, before the last-minute push to fill the Christmas stockings. This enables them to take advantage of the Black Friday sales on now and Cyber Monday, next Monday. Online research can uncover decent bargains to lower Christmas spending. Or you could wait until the Boxing Day sales to buy discounted gifts for people you don’t see until after December 25. The post-Christmas sales are also good for stocking up on heavily discounted crackers and decorations for next year. <a href="https://www.shopassociation.org.au/sites/default/files/uploaded-content/field_f_content_file/2024-australian-christmas-shopping-intentions-research-report-cpmaustralia-retailsafari-1.pdf">Most Australian shoppers</a> (89%) are combining online (websites, mobile apps, social media) with physical in-store shopping. <a href="https://www.shopassociation.org.au/sites/default/files/uploaded-content/field_f_content_file/2024-australian-christmas-shopping-intentions-research-report-cpmaustralia-retailsafari-1.pdf">Major online retailers</a> such as Amazon, eBay, and The Iconic (69%) are now more popular than department stores (59%). There are also thrift and discount stores which offer affordable gifts while using their income to help those in need. By using the internet to compare prices and set price alerts for goods you want to buy, you are more likely to get the best deals. Take time to search for store discounts. Using loyalty programs, coupons, promo codes, and free shipping also helps keep money in your pocket. <h2>Why cash at Christmas is better</h2> The <a href="https://ministers.treasury.gov.au/ministers/jim-chalmers-2022/media-releases/ensuring-future-cash-and-next-steps-phasing-out-cheques#:%7E:text=The%20Government%20will%20mandate%20that,will%20not%20be%20left%20behind.">federal government’s decision</a> last week to require businesses to accept cash, not just credit or debit cards, also has benefits for saving. Cash purchases encourage you to spend wisely, set your <a href="https://resources.depaul.edu/financial-fitness/tackle-overspending/Pages/solutions-for-overspending.aspx">spending limit, and prevent you from overspending, or paying interest and fees on cards</a>. There is also the old “<a href="https://www.ramseysolutions.com/budgeting/envelope-system-explained">cash envelope system</a>” used for centuries and popularised in the 1990s to help curb spending. This sees cash divided into envelopes, each labelled for a specific expense (for example, gifts for A, B, C). Once the money in the envelope is gone, nothing more can be spent. One way to help boost your Christmas budget; while simultaneously decluttering, your home is to sell items you no longer use. There are numerous online sites and bricks and mortar stores where this can be done. <h2>Saving money with DIY</h2> In 2024, Australians will spend an average of <a href="https://www.shopassociation.org.au/sites/default/files/uploaded-content/field_f_content_file/2024-australian-christmas-shopping-intentions-research-report-cpmaustralia-retailsafari-1.pdf">$660 per shopper on gifts</a>, with popular choices including clothing and shoes, books, and gift cards. However, it’s not necessary to buy all your gifts or Christmas decorations. Consider making affordable handmade gifts to add a personal touch. There are demonstration videos online showing you how to re-purpose old items, bake homemade festive treats, create a special moments photo album or scrapbook. Mix Epsom salts, essential oils and dried flowers to create relaxing bath salts or scrubs. Use natural pine cones or salt dough to make ornaments. Make wreaths using pine branches, holly or dried oranges. Sew fabric garlands to place on the tree, fireplace or mantle. Instead of buying multiple extravagant presents for each person, try doing a Secret Santa. This is the low-cost tradition where everyone buys only one gift for one recipient who is chosen using an online tool. Gifts are then given anonymously. <h2>Festive food</h2> Festive food spending is projected to be <a href="https://www.roymorgan.com/findings/9736-ara-roy-morgan-media-release-christmas-spending-2024">$28 billion, up 4.2%</a>, this year, contributing to the overall increase in expected total Christmas spending. To save on food expenses, asks guests to bring a dish to share. Or celebrate Christmas with an economical picnic or BBQ, weather permitting. Get creative with food leftovers to make meals and reduce the amount of food waste, while stretching your wallet further once Christmas has come and gone. <h2>Managing costs, avoiding debt</h2> Sticking to your Christmas budget can feel rewarding. If you do overspend, reflect on why, and adjust your plan. If needed, explore debt options, like credit cards or personal loans, but only as a last resort. Thoughtful planning will help you manage your costs, while enjoying the festive season. After all, the true spirit of Christmas is about creating memories and enjoying time with loved ones, not about overspending.<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/244300/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/angelique-nadia-sweetman-mcinnes-1361909">Angelique Nadia Sweetman McInnes</a>, Academic in Financial Planning, <a href="https://theconversation.com/institutions/cquniversity-australia-2140">CQUniversity 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/track-your-spending-use-cash-and-diy-gifts-how-to-keep-your-costs-down-this-christmas-244300">original article</a>.

Money & Banking

Readers response: What have you had to cut out of your life to cope with cost of living pressures?

As the cost of living continues to rise, many people have had to cut things out of their day to day spending to cope with the financial struggles. We asked our readers what they have had to cut out of their budgets to cope with cost of living pressures, and the response was overwhelming. Here's what they said. Wendy Oliver - We don’t eat out often at all… I spend too much in the supermarket. Christine Brooks - I've cut out steak, good nutritional foods, TV streaming, entertainment, haircuts, new clothes, pets, pool cleaning, and more. Kerrie Dare - I limit steak meals. I've stopped my haircuts to every 4 months. Internet is getting chopped. I can only afford exercise classes twice a week. I don't eat as much fruit as I used too. I only buy groceries when on special. One bottle of wine per fortnight. One slice of sourdough in the morning, which means the loaf lasts a week. I turn on my washing machine around every 10 days & I have quick showers. No eating out or take away. Maybe one cup of coffee per week with a friend. Movies once every 6 weeks as a social group. No concerts or clubs. I drive only locally, so a tank of petrol lasts 1 month. No weekends away. Jane Dawes - No coffees, beauty treatments, hairdresser, eating out, takeouts etc. The trouble is not affording to spend on certain items has a flow on effect for businesses. Everyone is suffering. Lois E. Fisk - Going out to eat or see movies in the cinema or live plays or new clothes. I shop at the least expensive grocery stores as much as possible, and good cuts of meat rarely happen. Janice Stenning - Don't go to the hairdressers as often and don't buy as many clothes. Debra Dugar - Thinking about dropping my extras cover of my insurance. By the time I pay for it, I can't afford the gap you have to pay. Robyn Lee - Living in my own house. I now live with my family. Rhondda Hughes - Well, petrol is expensive so I have to really think if I can afford to visit anyone. I can’t eat meat much and even vegetables can be expensive. We have three chickens so they give us eggs but good quality eggs and healthy chickens require money too. Fortunately I live in Perth so, in comparison to other states, it isn’t as cold however the cost of heating is a significant consideration and therefore I just tend to go to bed. <div style="font-family: inherit;">Felicity Jill Murphy - Stopped going out to shopping centres. That's where I spend money unnecessarily.</div> <div style="font-family: inherit;">Image credits: Shutterstock </div>

Money & Banking

Massive cost of global outage revealed

Experts have estimated that the global CrowdStrike IT outage has cost more than $1.5 billion in damages, as thousands of businesses were affected by the mass disruption. On Friday afternoon, thousands of workers and business who rely on the Microsoft computer system were hit with the "blue screen of death", as computers, EFTPOS machines and even the airport display screens froze. It was later revealed to be a bug wrought from a software update, originating from Texas-based cyber security firm CrowdStrike. The simple tech fail brought much of the world to its knees for hours, as airports, hospitals, shops, business, media outlets and banks were impacted. One American cyber expert estimated that compensation claims could easily top $1 billion USD ($1.5 billion AUD). However, it looks like the damages will be a lot more than that, as Business NSW estimated that in NSW alone, businesses racked up an eye-watering $200 million bill in damages. CrowdStrike has yet to address millions of questions about how it plans to compensate customers, although the company's CEO George Kurtz said the firm is concentrating all its efforts on fixing the problems, and that he believed most customers had been understanding. “My goal right now is to make sure every customer is back up and running,” Mr Kurtz said. “I think many of the customers understand it’s a complex environment and staying one step ahead of the bad guys requires these content updates.” Hundreds of thousands of businesses are expected to file for compensation with the company, as Patrick Anderson, CEO of US research firm Anderson Economic Group, told <a href="https://edition.cnn.com/2024/07/21/business/crowdstrike-outage-cost" target="_blank" rel="noopener">CNN</a>, “This outage is affecting far more consumers and businesses in a way that ranges from inconvenience to serious disruptions and resulted in out of pocket costs they can’t get back easily”. Image credits: RAJAT GUPTA/EPA-EFE/Shutterstock Editorial/Instagram

Money & Banking

Cost of living: if you can’t afford as much fresh produce, are canned veggies or frozen fruit just as good?

<a href="https://theconversation.com/profiles/evangeline-mantzioris-153250">Evangeline Mantzioris</a>, <a href="https://theconversation.com/institutions/university-of-south-australia-1180">University of South Australia</a> The cost of living crisis is affecting how we spend our money. For many people, this means tightening the budget on the weekly supermarket shop. One victim may be fresh fruit and vegetables. Data from the <a href="https://www.abs.gov.au/media-centre/media-releases/australians-consuming-fewer-vegetables-fruit-and-less-milk#:%7E:text=Paul%20Atyeo%2C%20ABS%20health%20statistics,278%20to%20267%20to%20grams.%E2%80%9D">Australian Bureau of Statistics</a> (ABS) suggests Australians were consuming fewer fruit and vegetables in 2022–23 than the year before. The cost of living is likely compounding a problem that exists already – on the whole, Australians don’t eat enough fruit and vegetables. <a href="https://www.eatforhealth.gov.au/guidelines/australian-guide-healthy-eating">Australian dietary guidelines</a> recommend people aged nine and older should consume <a href="https://www.eatforhealth.gov.au/food-essentials/five-food-groups/fruit">two</a> serves of fruit and <a href="https://www.eatforhealth.gov.au/food-essentials/five-food-groups/vegetables-and-legumes-beans">five</a> serves of vegetables each day for optimal health. But in 2022 the <a href="https://www.abs.gov.au/statistics/health/health-conditions-and-risks/dietary-behaviour/latest-release">ABS reported</a> only 4% of Australians met the recommendations for both fruit and vegetable consumption. Fruit and vegetables are crucial for a healthy, balanced diet, providing a range of <a href="https://theconversation.com/were-told-to-eat-a-rainbow-of-fruit-and-vegetables-heres-what-each-colour-does-in-our-body-191337">vitamins</a> and minerals as well as fibre. If you can’t afford as much fresh produce at the moment, there are other ways to ensure you still get the benefits of these food groups. You might even be able to increase your intake of fruit and vegetables. <h2>Frozen</h2> Fresh produce is often touted as being the most nutritious (think of the old adage “fresh is best”). But this is not necessarily true. Nutrients can decline in transit from the paddock to your kitchen, and while the produce is stored in your fridge. Frozen vegetables may actually be higher in some nutrients such as <a href="https://pubmed.ncbi.nlm.nih.gov/25526594/">vitamin C and E</a> as they are snap frozen very close to the time of harvest. Variations in transport and storage can affect this slightly. <a href="https://pubs.acs.org/doi/10.1021/jf504890k">Minerals</a> such as calcium, iron and magnesium stay at similar levels in frozen produce compared to fresh. Another advantage to frozen vegetables and fruit is the potential to reduce food waste, as you can use only what you need at the time. As well as buying frozen fruit and vegetables from the supermarket, you can freeze produce yourself at home if you have an oversupply from the garden, or when produce may be cheaper. A <a href="https://www.growveg.com.au/guides/freezing-vegetables-and-herbs-the-garden-foodie-version/">quick blanching</a> prior to freezing can improve the safety and quality of the produce. This is when food is briefly submerged in boiling water or steamed for a short time. Frozen vegetables won’t be suitable for salads but can be eaten roasted or steamed and used for soups, stews, casseroles, curries, pies and quiches. Frozen fruits can be added to breakfast dishes (with cereal or youghurt) or used in cooking for fruit pies and cakes, for example. <h2>Canned</h2> Canned vegetables and fruit similarly often offer a cheaper alternative to fresh produce. They’re also very convenient to have on hand. The <a href="https://nchfp.uga.edu/how/can#gsc.tab=0">canning process</a> is the preservation technique, so there’s no need to add any additional preservatives, including salt. Due to the cooking process, levels of heat-sensitive nutrients <a href="https://onlinelibrary.wiley.com/doi/full/10.1002/jsfa.2825">such as vitamin C</a> will decline a little compared to fresh produce. When you’re using canned vegetables in a hot dish, you can add them later in the cooking process to reduce the amount of nutrient loss. To minimise waste, you can freeze the portion you don’t need. <h2>Fermented</h2> <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6723656/">Fermentation</a> has recently come into fashion, but it’s actually one of the oldest food processing and preservation techniques. Fermentation largely retains the vitamins and minerals in fresh vegetables. But fermentation may also enhance the food’s nutritional profile by creating new nutrients and allowing existing ones to be <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9352655/">absorbed more easily</a>. Further, fermented foods contain probiotics, which are beneficial for our <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10051273/">gut microbiome</a>. <h2>5 other tips to get your fresh fix</h2> Although alternatives to fresh such as canned or frozen fruit and vegetables are good substitutes, if you’re looking to get more fresh produce into your diet on a tight budget, here are some things you can do. 1. Buy in season Based on supply and demand principles, buying local seasonal vegetables and fruit will always be cheaper than those that are imported out of season from other countries. 2. Don’t shun the ugly fruit and vegetables Most supermarkets now sell “ugly” fruit and vegetables, that are not physically perfect in some way. This does not affect the levels of nutrients in them at all, or their taste. 3. Reduce waste On average, an Australian household throws out <a href="https://www.ozharvest.org/food-waste-facts/">A$2,000–$2,500</a> worth of food every year. Fruit, vegetables and bagged salad are the <a href="https://www.ozharvest.org/food-waste-facts/">three of the top five foods</a> thrown out in our homes. So properly managing fresh produce could help you save money (and benefit <a href="https://endfoodwaste.com.au/why-end-food-waste/">the environment</a>). To minimise waste, plan your meals and shopping ahead of time. And if you don’t think you’re going to get to eat the fruit and vegetables you have before they go off, freeze them. 4. Swap and share There are many websites and apps which offer the opportunity to swap or even pick up free fresh produce if people have more than they need. Some <a href="https://www.charlessturt.sa.gov.au/environment/sustainable-lifestyles/community-fruit-and-vege-swaps">local councils are also encouraging</a> swaps on their websites, so dig around and see what you can find in your local area. 5. Gardening Regardless of how small your garden is you can always <a href="https://www.gardeningaustraliamag.com.au/best-vegies-grow-pots/">plant produce in pots</a>. Herbs, rocket, cherry tomatoes, chillies and strawberries all grow well. In the long run, these will offset some of your cost on fresh produce. Plus, when you have put the effort in to grow your own produce, <a href="https://mdpi-res.com/sustainability/sustainability-07-02695/article_deploy/sustainability-07-02695.pdf?version=1425549154">you are less likely to waste it</a>.<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/229724/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/evangeline-mantzioris-153250">Evangeline Mantzioris</a>, Program Director of Nutrition and Food Sciences, Accredited Practising Dietitian, <a href="https://theconversation.com/institutions/university-of-south-australia-1180">University of South 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/cost-of-living-if-you-cant-afford-as-much-fresh-produce-are-canned-veggies-or-frozen-fruit-just-as-good-229724">original article</a>.

Food & Wine

The cost-of-living crisis is hitting hard. Here are 3 ways to soften the blow

<a href="https://theconversation.com/profiles/ama-samarasinghe-1386754">Ama Samarasinghe</a>, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a> As our wallets feel the strain from the cost-of-living crisis, many of us are looking for ways to soften the blow. While everyone’s circumstances are different, and ideally you should seek help from an accredited financial adviser, there are some tried and true ways to work out where all your money is going and why. Here are three practical tips to reduce the impact of the cost-of-living increases, and stretch every hard-earned dollar. <h2>1. Hunt for a better loan rate</h2> For many households, the biggest hit comes from the mortgage, so start there. Even a modest 0.5% reduction can translate into substantial savings. Call your bank today and just ask for rate reduction. If the answer is no, consider shopping around for a different lender. Your loyalty to your current lender might be costing you more than you realise. Banks often reserve their most attractive rates for new customers, leaving long-time customers paying higher-than-necessary interest. Even if your bank does agree to a rate reduction, explore the market anyway. There is a range of free rate-comparison websites, or you can directly check individual bank websites. If you find a lender offering a better rate, you might consider calling the competing bank to ask about switching your mortgage to them. Or, you might seek assistance from a mortgage broker, who can guide you through the process of securing a better deal (just remember they often take <a href="https://www.canstar.com.au/home-loans/mortgage-brokers-fees/">commissions</a> from lenders). Tread carefully and factor in any exit fees or charges from your current lender. Refinancing isn’t without risk, so a thorough cost-benefit analysis is important before making the switch. Also consider the value of features such as <a href="https://moneysmart.gov.au/glossary/offset-account">offset accounts</a>. An offset account, linked to your home loan, allows you to deposit money such as your salary and savings. This money is then “<a href="https://www.rba.gov.au/publications/smp/2015/aug/box-e-offset-account-balances-and-housing-credit.html">offset</a>” against your home loan balance. That means you only pay interest on the outstanding amount (the loan minus whatever salary and savings you put in the offset). This can accelerate loan repayment and reduce interest costs. Keep in mind that offset accounts are typically only available with variable interest rates. Offset accounts work best if you have considerable savings to put into the offset account that outweigh the additional fees and charges attached to offset accounts. <h2>2. Trim your expenses and uncover hidden savings</h2> It’s time to become a budget detective, identifying and cutting down on non-essential costs that might be quietly draining your wallet. Take a close look at those recurring memberships and subscriptions. How often do you actually use that gym membership or streaming service? Many banking apps have handy spending tracking features to help you set realistic budget goals for each spending category. According to the <a href="https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/selected-living-cost-indexes-australia/latest-release">Australian Bureau of Statistics</a>, insurance and financial services are among the top risers in living cost indexes (which measure the price change of goods and services and its effect on living expenses). So search comparison websites for better insurance premiums. Australia’s insurance market is competitive, and you can often get discounts by bundling your insurances together (for example, having your home and contents insurance with the same company that also provides your car insurance). However, don’t shy away from exploring different insurers for potentially better value. Don’t overlook energy costs, either. Use comparison websites like <a href="https://www.energymadeeasy.gov.au/">Energy Made Easy</a> (or, if you’re in Victoria, the <a href="https://compare.energy.vic.gov.au/">Victorian Energy Compare</a> site) to find more cost-effective energy plans. Stay updated on rebates and concessions via the federal government’s <a href="https://energy.gov.au">Energy.gov.au</a> site, to ensure you’re maximising your entitlements. Use less energy, if you can. Small adjustments can make a significant dent in your bills. And for fuel costs, find websites and applications that allow you to lock in the lowest prices in your area. If you’re renting, ask yourself whether moving to a cheaper suburb or a cheaper home is an option. Many people use cashback sites like Cashrewards and ShopBack to accrue cashback incentives. <h2>3. Maximise returns and tackle high-interest debts</h2> While rising interest rates might make your mortgage climb, it also means high interest on your savings. Consider exploring high-yield savings accounts; with current interest rates, you could potentially earn around 5.5% with a bank savings account. Many people set up recurring transfers to help them stick to savings goals, increase deposits and maximise interest earnings. For those wrestling with high-interest debts such as credit cards or personal loans, prioritise settling outstanding balances to minimise interest payments. It can be hard to escape the long-term repercussions (such as a <a href="https://theconversation.com/payday-lending-trap-requires-a-credit-supply-rethink-39311">poor credit score</a>) of defaulting on <a href="https://www.sydney.edu.au/news-opinion/news/2022/09/21/researchers-uncover--pecking-order-of-defaults--as-belts-tighten.html">high-interest loans</a>. And approach buy-now, pay-later services with extreme caution. They may seem tempting but the <a href="https://onlinelibrary.wiley.com/doi/10.1111/acfi.13100">debts can quickly add up</a>. And if you need more help, contact the government’s free National Debt Helpline on 1800 007 007.<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/218118/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/ama-samarasinghe-1386754">Ama Samarasinghe</a>, Lecturer, Financial Planning and Tax, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a> Image credits: Getty Images 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/the-cost-of-living-crisis-is-hitting-hard-here-are-3-ways-to-soften-the-blow-218118">original article</a>.

Money & Banking

What is the ‘sunk cost fallacy’? Is it ever a good thing?

<a href="https://theconversation.com/profiles/aaron-nicholas-1487960">Aaron Nicholas</a>, <a href="https://theconversation.com/institutions/deakin-university-757">Deakin University</a> Have you ever encountered a subpar hotel breakfast while on holiday? You don’t really like the food choices on offer, but since you already paid for the meal as part of your booking, you force yourself to eat something anyway rather than go down the road to a cafe. <a href="https://www.sciencedirect.com/science/article/pii/0167268180900517">Economists</a> and <a href="https://www.sciencedirect.com/science/article/pii/0749597885900494">social scientists</a> argue that such behaviour can happen due to the “sunk cost fallacy” – an inability to ignore costs that have already been spent and can’t be recovered. In the hotel breakfast example, the sunk cost is the price you paid for the hotel package: at the time of deciding where to eat breakfast, such costs are unrecoverable and should therefore be ignored. Similar examples range from justifying finishing a banal, half-read book (or half-watched TV series) based on prior time already “invested” in the activity, to being less likely to quit exclusive groups such as sororities and sporting clubs the more <a href="https://psycnet.apa.org/record/1960-02853-001">effort it took to complete the initiation ritual</a>. While these behaviours are not rational, they’re all too common, so it helps to be aware of this tendency. In some circumstances, you might even use it for your benefit. <h2>Sunk costs can affect high-stakes decisions</h2> While the examples above may seem relatively trivial, they show how common the sunk cost fallacy is. And it can affect decisions with much higher stakes in our lives. Imagine that Bob previously bought a house for $1 million. Subsequently, there’s a nationwide housing market crash. All houses are now cheaper by 20% and Bob can only sell his house for $800,000. Bob’s been thinking of upgrading to a bigger house (and they are now cheaper!), but will need to sell his existing house to have funds for a downpayment. However, he refuses to upgrade because he perceives a loss of $200,000 relative to the original price he paid of $1 million. Bob is committing the sunk cost fallacy by letting the original price influence his decision making – only the house’s current and projected price should matter. Bob might be acting irrationally, but he’s only human. Part of the reason we may find it difficult to ignore such losses is because losses are psychologically more salient relative to gains – this is known as <a href="https://psycnet.apa.org/record/1985-05780-001">loss aversion</a>. While most of the evidence for the sunk cost fallacy comes from <a href="https://link.springer.com/article/10.1007/s40685-014-0014-8">individual decisions</a>, it may also influence the decisions of groups. In fact, it is sometimes referred to as the <a href="https://www.nature.com/articles/262131a0">Concord fallacy</a>, because the French and British governments continued funding the doomed supersonic airliner long after it was likely it would not be commercially viable. Another example is drawn-out armed conflict that involves a large loss of lives for the losing side. Some may think it impossible to capitulate because the casualties will have “died in vain”. <h2>Knowing about sunk costs can help you</h2> If you find yourself justifying behaviour due to costs you’ve paid in the past rather than circumstances of the present, or predictions of the future, it’s worth checking yourself. Identifying sunk costs allows you to cut your losses early and move on, rather than perpetuating larger losses. This is apparent in the housing example: the larger the crash, the cheaper the bigger house; and yet the larger the crash, the greater the perceived loss from selling the existing house. Hence, the greater the loss in opportunity inflicted by the sunk cost fallacy. If you find it difficult to overcome the sunk cost fallacy, it may help to delegate such decisions to others. This may include the decision of whether to <a href="https://direct.mit.edu/rest/article-abstract/93/1/193/57894/The-Flat-Rate-Pricing-Paradox-Conflicting-Effects">go to a buffet</a> or subscribe to Netflix, with the latter potentially being a double whammy: one may feel compelled to binge-watch due to the flat fee structure and, as mentioned earlier, to finish mediocre series once halfway through. <h2>Use sunk costs to your advantage</h2> A second, less obvious benefit is actively using the fallacy to your advantage. For example, many gym memberships require upfront payments regardless of how much you use the facilities. If you find it hard to ignore sunk costs, choosing gym memberships that have large upfront fees and minimal pay-per-usage fees may be a way to <a href="https://pubsonline.informs.org/doi/abs/10.1287/mnsc.2018.3032">commit yourself</a> to a regular gym habit. This can also apply to other activities that involve short-term pain for long-term gain – for example, paying for an online course will make you more likely to stick with it than if you found a free course. But be warned, this doesn’t work for everything: it seems that spending wildly on a <a href="https://onlinelibrary.wiley.com/doi/abs/10.1111/ecin.12206">wedding ceremony or engagement ring</a> doesn’t have a “sunk cost” effect – it fails to increase the likelihood of staying married.<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/217798/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/aaron-nicholas-1487960">Aaron Nicholas</a>, Senior Lecturer in Economics, <a href="https://theconversation.com/institutions/deakin-university-757">Deakin University</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/what-is-the-sunk-cost-fallacy-is-it-ever-a-good-thing-217798">original article</a>.

Money & Banking

Downsizing cost trap awaits retirees – five reasons to be wary

<a href="https://theconversation.com/profiles/erika-altmann-361218">Erika Altmann</a>, <a href="https://theconversation.com/institutions/university-of-tasmania-888">University of Tasmania</a> It’s time to debunk the myth of zero housing costs in retirement if we want to understand why retirees resist downsizing. Retirees have at least five reasons to be wary of the costs of downsizing. Retirees living in middle-ring suburbs face frequent calls to downsize into apartments to free up larger allotments in these suburbs for redevelopment. Retirees who fail to downsize into smaller units and apartments are viewed as being a greedy, baby-boomer elite, stealing financial security from younger generations. It also makes sense to policymakers for retirees to move into less spacious accommodation and make way for high-density housing. Housing think-tank AHURI <a href="http://www.ahuri.edu.au/__data/assets/pdf_file/0021/14079/AHURI_Final_Report_No_286_Australian-demographic-trends-and-implications-for-housing-assistance-programs.pdf">fosters this view</a>. Yet seniors remain resistant to moving, in part because of the ongoing costs they would face. The concept of zero housing costs in retirement is based on a 1940s view of a well-maintained, single dwelling on a single allotment of land where the mortgage has been paid off. This concept is incompatible with medium- and high-density housing and refusing to acknowledge ongoing housing costs may cause significant poverty for retirees. <h2>Reason 1 – upfront moving costs are high</h2> When a house is sold the owner receives the sale funds minus the real estate and legal fees. When the same person then buys a different property to live in, they pay legal fees plus stamp duty. For cities such as Melbourne and Sydney, these costs are likely to exceed A$70,000. These high transfer costs may mean it is not cost-effective <a href="https://theconversation.com/why-older-australians-dont-downsize-and-the-limits-to-what-the-government-can-do-about-it-76931">for the person to move</a>. <h2>Reason 2 – levies are high</h2> Because apartment owners pay body corporate levies, people often assume this is just the same as periodic payment of rates, water, insurance and other costs. It is not. Fees remissions for low-income retirees for rates, power, insurance and water are difficult to apply within a body corporate environment. As a consequence, these are usually not applied to owners of apartments. The costs of maintaining essential services, such as mandatory fire-alarm testing, yearly engineering certification, lift and air-conditioning inspections, significantly increase ownership costs. When additional services are supplied, such as swimming pools, gyms and rooftop gardens, these also require periodic inspections. Garbage collection, cleaning, gardening, concierge and strata management services also <a href="https://eprints.utas.edu.au/cgi/users/home?screen=EPrint%3A%3AView&eprintid=23322">must be paid</a>. Owners of standard suburban homes choose whether they want these services, with those on fixed incomes going without them. Annual levies for apartment buildings vary, but expect to pay between $10,000 and $15,000. They <a href="https://www.strata.community/understandingstrata/faqs">may be more than this</a>. <h2>Reason 3 – costs of maintenance</h2> <figure class="align-right "><figcaption></figcaption></figure> Apartments are often sold as a maintenance-free solution for older people. The maintenance is not free. It needs to be paid for. Maintenance costs are higher in an apartment than a standard suburban home because there are more items and services to be maintained and fixed. Lifts and air conditioning need periodic servicing and fixing. This is in addition to the mandatory inspections listed above. <h2>Reason 4 – loss of financial security</h2> It is a mistaken belief that the maintenance costs that form part of the body corporate fee include periodic property upgrades. This relates to items that are owned collectively with other apartment owners. Major servicing at the ten-year mark and usually each five-to-seven years after that include painting, floor-covering replacement, and lift and air-conditioning repair or replacement. Major upgrades may also include garden redesign or other external building enhancement including <a href="https://eprints.utas.edu.au/cgi/users/home?screen=EPrint%3A%3AView&eprintid=23315">environmental upgrades</a>. All owners share these upgrade costs. Costs of upgrading the inside of an apartment (a bathroom disability upgrade, for example) are additional again. Once the body corporate committee members pledge funds towards an upgrade, all owners are required to raise their share of the funds, whether they can afford it or not. Communal choice outweighs an individual owner’s need to delay upgrade costs. Owners who buy apartments that are part of a body corporate effectively lose control of their future financial decisions. <h2>Reason 5 – loss of security of tenure</h2> Loss of security of tenure is usually associated with renters. However, the recent introduction of <a href="http://www.lpi.nsw.gov.au/__data/assets/pdf_file/0009/25965/Termination_of_a_strata_scheme_by_RG.pdf">termination legislation</a> in New South Wales gives other owners the right to vote to terminate a strata title scheme. When this occurs, all owners, including reluctant owners of apartments within that scheme, are compelled to sell. There are valid reasons why termination legislation is desirable, as many older apartment complexes are reaching the end of their useful life. Even so, as termination legislation is rolled out across the states, owner- occupiers effectively lose control of how long they will own a property for. They no longer have security of tenure, which means retirees may face an uncertain housing future in their old age. <h2>Downsizing raises poverty risks</h2> Because current data sets do not adequately take account of ongoing costs associated with apartment living, the effect of downsizing on individual households is masked. Downsizing retirees into the apartment sector creates ongoing financial stress for older people. Creating <a href="https://theconversation.com/it-will-take-more-than-piecemeal-reforms-to-convince-older-australians-to-downsize-51043">tax incentives to move</a> does not tackle these ongoing costs. Centrelink payments for of <a href="https://www.humanservices.gov.au/customer/services/centrelink/age-pension">$404 per week</a> are well below <a href="http://acoss.wpengine.com/poverty-2/">the poverty line</a>. Yet we expect retirees to willingly downsize and to be able to cede most of their Centrelink payments to cover high body corporate costs. Requiring retirees to downsize for the greater urban good will shift poverty onto retirees who could barely manage in their previously owned standard suburban home. Failing to understand the effect of high ongoing costs associated with apartment living and reinforcing the myth of zero housing costs in retirement will continue to lead to poor policy outcomes.<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/80895/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/erika-altmann-361218">Erika Altmann</a>, Property and Housing Management Researcher, <a href="https://theconversation.com/institutions/university-of-tasmania-888">University of Tasmania</a> Image credits: Getty Images 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/downsizing-cost-trap-awaits-retirees-five-reasons-to-be-wary-80895">original article</a>.

Retirement Income

The cost of living is biting. Here’s how to spend less on meat and dairy

Food & Wine

King Charles hit hard by cost of living crisis

As the cost of living crisis continues around the world, it seems even those at the very top are not as immune from the financial uncertainty as expected. King Charles and the royal family are the latest hit by the crisis, with the Crown Estate losing half a billion pounds (approx. $950 million AUD) on its London property portfolio after the value of retail space crashed. King Charles was reportedly forced to dip into the royal reserves by £21 million (approx. $40 million AUD) due to overspending by the Palace, while staff have implemented a number of cost-cutting measures across the various royal estates including turning down the heating. Following a year of "unprecedented" royal activity that saw both the death of Queen Elizabeth and the coronation of King Charles, Buckingham Palace's net expenditure grew by more than £5 million this year, to £107.5 million (approx. $203 million AUD) in just a few short months. The spending was used on events such as the Queen Elizabeth II's Platinum Jubilee, the Queen's funeral, preparation for the King's coronation and the joining of two royal households. During a media briefing on Tuesday, Sir Michael Stevens, keeper of the royal family's Sovereign Grant, emphasised that it had been "an exceptional year" for the royal household. He said the financial strain related to a year of "grief, change and celebration, the like of which our nation has not witnessed for seven decades". The historic events, he said, have "inevitably entailed additional burdens on resources" to ensure that they were "delivered safely and smoothly, and that the change of reign was effected as seamlessly as possible at a time of great national and international interest". The Platinum Jubilee cost £700,000 (approx. $1.3 million AUD), while the Queen's funeral cost £1.6 million (approx. $3.5 million AUD). Image credits: Getty Images

Money & Banking

Ready-made foods you should avoid at all costs

<h2>Pasta dishes</h2> Those ready-made spaghetti Bolognese and creamy pasta dishes are comfort foods at their finest, but they’re not the best for your body. Skip the frozen dishes, which tend to be loaded with sodium and fat, and throw your own healthy pasta recipe together, suggests paediatric dietitian Jodi Greebel. Not only is boiling pasta quick and easy, but you also have more control over what goes into the sauce and sides. Load yours up with nutritious veggies and throw in a tin of lentils for a healthier twist on your guilty-pleasure pasta. <h2>Kids’ meals</h2> Parenting is a 24/7 job, and if you cook separate meals for your little ones, sometimes you lack the energy and time. It’s tempting to pop a frozen kids’ meal in the oven and serve dinner 20 minutes later, but that meal probably isn’t something you really want in your child’s belly. “Some meals have more than half the amount of fat a child needs for the whole day,” says Greebel. With just a teensy bit more effort, you can dish up something you can feel confident feeding your child. For standby freezer aisle meals, Greebel recommends baked chicken nuggets with frozen veggies, but fresh food can be just as easy. Pick up a rotisserie chicken to serve with two vegetables – food that will feed not just your children but the adults in the house too. Any leftovers use in tacos for tomorrow night’s meal. <h2>Low-protein veggie burgers</h2> Skipping the traditional cheeseburger for a meatless option can be better for your belly and the planet, but there’s a catch. A lot of people look at all plant-based burgers as healthy protein substitutes, but some are much higher in carbohydrates and fat than protein, says nutrition program creator Ilana Muhlstein. “Protein is important for keeping us full and preventing overeating.” Leave it on the shelf if the nutrition facts say just five grams of protein, and hunt down another veggie patty with ten grams or more, she suggests. <h2>Frozen stir-fries</h2> Frozen meals like stir-fries are loaded with sodium, thanks in part to the sauces they come in. Luckily, a healthier version is just as easy and freezer-friendly. Buy a pack of plain frozen veggies – some stores even sell stir-fry vegetables without the sauce – and throw them in your wok or frying pan with chicken or beef, suggests Greebel. Use just a bit of low-sodium soy or teriyaki sauce to keep the salt to a minimum. <h2>Fried foods</h2> So, how bad are fried foods? Chips and other frozen fried food is tasty, but it shouldn’t be a part of your regular diet. Loaded with sodium and saturated fats, it could increase your risk of heart disease and obesity. Keep some healthier snack options on hand so you’re not tempted by the fried stuff. Throw together a pita pizza instead of frozen pizza, or make chicken tacos. <h2>Two-serving meals</h2> When you’re looking for a quick and healthy single-serving dinner, buyer beware: some frozen foods look reasonable in calories, fat, and sodium at first glance, but they’re actually two servings disguised as one. Double-check the portion size before you dig in to make sure you’re not biting off more than you’d want to chew. Swap the poser out for a single-serving meal, or set half aside for leftovers. Image credit: Shutterstock This article originally appeared on <a href="https://www.readersdigest.co.nz/kitchen-tips/ready-made-foods-you-should-avoid-at-all-costs" target="_blank" rel="noopener">Reader's Digest</a>.

Food & Wine

9 cost-effective ways to warm your home this winter

Sick of hearing about the same old heating methods that never quite do the job? Try these nine unconventional heating hacks. 1. Preheat your pyjamas While you shower, put your pyjamas in the dryer to ensure that you have toasty warm clothing to change into as soon as you leave the warmth of the bathroom. For a slightly more affordable version, wrap your PJs in a hot water bottle or heat bag, not only will it heat your clothes but it will make your bed toasty warm too, just be sure to remove the hot water bottle from your bed before you settle down to sleep for the night. 2. Join the fan club It might seem counter-productive but turning a fan on at the lowest setting will help circulate heat throughout the room. Don't knock it until you try it! 3. Hottie in the car Dreading your chilly morning commute to work? Make your early start a little easier to stomach by putting hand warmers into your pockets or heat up a hot water bottle with warm water or a heat bag and put it on your lap as you drive. 4. Utilise bubble wrap For those whose home insulation isn't up to scratch, a budget-friendly trick is to use bubble wrap to insulate your windows from the inside. To create the DIY double glazing, simply get some bubble wrap and use a product like blue-tac to hold it in place on your windows. 5. Make use of your curtains Keep your house warmer for longer by making use of your curtains and the limited winter sun. To do this, open all of your curtains on a sunny morning and allow the house to soak up as much heat as possible during the day. As night falls, let your curtains act as an additional piece of insulation by closing them at dusk and trapping heat inside the house. 6. Cuddle your pet When in doubt, a great way to stay warm on a cold night is by sharing body heat. While snuggling up with your partner might make you a little bit warmer, cuddling a furry pet will heat you up a lot faster. The key to success with this hack is to cuddle up with the fluffiest animal possible, so try and find a friend with a Ragdoll cat or a St Bernard. 7. Go camping… indoors Just because it's winter doesn't mean you can't go camping... well, as long as it's in the living room. For a warm night's sleep, fill up a tent with pillows and blankets, make sure it's all zipped up and settle down for the night. The enclosed space will heat up by trapping the air and using your body warmth to make the space nice and cosy. 8. Redecorate Positioning your favourite seat in front of the heater might feel great when you're sitting in it, but when you put furniture too close to a heating source you're actually stopping the hot air from circulating throughout the rest of the room. Fix this problem by repositioning your furniture and allowing the hot air to fill the whole room, rather than just absorbing it all up in one spot. 9. Get in the kitchen There's nothing like a good soup or a roast to make you feel better on a cold winter’s night. Cooking is an easy way to warm up the air in your home, while also providing you with something warm to eat at the same time. Republished with permission of <a href="http://www.stuff.co.nz/" target="_blank" rel="noopener">Stuff.co.nz</a>. Images: Getty

Home Hints & Tips

How much it costs to rent Hugh Jackman’s bucket list home

After building and developing this stunning, minimalist East Hamptons estate over a period of six years, Wolverine star Hugh Jackman and his wife Deborra-lee Furness have decided to put it to better use by popping it onto the rental market – and it will only set you back around half-a-million dollars per month, according to <a href="https://www.corcoran.com/listing/for-rent/20-hedges-banks-drive-east-hampton-ny-11937/6517169/regionId/3" target="_blank" rel="noopener">Corcoran.com</a>. “Stunning Modern Waterfront Compound!” screams the listing. “Beautifully done, highest end construction, with every amenity, including gym, theater, flush edge pool, jacuzzi, and two single and separate homes, set high on the bluff overlooking the open bay with the most spectacular views!” After Hugh bought the property for $3.5m in 2015, he and Deborra-lee spent six long years renovating it, and turning it into what Furness described as her “lifelong dream”. Architect Stelle Lomont Rouhani collaborated with Jackman and Furness to create “the utmost Zen tranquillity overlooking the Gardiner's Bay in East Hampton”. The minimalist main house with a gourmet kitchen, Gaggenau appliances and an informal dining room features a hand-carved solid bleached walnut dining table, custom crafted by Field & Co., 3 en suite bedrooms, floor-to-ceiling glass doors, and a guest house, meticulously renovated and features open living space complete with a top-of-the-line kitchen with bar area, a step-down open living room with lounge-style seating, along with a loft bed and lounge areas and a primary suite overlooking the oversized pool and spa sitting above the bay with a spectacular 180-degree vista of the water. Set on a sprawling 2.5-acre plot, the 5-bedroom, 5 1/2 bath compound is the ultimate retreat with all the amenities of a 5-star resort. Images: Corcoran.com

Real Estate

Child marriage comes with a heavy cost for young girls in Africa – but there’s one clear way out

650 million women and girls alive today were married before their 18th birthday. That’s one of the startling figures contained in a <a href="https://data.unicef.org/wp-content/uploads/2021/11/Towards-Ending-Child-Marriage-report-2021.pdf" target="_blank" rel="noopener">2021 UNICEF report</a> about child marriage. Africa’s sub-Saharan region is home to <a href="https://data.unicef.org/topic/child-protection/child-marriage/" target="_blank" rel="noopener">nine of the ten countries</a> with the highest rates of child marriage in the world. Ingrained traditions and cultural practices typically entrench such early marriages. State or customary laws in <a href="https://www.unfpa.org/sites/default/files/pub-pdf/MarryingTooYoung.pdf#page=12" target="_blank" rel="noopener">146 countries</a> allow girls younger than 18 to marry with the consent of their parents or other authorities. In <a href="https://www.unfpa.org/sites/default/files/pub-pdf/MarryingTooYoung.pdf#page=12" target="_blank" rel="noopener">52 nations</a>, girls under 15 can marry with parental consent. Early marriage among boys is <a href="https://www.unicef.org/press-releases/115-million-boys-and-men-around-world-married-children-unicef" target="_blank" rel="noopener">also widespread</a>, though the numbers are far lower than they are for girls and young women. And it is girls and young women who pay the heaviest costs for early marriage. Girls who marry before 18 are <a href="https://data.unicef.org/wp-content/uploads/2021/11/Towards-Ending-Child-Marriage-report-2021.pdf" target="_blank" rel="noopener">more likely</a> to be subjected to domestic violence and less likely to continue schooling than their peers. They have worse economic and health outcomes, a burden they almost inevitably pass on to their children. Early marriage has been linked to poorer <a href="https://www.wider.unu.edu/sites/default/files/Events/PDF/Slides/1_khatoon.pdf" target="_blank" rel="noopener">cognitive development</a> and <a href="https://www.sciencedirect.com/science/article/abs/pii/S0277953617303283" target="_blank" rel="noopener">stunting</a> among the children of such women. Today, the practice is declining thanks to national and international policies, global treaties and, since 2016, the UNFPA-UNICEF Global Programme to End Child Marriage. But gains have been slow in sub-Saharan Africa. What is it that drives the practice in the region? That’s what we examined in a <a href="https://journals.sagepub.com/doi/10.1177/0021909620966778" target="_blank" rel="noopener">recent study</a>. Using statistical analysis, we looked at the socio-economic and demographic determinants of early marriage among young women the Democratic Republic of Congo (DRC), Malawi, Mali and Niger. Each of the four countries has sought to introduce measures to discourage early marriage, but their challenges remain formidable. We explored several possible explanations and variables: age at first intercourse, education and literacy, women’s current age, region and type of place of residence, family wealth index, ethnicity, employment status, and even mass media exposure. One factor stands out across the four countries in our study: education. Women without formal education are more likely to marry early than those who completed secondary or higher education. <h2>Four study countries</h2> The four countries have a great deal in common, including high poverty levels and substantial under-15 and rural populations. In each country, around 50% of people are younger than 15, and around half of the countries’ respective populations live in rural areas (a full 84% in the case of <a href="https://malawi.unfpa.org/sites/default/files/resource-pdf/2018%20Malawi%20Population%20and%20Housing%20Census%20Main%20Report%20%281%29.pdf#page=23" target="_blank" rel="noopener">Malawi</a>). Among the four countries in our study, Niger has the highest child marriage prevalence worldwide – 76% of girls are married before the age of 18. The rates stand at 52% in Mali, 42% in Malawi, and 37% in the DRC. For our analysis, we turned to the most recently available demographic and health surveys from each of the four countries. We then applied a framework that seeks to describe the important social-cultural and cognitive variables and their interrelationships that underlie behaviours and decisions around reproductive health. <h2>Statistical variables</h2> The answers we found as to why early marriage is so commonplace in these countries were not always clear-cut. What’s more, there were lots of statistical variations across the four countries and contradictions, as was to be expected. For example, the average age of first marriage ranged from 15.3 in Niger to 17.1 in Malawi. There was also a range in the percentage of women from the poorest wealth category in the countries who had been married by 18: Niger (90.9%), Mali (80%), DRC (70.3%), Malawi (63.1%). Rates of early marriage dropped among women from richer categories, but were still high: Niger (72.7%), Mali (65.4%), DRC (60.3%) and Malawi (42.5%). The study also showed that young women living in rural areas were likely to marry earlier than those from urban areas. These variations’ social, economic, and cultural underpinnings are likely complex and would need some unpacking. In some cultures, for example, girls are married off young as they are considered to be more likely to be virgins still and can thus fetch a higher payment of what’s known as the <a href="https://www.globalcitizen.org/en/content/child-marriage-brides-india-niger-syria/" target="_blank" rel="noopener">bride price</a>. Amid the many statistical variables that emerged, we were especially struck by the relationship between educational levels and average age at first marriage. <h2>The role of education</h2> We found that the average age at first marriage in Niger, Mali, DRC, and Malawi increased from young people with no education (15.1, 15.4, 16.2, and 16.4, respectively) to those with secondary and higher education (17.0, 16.6, 17.1 and 18.5 in that order). In addition, we saw that the highest prevalence of early marriage (by 18 years) was found among young women with no education (90.6%, 80.3%, 70.9%, and 70.3%). It was lowest among women with secondary and higher education (64.2%, 62.9%, 58.9%, and 30.2%). Malawi is the only one of the four countries where school education is universal, accessible and compulsory. Education offers young women opportunities in life. In some African cultures, however, allowing girls to finish or even attend school <a href="https://www.girlsnotbrides.org/learning-resources/child-marriage-and-education/" target="_blank" rel="noopener">is discouraged</a> as it is feared that an educated girl is less likely to get a husband or be a good wife. <a href="https://www.girlsnotbrides.org/learning-resources/child-marriage-atlas/atlas/malawi/" target="_blank" rel="noopener">In Malawi</a>, less than 15% of women have any secondary school education, and 42% of girls are married before the age of 18 – the twelfth highest rate of child marriage in the world. <h2>Next steps</h2> There is an urgent need for governments in these countries to introduce programmes that promote delaying the age at which girls first have sex and to equip adolescents with knowledge about responsible and safer sex. Policymakers should also work to promote prolonged enrolment in school for adolescent girls. And, crucially, laws are needed – and must be enforced – that criminalise child marriages. This article originally appeared on <a href="https://theconversation.com/child-marriage-comes-with-a-heavy-cost-for-young-girls-in-africa-but-theres-one-clear-way-out-190924" target="_blank" rel="noopener">The Conversation</a>. Image: Shutterstock

Legal

Just how much does each day on a cruise cost

Part of the great appeal of cruising is the idea that it will work out cheaper than other types of holidays due to paying for meals and accommodation upfront. But recent data from Cruise Lines International Association Australia (CLIA) seems to suggest that this might not necessarily be the case with some holidays. Thought the purchase of multiple add-ons like beverage packages, room service, on-shore excursions or other activities, cruises can actually work out much more expensive. <a href="http://www.finder.com.au/" target="_blank" rel="noopener">CLIA broke down</a> what a typical cruise passenger spent each day in 2014: <img style="display: block; margin-left: auto; margin-right: auto;" src="../media/23487/cruise-graph_499x315.jpg" alt="Cruise Graph" width="499" height="315" /> Figures include items you have to pay for up front, as well as extras that might not be part of your cruise package. But it works out the average cruise passenger was paying $384 a day, which depending on the type of holiday you’re used to might actually be more expensive. What’s your take on the figures? Have you recently taken a cruise and did you find it a major bargain, or did it work out more expensive? Share your thoughts in the comments. Image credit: Finder.com.au / Getty

Cruising

Inflation is 2022’s boogeyman. How can we address rising living costs, while helping bring it down?

An entire generation has never experienced life with high inflation. But that is set to change. Countries like Australia, Canada, the United Kingdom and others are <a href="https://www.weforum.org/agenda/2022/06/inflation-stats-usa-and-world/">reporting rising inflation</a>. In New Zealand, inflation has climbed to its <a href="https://www.stuff.co.nz/business/129293267/annual-inflation-hits-73">highest rate in 32 years</a>. Our collective inexperience with the scourge of inflation, and how to solve it, could be a real problem. For those experiencing high inflation for the first time, it is helpful to understand just what economists and politicians are talking about. Inflation is a sustained increase in overall prices. Not everything goes up by the same amount but when people are having to pay more each week, month or year for the same basket of goods and services then that’s inflation. Inflation is harmful in many ways. It works like rust – slowly eating away at the value of your money. Inflation affects all of us. It doesn’t matter what the face value of your money is – what matters is the quantity of goods and services you can buy with it. The real value of money One easy way to understand inflation is to look at what you can buy for the money you have. Suppose at the start of the year your $100 note bought you 20 cups of coffee. However, inflation pushes coffee from $5 to $6 a cup. By the end of the year, your same $100 only buys you 16 cups of coffee. The face value of your money is the same but its real value (in terms of the number of coffees you can buy) has gone down. Your money is worth less now than a year ago. This rise in costs hurts wage earners who have limited opportunity to renegotiate their wages. Inflation also hurts those on fixed incomes such as beneficiaries and superannuitants who only receive periodic adjustments. Rising inflation hurts savers who find the real value of their savings going down if returns on savings don’t keep up with inflation – which they currently aren’t. Inflation can benefit borrowers who have the same debt at the end of the year but the value of that debt is lower in real terms. Providing there is at least some inflation adjustment to their income, borrowers have to sacrifice less to repay their debt. While this sounds good, it’s not. It encourages poor borrowing decisions and discourages savings. <figure class="align-center "><img src="https://images.theconversation.com/files/474465/original/file-20220718-495-2r9amx.jpg?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/474465/original/file-20220718-495-2r9amx.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/474465/original/file-20220718-495-2r9amx.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/474465/original/file-20220718-495-2r9amx.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/474465/original/file-20220718-495-2r9amx.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/474465/original/file-20220718-495-2r9amx.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/474465/original/file-20220718-495-2r9amx.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" alt="Young woman looking at a grocery receipt." /><figcaption>Inflation has risen to levels not seen for three decades. Consumers will feel the squeeze as their purchasing power drops. <a class="source" href="https://www.gettyimages.com.au/detail/photo/checking-receipt-royalty-free-image/691853536?adppopup=true">Getty Images</a></figcaption></figure> The all-encompassing impact of inflation In a progressive tax system, inflation hurts salary and wage earners who get pushed into higher tax brackets as they receive inflation adjustments to their pay. Inflation can also cause issues at a national level. If one country’s inflation rate is higher than their trading partners then its currency falls in value. In the early 1970s, the NZ dollar was worth almost US$1.50. Our higher inflation rates of the 70s and 80s saw it fall to around US$0.50 by the mid 80s. This drop in value limits what we can buy from overseas – things like life-saving drugs will become more expensive for us if we don’t get inflation down and others do. The causes of inflation can come from good intentions Inflation is too much money chasing too few goods. If central banks push more money into circulation, there is a real risk of inflation. A big increase in demand for goods from, for example, an increase in government spending can also trigger inflation. So can supply chain disruptions that reduce the goods available (meaning the same amount of money chasing fewer goods). Unfortunately, all these triggers are currently in play as countries respond to a series of global crises. The invasion of Ukraine and ongoing COVID-19 supply chain disruptions have reduced the goods available. Governments globally have boosted spending to support their economies. But this latter factor has been put on steroids by central banks being willing to purchase government debt. <figure class="align-center "><img src="https://images.theconversation.com/files/474468/original/file-20220718-53534-kfbvw2.jpg?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/474468/original/file-20220718-53534-kfbvw2.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/474468/original/file-20220718-53534-kfbvw2.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/474468/original/file-20220718-53534-kfbvw2.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/474468/original/file-20220718-53534-kfbvw2.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/474468/original/file-20220718-53534-kfbvw2.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/474468/original/file-20220718-53534-kfbvw2.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" alt="Man with mask pushing supermarket trolly." /><figcaption>Russia’s war in Ukraine and the ongoing COVID-19 pandemic has caused a cost-of-living crisis. <a class="source" href="https://www.gettyimages.com.au/detail/photo/man-wearing-mask-while-shopping-in-supermarket-royalty-free-image/1235145649?adppopup=true">Getty Images</a></figcaption></figure> Unintended consequences The RBNZ bought billions of government bonds to keep interest rates low as part of its <a href="https://www.parliament.nz/en/pb/library-research-papers/research-papers/library-research-brief-large-scale-asset-purchase-lsap-programme">“large scale asset purchases” programme</a>. In New Zealand, the average money growth between 1995 and 2019 was about 8% per year. This accommodates a growing population, a growing economy and a little bit of inflation (a little bit is OK). In the last two years money supply has grown by around 30% per year. Of course it’s easy to look back with the benefit of hindsight. Those who made the decisions at the time don’t have that luxury. The RBNZ is now they are having to wind back their asset purchases and raise interest rates to rein in inflation. Some argue the RBNZ has been <a href="https://www.stuff.co.nz/national/politics/129311096/more-pain-expected-as-inflation-runs-hotter-than-a-government-can-handle">distracted and has dropped the ball on their key job</a> and we are now facing the risk the inflation genie is out of the bottle. Whether that criticism is justified or not, the RBNZ will now have to act decisively to reduce inflation. But getting inflation down is never painless. Households with mortgages will find their weekly budgets squeezed as interest rates rise. Firms will face falling demand from consumers with less to spend. Job growth will dry up – though New Zealand is in the fortunate position of starting with very low unemployment. Regardless, the RBNZ must do the job they got back in 1989 with the passing of the <a href="https://www.rbnz.govt.nz/-/media/29ada25bfa8b4e50922262618fb03e00.ashx?sc_lang=en">Reserve Bank of New Zealand Act</a>. New Zealand’s central bank is the only one that can control monetary conditions; it’s the only one that can get inflation under control. The same could be said for many of the countries facing growing inflation. If central banks don’t take decisive action, we could get a sharp reminder of just how bad inflation can be.<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/187154/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/stephen-hickson-1288490">Stephen Hickson</a>, Economics Lecturer and Director Business Taught Masters Programme, <a href="https://theconversation.com/institutions/university-of-canterbury-1004">University of Canterbury</a> 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/inflation-is-2022s-boogeyman-how-can-we-address-rising-living-costs-while-helping-bring-it-down-187154">original article</a>. Image: Getty Images

Money & Banking

Travelling around the globe might not have to cost the Earth

The last time you booked a flight online, you may have been offered the chance to ‘offset’ the carbon produced by your travel. This is due in part to recognition that the aviation industry is responsible for around 5% of human-made emissions resulting in climate change. The efforts by this sector to respond to its environmental impact can range from switching fuels (from coal to biomass, for instance), more efficient combustion processes (by improving aircraft engines, for example), protecting forests or promoting sustainable development in local communities. Now, in a potentially ground-breaking innovation for long-haul flights, a team of researchers at the Swiss Federal Institute of Technology, Zürisch (ETH Zurich) have developed an all-in-one solar-powered tower that’s able to use energy from the Sun’s rays to convert water and carbon dioxide into synthetic fuels. Think: water + carbon dioxide = energy. Sound familiar? Well, it should. It’s what many plants do to make energy for themselves. The ETH Zurich process has a lot in common, really, explains Dr Jessica Allen, a chemical engineer and renewable energy technologies expert at the University of Newcastle. Although in this case, “industrial photosynthesis might be a better term as this particular process doesn’t involve any physiological mechanisms like plants and living material”, says Allen. The proof-of-concept solar tower consists of 169 Sun-tracking panels that reflect and concentrate sunlight into a tower-top solar reactor. Here, energy from the Sun’s rays meets a combination of water, carbon dioxide and a special structure made of ceria (cerium oxide), which is porous and “acts like a filter network, undergoing many reduction-oxidation (also known as redox) reactions”, says Allen. These reaction cycles produce syngas (synthesis gas), which is then converted to liquid fuels such as diesel and kerosene (which is used as jet fuel for long-haul flights) via a well-established process known as the Fischer-Tropsch reaction, which typically occurs in the presence of metal catalysts, temperatures of 150–300°C and pressures of several tens of atmospheres. Much work remains to translate the process to industrial scale. Currently, the energy efficiency of the process is only at 4%, meaning that out of 100 parts of energy available, only four parts are captured in the process. This is something the researchers are keen to push up towards around 15%. According to Allen, that’s still at the low end of the energy efficiency of current solar-to-electricity and solar-to-thermal energy generation. She says that efficiency is crucial when it comes to systems that use land area for solar collection (such as solar panels and the ETH Zurich tower’s reflectors): “A low efficiency will mean a large land area to generate the required fuel.” Where the CO2 comes from is also very important. At present, it’s injected into the system, but the next obvious step is to start capturing it directly from the air. At that point the fuel production process might be considered carbon neutral, as the amount of CO2 captured from the air is the same as the amount released during fuel combustion. Direct-from-air carbon dioxide capture comes at a cost, though. “There is a fairly major energy penalty for doing direct air capture, because it’s quite hard to filter out carbon dioxide from the rest of the gasses,” says Allen. Then there’s the carbon footprint related to the manufacture and production of equipment and materials, but Allen urges a long-term outlook: “In the system that we’re in at the moment there will be an emission penalty for the materials, however, in the long term, we’ll eventually be manufacturing these things using zero emission approaches.” This will make the whole process – and not just the fuel itself – carbon neutral. The average fuel consumption of a Boeing 747 (which are still used as long-haul cargo transport today) is around 4L per second. For a flight of 10 hours, this equates to 144,000L of fuel. In the future, EHT Zurich researchers will work to increase the system’s energy efficiency to 15%, capture more heat in the process and improve the ceria structures in the reactor in addition to capturing CO2 directly from the air. Their long-term aim is to scale the process to an industrial size – in which enough fuel can be produced to truly fly us into a carbon-neutral aviation future. This article originally appeared on <a href="https://cosmosmagazine.com/science/carbon-neutral-travel-wont-cost-earth/" target="_blank" rel="noopener">cosmosmagazine.com</a> and was written by Clare Kenyon. Image: Shutterstock

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Travelling around the globe might not have to cost the Earth