Barefoot Investor: Why switching off makes everyone a winner

The true currency of the internet age is attention, so Big Tech will continue to use psychological tricks to steal more of ours — and now it’s trying to hook us even younger.

Barefoot Investor Scott Pape. Picture: Graeme Taylor

On the farm we’re building a barn.

OK, honestly, it’s an old-school man cave, with a pool table, a dart board and a very big library.

“It’s very analog, Dad,” says my eight-year-old.

He’s right of course. There’s not a screen in sight. Yet at least my kids are used to it — over the years I’ve gone out of my way to do things with my kids that encourage them to get away from screens.

In fact, I joke that my aim is for them to be bored a decent amount of time. After all, that’s when ideas are formed and connections are made.

Instead, we now live in a world where we are constantly distracted — and manipulated — into what to think and believe.

And so I was interested in a study last month by Reviews.org which found that “Aussies spend 17 years of their life staring at their phone”, which works out to be 5.5 hours a day for the average Aussie.

My first thought was “that sounds pretty high”.

So I grabbed my wife’s iPhone and checked her usage (‘settings > screen time’): “5 hours a day.”

And my screen time?

“Zero”, because I don’t carry a phone (though my wife argues strenuously that I add to her daily limit).

Worse, the study found that the average Millennial spends a massive 7.3 hours a day staring at their phone.

That’s kind of crazy when you drill down on it. Deduct sleep (eight hours) and school (where phones are banned or frowned upon) and the average young Aussie spends almost every other waking minute staring at a screen.

The average millennial spends a massive 7.3 hours a day staring at their phone.

Astounding.

Now, I’m certainly no shrink, but my thinking is that if you’re devoting seven hours of every single day to doing something, you’re well on the road to having an addiction … which is exactly how the tech titans have engineered it.

Here’s the point. The most valuable currency in the world isn’t Bitcoin, or dollars, or Dogecoin.

The true currency of the internet age is attention.

When you capture and control people’s attention, you have power (just ask Dogecoin investors, or Donald Trump).

That’s why Big Tech will continue to use their psychological tricks (nudges, notifications, outrage) to steal more of your attention.

And it’s also why they’re trying to hook us younger — kids as young as six have Messenger Kids, and Instagram has announced it’s launching a kids’ version, with a spokesman for Facebook’s Australian operations saying the platform would “fill a distinct gap in apps for children”.

What’s the bottom line?

Well, I know I’m fighting a losing battle. This is the world our kids are growing up in.

Yet I’m taking a leaf out of Steve Jobs’ book.

When the founding father of personal technology was asked by a New York Times journalist what his kids thought of the iPad, he gave an unexpected reply: “They haven’t used it. We limit how much technology our kids use at home.”

And that’s why I’m holding out in my old-fashioned analog barn for as long as possible. After all, my kids have got plenty of time before they become adults … and stare at their phones for 17 years.

Tread Your Own Path!

Having CommBank bribe their way into classrooms really is like having Ronald McDonald teach kids food nutrition.

Barefoot Brockovich!

Dear Scott,

I see the Dollarmites have been kicked out of Queensland schools!

Woohoo!

Dollarmites: 0

Barefoot: 1

You’re the Erin Brockovich (with smaller boobs, I hope) of banking
and finance. Keep sticking it to them, Mr Pape!

Melinda

Hi Melinda,

Thanks for the kind words and, yes, another one bites the dust!

Your scoreboard needs updating though.

So far Victoria, the ACT and now Queensland have kicked CommBank out of their classrooms.

That means I’ve still got to meet up with the following education ministers: Sarah Mitchell (NSW), Sue Ellery (WA), John Gardner (SA) and Jeremy Rockliff (Tasmania).

This will give me the opportunity to state my case.

First, having CommBank bribe their way into classrooms really is like having Ronald McDonald teach kids food nutrition (“Would you like a bank account with that?”).

Second, and much more importantly, our schools need to make it a priority to teach kids the real-life money skills they’ll be tested on every day of their lives.

That’s why I created the Money Movement, and it finally looks like the scoreboard is turning!

I’ll report back next week and let you know how I go trying to get a meeting with the education ministers.

Can I Block My Husband?

Hi Scott,

I dread my parents passing away! Apart from the emotional devastation, I am petrified about the financial impact the inheritance may have.
I wish to invest it to secure my family’s future, but my husband will want to spend every cent. He refuses to do a budget and will not ditch the credit cards, and I fear this will be another area in life where he will cause havoc. Do I have any right to block him (without divorce)? Kim

Hi Kim,

Yes, technically, you could block him.

Here’s how.

First, you’d get your parents to set up a three-generational testamentary trust (which means their assets are automatically placed into a trust after they pass).

Second, you’d name a relative who is on your side — but independent — to be the trust executor.

Third, they’d (hopefully!) keep a tight grip on what the trust money gets spent on.

And then you’d all live happily ever after!

Well, actually, let’s role-play this for a second.

You: “I’m getting an inheritance from Mum and Dad, but I’m not allowing you to spend any of it.”

Husband: “Huh? Why?”

You: “Because … I actually don’t trust you with money … you’ll just end up blowing it.”

Stop. Kim, how do you think the rest of this conversation will play out?

Badly, I’d suggest.

It sounds like you need couple’s counselling to focus on the underlying issues in your marriage.

Regardless, I like the idea of a three-generational testamentary trust, mainly for the flexibility it affords in tax planning.

Still, while your parents are getting their lawyers to draft this up, ask them to include a ‘divorce protection trust’ in their wills.

Just in case.

Budgeting For Women

Scott,

I just wanted to let you know how much I appreciated your column last week, where you replied to Roseanna, a domestic violence survivor, and provided some really sound advice on how to escape her abusive and controlling partner while still remaining financially safe. I work in the family violence sector and
almost every woman I have worked with has a story of an abusive partner incurring huge debts in her name, without her knowledge or consent.
And many women, through coercive control, are not able to work and therefore have no access to money, employment, stability or super.
So to see some really practical steps written in an empathetic way is heartwarming.

Kate

Hey Kate,

Thanks for the kind words.

Before I began working as a financial counsellor, I often wondered to myself: “Why don’t these women just up and leave?”

Then I saw first-hand how many women — and their kids — get financially trapped in these
dangerous situations.

Helping them find a way out financially is one of the most important things we can do for them — and the effects can last for generations.

That’s what financial counsellors do, and the long-term economic benefits (over generations) make it an incredibly important and wise investment for the government.

Speaking of which, here’s something interesting.

Right now, financial counsellors are sweating on the upcoming federal Budget to finally unveil a sustainable industry funding model to keep us doing this important work.

We’re told this Budget will have a strong focus on women … so it should be a done deal, right?

Next week is Mother’s Day, so if you have a story about a Barefoot Mum please email me at [e-mail] and I’ll do my best to celebrate them!

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

Originally published as Barefoot Investor: Why switching off makes everyone a winner