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

<p>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. </p> <p>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. </p> <p><strong>Wendy Oliver</strong> - We don’t eat out often at all… I spend too much in the supermarket.</p> <p><strong>Christine Brooks</strong> - I've cut out steak, good nutritional foods, TV streaming, entertainment, haircuts, new clothes, pets, pool cleaning, and more.</p> <p><strong>Kerrie Dare</strong> - 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 &amp; 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.</p> <p><strong>Jane Dawes</strong> - 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. </p> <p><strong>Lois E. Fisk</strong> - 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.</p> <p><strong>Janice Stenning</strong> - Don't go to the hairdressers as often and don't buy as many clothes. </p> <p><strong>Debra Dugar </strong>- 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.</p> <p><strong>Robyn Lee </strong>- Living in my own house. I now live with my family. </p> <p><strong>Rhondda Hughes</strong> - 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.</p> <div style="font-family: inherit;"><strong>Felicity Jill Murphy</strong> - Stopped going out to shopping centres. That's where I spend money unnecessarily.</div> <div style="font-family: inherit;"><em>Image credits: Shutterstock </em></div>

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Jessica Alba surprises dad by buying his childhood home

<p>Jessica Alba has spent the past three years working towards buying her parents a house, but not just any house, she bought her father's childhood home. </p> <p>She took to Instagram to make the announcement, with a teaser video of her special home-renovation project. </p> <p>"Almost three years ago, I started the project of my dreams… I surprised my parents by buying them a house!!" she began. </p> <p>"Now, it wasn't just any house – it was extra sentimental as it was my grandparent's house that my father grew up in," she continued.</p> <p>"After my grandfather passed away, my parents were planning on selling the house in order to pay for my grandmother's medical bills. Well… I pretended like I was going to help them flip it before selling when in reality, I had planned to buy it for them all along."</p> <blockquote class="instagram-media" style="background: #FFF; border: 0; border-radius: 3px; box-shadow: 0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width: 540px; min-width: 326px; padding: 0; width: calc(100% - 2px);" data-instgrm-captioned="" data-instgrm-permalink="https://www.instagram.com/reel/C_TWEyhPyy_/?utm_source=ig_embed&amp;utm_campaign=loading" data-instgrm-version="14"> <div style="padding: 16px;"> <div style="display: flex; flex-direction: row; align-items: center;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 40px; margin-right: 14px; width: 40px;"> </div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 100px;"> </div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 60px;"> </div> </div> </div> <div style="padding: 19% 0;"> </div> <div style="display: block; height: 50px; margin: 0 auto 12px; width: 50px;"> </div> <div style="padding-top: 8px;"> <div style="color: #3897f0; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: 550; line-height: 18px;">View this post on Instagram</div> </div> <div style="padding: 12.5% 0;"> </div> <div style="display: flex; flex-direction: row; margin-bottom: 14px; align-items: center;"> <div> <div style="background-color: #f4f4f4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(0px) translateY(7px);"> </div> <div style="background-color: #f4f4f4; height: 12.5px; transform: rotate(-45deg) translateX(3px) translateY(1px); width: 12.5px; flex-grow: 0; margin-right: 14px; margin-left: 2px;"> </div> <div style="background-color: #f4f4f4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(9px) translateY(-18px);"> </div> </div> <div style="margin-left: 8px;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 20px; width: 20px;"> </div> <div style="width: 0; height: 0; border-top: 2px solid transparent; border-left: 6px solid #f4f4f4; border-bottom: 2px solid transparent; transform: translateX(16px) translateY(-4px) rotate(30deg);"> </div> </div> <div style="margin-left: auto;"> <div style="width: 0px; border-top: 8px solid #F4F4F4; border-right: 8px solid transparent; transform: translateY(16px);"> </div> <div style="background-color: #f4f4f4; flex-grow: 0; height: 12px; width: 16px; transform: translateY(-4px);"> </div> <div style="width: 0; height: 0; border-top: 8px solid #F4F4F4; border-left: 8px solid transparent; transform: translateY(-4px) translateX(8px);"> </div> </div> </div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center; margin-bottom: 24px;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 224px;"> </div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 144px;"> </div> </div> <p style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; line-height: 17px; margin-bottom: 0; margin-top: 8px; overflow: hidden; padding: 8px 0 7px; text-align: center; text-overflow: ellipsis; white-space: nowrap;"><a style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px; text-decoration: none;" href="https://www.instagram.com/reel/C_TWEyhPyy_/?utm_source=ig_embed&amp;utm_campaign=loading" target="_blank" rel="noopener">A post shared by Jessica Alba (@jessicaalba)</a></p> </div> </blockquote> <p>She published the first part of her renovation series on YouTube and in it explained the sentimental value of the house and how it was a symbol for her father, who was an immigrant from Mexico, that "he had made it".  </p> <p>Her family initially planned to sell it to ease some of their financial burden, as her grandmother required  "24/7 care" but Alba wanted to keep the house in the family and so her plan began.</p> <p>"Instead of it giving to a stranger, I wanted to keep this home in our family," she said in the YouTube series. </p> <p>The moment Alba surprised her parents was also captured in the video, with her father brought to tears as he was overcome with emotion. </p> <p>"That's so sweet Jessica. That's a big surprise," he said while embracing his daughter.</p> <p>"I'm very proud of you."</p> <p><em>Images: Instagram</em></p> <p> </p>

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Doting dad sells everything he owns to develop cure for son's "incurable" condition

<p>A dedicated father has drained his life savings to help find a cure for his son's "incurable" disorder. </p> <p>Terry Pirovolakis, a 44-year-old IT director, was hellbent on finding a cure for his six-year-old son Michael after he was diagnosed with Spastic paraplegia 50 (SPG50): a degenerative neurological condition that affects less than 100 people worldwide. </p> <p>SPG50 affects children's development, leading to cognitive impairment, muscle weakness, and paralysis over the course several years, often ending in death usually before a patient reaches the age of 30.</p> <p>"They said he'd never walk or talk, and would need support for the rest of his life," he recalled of the 2018 diagnosis. </p> <p>"They told us to just go home and love him - and said he would be paralysed from the waist down by age 10, and quadriplegic by age 20," he continued. </p> <p>Determined to save his son, Terry drained his life savings to start researching potential cures rooted in gene therapy, after reading countless journals on the subject and meeting with experts around the world. </p> <p>Terry said, "We then liquidated our life savings, refinanced our home and paid a team at the University of Texas Southwestern Medical Center to create a proof of concept to start Michael's gene therapy."</p> <p>The father soon signed a contract to start a gene therapy program, consisting of injecting cerebral spinal fluid into the patient's back, and after years of lab work, the treatment started to take, and on December 30th 2021, the government <a id="mol-70453400-6948-11ef-9b54-1d20db350cbd" href="https://www.dailymail.co.uk/news/canada/index.html" target="_self"></a>moved it forward.</p> <p>"On March 24, 2022, my son was the first person to ever get treated with gene therapy at SickKids in Toronto," Pirovolakis, a father of three, told <em>Fox News</em> in detailing his medical odyssey.</p> <p>Michael was the first to receive his father's one-time treatment, after Pirovolakis quit his job and started a nonprofit in California to devote himself to the cause.</p> <p>The company, named Elpida Therapeutics, after the Greek word for 'hope', now has five employees and 20 consultants, with Michael now on the mend.</p> <p>Since being treated, the youngster's condition seems to have stabilised, and he is now able to use a device to communicate with his family and caregivers.</p> <p>Another three children who were able to receive the remaining doses from Pirovolakis' first batch, as the drug still costs about $1million to make for each child, are also seeing positive results. </p> <p>"When I heard that no one was going to do anything about it, I had to - I couldn't let them die," Pirovolakis said. "We decided that we had to help other kids."</p> <p>Despite it being approved, big pharmaceutical companies have been slow to manufacture the drug, with several firms rejecting the prospect when proposed, Pirovolakis said</p> <p>"No investor is going to give you money to treat a disease that is not going to make money," he said. "That's the dilemma we're in."</p> <p>Pirovolakis said that when his son was diagnosed, he was told the boy would be paralysed from the waist down by the age of ten and quadriplegic by the age of 20, forcing the father to do everything he can.</p> <p>"We were told he would never speak or walk, and that he will have severe developmental delays. I just couldn't accept that fate for my child," he said.</p> <p>"The technology to cure our children is already here. I hope that someone with immense wealth - and more importantly, the vision and influence - will step in."</p> <p><em>Image credits: Facebook</em></p>

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Oasis issue urgent warning after scalpers list tickets for $42,000

<p>Oasis have been forced to issue a warning to music fans who are searching for tickets to their highly-anticipated reunion tour, after resale tickets have been listed for thousands of dollars. </p> <p>Tickets to the UK and Irelands reunion show went on sale on Saturday, with tickets to the 17 shows selling out in a matter of hours. </p> <p>Tickets were originally posted on Ticketmaster with prices ranging from $190 AUD to $500 AUD, before prices were bumped up by the ticket merchant as being "in demand", with the cheapest tickets then priced at $475 AUD. </p> <p>Since all shows were officially sold out, some tickets have since been posted on resale sites such as StubHub and Viagogo, with prices ranging from $1,100 AUD to a whopping $42,000 AUD. </p> <p>After all the tickets were sold, ticket scalpers shared their tickets on the resale websites to turn a profit, with music fans sharing photos of the outrageous prices on social media. </p> <blockquote class="twitter-tweet"> <p dir="ltr" lang="en">The highest price I've seen so far is £22,045. It's ridiculous. I know no one is likely to pay that, but why are these companies allowing it? <a href="https://t.co/uMSt0TS6K9">pic.twitter.com/uMSt0TS6K9</a></p> <p>— Jordan (@grahamjordan_) <a href="https://twitter.com/grahamjordan_/status/1829647325901570230?ref_src=twsrc%5Etfw">August 30, 2024</a></p></blockquote> <p>"And it’s begun," one fan wrote alongside a screenshot of the resale websites.</p> <p>"Viagogo and StubHub all trying to rip off Oasis fans, with the highest priced ticket being on StubHub for £6,347 ($12,323 AUD). Hang your heads in shame."</p> <p>The music fan then added another photo of the $42,000 AUD ticket for sale, writing, "The highest price I've seen so far is £22,045. It's ridiculous. I know no one is likely to pay that, but why are these companies allowing it?"</p> <p>Oasis themselves then stepped in to warn fans about paying the extortionate fees for tickets, saying according to the terms and conditions, tickets could only be resold at face value via Ticketmaster and Twickets.</p> <p>"Tickets sold in breach of terms and conditions will be cancelled by the promoters," they wrote in a post to X.</p> <p>Oasis promoters had previously issued a similar warning, telling fans tickets sold through "unauthorised resale platforms" would be in breach of terms and conditions and "may be cancelled".</p> <p><em>Image credits: Instagram/Vuk Valcic/ZUMA Press Wire/Shutterstock Editorial </em></p>

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Readers response: What would you do if you won $1,000,000 in the lottery tomorrow?

<p>Many people, especially those who indulge in weekly lottery tickets, like to fantasise about what they would do if they came into a huge sum of money.</p> <p>For some people, their first purchase would be a house or a once in a lifetime holiday, while others would give the money to family or charity. </p> <p>We asked our reader what they would do if they won $1 million in the lottery tomorrow, and the response was overwhelming. Here's what they said.</p> <p><strong>Anne Hare</strong> - I'd find a really good accountant and put him on retainer. I'd tell no one until I'd got my finances in order. Then I'd go nuts!</p> <p><strong>Irene Winters</strong> - Give most of it to our children and grandchildren, and keep a bit to pay for our old age.</p> <p><strong>Erica Whitehead</strong> - Help my family and do a kitchen and bathroom renovation.</p> <p><strong>Julie Armstrong</strong> - 1 million would be perfect for us to buy a house and live out the rest of ours days comfortably and not have to stress over the rent increases. Plus, we could pay off our daughter's mortgage.</p> <p><strong>Darlene Challen</strong> - Fix this house up properly, sell it and find my dream little house for myself and my dog, might spend Christmas in NY and/or go on a tropical cruise, then put the rest away for my 9 grandies.</p> <p><strong>Karen Neilson</strong> - Give a big chunk to my children and grandchildren, then give some to each of my siblings and Brother in Law. Keep some for myself, just enough to live comfortably for the few years I’m still on this earth! Give some to Cancer Research, The Heart Foundation and the Rescue Chopper. Give some to a couple of friend who do it tough.</p> <p><strong>Marlene Hassett</strong> - Buy a new car and a couple of things around my house and the rest to my kids and grandkids.</p> <p><strong>Alex Elson</strong> - I would finally, finally take our van out of the shed and go away for a while! </p> <p><strong>Jeannine Litmanowicz</strong> - I would open a scholar fund for my grandchildren so they have money for higher education when they grow up. And also, since they are still young, I would treat them to a week travelling around with them and my daughters and husbands to the Balkans.</p> <p><strong>Christine Whyte</strong> - Keep myself very comfortable till it was time to distribute to 10 grandkids.</p> <p><em>Image credits: Shutterstock </em></p>

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Why is it so hard to cancel subscriptions or end ‘free’ trials? Report shows how companies trap you into paying

<div class="theconversation-article-body"><em><a href="https://theconversation.com/profiles/katharine-kemp-402096">Katharine Kemp</a>, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW Sydney</a></em></p> <p>Many businesses are trapping Australian consumers in paid subscriptions by making them hard to cancel, hiding important details and offering “free” trials that auto-renew with hefty charges. We need law reform to tackle this continuing problem.</p> <p><a href="https://cprc.org.au/report/let-me-out">A new report</a> shows 75% of Australian consumers have had negative experiences when trying to cancel a subscription, according to the Consumer Policy Research Centre (CPRC).</p> <p>It shows businesses use “<a href="https://www.wired.com/story/how-to-spot-avoid-dark-patterns/">dark patterns</a>”, which are designs that hinder consumers who try to act in their own best interests. Subscription traps are often called “<a href="https://www.ftc.gov/business-guidance/blog/2022/11/checking-out-ftcs-100-million-settlement-vonage">Hotel California</a>” techniques, referring to The Eagles’ famous lyric: “you can check out any time you want, but you can never leave”.</p> <p>In some of these cases, consumers may have remedies under our existing consumer law, including for misleading conduct. But we need law reform to capture other <a href="https://treasury.gov.au/consultation/c2023-430458">unfair practices</a>.</p> <p>In the meantime, the CPRC’s research also gives examples of businesses with <em>fair</em>, consumer-friendly subscription practices. These also benefit the business.</p> <h2>Examples of unfair subscription traps</h2> <p><a href="https://www.forbes.com/councils/forbesbusinessdevelopmentcouncil/2022/09/12/the-evolution-of-the-subscription-model-and-whats-on-the-horizon/">Subscription business models</a> have become common – many products are now provided in the form of software, an app or access to a website. Some of these would once have been a physical book, newspaper, CD or exercise class.</p> <p>Most people who use online services have experienced the frustration of finding a credit card charge for an unwanted, unused subscription or spending excessive time trying to cancel a subscription.</p> <figure class="align-center zoomable"><a href="https://images.theconversation.com/files/615486/original/file-20240826-16-fp57es.png?ixlib=rb-4.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/615486/original/file-20240826-16-fp57es.png?ixlib=rb-4.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/615486/original/file-20240826-16-fp57es.png?ixlib=rb-4.1.0&amp;q=45&amp;auto=format&amp;w=600&amp;h=643&amp;fit=crop&amp;dpr=1 600w, https://images.theconversation.com/files/615486/original/file-20240826-16-fp57es.png?ixlib=rb-4.1.0&amp;q=30&amp;auto=format&amp;w=600&amp;h=643&amp;fit=crop&amp;dpr=2 1200w, https://images.theconversation.com/files/615486/original/file-20240826-16-fp57es.png?ixlib=rb-4.1.0&amp;q=15&amp;auto=format&amp;w=600&amp;h=643&amp;fit=crop&amp;dpr=3 1800w, https://images.theconversation.com/files/615486/original/file-20240826-16-fp57es.png?ixlib=rb-4.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;h=808&amp;fit=crop&amp;dpr=1 754w, https://images.theconversation.com/files/615486/original/file-20240826-16-fp57es.png?ixlib=rb-4.1.0&amp;q=30&amp;auto=format&amp;w=754&amp;h=808&amp;fit=crop&amp;dpr=2 1508w, https://images.theconversation.com/files/615486/original/file-20240826-16-fp57es.png?ixlib=rb-4.1.0&amp;q=15&amp;auto=format&amp;w=754&amp;h=808&amp;fit=crop&amp;dpr=3 2262w" alt="Infographic with a few statistics from the report." /></a><figcaption><span class="attribution"><a class="source" href="https://cprc.org.au/wp-content/uploads/2024/08/CPRC_LetMeOut_SubsTraps_Report_FINAL.pdf">CPRC, Let me out – Subscription trap practices in Australia, August 2024</a></span></figcaption></figure> <p>Businesses can make it difficult for consumers to stop paying for unwanted subscriptions. Some do this by allowing consumers to start a subscription with a single click, but creating multiple obstacles if you want to end the subscription.</p> <p>This can include obscuring cancellation options in the app, requiring consumers to phone during business hours or making them navigate through multiple steps and offers before terminating. The report points out many of the last-ditch discounts offered in this process are only short term. One survey respondent said:</p> <blockquote> <p>I wasn’t able to cancel without having to call up and speak to someone. Their business hours meant I had to call up during my work day and it took some time to action.</p> </blockquote> <p>Other businesses badger consumers with frequent emails or messages after they cancel. One respondent said a business made “the cancellation process impossible by making you call and then judging your reason for cancellation”.</p> <h2>What does consumer law say?</h2> <p>Some subscription traps already fall foul of the Australian Consumer Law and warrant investigation by the <a href="https://www.accc.gov.au/media-release/accc-warns-consumers-to-beware-of-subscription-traps">Australian Competition &amp; Consumer Commission</a> (ACCC). Consumers may have remedies where the business has engaged in misleading conduct or imposes an unfair contract term.</p> <p>For example, the ACCC is <a href="https://www.accc.gov.au/media-release/accc-court-action-against-eharmony-for-alleged-misleading-online-dating-membership-statements#:%7E:text=The%20ACCC%20has%20today%20commenced%20proceedings%20in%20the,the%20pricing%2C%20renewal%20and%20duration%20of%20its%20memberships.">suing dating site eHarmony</a> for its allegedly misleading subscription practices.</p> <p>In the United States, the Federal Trade Commission <a href="https://www.ftc.gov/news-events/news/press-releases/2024/06/ftc-takes-action-against-adobe-executives-hiding-fees-preventing-consumers-easily-cancelling">has filed a complaint against software company Adobe</a> for allegedly using dark patterns in its subscription practices.</p> <p>The Federal Trade Commission has alleged that “Adobe pushed consumers toward the ‘annual paid monthly’ subscription without adequately disclosing that cancelling the plan in the first year could cost hundreds of dollars”.</p> <p>Adobe <a href="https://news.adobe.com/news/news-details/2024/Adobes-Recent-Statement-Regarding-Updated-Federal-Trade-Commission-Complaint-/default.aspx">issued a statement</a> arguing the commission’s complaint “mischaracterises” its business. The litigation is ongoing.</p> <h2>We need an unfair practices prohibition</h2> <p>Some subscription traps would fall outside the existing consumer law. This is because they don’t meet the test for misleading conduct or unfair contract terms, but make it practically very difficult to cancel.</p> <p>The <a href="https://www.accc.gov.au/media-release/accc-welcomes-consultation-on-possible-unfair-trading-practices-regulatory-reforms">ACCC has advocated</a> for Australia to follow other countries such as the United Kingdom and the United States to enact an unfair practices prohibition to capture conduct like this.</p> <figure class="align-center zoomable"><a href="https://images.theconversation.com/files/615487/original/file-20240826-16-2j23h7.png?ixlib=rb-4.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/615487/original/file-20240826-16-2j23h7.png?ixlib=rb-4.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/615487/original/file-20240826-16-2j23h7.png?ixlib=rb-4.1.0&amp;q=45&amp;auto=format&amp;w=600&amp;h=769&amp;fit=crop&amp;dpr=1 600w, https://images.theconversation.com/files/615487/original/file-20240826-16-2j23h7.png?ixlib=rb-4.1.0&amp;q=30&amp;auto=format&amp;w=600&amp;h=769&amp;fit=crop&amp;dpr=2 1200w, https://images.theconversation.com/files/615487/original/file-20240826-16-2j23h7.png?ixlib=rb-4.1.0&amp;q=15&amp;auto=format&amp;w=600&amp;h=769&amp;fit=crop&amp;dpr=3 1800w, https://images.theconversation.com/files/615487/original/file-20240826-16-2j23h7.png?ixlib=rb-4.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;h=966&amp;fit=crop&amp;dpr=1 754w, https://images.theconversation.com/files/615487/original/file-20240826-16-2j23h7.png?ixlib=rb-4.1.0&amp;q=30&amp;auto=format&amp;w=754&amp;h=966&amp;fit=crop&amp;dpr=2 1508w, https://images.theconversation.com/files/615487/original/file-20240826-16-2j23h7.png?ixlib=rb-4.1.0&amp;q=15&amp;auto=format&amp;w=754&amp;h=966&amp;fit=crop&amp;dpr=3 2262w" alt="" /></a><figcaption><span class="caption">The shift businesses can make today.</span> <span class="attribution"><a class="source" href="https://cprc.org.au/wp-content/uploads/2024/08/CPRC_LetMeOut_SubsTraps_Report_FINAL.pdf">CPRC, Let me out – Subscription trap practices in Australia, August 2024</a></span></figcaption></figure> <h2>Better practices benefit businesses too</h2> <p>The CPRC report also revealed that 90% of Australians would likely purchase from the same organisation if cancelling a subscription process was quick and simple.</p> <p>Businesses focused on a short-sighted cash grab fail to realise that consumers might cancel but later return if treated well.</p> <p>The CPRC highlights businesses that are doing a good job. For instance, the habit change app Atoms (based on James Clear’s book Atomic Habits) has a genuinely free trial. It doesn’t require credit card details, doesn’t auto-renew, and lets consumers know how many trial days remain.</p> <p>The CPRC says the charity World Vision doesn’t auto-renew annual sponsorships, but reminds supporters about when the sponsorship will lapse.</p> <p>Importantly, some businesses – such as Netflix – use their data for good in this context. They notice when users are paying for the service without using it and help them unsubscribe.</p> <p>These practices should be applauded. But we need an unfair practices prohibition for businesses who don’t follow suit and recognise the long-term benefits of treating customers fairly.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><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/237236/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><em><a href="https://theconversation.com/profiles/katharine-kemp-402096">Katharine Kemp</a>, Associate Professor, Faculty of Law &amp; Justice; Lead, UNSW Public Interest Law &amp; Tech Initiative, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW Sydney</a></em></p> <p><em>Image credits: Shutterstock </em></p> <p><em>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/why-is-it-so-hard-to-cancel-subscriptions-or-end-free-trials-report-shows-how-companies-trap-you-into-paying-237236">original article</a>.</em></p> </div>

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How fear of missing out can lead to you paying more when buying a home

<p><em><a href="https://theconversation.com/profiles/park-thaichon-175182">Park Thaichon</a>, <a href="https://theconversation.com/institutions/university-of-southern-queensland-1069">University of Southern Queensland</a></em></p> <p>The property market is a competitive space where finding a nice home, in the area you want, at a price you can afford is a hard ask.</p> <p>With buyers outnumbering available properties, the pressure is even greater causing some would-be buyers to develop <a href="https://health.clevelandclinic.org/understanding-fomo">a fear of missing out</a> (FOMO) and to make irrational decisions.</p> <p>FOMO might make you worry others are finding nicer homes and getting better deals, or that prices will rise to the point where you are priced out of the market altogether. This could cause you to pay too much or to buy a property in an area unsuitable for your needs.</p> <p>Then there is <a href="https://www.psychologytoday.com/au/blog/counseling-keys/202103/overcoming-fear-of-making-mistakes">fear of making a mistake</a> (FOMM), which can also cause problems if you’re a home hunter. You might be reluctant to bid or to negotiate because you are afraid of choosing the wrong property or paying more than it’s worth.</p> <h2>Problems caused by FOMO and FOMM</h2> <p>The principles of contagion theory, crowd psychology and the scarcity principle we identified in <a href="https://onlinelibrary.wiley.com/doi/epdf/10.1111/ijcs.12649?casa_token=271MN72XdP8AAAAA%3AfhYF_2yUJtM7KGv5jvFdXn5UsXQLkMcIM_F6hffYa30QaSdRivjf2mhFX-cr5C7ttCuLl1-e2OFYXBA">our research</a> on panic-buying during the pandemic, can be applied to any purchasing decisions. In this instance we applied them to buying properties in a competitive housing market.</p> <p><a href="https://www.communicationtheory.org/contagion-theory/">Contagion theory</a> applies when people act irrationally under the influence of a crowd. <a href="https://www.bestvalueschools.com/faq/what-is-crowd-psychology/">Crowd psychology</a> is similar but relates to how a crowd behaves in certain circumstances, while <a href="https://www.indeed.com/career-advice/career-development/scarcity-principle">scarcity principle</a> is the idea if there are fewer items available, their value increases.</p> <p>Each of these can increase the likelihood of several behaviours when purchasing a property. These include:</p> <ul> <li><strong>Underbidding and overbidding</strong></li> </ul> <p>Fearing other buyers might get the house, house hunters might get caught up in a bidding war and end up paying more than planned.</p> <p>Conversely, buyers with FOMM might fear spending too much so bid too low to start with and risk losing the house.</p> <ul> <li><strong>Following the crowd and peer pressure influence</strong></li> </ul> <p>Buyers might feel <a href="https://link.springer.com/article/10.1007/s11403-021-00324-7">pressured to buy</a> in a certain area because it’s popular, even if it is not best fit for them. This can lead to paying more for a house just because others are doing the same.</p> <ul> <li><strong>Delaying decisions</strong></li> </ul> <p>FOMM can lead to <a href="https://onlinelibrary.wiley.com/doi/abs/10.1111/ijcs.12990?casa_token=ZhJnLBOwVxUAAAAA%3AW5haHZKSA1rFQsRNdvw0liOoyvdxl0OrFR2phkhGfYC6TnWRv9EsnV-N8w52CmcnAVb8X2yU1obpIjKx">taking too long to decide</a>. This delay can mean missing out on good deals or being forced to rush into a decision and end up overpaying.</p> <ul> <li><strong>Avoiding negotiation</strong></li> </ul> <p>Some buyers might avoid negotiating the price or special conditions such as building and pest inspections and finance approval because they fear the seller will reject their offer. This can result in paying more than they need to if there are problems later.</p> <ul> <li><strong>Excessive inspections and appraisals</strong></li> </ul> <p>While inspections and appraisals are important, too many can suggest indecisiveness driven by fear, resulting in wasted money on unnecessary assessments, and more importantly, wasted time and delayed decisions.</p> <h2>Removing fear from the buying process</h2> <p>Start with thorough research and preparation by learning about different neighbourhoods and house prices. The history of properties and suburbs can be found for free on property websites and is a good place to start.</p> <p>Seek professional guidance from real estate agents or financial advisers to help you through the process.</p> <p>Get insights on market trends from an agent from a selling company or bank to help find homes that meet your criteria. Keep in mind these agents will get some form of incentive from your purchase.</p> <p>All the big banks or loan officers can provide free property reports on specific properties or suburbs.</p> <p>Don’t forget to check council mapping and water authority documents to check for potential future road projects and other developments and for an area’s flood rating.</p> <p>Perform due diligence by thoroughly inspecting properties and reviewing contracts to ensure they meet your needs and are a good investment.</p> <p>For example, it is a good idea to hire a home inspector to check for any hidden issues before making an offer.</p> <p>Another common mistake made by most buyers is not asking their <a href="https://www.qld.gov.au/law/housing-and-neighbours/buying-and-selling-a-property/buying-a-home/before-you-start-looking/appointing-a-solicitor">solicitor</a> to check and give suggestions before signing a contract or offer.</p> <p>A solicitor can check the sale contract before you sign, review the disclosure documents, give advice on your mortgage contract, carry out title searches and explain the results and explain how the purchase may affect your liability for land tax.</p> <p>Do some contingency planning by preparing for unexpected price increases and for the presence of other strong bidders to reduce anxiety about making the wrong decision. Setting aside extra funds could help deal with higher than expected prices or unexpected repairs that need doing.</p> <p>In the end, plan well and make decisions without letting emotions take over. Taking your time to find the right home that fits your budget and goals, rather than rushing into a purchase due to fear of missing out or making a mistake.<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/233197/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /></p> <p><em><a href="https://theconversation.com/profiles/park-thaichon-175182">Park Thaichon</a>, Associate Professor of Marketing, <a href="https://theconversation.com/institutions/university-of-southern-queensland-1069">University of Southern Queensland</a></em></p> <p><em>Image credits: Shutterstock </em></p> <p><em>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/how-fear-of-missing-out-can-lead-to-you-paying-more-when-buying-a-home-233197">original article</a>.</em></p>

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

<p>While technology continues to advance, so does the way we pay for things. </p> <p>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. </p> <p>We asked our readers their thoughts on digital payments and the response was overwhelming. Here's what they said. </p> <p><strong>Joan Hughes</strong> - 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.</p> <p><strong>Johanna Shakes</strong> - Very hard to adjust for elderly.</p> <p><strong>Debra Walker</strong> - Hate it! Cash is king.</p> <p><strong>Lex Jordan</strong> - I think we should all stand and boycott these companies that don't accept cash.</p> <p><strong>Patricia Tebbit</strong> - Don't mind using cards but access to cash is imperative. Think of small charity raffles, garage sales &amp; countless other things where cash is required.</p> <p><strong>Lyn Bradford</strong> - I love it, I use 95% card, 5% cash. So much easier. </p> <p><strong>David Taylor</strong> - Just making it easier for hackers.</p> <p><strong>Jennifer Bucktin</strong> - Cash is best. If digital goes down, you can't use anything.</p> <p><strong>Steve Smith</strong> - The digital age is here to stay so it's going to be better for all to get used to it.</p> <p><strong>Quentin Brown </strong>- 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?</p> <p><strong>Kath Sheppard</strong> - Cash is king, a lot safer as well, can't overspend either or be charged fees.</p> <p><em>Image credits: Shutterstock </em></p>

Money & Banking

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Thinking of dabbling in investing? Expert’s 7 things to consider before investing a cent

<p>Investing can be seen as both an art and a science, requiring a blend of patience, knowledge and strategy. It’s also crucial to understand the trade-off between risk and return, coupled with your time horizon. This means you do not invest in a vacuum, and each part of the investing world will impact another. </p> <p>Get your financial situation strong before you commit money to investing. This could be clearing consumer debt (credit cards, personal loans, buy-now-pay-later), funding your emergency fund or even setting up a spending plan so you know exactly how much you have free to invest. What else do you need to consider?</p> <ol> <li><strong>Your ‘why’</strong></li> </ol> <p>What is money to you? What do you believe about money? Why are you investing to start with? These questions must have an answer before you commit money to your investing account. If you’re unsure and want to build wealth with money you don’t need now, that’s also okay, but you need to have some conscious thought about your ‘why’ and your goals, as this is the basis of any strategy that you develop.</p> <ol start="2"> <li><strong>Your mindset</strong></li> </ol> <p>Do you have your own personal conviction about your investing, money and even life?  Your mindset around investing and money needs to be rock solid, so when you hear someone tell you to do something because they do it, you don’t change a thing because your situation is set up correctly for you! </p> <p>This also helps if you’re part of online forums, listening to podcasts or reading investing books. Your mindset needs to be so firm that you can pick hype vs substance when it comes to investing and other opportunities. Just because everyone is doing it, does not mean it’s a good thing for you to do.</p> <ol start="3"> <li><strong>Setting your strategy</strong></li> </ol> <p>An effective investment strategy is personalised and aligned with your financial goals, risk tolerance and investment horizon. Whether you’re saving for retirement, a child’s education or building wealth, your strategy should dictate how you allocate your assets across different investment vehicles. It may be considered essential to have a balanced mix of shares (or ETFs), bonds (or fixed interest) and other assets to mitigate risk. </p> <p>Regularly reviewing and adjusting your portfolio to stay aligned with your goals is also a crucial part of your strategy. Your strategy will help you stay the course if things get rough out there and your emotions are tempted to take over! This goes hand-in-hand with having a sound mindset.</p> <ol start="4"> <li><strong>Ownership structure</strong></li> </ol> <p>Understanding the best ownership structure for your wealth building and investments can have significant implications for taxes, estate planning and asset protection. Options include individual or joint accounts, superannuation, investment bonds, trusts and companies. Each has its advantages and considerations, particularly concerning tax efficiency and control over the assets.  </p> <p>Before you pull the trigger with significant wealth (for example, if you were to receive an inheritance), seek professional advice around the ownership of your investment vehicle. This will help you determine the most advantageous structure for your situation.</p> <ol start="5"> <li><strong>Broad-based index funds</strong></li> </ol> <p>Broad-based index funds are foundational to a well-rounded investment portfolio. These funds track the performance of a specific index, such as the ASX 200, S&amp;P 500 or thematic indexes and provide investors with diversified exposure to a wide array of companies. The beauty of index funds lies in their simplicity and effectiveness. </p> <p>They offer a low-cost way to invest in the stock market, reducing the risk associated with picking individual companies. Over the long term, index funds have historically provided solid returns, making them an excellent choice for both novice and experienced investors.</p> <ol start="6"> <li><strong>Valuing and investing in individual companies</strong></li> </ol> <p>For those inclined to take a more hands-on approach with their investing or just to keep the interest alive, valuing single companies is a critical skill.  This involves analysing a company's financial health, market position and growth prospects. </p> <p>Key metrics such as the price-to-earnings (P/E) ratio, earnings growth and dividend yield can provide valuable insights. However, it’s important to remember that ‘stock picking’ requires research, a deep understanding of market cycles and a higher tolerance for risk. </p> <p>Your goal may be to identify undervalued companies that have the potential for significant growth. A note to remember is to have your own guardrails in your life and make it part of your investment constitution that you will not have more than, say, 10 per cent of your portfolio allocated to individual companies.</p> <ol start="7"> <li><strong>Advanced concepts, trading and speculation</strong></li> </ol> <p>The key with advanced concepts, alternative/speculative asset classes, day trading and options trading is again to have solid guardrails in place. Be engaged and dialled in to your investing; however, you need to understand that the best thing you can do for your future wealth is buy and hold good, broad-based indexes for the long term. </p> <p>We love doing advanced strategies and some wild stuff, but we have strong guardrails because these strategies may flush you if you’re not careful, and you don’t want your whole portfolio allocated to such endeavours!</p> <p><em><strong>Edited extract from The quick start guide to investing: Learn how to invest simpler, smarter &amp; sooner by Glen James &amp; Nick Bradley (Wiley $32.95), available at all leading retailers.</strong></em></p> <p><em><strong>Disclaimer: Any information here is general in nature and has been prepared without considering your personal goals, financial situation, or needs. Because of this, before acting on the general advice, you should consider its appropriateness, having regard to your unique situation. You should obtain and review the Product Disclosure Statement (PDS) and Target Market Determination (TMD) relevant to the product before making any financial product decisions. It's also strongly encouraged to seek the advice of a professional financial adviser. </strong></em><strong><br /></strong></p> <p><em><strong>Image credits: Shutterstock </strong></em></p>

Money & Banking

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Can money buy you happiness? It’s complicated

<p><em><a href="https://theconversation.com/profiles/cathrine-jansson-boyd-237916">Cathrine Jansson-Boyd</a>, <a href="https://theconversation.com/institutions/anglia-ruskin-university-1887">Anglia Ruskin University</a></em></p> <p>Consumer society is growing fast around the globe. In 2011 it was estimated that 1.7 billion people were living in what is considered to be the <a href="http://www.worldwatch.org/node/810">“consumer class”</a> – and nearly half of them are in the developing world. Consumption of goods and services has <a href="http://data.worldbank.org/indicator/NE.CON.PRVT.CD">grown at a staggering rate over the past few decades</a> and prompts us to ask: does it makes us happy? The answer’s not as simple as you might think.</p> <p>As a starting point, it is useful to look at <a href="https://books.google.co.uk/books?id=1A2siA19hKYC&amp;printsec=frontcover&amp;source=gbs_ge_summary_r&amp;cad=0#v=onepage&amp;q&amp;f=false">reported life satisfaction</a> across the globe. In richer nations, people usually buy more products and services. Hence if consumption genuinely made people happier, one would expect people to be happier in wealthy countries.</p> <p>It is true that people in rich nations report greater levels of life satisfaction (one measure of determining <a href="http://worldhappiness.report/">happiness</a>) than those in poor ones. However, the picture looks a little different when comparing moderately and very wealthy countries as there is no difference between the two. This indicates that money and increased material wealth does not necessarily equal higher levels of happiness.</p> <h2>Being materialistic</h2> <p>In the past few decades, people in richer industrialised societies have become increasingly materialistic. There are two key reasons for this – first, because we learn by observing others, it has become acceptable. And second, because people use products as a means to <a href="http://www.businessinsider.com/the-psychology-behind-retail-therapy-2012-11?IR=T">fill a psychological void</a> in their life. The latter is, at least partially, affected by marketing messages consistently telling us that consumption is the path to happiness.</p> <p>So when people feel they are lacking something in their lives they try to replace it with material possessions. But this often fails, as people usually misjudge what will make them happy. So what often happens is that people get a temporary boost from a particular purchase, but the pleasure tends to fade with time as they adapt to having it, leaving them unsatisfied.</p> <p>They then search for another product that can provide an even stronger pleasurable feeling – but, as before, it will again fade away. This continues as if we are on a forever spinning wheel of consumption. With <a href="http://link.springer.com/article/10.1023/B:JOHS.0000005719.56211.fd">every search for a new pleasing purchase</a>, expectations subconsciously rise – and the result is that we often feel a need to increase the number of purchases made or to spend more money.</p> <h2>Feelings of insecurity</h2> <p>How consumers feel about themselves also dictate consumption patterns. Highly materialistic individuals tend to value possessions that are expensive, seen as high status and are easily spotted and recognised by other people. This is because materialism is related to <a href="http://ase.tufts.edu/gdae/cs/personal%20well-being.pdf">a lack of self-esteem</a>. Hence, feelings of insecurity lead to a concern about what others think about them – which in turn leads to attempts to gain approval from others by owning desirable products.</p> <p>This lack of confidence often originates from what kind of toys we played with in childhood. Many girls, for example, are exposed to unrealistic views of what women should look like when they are given toys like <a href="http://www.bbc.co.uk/news/magazine-35670446">Barbie dolls</a>. This unrealistic view is then internalised and can be carried over into adulthood. A <a href="http://www.bbc.co.uk/news/education-37543769">recent report</a> suggests that approximately 40% of girls and young women lack confidence in how they look. To alleviate the disappointment with their appearance, they are likely to embark on a quest to purchase products they believe will make them more attractive.</p> <p>The media also plays a big role in stripping people of self-esteem. Women’s magazines are designed to encourage them to consume expensive clothes, make-up and lifestyle objects to mitigate the insecurities they feel by comparing themselves and their lives to the models and celebrities inside.</p> <p>Men can be affected by the media in similar ways – an increasing number of <a href="http://www.independent.co.uk/life-style/fashion/features/mens-grooming-is-now-a-multi-billion-pound-worldwide-industry-a6813196.html">men are influenced by magazines to consume clothes and beauty items</a>. When such insecurities are established, the appeal of consumption tends to increase – people are sold the message that they can buy “the very thing” that will help alleviate their insecure feelings.</p> <h2>Not all doom and gloom</h2> <p>Even though it seems that consumption is not synonymous with happiness it is not quite as straightforward as that. One key component for good mental health is to have a solid social support network. A constant pursuit of material possessions makes people disregard aspects of life that can contribute to general well-being, such as a healthy friendship network.</p> <p>It may therefore seem like a paradox that purchasing experiences can be the way to generate better social connections. Purchases made with the intention of <a href="http://psycnet.apa.org/journals/gpr/9/2/132/">having an experience</a>, such as a ski holiday or possibly <a href="http://www.bbc.co.uk/news/business-37550679">something more unusual</a> – such as “being” a celebrity for the day – can boost a person’s sense of happiness. This is often not because of the gratification caused by the thing itself but because it provides people with an opportunity to discuss their experiences with others. The joy of such an experience is that its benefits are subjective and thus not easy to compare – unlike a new mobile phone – which may not be as fancy as someone else’s. Consequently, you are not as likely to feel negative by having a “worse” experience than someone else.</p> <p>Perhaps the question that needs asking is not if consumption leads to happiness, but whether what we consume leads to happiness. As we are approaching the time of year when consuming often reaches an all-time high (<a href="http://www.mirror.co.uk/money/shopping-deals/black-friday-best-deals-2016-6630912">Black Friday</a>, <a href="http://www.mirror.co.uk/money/cyber-monday-2016-big-deals-6825898">Cyber Monday</a> and Christmas), it is worth reflecting on whether the purchases you make are going to genuinely fulfil your desires. Ask yourself if you should be buying more products, or whether it may be the time to buy theatre tickets for your friends to foster stronger social relationships.</p> <p><em><a href="https://theconversation.com/profiles/cathrine-jansson-boyd-237916">Cathrine Jansson-Boyd</a>, Reader in Consumer Psychology, <a href="https://theconversation.com/institutions/anglia-ruskin-university-1887">Anglia Ruskin University</a></em></p> <p><em>Image credits: Shutterstock </em></p> <p><em>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/can-money-buy-you-happiness-its-complicated-66307">original article</a>.</em></p>

Money & Banking

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Couple charges guests to attend their wedding

<p dir="ltr">A couple have made the divisive decision to charge their loved ones to attend their wedding in order to save money. </p> <p dir="ltr">When newlyweds Nova and Reemo Styles, a couple from the US, they were originally quoted $150,000 USD ($227,936 AUD) for their dream nuptials.</p> <p dir="ltr">"That's the number they were starting at," Nova explained to US news outlet <em>ABC 7</em>.</p> <p dir="ltr">In order to cut down on costs without cutting out any extravagant extras from their big day, the couple decided to put a price on attendance, and slap their loved ones with a fee. </p> <p dir="ltr">"And I said, 'People choose to go to Beyoncé's concert, because they know that they're gonna have an experience’. Let's put the stress on the guests, and let's sell tickets for a wedding,'" Nova admitted.</p> <p dir="ltr">Her new husband Reemo admitted he wasn’t too keen on the idea, as he recalled telling his wife “Babe, people aren’t going to come.”</p> <p dir="ltr">The couple decided to charge guests $333 USD ($510 AUD) each, which earned them a place on a double-decker bus for the reception which took them on a 12-hour adventure in New York City.</p> <p dir="ltr">The controversial move ended up saving the couple $70,000 USD ($106,260 AUD), and their big day went off without a hitch. </p> <p dir="ltr">They admitted that they received pushback from some guests, as NOva recalled one invitee saying, "I would never spend money on tickets. I don't care. Who do you guys think you are? Jay-Z and Beyoncé?”</p> <p dir="ltr">The couple stood by their choice to charge their guests, as many friends and family did fork out the hefty fee. </p> <p dir="ltr">Nova and Reemo’s story quickly made it to the ‘wedding shaming’ Reddit group, where social media users were not so sympathetic and were quick to condemn their “tacky” and “ridiculous” choice. </p> <p dir="ltr">"Talk about TACKY! I would never think of making someone pay to come to my wedding! That is just ridiculous...," one said.</p> <p dir="ltr">"I absolutely would not pay to come to a wedding, because I'm already paying to go -- gas, time to get ready, a gift, that's money/time I could spend in other ways," another said.</p> <p dir="ltr">"That's probably the dumbest thing I've ever heard. I would imagine many guests RSVP no," added another.</p> <p dir="ltr">Another user was quick to point out that if they needed help covering such a huge sum of money, they should’ve chosen to cut back on the extravagant day instead of expecting their loved ones to cover the cost. </p> <p dir="ltr"><em>Image credits: ABC 7</em></p>

Money & Banking

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People who are bad with numbers often find it harder to make ends meet – even if they are not poor

<div class="theconversation-article-body"><em><a href="https://theconversation.com/profiles/wandi-bruine-de-bruin-275600">Wändi Bruine de Bruin</a>, <a href="https://theconversation.com/institutions/usc-dornsife-college-of-letters-arts-and-sciences-2669">USC Dornsife College of Letters, Arts and Sciences</a> and <a href="https://theconversation.com/profiles/paul-slovic-359838">Paul Slovic</a>, <a href="https://theconversation.com/institutions/university-of-oregon-811">University of Oregon</a></em></p> <h2>The big idea</h2> <p>People who are bad with numbers are more likely to experience financial difficulties than people who are good with numbers. That’s according to <a href="https://doi.org/10.1371/journal.pone.0260378">our analyses</a> of the <a href="https://wrp.lrfoundation.org.uk/explore-the-poll">Lloyd’s Register Foundation World Risk Poll</a>.</p> <p>In this World Risk Poll, people from 141 countries were asked if 10% was bigger than, smaller than or the same as 1 out of 10. Participants were said to be bad with numbers if they did not provide the correct answer – which is that 10% is the same as 1 out of 10. <a href="https://doi.org/10.1371/journal.pone.0260378">Our analyses</a> found that people who answered incorrectly are often among the poorest in their country. Prior studies in the <a href="https://doi.org/10.1111/j.1468-0297.2010.02394.x">United States</a>, <a href="https://doi.org/10.1111/j.1475-5890.2007.00052.x">United Kingdom</a>, <a href="https://doi.org/10.1016/j.joep.2016.02.011">the Netherlands</a> and <a href="https://doi.org/10.1111/joca.12294">Peru</a> had also found that people who are bad with numbers are financially worse off. But <a href="https://doi.org/10.1371/journal.pone.0260378">our analyses of the World Risk Poll</a> further showed that people who are bad with numbers find it harder to make ends meet, even if they are not poor.</p> <p>When we say that they found it harder to make ends meet, we mean that they reported on the poll that they found it difficult or very difficult to live on their current income, as opposed to living comfortably or getting by on their current income.</p> <p><a href="https://doi.org/10.1371/journal.pone.0260378">Our analyses</a> also indicate that staying in school longer is related to better number ability. People with a high school degree tend to be better with numbers than people without a high school degree. And college graduates do even better. But even among college graduates there are people who are bad with numbers – and they struggle more financially.</p> <p><iframe id="yOIiX" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/yOIiX/3/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe></p> <p>Of course, being good with numbers is not going to help you stretch your budget if you are very poor. <a href="https://doi.org/10.1371/journal.pone.0260378">We found</a> that the relationship between number ability and struggling to make ends meet holds across the world, except in low-income countries like Ethiopia, Somalia and Rwanda.</p> <p><iframe id="RejA1" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/RejA1/8/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe></p> <h2>Why it matters</h2> <p>The ability to understand and use numbers is also called <a href="http://doi.org/10.1093/oso/9780190861094.001.0001">numeracy</a>. Numeracy is <a href="https://doi.org/10.1787/1f029d8f-en">central to modern adult life</a> because numbers are everywhere.</p> <p>A lot of well-paying jobs involve working with numbers. People who are bad with numbers often perform worse in these jobs, including <a href="https://doi.org/10.1111/ecin.12873">banking</a>. It can therefore be hard for people who are bad with numbers to <a href="http://www.doi.org/10.1108/00400919710164125">find employment and progress in their jobs</a>.</p> <p>People who are bad with numbers are less likely <a href="https://www.pnas.org/content/116/39/19386.short">to make good financial decisions</a>. Individuals who can’t compute how interest compounds over time <a href="https://doi.org/10.1111/j.1540-6261.2009.01518.x">save the least and borrow the most</a>. People with poor numerical skills are also more likely <a href="https://doi.org/10.1037/0022-3514.41.3.586">to take on high-cost debt</a>. If you’re bad with numbers, it is hard to <a href="https://doi.org/10.1017/S1474747215000232">recognize</a> that paying the US$30 minimum payment on a credit card with a $3,000 balance and an annual percentage rate of 12% means it will never be paid off.</p> <h2>What still isn’t known</h2> <p>It is clear that people who are bad with numbers also tend to struggle financially. But we still need to explore whether teaching people math will help them to avoid financial problems.</p> <h2>What’s next</h2> <p>In her book “<a href="http://doi.org/10.1093/oso/9780190861094.001.0001">Innumeracy in the Wild</a>,” Ellen Peters, director of the Center for Science Communication Research at the University of Oregon, suggests that it is important for students to take math classes. American high school students who had to <a href="https://doi.org/10.3368/jhr.51.3.0113-5410R1">take more math courses</a> than were previously required had better financial outcomes later in life, such as avoiding bankruptcy and foreclosures.</p> <p>Successfully teaching numeracy also means helping students gain confidence in using numbers. People with <a href="https://doi.org/10.1073/pnas.1903126116">low numerical confidence</a> experience bad financial outcomes, such as a foreclosure notice, independent of their numeric ability. This is because they may not even try to take on complex financial decisions.</p> <p>Numerical confidence can be boosted in different ways. Among American <a href="https://doi.org/10.1037/0022-3514.41.3.586">elementary school children</a> who were bad with numbers, setting achievable goals led to better numerical confidence and performance. Among American <a href="https://doi.org/10.1371/journal.pone.0180674">undergraduate students</a>, a writing exercise that affirmed their positive values improved their numerical confidence and performance.</p> <p>Other important next steps are to find out whether training in numeracy can also be provided to adults, and whether training in numeracy improves the financial outcomes of people who do not live in high-income countries.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><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/172272/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><a href="https://theconversation.com/profiles/wandi-bruine-de-bruin-275600"><em>Wändi Bruine de Bruin</em></a><em>, Professor of Public Policy, Psychology and Behavioral Science, USC Sol Price School of Public Policy, <a href="https://theconversation.com/institutions/usc-dornsife-college-of-letters-arts-and-sciences-2669">USC Dornsife College of Letters, Arts and Sciences</a> and <a href="https://theconversation.com/profiles/paul-slovic-359838">Paul Slovic</a>, Professor of Psychology, <a href="https://theconversation.com/institutions/university-of-oregon-811">University of Oregon</a></em></p> <p><em>Image credits: Shutterstock </em></p> <p><em>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/people-who-are-bad-with-numbers-often-find-it-harder-to-make-ends-meet-even-if-they-are-not-poor-172272">original article</a>.</em></p> </div>

Money & Banking

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Financial hardship is the biggest driver of loneliness. Here’s why – and how to tackle it

<p><em><a href="https://theconversation.com/profiles/michelle-h-lim-176472">Michelle H Lim</a>, <a href="https://theconversation.com/institutions/university-of-sydney-841">University of Sydney</a></em></p> <p>One in four Australians <a href="https://lonelinessawarenessweek.com.au/wp-content/uploads/2024/08/why-we-feel-lonely.pdf">report</a> feeling lonely, according to our new report released this week from our research collaboration.</p> <p>The data builds on a large <a href="https://endingloneliness.com.au/wp-content/uploads/2023/10/ELT_LNA_Report_Digital.pdf">study we conducted last year</a> on social connection. Together, the data show that once someone <a href="https://endingloneliness.com.au/wp-content/uploads/2023/10/ELT_LNA_Report_Digital.pdf">becomes lonely</a>, they’re likely to stay lonely.</p> <p>Feeling lonely can have a <a href="https://endingloneliness.com.au/wp-content/uploads/2023/10/ELT_LNA_Report_Digital.pdf">negative impact on your health</a>. It increases the chance of having <a href="https://pubmed.ncbi.nlm.nih.gov/27124713/">social anxiety and depression</a>, and impacts the <a href="http://dx.doi.org/10.1037/0022-3514.85.1.105">health of your heart</a>, your <a href="http://pss.sagepub.com/content/13/4/384.full.pdf">sleep</a> and levels of <a href="https://pubmed.ncbi.nlm.nih.gov/15041083/">inflammation</a>. It also increases the likelihood of an <a href="https://www.ncbi.nlm.nih.gov/pubmed/?term=Loneliness+and+Social+Isolation+as+Risk+Factors+for+Mortality%3A+A+Meta-Analytic+Review">earlier death</a>. Staying lonely can accelerate these <a href="https://pubmed.ncbi.nlm.nih.gov/31237442/">negative impacts</a>.</p> <p>As more Australians grapple with a cost-of-living crisis, a key driver of loneliness is financial hardship.</p> <h2>Am I lonely?</h2> <p>Loneliness is a negative feeling that arises when your <a href="https://www.gilc.global/_files/ugd/410bdf_62e236db3a7146cd9f2654877a87dbc6.pdf">social needs are not met</a> by the relationships you hold. So you can feel alone, even if you’re surrounded by others, if you’re not getting the right kind of company and support.</p> <p>This might mean you feel, to a certain extent, that:</p> <ul> <li>you are not “in tune” with others</li> <li>your relationships are not meaningful</li> <li>you do not belong</li> <li>you do not have a group of friends</li> <li>no one understands you</li> <li>you do not have shared interests with others</li> <li>there is no one you can turn to.</li> </ul> <p>Not all of these may relate to you and you may experience these in varying degrees.</p> <h2>What drives loneliness?</h2> <p>We <a href="https://endingloneliness.com.au/wp-content/uploads/2023/10/ELT_LNA_Report_Digital.pdf">found</a> particular communities were more at risk of persistent loneliness:</p> <ul> <li>those aged 18 to 24</li> <li>people from culturally and linguistically diverse backgrounds</li> <li>people who were single or divorced</li> <li>those with a chronic disease</li> <li>those with mental ill health.</li> </ul> <p>But the largest effect we found, even after we accounted for all other possible contributing factors, is the impact of financial hardship.</p> <p>People who face financial hardship were almost seven times more likely to report persistent loneliness, and almost five times more likely to report persistent social isolation, compared with people who did not face financial hardship.</p> <p>This aligns with other studies that link economic hardships to <a href="https://pubmed.ncbi.nlm.nih.gov/33241698/">poor health</a>.</p> <p>In <a href="https://pubmed.ncbi.nlm.nih.gov/37761396/">children from low-income backgrounds</a>, for example, their family’s economic hardship is one of the main factors that negatively impacts their physical and psychological health.</p> <p>In a large <a href="https://www.sciencedirect.com/science/article/pii/S0277953622004282?via%3Dihub">study</a> using the UK Biobank, people who are from a lower economic background had a higher probability of reporting loneliness.</p> <p>In <a href="https://pubmed.ncbi.nlm.nih.gov/37528108/">Australia</a>, when compared with people on incomes more than A$150,000, those with incomes under $80,000 were 49% more likely to experience loneliness in one year and 66% more likely to report loneliness in at least two consecutive years.</p> <h2>Being poor affects how we interact with others</h2> <p>Factors such as income and your living environment are some of the <a href="https://www.who.int/health-topics/social-determinants-of-health#tab=tab_1">social determinants of health</a>, which influence our health outcomes.</p> <p>However, to date, little has been done to examine exactly how the lack of financial resources negatively affects the way we interact with others. There are two plausible scenarios.</p> <p>First, having financial pressures may change the way we feel and relate to others due to higher stress levels.</p> <p>Second, financial pressures may stop us from socialising because we have to take on more work to earn more money or we try to cut costs to save money. Socialising can be free in some circumstances, but most of the time, there is a cost to getting to places, or doing an activity together.</p> <h2>What can we do as a society?</h2> <p>The <a href="https://news.gallup.com/opinion/gallup/512618/almost-quarter-world-feels-lonely.aspx">high prevalence of loneliness across the world</a> – and the growing scientific evidence of the negative impact on our health, wellbeing and productivity, and subsequently the economy – can no longer be ignored.</p> <p>The World Health Organization is repositioning loneliness as a global public health priority and has established a <a href="https://www.who.int/groups/commission-on-social-connection">Commission on Social Connection</a>. This commission aims to set the global agenda for social connection, work with high-level commissioners to make the case for global action, scale up proven solutions and measure progress.</p> <p>We need to start by building a <a href="https://lonelinessawarenessweek.com.au/wp-content/uploads/2024/08/How-can-we-create-a-culture-of-connection.pdf">culture of connection</a> in Australia. This means changing the way we make decisions on how we relate to each other, promoting social connection within our schools, workplaces and communities. And to modify policies to allow us to start and maintain healthy social connections.</p> <p>Health and social policies to address loneliness and social isolation have to consider the impact of low incomes and increased financial pressures as barriers to building and maintaining meaningful social connection.</p> <p>Related to this is urban planning. People require safe and no- or low-cost spaces to interact in and to start and maintain relationships. This includes parks, libraries, public squares, community gardens and neighbourhood houses.</p> <p>Cuts to building or maintaining these spaces will stop people from interacting, gathering, or socialising within their community.</p> <p>Not addressing loneliness effectively or quickly will lead us to persistent loneliness and to potentially more distress.</p> <h2>How to connect if you’re financially pressured</h2> <p>Don’t feel alone in this experience. Let your family or friends know that you are financially pressured. Chances are, they are experiencing the same pressures because of the rise in the cost of living.</p> <p>Select no- or low-cost activities such as walking in the park with a friend, or connecting on the phone. Look for free events offered in your local area and city.</p> <p>Consider having meals at home as opposed to going out, or low-cost food options. Find some digital spaces which can allow you to interact with others in shared interest topics.</p> <p>If someone shares they are feeling lonely, asking “is there anything I can do to help?” facilitates the conversation and lets others know you are there without judgement.</p> <hr /> <p><em>If this article has raised issues for you, or if you’re concerned about someone you know, you can call Lifeline on 13 11 14.</em><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/236135/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /></p> <p><em><a href="https://theconversation.com/profiles/michelle-h-lim-176472">Michelle H Lim</a>, Associate Professor of Psychology, <a href="https://theconversation.com/institutions/university-of-sydney-841">University of Sydney</a></em></p> <p><em>Image credits: Shutterstock </em></p> <p><em>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/financial-hardship-is-the-biggest-driver-of-loneliness-heres-why-and-how-to-tackle-it-236135">original article</a>.</em></p>

Money & Banking

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Sorting a loved one’s finances after their death – what you need to know

<p><em><a href="https://theconversation.com/profiles/kate-reed-1548385">Kate Reed</a>, <a href="https://theconversation.com/institutions/university-of-sheffield-1147">University of Sheffield</a></em></p> <p>Financial anxiety is often talked about, but rarely in the context of bereavement. Following the death of a loved one, relatives usually have to complete a range of financial “death administration” tasks.</p> <p>These can be anything from closing bank accounts and settling utility bills to managing probate (things like property sales, asset management and inheritance distribution). The <a href="https://bereavementcommission.org.uk/media/xube5elb/ukbc_summary_report_low-res.pdf">UK Commission on Bereavement</a> has estimated that 61% of adults struggle to deal with such time consuming and time sensitive administrative responsibilities.</p> <p>While research has begun to shed light on some of the financial difficulties bereaved people can face after the death of a <a href="https://bmcwomenshealth.biomedcentral.com/articles/10.1186/s12905-015-0194-1">spouse</a> or a <a href="https://onlinelibrary.wiley.com/doi/abs/10.1111/1468-4446.12190">family member</a>, the emotional toll of navigating financial admin after bereavement remains <a href="https://www.bereavementjournal.org/index.php/bcj/article/view/1114">largely invisible</a>.</p> <p>But the good news is there are several resources that can help bereaved people to navigate these processes, including the UK government’s own <a href="https://www.gov.uk/when-someone-dies">step-by-step guide</a>. We conducted <a href="https://thenbs.org/partnerships/death-admin-research-report">research</a> on death admin in collaboration with the <a href="https://thenbs.org/">National Bereavement Service</a>, an organisation that provides free practical and emotional support for anyone who has lost a loved-one. The study showed how government services provide a gateway to sorting out a range of financial issues.</p> <p>Financial organisations require proof of the death through a death certificate. This is provided when you <a href="https://www.gov.uk/when-someone-dies">register</a> a death with the local registrar of births, marriages and deaths. Where there is an inquest, an interim death certificate will be issued.</p> <p>Often, multiple copies of the death certificate are needed. And, at £12.50 for <a href="https://www.gov.uk/order-copy-birth-death-marriage-certificate">each copy</a> (£12 in <a href="https://www.mygov.scot/birth-death-marriage-certificate#:%7E:text=You%20can%20order%20a%20certificate,orders%20made%20in%20another%20way.">Scotland</a>), the financial burden falling on bereaved people can quickly grow.</p> <p>In terms of tax, pensions and benefits, the registrar provides a unique reference number that bereaved people can use to inform the government through a service called <a href="https://www.gov.uk/after-a-death/organisations-you-need-to-contact-and-tell-us-once">Tell Us Once</a>.</p> <p>This is an initiative that notifies national and local government bodies including HM Revenue and Customs (to deal with personal tax and to cancel certain benefits and tax credits) and the Department for Work and Pensions (to cancel benefits and entitlements like universal credit or the state pension). The <a href="https://www.gov.uk/valuing-estate-of-someone-who-died?step-by-step-nav=4f1fe77d-f43b-4581-baf9-e2600e2a2b7a">government website</a> also provides help on how to value the person’s estate and work out inheritance tax.</p> <h2>Avoiding family fall-outs</h2> <p>But other financial aspects of death administration can be more challenging to navigate.</p> <p>Probate, for example, is the legal right to deal with someone’s property, money and possessions (their “estate”) when they die. You can <a href="https://www.gov.uk/applying-for-probate?step-by-step-nav=4f1fe77d-f43b-4581-baf9-e2600e2a2b7a">check</a> on the UK government website whether you require probate.</p> <p>It remains one of the most challenging aspects of death administration. Our <a href="https://thenbs.org/partnerships/death-admin-research-report">research</a> shows that people often seek legal advice to manage probate because they are scared to get things wrong, or because they want to avoid future disputes with family members.</p> <p>The process of closing bank accounts and managing assets can be straightforward when the deceased person had made clear arrangements and had few bank accounts. But financial concerns often arise in situations where there are multiple or complicated banking systems. As one of the participants in our research stated: “It’s been a real mess … my dad had quite a few properties, and it’s been quite difficult winding those down.”</p> <p>Worse still, bereaved people can face threatening letters from companies like utilities providers in relation to bills and closing accounts. We found organisations often lack compassion in this context.</p> <p>We encountered cases of companies continuing to write directly to the deceased person, causing further distress to their loved-ones. One of our participants told us that their stepmother was “still getting the bill with my father’s name on, which distresses her”.</p> <p>It is also worth noting that certain types of death present particular administrative and financial challenges. For example, in 2022 17% of deaths in England and Wales were subject to a <a href="https://www.gov.uk/government/statistics/coroners-statistics-2022/coroners-statistics-2022-england-and-wales#inquests-opened">coroner’s inquest</a>.</p> <p>These deaths can be more difficult to administer on the Tell Us Once initiative due to the time-lag and extra bureaucracy involved. In addition, many people die without a will, which usually makes navigating financial issues much harder.</p> <p>The location of the death can also have financial implications. For example, our <a href="https://www.bereavementjournal.org/index.php/bcj/article/view/1114">research</a> shows how financing a care home stay is usually interconnected with inheritance or selling the person’s house, which places extra pressure on those trying to release the funds.</p> <p>Many organisations could make their administrative processes clearer and train their staff to be more compassionate towards people who have recently been bereaved.</p> <p>There are, however, glimmers of hope that things are improving. My own father died last year and while my experiences of helping my mum deal with the financial aspects of death administration have been mixed, we did experience many acts of kindness and compassion along the way.</p> <p>There is also excellent practical guidance out there from organisations like the <a href="https://thenbs.org/">National Bereavement Service</a>, which along with emotional support from charities like <a href="https://www.cruse.org.uk/">Cruse Bereavement Support</a> are vital to helping people navigate complex administrative systems.</p> <p>The COVID pandemic and death of the queen in 2022 have likely meant that, as a society, we are talking more about death and grief both publicly and privately. Death and bereavement happen to us all, and it is crucial that we talk more openly, not just about our emotional concerns, but about the practical and financial implications too.<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/231967/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /></p> <p><em><a href="https://theconversation.com/profiles/kate-reed-1548385">Kate Reed</a>, Professor of Sociology and Director of the Sheffield Methods Institute, <a href="https://theconversation.com/institutions/university-of-sheffield-1147">University of Sheffield</a></em></p> <p><em>Image credits: Shutterstock </em></p> <p><em>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/sorting-a-loved-ones-finances-after-their-death-what-you-need-to-know-231967">original article</a>.</em></p>

Money & Banking

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What’s inflation – and how exactly do we measure it?

<div class="theconversation-article-body"><em><a href="https://theconversation.com/profiles/kevin-fox-16896">Kevin Fox</a>, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW Sydney</a></em></p> <p>If the price of a cup of coffee goes up, coffee drinkers are worse off if their income doesn’t increase by at least the same amount – they have less money to spend on other things.</p> <p>But if the prices of many different goods and services all go up at the same time, it can have a significant impact on people’s ability to buy the things they want or need, such as food and paying the rent.</p> <p>This is inflation – a general increase in prices that reduces the purchasing power of money.</p> <p>High inflation is not good for most households, nor is deflation. Low and stable inflation is generally regarded as beneficial for economic prosperity.</p> <p>But how and why do we measure it?</p> <h2>Tracking a ‘basket’ of important items</h2> <p>A range of factors can cause or contribute to rising prices. Demand for certain products can exceed their supply, particularly when there are reductions in taxes or increases in government spending.</p> <p>Disruptions in supply chains and tariffs on imports can also increase prices.</p> <p>But how do we know if prices are going up across the whole economy, or just for some products? One popular solution is to create an aggregate measure of price changes, such as the consumer price index, or CPI for short.</p> <p>The CPI measures changes in the price of products that are important to consumers, as measured by relative expenditures. It’s calculated by the Australian Bureau of Statistics (ABS).</p> <p>The CPI covers a wide range of products that come under the following categories:</p> <ul> <li>food and non-alcoholic beverages</li> <li>alcohol and tobacco</li> <li>clothing and footwear</li> <li>housing</li> <li>furnishings, household equipment and services</li> <li>health</li> <li>transport</li> <li>communication</li> <li>recreation and culture</li> <li>education</li> <li>insurance and financial services.</li> </ul> <p>Currently, the full CPI is constructed on a quarterly basis.</p> <p>The ABS collects prices from sellers – nowadays often electronically, such as transaction data from barcode scanners at supermarket checkouts.</p> <p>If information on quantities sold is available, this will also be used to understand the economic importance of particular products to consumers.</p> <p>The main source of information on expenditure patterns is the <a href="https://www.abs.gov.au/statistics/economy/finance/household-expenditure-survey-australia-summary-results/2015-16">Household Expenditure Survey</a>.</p> <hr /> <p><iframe id="9C4Qr" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/9C4Qr/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe></p> <hr /> <p>All this information from the eight capital cities in Australia is weighted and indexed to create the CPI.</p> <h2>What do we use it for?</h2> <p>The CPI releases attract a lot of attention. They allow us to adjust welfare payments to maintain purchasing power, negotiate wage increases more fairly, and predict how costs are likely to change over time.</p> <p>Most importantly though, the figure is instrumental in determining interest rates.</p> <p>Our central bank – the Reserve Bank of Australia (RBA) – has the legislated responsibility to keep inflation between 2-3% per year. But because it cannot control things like taxes and government spending, the key way it does this is by adjusting interest rates.</p> <hr /> <p><iframe id="CSV4V" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/CSV4V/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe></p> <hr /> <p>The Reserve Bank sets the target cash rate – the interest rate on overnight loans between banks. Increasing this rate increases the costs to banks of borrowing.</p> <p>Banks pass this cost on, charging their customers higher interest rates. By increasing the cost of mortgage repayments and discouraging consumers from borrowing money for spending, this reduces consumer demand for products and can help lower inflation.</p> <h2>Headline versus underlying</h2> <p>The CPI is unlikely to be the inflation rate faced by any one individual – we all spend differently. It’s even possible to construct your own inflation rate, if you keep thorough spending records and understand the index methodology.</p> <p>But the CPI is not the only measure of inflation that is produced. It is often referred to “headline” inflation, to contrast it with measures of “underlying” inflation. Underlying inflation can better represent persistent domestic inflationary pressures which may need a policy response.</p> <p>Why can’t we always trust headline CPI? Some items prone to weather conditions or supply shocks, such as fruit and petrol, can face sharp, volatile price movements that skew the headline figure. Excluding them from the calculation can reveal underlying inflation conditions.</p> <p>Alternatives take a statistical approach to adjusting the headline rate, such as the trimmed-mean and weighted median estimates produced by the ABS and used by the RBA.</p> <p>By excluding certain items, these measures don’t reflect full changes in the cost of living faced by households – but neither does headline CPI.</p> <h2>Other ‘flations</h2> <p>You’ll often hear other inflation-related terms bandied about in the news. Here’s a helpful guide to a few of them:</p> <p><strong>Deflation</strong></p> <p>This is negative inflation. This can be bad as consumers will delay purchases as they wait for prices to fall further, leading to economic stagnation.</p> <p><strong>Disinflation</strong></p> <p>Inflation is still positive (overall prices are going up), but the rate of inflation decreases. If inflation was 4% and falls to 3%, this is disinflation, not deflation.</p> <p><strong>Stagflation</strong></p> <p>The economy simultaneously has stagnant growth, high inflation and high unemployment. This is rare, but famously happened during the oil crisis of the 1970s.</p> <p><strong>Hyperinflation</strong></p> <p>The annual rate of inflation in Argentina is currently 271.5%. In 2018 in Venezuela, it was over 1,000,000% per month. This is hyperinflation. The costs of this are enormous.</p> <p>Even with moderately high inflation, consumers are unable to differentiate relative price changes from general price changes in their consumption choices. With hyperinflation, money becomes virtually worthless.</p> <hr /> <p><em>This article is part of The Conversation’s “<a href="https://theconversation.com/au/topics/business-basics-157462">Business Basics</a>” series where we ask experts to discuss key concepts in business, economics and finance.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><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/235673/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></em></p> <p><em><a href="https://theconversation.com/profiles/kevin-fox-16896">Kevin Fox</a>, Professor, School of Economics; Director of the Centre for Applied Economic Research, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW Sydney</a></em></p> <p><em>Image </em><em>credits: Shutterstock </em></p> <p><em>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/whats-inflation-and-how-exactly-do-we-measure-it-235673">original article</a>.</em></p> </div>

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

<p>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.</p> <p><strong>Australia: A Gold Medal and a Discount Coupon</strong></p> <p>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.</p> <p><strong>Singapore: the million-dollar carrot</strong></p> <p>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.</p> <p><strong>Hong Kong: fencing your way to riches</strong></p> <p>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.</p> <p><strong>Malaysia and Kazakhstan: cars and apartments</strong></p> <p>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.</p> <p><strong>France: host with the most (ish)</strong></p> <p>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.</p> <p><strong>New Zealand, Norway and the UK: the love of the game</strong></p> <p>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.</p> <p><strong>The United States: the great divide</strong></p> <p>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.</p> <p><strong>Jamaica: sharing the love</strong></p> <p>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.</p> <p><strong>World Athletics: the global jackpot</strong></p> <p>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.</p> <p>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.</p> <p><em>Images: Instagram \ Shutterstock</em></p>

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"We should give back": Bill Gates' ex-wife on giving away her $16bn fortune

<p>Melinda French Gates has opened up on her decision to give away her fortune after leaving the Bill &amp; Melinda Gates Foundation in June. </p> <p>Melinda, who is reportedly worth $16.8 billion, said that she will stick with her decision to give away her fortune on <em>The Late Show with Stephen Colbert, </em> as it's "the right thing to do for society". </p> <p>"If we grew up in the United States, anybody who has grown up in this country has been really lucky and I don't care who you are," she explained.</p> <p>"To be able to go to a decent school, grow up and pursue your career, and if so you are a billionaire, my gosh, you have benefited from this country, right?</p> <p>"So we should give back."</p> <p>She also feels there is "a responsibility and to do it in a way that's incredibly thoughtful".</p> <p>Melinda, who divorced the Microsoft founder Bill Gates back in 2021, has announced her plans to focus on her organisation Pivotal Ventures, which she founded in 2015.</p> <p>The organisation's aim is to "advance social progress by removing barriers that hold people back."</p> <p>She said that she is  determined to ensure that "women's rights are not only on the agenda, but that women are setting the agenda" – especially after watching women's rights be rolled back internationally over the last few years."</p> <p>"What I saw, part of why our women's rights got rolled back in the United States is that those organisations were starved for funding, and they were playing defense," she explained. </p> <p>Melinda has pledged to donate $1 billion to this end over the next two years. </p> <p><em>Image: Julien De Rosa/EPA/ Shutterstock Editorial</em></p>

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Prince William’s huge salary revealed

<p>Buckingham Palace has released its annual report, known as the Sovereign Grant Report, into the royal family's finances, revealing Prince William's whopping annual salary. </p> <p>The Palace said the findings of the report "reflects a time of unforeseen challenges for the royal family", referencing the cancer diagnosis that struck both King Charles and Princess Kate this year, as the senior royals stepped back from official duties to undergo treatment. </p> <p>Despite the "challenging" year for the royals, Prince William earned a whopping salary of $45 million AUD in the last financial year. </p> <p>After inheriting the title of Prince of Wales, Prince William, receives the majority of his personal wealth from the Duchy of Cornwall, which he inherited from his father after the death of the late Queen Elizabeth II in September 2022.</p> <p>That extensive estate is worth more than £1 billion (approximately $1.8b AUD) and includes 52,450 hectares of land, mostly in the south-west of England.</p> <p>Prince William has made a major change since inheriting the title, choosing not to reveal how much tax he pays on the private income from the duchy. </p> <p>The royal family is also set for a huge pay rise next year, as profits from the monarch's Crown Estates has risen by 53 per cent in the past financial year. </p> <p>That means the monarchy is to receive a boost of more than £45 million (approximately $87m AUD).</p> <p>Across 2023-24, profits for the royal family rose to £1.1 billion mainly due to offshore wind farms, meaning the Sovereign Grant (the annual payment the royals get from the government each year) will increase from £86.3 million (approximately $167m AUD) in 2024-25 to £132 million (approximately $257m AUD) in 2025-26.</p> <p>The majority of the royal family's wealth comes from the Crown Estate, roughly about £16 billion (approximately $31b AUD ) of an estimated £20 billion (approximately $40b AUD).</p> <p><em>Image credits: Isabel Infantes/WPA Pool/Shutterstock Editorial </em></p>

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Bruce Springsteen is officially a billionaire

<p>Bruce Springsteen has officially become a billionaire. </p> <p>Financial magazine <em>Forbes</em> announced his achievement, with the 74-year-old's fortune at an estimated $US 1.1 billion (approx. $1.7 billion), with the outlet emphasising that they were just "conservatively estimating". </p> <p>The rock star had a six-decade long career, with over 140 million albums sold worldwide, an autobiography, <em>Born to Run</em>, and a sold-out Broadway show called <em>Springsteen on Broadway</em>, as a few of the factors that helped him become a billionaire. </p> <p>But of course, the biggest reason would be due to selling his entire music catalogue — featuring hits such as Dancing in the Dark, Brilliant Disguise and Streets of Philadelphia — to Sony in 2021 for $US 500 million (approx. $748 million).</p> <p>In 2023, his world tour raked in $US380 million ($569 million), according to Pollstar, and he is still touring to this day, having recently been in Stockholm for the European leg of his tour, <em>Springsteen and E Street Band</em>. </p> <p>Springsteen also dabbles in real estate, with two lavish properties in Wellington, Florida and a residence in Beverly Hills he bought in 2010, which is now estimated at $US15 million ($22 million).</p> <p>The rock star has certainly come a long way from his humble beginnings as a bartender at the Stone Pony club in Asbury Park, New Jersey. </p> <p>“I wasn’t much of a bartender, but I’d serve up the beers and just have fun with the fans, and just enjoy myself,” Springsteen said in his new book<em> I Don’t Want to Go Home: The Oral History of the Stone Pony</em>.</p> <p>“[My signature] was beer. With a Jack Daniel’s on the side, maybe.”</p> <p>No matter how much money he has earned, Springsteen stays true to his roots as the boy from New Jersey, and just last year he was spotted at a cheap diner, Roberto’s Freehold Grill, in his home town. </p> <p>“I just still like it here,” he told <em>Variety</em> in 2017.</p> <p>“I think Jersey Shore is a great place to live … I’m still a beach bum so I’ll swim until November. It’s just still a place that we love, man.”</p> <p><em>Image: JUANJO MARTIN/EPA-EFE/ Shutterstock Editorial</em></p>

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