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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 are your thoughts on the increasing use of digital payments?

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

Money & Banking

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

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

Money & Banking

6 extra items to pack when travelling by yourself

Travelling alone can be a life changing experience, but it also requires a few extra precautions. Pack these six things to keep yourself safe. 1. Doorstop A simple wedge of wood or plastic can give you priceless peace of mind in a hotel room. Even if you lock the door, people might be able to break the lock or use a cloned key. A doorstop quickly and easily wedges it shut so you can sleep easy. If you want to go one step further, you can get special doorstop alarms that will emit a loud siren if anyone tries to force the door. 2. Extra lock There are endless uses for an extra padlock or bike lock-style cable. You can double up on your hotel door, secure your train carriage or ship cabin, double lock your suitcase or chain it to something sturdy. Compact, sturdy locks are relatively cheap and easy to carry with you, and will deter most thieves or intruders looking for an easy mark. 3. First aid kit If you don’t have a travel buddy to send down to the chemist, a simple first aid kit can be a lifesaver. Keep it stocked with band aids, basic bandages, pain killers, antibiotics, antihistamines and gastro meds, along with anything else you think will be useful. If you are really unwell, you’ll obviously need to see a doctor, but having the first line of defence within easy reach is always smart. 4. Whistle or personal alarm If you will be walking through unfamiliar cities at night (or even in the day), a whistle or personal alarm can give you a feeling of security. If anyone unsavoury approaches you, a loud noise will startle them and generally scare them off. It also draws the attention of other people and makes them aware of your predicament. 5. Small torch Never underestimate the power of a little light to make you feel safe. It’s great for finding your way through dark streets, looking for your keys in your bag or seeing the lock on your hotel door. You can get small lights that attach to a keychain or wallet and give out a surprisingly bright light. People are less likely to approach you if they feel they will be seen. 6. Fake wedding ring This one is for the ladies – in some countries an unmarried woman is seen as an easy target. Buying a cheap, fake wedding ring can give you a simple cover. Men may be less likely to approach you and, if they do, you can simply say your husband is in the next shop or waiting for you back at the hotel. Image credits: Shutterstock

Travel Tips

Where did money come from?

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

Money & Banking

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

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

International Travel

12 super simple ways to save some cash

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

Money & Banking

Obese woman sparks debate for not giving up extra seat for toddler

An obese woman has sparked debate online after refusing to give up the second seat she paid for to a fussy toddler. The 34-year-old booked the two seats for her cross-country flight to visit her family for Christmas because she was previously unable to comfortably fit in one seat. All was well until the young woman next to her demanded that she "squeeze into one seat" so her son could sit on the other. "I am obese," she admitted on the Reddit thread. "I'm actively working toward losing weight and I've made progress - but I booked an extra seat because I'm fat." She added that she insisted on keeping her seat because she paid for it, but the mum "made a big fuss over it, and she told the flight attendant I was stealing the seat from her son." "Then I showed her my boarding passes, proving that I paid for the extra seat. The flight attendant asked me if I could try to squeeze in, but I said no, that I wanted the extra seat I paid for." The woman claimed that the toddler was only 18 months old, so he didn't need his own seat and could've sat on his mum's lap for the duration of the flight. "I got dirty looks and passive-aggressive remarks from her for the entire flight and I do feel a little bad because the boy looked hard to control - but am I in the wrong?" she asked other social media users. Many shared their overwhelming support for the woman and slammed the mum and flight attendant for their "horrific" behaviour. "The mum is an a**hole for not buying a seat for her son and assuming someone else would give up a seat they paid for. Odds are she was hoping there'd be extra seats on the flight so she didn't have to pay and used the lap thing as a loophole," one commented. "What's even the point of the extra seat if the flight attendants are going to let entitled people bully others into giving it up?" another added. "People buy entire seats for high-end musical equipment. Not even people. Their lack of planning does not constitute an emergency on your part," a third wrote. However, there were a few others that said the woman was in the wrong for causing an inconvenience. "If you are so fat that you have to have more than one seat on an airplane then you are selfish," one said. "Flights overbook all the time especially during the holidays - how can you justify having two seats to yourself?" "How much room does a kid take up, seriously? Yeah the mum should've bought a seat but that doesn't mean you have to be selfish and cause two people discomfort," another commented. Image: Getty

Travel Trouble

Should I put more money into my super? What are the benefits and can I take it out before retirement if I need it?

Superannuation is never far from the headlines lately, with the government recently calling for <a href="https://treasury.gov.au/consultation/c2023-361383">views</a> from the public on what the objective of super should be. The basic idea behind super is you set aside a portion of your pay over your working life, so you can build up a nest egg to see you through your retirement years. But what if you’re worried you might not have enough super by the time you retire? Yes, you could top up your super now and watch the nest egg grow through the magic of <a href="https://moneysmart.gov.au/saving/compound-interest">compound returns</a>– but what are the downsides? If you’re considering putting more money into your super, and want to know more about how the whole system works, here are the basics. <h2>What are the rules about putting more money into my super?</h2> First, make sure you know where your superannuation actually is and how much you’ve got so far. This <a href="https://www.ato.gov.au/forms/searching-for-lost-super/">page</a> from the Australian Tax Office explains how to search for any lost super. The next thing to know is there are <a href="https://www.ato.gov.au/individuals/super/in-detail/growing-your-super/super-contributions---too-much-can-mean-extra-tax/?page=2#Understanding_contribution_caps">limits</a> to how much you can contribute into superannuation. There are two types of super contributions you can make. The first category is called “<a href="https://moneysmart.gov.au/grow-your-super/super-contributions">concessional contributions</a>”. These are taxed at 15%, which may be lower than the tax you’d otherwise have to pay on that money. So making these super top-ups can not only grow your nest egg, but save you tax. The amount of concessional contributions you can make is A$27,500 per annum. That figure includes all the super your employer puts in your super account and any extra contributions you make under a salary sacrifice scheme or where you are claiming an income tax deduction. The second category, known as “non-concessional contributions”, means money you pay into your super withoutclaiming a tax deduction. This could be, for example, money from savings, an inheritance or a lottery win. There is a limit of $330,000 over three years (or $110,000 per year), for these contributions. <h2>What are the benefits of topping up my super?</h2> Two words: compound returns. Compound returns are where you earn returns not only on the original investment you put in, but also on any returns on that investment. As the government’s <a href="https://moneysmart.gov.au/saving/compound-interest">Moneysmart</a> website puts it, “you get interest on your interest”. Over the years, this means you could earn a lot more than you would if you didn’t top up your super. How much more? Well, it depends on the investment return and fees of your fund. But as an example: thanks to compound returns, putting an extra $100 per month into your super from age 30 could <a href="https://www.calc.help/industrysuper/add-extra-to-your-super">mean you retire</a> with an extra $65,000 in your account (here, I’ve assumed investment returns of 7.5%, accumulation inflation of 4% and salary inflation of 4%). And the longer it is there, the more it will grow – so starting top-ups early might pay off. This is particularly important for <a href="https://theconversation.com/spirals-and-circles-snakes-and-ladders-why-womens-super-is-complex-103763">women</a>, whose super balances may look a bit feeble if they take parental leave or cut their hours while raising a family. Then there’s the tax benefits of super top-ups. If you would normally pay a net tax rate higher than 15% on investments such as shares, your money will grow more quickly inside superannuation than shares. You may also be eligible for government co-contributions that add to your balance if you make a non-concessional contribution during the year and your income is less than $57,016. <h2>So what’s the downside? Can I access my superannuation before retirement?</h2> Basically, no. You must meet a “<a href="https://www.ato.gov.au/individuals/super/in-detail/withdrawing-and-using-your-super/withdrawing-your-super-and-paying-tax/?page=2#Conditionsofrelease">condition of release</a>” before being able to access your superannuation. The most common is retirement, defined as reaching the age of 65 or leaving work after reaching “preservation age” (which is 60 for anyone born after July, 1964). There are some <a href="https://www.ato.gov.au/Individuals/Super/Withdrawing-and-using-your-super/Early-access-to-your-super/">special circumstances</a> where you may be able to access your superannuation early. These are very narrow, and include serious financial hardship or necessary medical treatment that cannot be funded any other way. Death or terminal illness also qualify for release. <h2>But what if I need a deposit for a house?</h2> This is a dilemma for non home-owners. After compulsory superannuation guarantee deductions and HECS-HELP, it may be hard to save a deposit. One of the few circumstances where you access your superannuation early is through the <a href="https://www.ato.gov.au/individuals/super/withdrawing-and-using-your-super/first-home-super-saver-scheme/">First Home Super Savers Scheme</a>. If you make voluntary contributions, you may be able to withdraw these contributions for a home deposit. However, this scheme is very tightly regulated. You can read more about the rules for this scheme <a href="https://www.ato.gov.au/individuals/super/withdrawing-and-using-your-super/first-home-super-saver-scheme/">here</a>. <h2>So… should I put more money into my super?</h2> It depends. If you do, make sure you understand you will not be able to access that money until retirement. If you own your home (or intend to rent until retirement) you may want to put more into superannuation while you can afford it, knowing it is contributing to a secure retirement. But if home ownership is your goal, you should think carefully about choosing between superannuation and saving for a home deposit. Image credits: Getty Images This article originally appeared in <a href="https://theconversation.com/should-i-put-more-money-into-my-super-what-are-the-benefits-and-can-i-take-it-out-before-retirement-if-i-need-it-201950" target="_blank" rel="noopener">The Conversation</a>.

Retirement Income

5 super simple ways to save cash for retirement

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

Money & Banking

Ways you’re wasting money without knowing it

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

Money & Banking

Parents leave baby at airport counter after refusing to buy extra ticket

A couple were checking in for a flight from Ben Gurion International Airport to Brussels, Belgium on Tuesday when they made the decision to leave their baby behind. Upon their arrival at the airport check-in desk in Tel Aviv, Israel, it was revealed that the baby did not have a ticket. Rather than address the situation and ensure their child’s safe travel, the pair opted to proceed to security without their stroller and its young occupant. The airline they were flying with, Ryanair, state on their website that "infants can be included in a flight reservation during the online booking process." Following their process for booking with an infant, a message will pop-up to let travellers know there is a €25 charge (approximately $39) for each one-way flight the baby participates in from an adult’s lap. If the adults want the baby to travel in a seat of its own with the proper equipment, a seat must be paid for. The parents, apparently, had not made such arrangements for their baby. The matter was referred to officials, as confirmed by a Ryanair spokeswoman. "These passengers travelling from Tel Aviv to Brussels presented at check-in without a booking for their infant,” she told CNN, “they then proceeded to security leaving the infant behind at check-in. "The check-in agent at Ben Gurion Airport contacted Airport Security, who retrieved these passengers, and this is now a matter for local police." Reports of the situation were confirmed by the Israeli Airport Authority, who provided a statement to CNN and offered some more information into what went on. "A couple and an infant with Belgian passports arrived for a flight at Terminal 1 without a ticket for the baby,” it read. “The couple also arrived late for the flight, once the check-in for the flight was closed. The couple left the infant seat with the baby and ran toward the security checks at Terminal 1 in an attempt to reach the boarding gate for the flight." A video allegedly from the airport at the time, staff can be heard expressing their sadness for the child. Another woman exclaims, “she left him there, I swear!” Ryanair staff also voiced their shock over the incident, telling N12, “we’re never seen anything like it.” Despite reports that the parents were detained, an Israel Police spokesman told CNN that the matter appeared to have been resolved by the time law enforcement arrived on the scene, stating that "the baby was with the parents and there's no further investigation." Images: Getty

Travel Trouble

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

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

Money & Banking

Seven simple ways to save money now!

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

Money & Banking

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

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

Real Estate

Stranded opera singer busks to earn cash after cancelled flights

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

Travel Trouble

Unpaid and unequal: women’s extra workload affects mental wellbeing

Women do the bulk of unpaid domestic work globally and the added burden has an impact on their mental health – but surprisingly there’s little independent empirical research about this. Now, there is data, which shows the double burden of paid and unpaid work results in increased depressive or psychological distress for women as unpaid labour increases. Researchers at the University of Melbourne reviewed the evidence for the gendered nature of unpaid work and consequences for mental health among employed adults, <a href="https://www.thelancet.com/journals/lanpub/article/PIIS2468-2667(22)00160-8/fulltext" target="_blank" rel="noreferrer noopener">publishing</a> their results in Lancet Public Health. Public health researcher and lead author, Jen Ervin, says the research showed women were uniformly doing more unpaid work across every geographical and time setting. “What our review tells us is that, in addition to the economic penalty women experience carrying out most of the world’s unpaid labour load, there is a troubling mental health cost as well,” she says. While further research is needed, Ervin says the most widely acknowledged explanation for the impact on mental health is that the combined paid and unpaid workload triggers stress-related pathways. It also reduces time for activities known to be protective for mental health such as sleep, leisure and physical activity. The findings won’t come as a surprise to many, especially women, she says. Indeed. The study follows <a href="https://findanexpert.unimelb.edu.au/news/47524-yet-again--the-census-shows-women-are-doing-more-housework.-now-is-the-time-to-invest-in-interventions" target="_blank" rel="noreferrer noopener">census data</a> confirming (once again) that Australian women do more hours of unpaid housework than men. And <a href="https://cew.org.au/2022-cew-census-an-urgent-wakeup-call-ceo-gender-balance-100-years-away/" target="_blank" rel="noreferrer noopener">another report</a> this week commissioned by Chief Executive Women indicating caring responsibilities in the pandemic held back progress on women’s workforce participation and leadership. For what seems like an intractable problem, what can be done to change things? Ervin says, “we believe that policies such as universal childcare and normalising flexible working arrangements and extended paternity leave for men can help in shifting the dial and driving greater gender equality in the division of unpaid labour and unpaid care. <div class="newsletter-box"> <div id="wpcf7-f6-p205326-o1" class="wpcf7" dir="ltr" lang="en-US" role="form"> </div> </div> “Some of these measures will also aid and facilitate the harder task of shifting some of the outdated attitudes and beliefs around labour division.” It’s important to note many men are taking a more active role in childcare and housework. But men can be limited in doing so by factors such as inflexible workplace arrangements or social stigma, she says. The University of Melbourne research focussed on employed adults, the ‘double burden’ effect of combining paid work with unpaid work, and how this subsequently creates issues of overload and time poverty. It found substantial gender differences. Of the 14 studies reviewed for the article – totalling more than 66,800 participants worldwide – five examined unpaid labour (inclusive of care), nine examined housework time and, of these, four also examined childcare. Overall, in 11 of the 14 studies, women self-reported increased depressive or psychological distress symptoms with increasing unpaid labour demands. For men, only three out of a possible 12 studies reported any negative association. An aspect not captured in the current review, Ervin says, is the difference in the gendered allocation of household tasks. For example, men often do less-time-sensitive outdoor or maintenance tasks such as mowing the lawn or cleaning the gutters. These jobs aren’t as time-pressured as feeding a hungry child or driving them to an appointment. And while more difficult to measure, <a href="https://www.tandfonline.com/doi/abs/10.1080/13668803.2021.2002813?journalCode=ccwf20" target="_blank" rel="noreferrer noopener">other research</a> shows women are also often carrying more of the mental load of household labour. Unfortunately, Australia is lagging behind many other countries when it comes to key gender equality indicators such as unpaid labour division, Ervin says. This week a <a href="https://cew.org.au/2022-cew-census-an-urgent-wakeup-call-ceo-gender-balance-100-years-away/" target="_blank" rel="noreferrer noopener">report</a> commissioned by Chief Executive Women drew attention to the lack of progress made by Australia’s top companies in appointing women to leadership roles. The report, prepared by management consultants Bain & Company, says 73% of executive roles in ASX300 companies are held by men, and 85% of line management roles. The report says COVID-19 set back women’s workforce participation, as they took on the bulk of the increased caring responsibilities. This is consistent with <a href="https://findanexpert.unimelb.edu.au/news/47524-yet-again--the-census-shows-women-are-doing-more-housework.-now-is-the-time-to-invest-in-interventions" target="_blank" rel="noreferrer noopener">findings</a> from other University of Melbourne research showing the “catastrophic” impact of the pandemic on women’s lives, especially for mothers. Restrictions such as school closures and remote learning added to the domestic workload for everyone, but the gender gap remained. Women, more often than men, reduced their paid work to meet the increased demands. The Murdoch Children’s Research Institute also <a href="https://cosmosmagazine.com/health/mental-health-maternal-lockdown/" target="_blank" rel="noreferrer noopener">reported</a> maternal wellbeing was profoundly impacted by the pandemic, finding a third of women experienced clinically significant mental health problems during Victoria’s second lockdown, with ongoing fatigue and parenting stress. <img id="cosmos-post-tracker" style="opacity: 0; height: 1px!important; width: 1px!important; border: 0!important; position: absolute!important; z-index: -1!important;" src="https://syndication.cosmosmagazine.com/?id=205326&title=Unpaid+and+unequal%3A+women%26%238217%3Bs+extra+workload+affects+mental+wellbeing" width="1" height="1" /> <div id="contributors"> <a href="https://cosmosmagazine.com/health/womens-unpaid-work-and-mental-health/" target="_blank" rel="noopener">This article</a> was originally published on <a href="https://cosmosmagazine.com" target="_blank" rel="noopener">Cosmos Magazine</a> and was written by <a href="https://cosmosmagazine.com/contributor/petra-stock" target="_blank" rel="noopener">Petra Stock</a>. Petra Stock has a degree in environmental engineering and a Masters in Journalism from University of Melbourne. She has previously worked as a climate and energy analyst. Image: Getty Images </div>

Mind

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

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

Money & Banking

Surprising differences in how we use credit cards and cash

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

Money & Banking

Three-time lottery winner reveals her secrets to cash in

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

Money & Banking

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