Barefoot Investor: Why it pays to watch and learn
COVID-19 has sped up the inevitable death of old-school, analogue cash and coins but while technology is rolling on, we still need to balance our privacy against our payments, writes the Barefoot Investor.
Barefoot Investor
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There have been a few times in my life that I’ve looked at a product and thought to myself, “this is the future”.
I got that feeling when Steve Jobs first pulled out the iPhone (okay, and when I first tasted Wizz Fizz).
And I got the same feeling when Apple released the latest version of its Apple Watch a few weeks ago.
In and of itself, the watch was a minor upgrade to the last Apple watch.
What got me (a father of three, almost four kids) excited was a service Apple launched called “Family Set Up”.
Basically, it’s an Apple Watch for your kids that’s controlled by a parent’s iPhone and I think it could transform the way families manage money.
Parents can instantly text their kids money via Apple Cash.
The kids, in turn, spend that money by flashing their watch at a store.
And when they do, their parents get a notification on their iPhone alerting them to what they just bought.
Seriously, I could see this becoming how families could do pocket money.
There’s just a few things standing in my way:
First, the idea that I’d give any of my farm-reared kids a $400 watch is insane.
(What’s the time Mr Wolf? *Shrugs shoulders*
Where’s your bloody watch?).
Second, Family Set Up is only available in America — for now.
Futuristic, huh?
Well, Apple is vying for your wrist but billionaire Jeff Bezos is groping lower.
Yes, right now you can walk into one of Amazon’s Seattle convenience stores and pay for your stuff simply by scanning the palm of your hand as you walk out.
It’s called the “Amazon One device”, and it uses biometrics (the lines, and veins in your hand) to create a “unique palm signature” that’s matched to a card that Amazon has on file.
You’re done and dusted in 300 milliseconds.
High five!
(At this point you’ve got to feel for those geeks who jumped the gun and had microchips injected into their bodies).
Amazon said it chose to use palm scanning because people “consider it more private” than eye scanning or facial recognition. Still, I’ve got sweaty palms about giving up my privacy.
My view?
You don’t need to be a palm reader to know that COVID-19 has sped up the inevitable death of old-school, analogue cash and coins. Yet in the future, we’re all going to have to balance our privacy against our payments.
Tread Your Own Path!
READERS WRITE
DID YOU SAY THE BUDGET WOULD SEND US BROKE?
JIM WRITES: I was reading about this week’s budget and there was an article saying that you thought the Treasurer was going to send us all broke.
I assume it was referring to all the spending and government debt but thought I’d go straight to the horse’s mouth and check.
BAREFOOT REPLIES: Yes, it was clickbait.
While much of the budget commentary was the predictable “yay for a tax cut”, my thinking was that if you’re struggling right now (as many are), then you should squirrel away the (on average) $40 per week saving and use it to pay down debt or build up your Mojo, rather than spend it.
Some headline writers suggested that meant I was sticking it to the government.
Not true. All I was saying is that if you follow my lead and follow a plan that has a bedrock of savings rather than spending, over the long term you’ll build up both your resilience and your financial confidence.
That’s good for you and good for the economy.
AUNTY BAREFOOT SHARES A SHOCKING STORY
AUNTY BAREFOOT WRITES: Hello Magoo: I’ve been doing a kitchen renovation.
My builder, who I’ve known for many years, emailed me his invoice. What I didn’t know is that a scammer had intercepted the builder’s email and changed the bank details.
I transferred the money, and kissed goodbye my $11,000. The bank has not refunded me.
Something good has to come from this; can you please share this with your readers?
BAREFOOT REPLIES: That is truly shocking!
It’s even more so when you consider that you live in a small country town, that you’ve known the builder for years and you were expecting the bill.
This is known as a phishing scam and it’s much more common than you’d think.
Right now scammers are targeting people’s super — signing up for the early release payment. If you’re not in the habit of checking your super balance, it could be years before you cotton on.
So, here’s what you should do: Take out your phone right now and check your MyGov account, and make sure that no applications have been made on your behalf and that your contact details haven’t been changed. That’s how the scammers are doing it.
Second, verify every large bill you get. Take 30 seconds to call the person up and check that you have the right bank details.
Businesses may be shut down in this pandemic but it’s Christmas time for crooks.
A MAGICAL MYSTERY TOUR
STEPH WRITES:
Dear Ben: I’m a kids’ superhero magician — taxable income about $80k a year — or I was until COVID, grrr. After reading your last column about that smart single mum with cancer who set her life insurance in place, I followed your advice and have been looking at raising my life and TPD through my living super insurance.
But the premium was $5600 a month.
Is there a good life insurance place that you would recommend? Any advice around this topic?
PS: I went into Woolies last month and your book was half price — I went to the counter and the price on the tills was wrong so I told them and got your book for free (Woolworths weird policies).
PPS:I love you!
But don’t tell my partner snoring next to me.
BAREFOOT REPLIES: Hi Steph, First, I have no idea who Ben is but I’ve been called worse (like Magoo), so let’s go with that.
Second, it’s common to get “bill shock” when you attempt to increase your insurance.
You should call your super fund and see what options they have where they can offer financial advice and wholesale rates (without the hefty commissions).
This is one area where you really want to pay to get expert advice that is specifically tailored to your situation.
Finally, let’s talk about that “smart single mum with cancer” who inspired you to boost your insurance: Emma.
As a recap: Emma wrote to me a few weeks ago thanking me for reminding her to boost her TPD insurance.
She explained that just last year she was “a fit and healthy 42-year-old single mum with two boys aged 10 and 7” yet she’d been diagnosed with cancer and her insurance really helped her out.
I found out last week that Emma died.
The greatest respect I can give Emma is to put her story in front of my community of Barefooters. And I’ll say it again this week.
Check your insurance. Make sure you have enough.
Do it for Emma. Do it for your kids. Do it TODAY.
Information and opinions provided in this column are general in nature and have been prepared for educational purposes only. Always seek personal financial advice tailored to your specific needs before making financial and investment decisions.
Got a money question? Got to barefootinvestor.com and #askbarefoot
The Barefoot Investor for Families: The Only Kids’ Money Guide You’ll Ever Need (HarperCollins)RRP $29.99
Originally published as Barefoot Investor: Why it pays to watch and learn