tag:theconversation.com,2011:/id/topics/money-74/articlesMoney – The Conversation2024-03-13T14:22:57Ztag:theconversation.com,2011:article/2253022024-03-13T14:22:57Z2024-03-13T14:22:57ZFinancial abuse from an intimate partner? Three ways you can protect yourself<p><a href="https://www.divorcelaws.co.za/what-is-financial-abuse.html">Financial abuse</a> occurs when one person takes control over another person’s ability to acquire, use and maintain financial resources. An example is being denied access to your own funds or being forced to deposit your salary into a joint bank account but not having access to the account. It could also take place when large withdrawals are made from joint bank accounts without any explanation. </p>
<p>According to the <a href="https://www.isdj.org.za/">Institute for Social Development and Justice</a>, a South African non-profit company, financial abuse can vary and change shape or form but happens when access to economic opportunities is controlled or limited by an intimate partner. </p>
<p>This can happen when your partner withholds financial information or hides money from you. Another example is when your partner refuses to allow you to work, thereby controlling your ability to earn an income. Or being coerced into paying for most of the household expenses when you earn less than your partner. Alternatively, it can happen when the abuser racks up debt on a credit card, knowing the card is not in their name. </p>
<p>South Africa’s <a href="https://www.justice.gov.za/legislation/acts/2021-014.pdf">Domestic Violence Act</a> identifies financial abuse as a criminal act. Several other African countries, such as Ghana, Kenya, Uganda, Zambia and Zimbabwe also recognise it to be a criminal offence. But it remains largely unprosecuted.</p>
<p>Unfortunately, financial abuse is not a new problem. Over the years, my <a href="https://researchprofiles.canberra.edu.au/en/persons/bomikazi-zeka">research</a> has found that the proper use of financial services can help those in disadvantaged situations to turn income into wealth. But when money is entangled with relationships, it can become a tricky situation to navigate. </p>
<p>Financial abuse can happen to anyone, irrespective of age, gender, marital status, employment status or income levels. When financial abuse occurs, it is women who are more likely to see their financial security threatened should the dynamics in a relationship take a turn for the worse. Women are more likely to experience financial abuse since it can happen in tandem with <a href="https://link.springer.com/article/10.1007/s10896-023-00639-y">other forms of abuse</a>. </p>
<p>When you know the signs, you can put the following three measures in place to increase your financial safety: prevent, prepare and protect. </p>
<h2>Prevent</h2>
<p>Knowing your partner’s financial history is an important starting point in preventing financial abuse. Ask about how they have managed their debt in the past (and how they got into it in the first place) or whether they are actively saving money. </p>
<p>Broaching the money-talk conversation is difficult but this information should give you insight into their past financial behaviours which could influence and explain future financial behaviours. </p>
<p>Another strategy in prevention is asking about their attitudes towards money in relationships. For instance, do they believe that gender roles influence who manages money? Engaging in this topic early can also help you set boundaries about how money is managed within the relationship. </p>
<h2>Prepare</h2>
<p>Learning the signs of financial abuse can help you be prepared. If you suspect that financial abuse is beginning to emerge then keep close tabs on it by documenting all the evidence. This is important because an abuser may gaslight you into thinking you’re exaggerating, especially when the signs are subtle. Document as much evidence as you can and ensure you have copies of all important legal documents as this will help you, should you require legal assistance. </p>
<p>If you don’t already have one, speak to a financial advisor about how you can protect your finances and assets. </p>
<h2>Protect</h2>
<p>As far as possible, keep an independent source of income as this reduces any likelihood of dependency on a partner. Financial dependency can lead to feelings of isolation and hopelessness, which makes it more difficult to leave an abuser because they control the finances. </p>
<p>Another way you can protect your financial position is by making sure you don’t sign any documents you don’t understand. Often abusers will acquire financial assets in their partner’s name and leave them with the financial burden of the repayments, thereby entrapping them through debt. </p>
<h2>Getting help</h2>
<p>While the measures outlined here are not exhaustive, they are a good starting point to think about when your finances are merged with someone else’s. </p>
<p>If you are concerned about your financial safety, there are ways to get help. FIDA-Kenya, a women’s rights organisation in Kenya, offers <a href="https://www.fida-kenya.org/">free legal aid</a>. In Nigeria, the Women at Risk International Foundation operates a 24-hour confidential toll-free <a href="https://warifng.org/contact-us/">helpline</a>. </p>
<p>You can access free counselling from a social worker via the South African Department of Social Development’s <a href="https://gbv.org.za/about-us/">website</a>, which provides a call centre facility 24 hours a day, seven days a week. The call centre operates an emergency line number on 0800 428 428. You can visit the <a href="https://thewarriorproject.org.za/helplines/">website</a> of the Warrior Project, a non-profit organisation, for more information on helplines and resources.</p><img src="https://counter.theconversation.com/content/225302/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Bomikazi Zeka does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>When money is entangled with relationships, it can often become a tricky situation.Bomikazi Zeka, Assistant Professor in Finance and Financial Planning, University of CanberraLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2221962024-03-01T13:43:14Z2024-03-01T13:43:14ZIf you get your financial advice on social media, watch out for misinformation<figure><img src="https://images.theconversation.com/files/577128/original/file-20240221-24-8ij4f1.jpg?ixlib=rb-1.1.0&rect=89%2C97%2C4900%2C3224&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/excited-bearded-man-eyeglasses-showing-dollars-1946112769">Khosro/Shutterstock</a></span></figcaption></figure><p>When your parents had financial troubles or questions about planning for the future, they may have sought the help of a financial adviser, their bank, or other professional. Today, many people <a href="https://www.ftadviser.com/investments/2023/09/08/gen-z-turn-to-family-and-tiktok-instead-of-advisers/">turn to social media</a>.</p>
<p>TikTok in particular has become a hub of financial advice, from <a href="https://news.sky.com/story/fintok-how-the-cost-of-living-crisis-helped-turn-tiktok-into-a-hub-of-financial-advice-12737328">money saving hacks</a> and personal stories to investment and stock market advice. But this information is not always reliable. A recent report found that more than <a href="https://www.fastcompany.com/91014525/gen-z-stock-financial-advice-tiktok-most-misleading">60% of videos</a> shared using the hashtag #StockTok contain inaccurate or misleading information. </p>
<hr>
<figure class="align-right ">
<img alt="Quarter life, a series by The Conversation" src="https://images.theconversation.com/files/451343/original/file-20220310-13-1bj6csd.png?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/451343/original/file-20220310-13-1bj6csd.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=600&fit=crop&dpr=1 600w, https://images.theconversation.com/files/451343/original/file-20220310-13-1bj6csd.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=600&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/451343/original/file-20220310-13-1bj6csd.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=600&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/451343/original/file-20220310-13-1bj6csd.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=754&fit=crop&dpr=1 754w, https://images.theconversation.com/files/451343/original/file-20220310-13-1bj6csd.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=754&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/451343/original/file-20220310-13-1bj6csd.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=754&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption"></span>
</figcaption>
</figure>
<p><em><strong><a href="https://theconversation.com/uk/topics/quarter-life-117947?utm_source=TCUK&utm_medium=linkback&utm_campaign=UK+YP2022&utm_content=InArticleTop">This article is part of Quarter Life</a></strong>, a series about issues affecting those of us in our twenties and thirties. From the challenges of beginning a career and taking care of our mental health, to the excitement of starting a family, adopting a pet or just making friends as an adult. The articles in this series explore the questions and bring answers as we navigate this turbulent period of life.</em></p>
<p><em>You may be interested in:</em></p>
<p><em><a href="https://theconversation.com/future-graduates-will-pay-more-in-student-loan-repayments-and-the-poorest-will-be-worst-affected-222840?utm_source=TCUK&utm_medium=linkback&utm_campaign=UK+YP2022&utm_content=InArticleTop">Future graduates will pay more in student loan repayments – and the poorest will be worst affected</a></em></p>
<p><em><a href="https://theconversation.com/four-ways-you-can-design-social-media-posts-to-combat-health-misinformation-184627?utm_source=TCUK&utm_medium=linkback&utm_campaign=UK+YP2022&utm_content=InArticleTop">Four ways you can design social media posts to combat health misinformation</a></em></p>
<p><em><a href="https://theconversation.com/management-lessons-from-ted-lasso-the-importance-of-clear-goals-and-positive-feedback-202209?utm_source=TCUK&utm_medium=linkback&utm_campaign=UK+YP2022&utm_content=InArticleTop">Management lessons from Ted Lasso: the importance of clear goals and positive feedback</a></em></p>
<hr>
<p>These days young people experience greater <a href="https://www.thersa.org/globalassets/_foundation/new-site-blocks-and-images/reports/2022/01/cost_of_independence.pdf">financial insecurity</a> than previous generations. So it’s not surprising that many are anxious about financial matters and want to <a href="https://journals.sagepub.com/doi/full/10.1177/0308518X211026321">learn more</a> about money. </p>
<p>I’ve conducted <a href="https://www.financialfairness.org.uk/en/our-work/publications/young-peoples-borrowing">research</a> with young people aged 18-24 years old about their financial and borrowing habits. Around half of the 80 people my team and I spoke to had used social media for money advice and financial guidance. </p>
<h2>Young people’s money beliefs</h2>
<p>We observed several trends in the money messages they were absorbing. Many understood the importance of saving but there was a great interest in investing. Some perceived that if they didn’t invest in the stock market or cryptocurrency, they would be at a significant disadvantage compared to their peers. One 24-year-old participant described investing as a “rat race”, and said that politicians and news coverage of inflation added to the pressure.</p>
<p>Many interviewees had strong views on home ownership – property was viewed as “an investment”, while renting was seen as “wasting” money. Some we spoke to suggested that greater protection from significant and unaffordable rent increases was needed, so that they could have an opportunity to save more.</p>
<p>Some reported feelings of “fomo” (fear of missing out) if they didn’t invest in cryptocurrency. On social media, they saw influencers promoting their luxury lifestyles, shopping hauls, holidays and new cars supposedly funded by their “savvy” investments. However, our participants were also aware that such content could be a ploy to get people to pay for a course on how to invest, which funded the influencers’ lifestyle rather than crypto. One participant said: </p>
<blockquote>
<p>Even my [younger] sister, she’s even investing in things like crypto coins, and she knows nothing about it, so I think it’s the younger generation, everyone knows about it, but I don’t know enough about it … to invest confidently.</p>
</blockquote>
<p>Investing in something just because others are is not a reason to do the same. Not understanding the risks involved in investing as well as the potential benefits is dangerous. Cryptocurrency is often touted as an easy way to make money on social media because it is highly volatile. But, because the value can rise and fall dramatically, investors can lose all their money. </p>
<p>Researchers have argued that regulators should <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4216952">track emerging trends</a> on #FinTok and #StockTok to proactively regulate consumer finance information and products where needed. </p>
<p><a href="https://www.bbc.co.uk/programmes/p0gr113b">Buy Now Pay Later</a> (BNPL) is an example of an unregulated financial product promoted on social media that can cause financial harm if people do not understand that it is a credit product and how they should use it. <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4001909">Evidence suggests</a> that people are paying off their BNPL loans using credit and deepening their debt.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/buy-now-pay-later-klarna-is-courting-young-shoppers-with-paris-hilton-and-tiktok-style-algorithms-heres-why-its-a-problem-202999">Buy now pay later: Klarna is courting young shoppers with Paris Hilton and TikTok-style algorithms – here's why it's a problem</a>
</strong>
</em>
</p>
<hr>
<h2>Sifting through financial advice online</h2>
<p>As I found in my research, young people do not know where to go for financial advice – but this isn’t necessarily their fault. The UK financial services landscape is hugely complex, so it is not surprising if you are not sure who to trust or where to get accurate information.</p>
<p>The independent, government-backed website MoneyHelper is a good place to start. They have specifically created a guide for young people on <a href="https://www.moneyhelper.org.uk/en/family-and-care/student-and-graduate-money/supporting-yourself-financially-a-guide-for-young-adults-aged-16-to-24">how to support themselves</a> financially and produced a beginners <a href="https://www.moneyhelper.org.uk/en/savings/investing/thinking-about-investing-make-sure-you-understand-the-risks">guide to investing</a>. </p>
<figure class="align-center ">
<img alt="A young woman focuses, with her head resting on her chin at a desk, using a pen and calcuator to go through financial papers" src="https://images.theconversation.com/files/577125/original/file-20240221-26-ek2tjo.jpg?ixlib=rb-1.1.0&rect=197%2C35%2C5784%2C3952&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/577125/original/file-20240221-26-ek2tjo.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/577125/original/file-20240221-26-ek2tjo.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/577125/original/file-20240221-26-ek2tjo.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/577125/original/file-20240221-26-ek2tjo.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/577125/original/file-20240221-26-ek2tjo.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/577125/original/file-20240221-26-ek2tjo.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Think carefully before making big financial decisions.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/business-woman-using-calculator-do-math-1500592778">Natee Meepian/Shutterstock</a></span>
</figcaption>
</figure>
<p>MoneyHelper is active on <a href="https://twitter.com/MoneyHelperUK">Twitter</a>, <a href="https://www.facebook.com/MoneyHelperUK">Facebook</a> and <a href="https://www.youtube.com/channel/UCDwjX78G1j_m2zWvPhZSTcw">YouTube</a>, but could expand to TikTok and Instagram, meeting young people where they are and helping them make good financial decisions. </p>
<p>TikTok has urged users to <a href="https://newsroom.tiktok.com/en-gb/tiktok-launches-factcheckyourfeed-to-support-media-literacy">#FactCheckYourFeed</a>, to encourage people to use critical thinking when it comes to news and other informative content on the app. When engaging with financial advice, this can mean asking yourself the five w’s – who, what, when, where and why:</p>
<ul>
<li>Who is this person? Are they a regulated financial advisor? </li>
<li>What are they saying? </li>
<li>When was this posted? </li>
<li>Where are they getting their information? </li>
<li>Why are they sharing this? Is it an ad or are they asking me to sign up to something?</li>
</ul>
<p>Think about your financial goals and what small steps you can take to help you reach those goals. For example, if you are under 40 years of age, you can save £4,000 tax-free each year in a <a href="https://www.gov.uk/lifetime-isa">Lifetime ISA</a> where the government will add a 25% bonus (up to £1000) each year.</p>
<p>Before you make any financial decisions, either talk to someone about your finances before you take action or look at the resources available at independent, charitable organisations such as MoneyHelper, Stepchange and Citizens Advice.</p><img src="https://counter.theconversation.com/content/222196/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Lindsey Appleyard receives funding from abrdn Financial Fairness Trust. She is a Director of CreditU, a marketing platform which promotes UK Credit Unions.</span></em></p>Social media is full of financial advice, but much of it is inaccurate.Lindsey Appleyard, Assistant Professor, Coventry UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2197052024-02-01T19:03:35Z2024-02-01T19:03:35ZKiley Reid invites us to judge her college girls, as money, status and desire lead them into murky ethical territory<figure><img src="https://images.theconversation.com/files/573657/original/file-20240206-29-56el8n.jpg?ixlib=rb-1.1.0&rect=0%2C41%2C3967%2C2978&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">David Goddard/Bloomsbury</span></span></figcaption></figure><p>At the beginning of <a href="https://www.bloomsbury.com/au/come-and-get-it-9781526632555/">Come and Get It</a>, the second novel from the Booker longlisted author of <a href="https://www.bloomsbury.com/au/such-a-fun-age-9781526612151/">Such a Fun Age</a>, college student Tyler presses $20 on Millie, her resident assistant. Millie, whose job it is to look after the students in the dorm, has helped Tyler sort out an awkward interpersonal situation. </p>
<p>Tyler’s roommate, Kennedy, has filled her side of their dorm room with an immense amount of stuff. Tyler doesn’t know how to talk to her about it, so Millie deftly assists with a roommate switch.</p>
<p>Millie doesn’t exactly accept the money. Indeed, she tries to refuse it several times. But it ends up in her possession anyway. This becomes, in many ways, the beginning of an internal schism – between who she thinks she is and how she is read by the people around her. When taking this $20 bill comes back to haunt her, this schism will become eminently clear.</p>
<hr>
<p><em>Review: Come and Get It – Kiley Reid (Bloomsbury)</em></p>
<hr>
<p>On the surface, Come and Get It is a book about money. It has three perspective characters, each with a different, multilayered relationship to money. </p>
<p>Millie, the resident assistant who accepted the fateful $20, is one of the few Black students in her dorm at the University of Arkansas. She’s working as hard as possible (and at as many jobs as possible) to achieve her goal of home ownership, “after becoming mildly addicted to TV shows featuring tiny houses and youngish owners”.</p>
<p>Kennedy is one of Millie’s residents, a perpetually lonely undergraduate who uses trips to Target – a place which feels like “home” to her – as a way of coping with the lack of connection with her peers (hence the overstuffed dorm room). </p>
<p>Agatha is a visiting professor to the university who becomes fascinated with students’ relationships to money while conducting a research focus group about weddings with students in Millie’s dorm. She starts paying Millie – meaningfully, in $20 bills – to listen in to the dorm residents’ talk every Thursday night, which becomes the basis of several pieces she publishes (without telling Millie or any of the students she’s eavesdropping on) in Teen Vogue.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/572064/original/file-20240130-27-scufj6.jpg?ixlib=rb-1.1.0&rect=0%2C17%2C3955%2C3395&q=45&auto=format&w=1000&fit=clip"><img alt="Smiling Black woman in profile with black turtleneck and ponytail" src="https://images.theconversation.com/files/572064/original/file-20240130-27-scufj6.jpg?ixlib=rb-1.1.0&rect=0%2C17%2C3955%2C3395&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/572064/original/file-20240130-27-scufj6.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=522&fit=crop&dpr=1 600w, https://images.theconversation.com/files/572064/original/file-20240130-27-scufj6.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=522&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/572064/original/file-20240130-27-scufj6.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=522&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/572064/original/file-20240130-27-scufj6.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=656&fit=crop&dpr=1 754w, https://images.theconversation.com/files/572064/original/file-20240130-27-scufj6.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=656&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/572064/original/file-20240130-27-scufj6.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=656&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">On the surface, Kiley Reid’s Come and Get It is a book about money.</span>
<span class="attribution"><span class="source">David Goddard/Bloomsbury</span></span>
</figcaption>
</figure>
<h2>Questions of identity</h2>
<p>The Teen Vogue pieces are a neat illustration of some of the broader questions the book grapples with – questions about money, yes, but also questions about identity. </p>
<p>Agatha renders these pieces as if they were interviews; however, they are in fact caricatures, cobbled together from out-of-context, cherry-picked quotes from both the initial focus group Agatha conducted and from things she overheard while eavesdropping from Millie’s room. </p>
<p>Agatha is aware what she’s doing is wrong: </p>
<blockquote>
<p>It did feel unfair to paint the young women with a two-dimensional sheen [… She] knew firsthand that Tyler, Casey, and Jenna were not composed solely of pull quotes.</p>
</blockquote>
<p>She even vaguely intends to correct it: “the <em>book</em> book, that was where she would right her current wrongs. That was where she’d interview college women the right way, under the umbrella of a signed release.”</p>
<p>But as the interviews become more and more popular, the lure of their success – and the accompanying social media followers and royalties bump for her older books – proves too great, and she starts to push the ethical boundaries even further.</p>
<p>Yet despite her actions, Agatha’s image of herself does not change. Even when she starts sleeping with Millie – an undergraduate student 14 years younger than her – she continues to justify it to herself, so as to maintain her self-image as an ethical scholar. </p>
<p>Yes, she’s sleeping with <em>a</em> student, but not <em>her</em> student. Yes, Millie is younger than her, but she’s not <em>that</em> young. Yes, there’s a power differential, but honestly, it’s not as bad as you think (which, <a href="https://www.independent.co.uk/arts-entertainment/books/kiley-reid-come-and-get-it-review-b2481591.html">as another reviewer has aptly noted</a>, is a common preoccupation of professors sleeping with students in campus novels, though those professors are usually men). </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/beyond-oxbridge-and-yale-popular-stories-bring-universities-to-life-we-need-more-of-them-in-australia-168943">Beyond Oxbridge and Yale: popular stories bring universities to life — we need more of them in Australia</a>
</strong>
</em>
</p>
<hr>
<h2>Judging the characters</h2>
<p>“Show, don’t tell” is an incredibly common piece of storytelling advice (a blunt instrument, yes, but certainly one I’ve used in my creative writing classroom and will probably use again). Come and Get It digs into the gap between the two concepts. The novel is fascinated by versions of the self – the narrative of the self we tell to ourselves, versus the version of ourselves others read from what we show them through our actions.</p>
<figure class="align-right zoomable">
<a href="https://images.theconversation.com/files/572619/original/file-20240131-17-ziz769.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/572619/original/file-20240131-17-ziz769.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/572619/original/file-20240131-17-ziz769.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=964&fit=crop&dpr=1 600w, https://images.theconversation.com/files/572619/original/file-20240131-17-ziz769.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=964&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/572619/original/file-20240131-17-ziz769.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=964&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/572619/original/file-20240131-17-ziz769.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=1212&fit=crop&dpr=1 754w, https://images.theconversation.com/files/572619/original/file-20240131-17-ziz769.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=1212&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/572619/original/file-20240131-17-ziz769.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=1212&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption"></span>
</figcaption>
</figure>
<p>It would be tempting to read this slippage as an invitation to pass judgement on the characters. Indeed, at many points, it is impossible not to – we are, after all, readers, and these characters are there to be read. </p>
<p>For example, I, a female academic of approximately Agatha’s age who uses many similar research methods, had some extremely strong opinions about her ethics (and lack thereof). When she is confronted about her unethical behaviour towards the end of the book, I found it immensely satisfying. </p>
<p>Likewise, it is very difficult not to feel sympathy for Millie – to believe in the version of herself she has in her mind, rather than the image a dispassionate list of her actions would create. This is particularly true when the whiteness of the people around her is cast in sharp relief: there are facets to her identity that her white friends, however well-meaning, simply cannot parse.</p>
<p>And there is perhaps no greater invitation for the reader to pass judgement than with Kennedy. For the first half of the book, she is easily the least interesting of the three perspective characters – a lonely college student worried about making friends, unsure how to reach out to the three students Agatha is busy turning into caricatures in Teen Vogue.</p>
<p>At about the midpoint, though, the horrifying reason Kennedy transferred from her old university is made clear. Despite Kennedy’s mother emphatically telling her that she is “not a bad person”, we as readers are inevitably provoked to form our own opinion.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/girlhood-misery-bullying-and-beauty-combine-for-laura-elizabeth-woolletts-unlikeable-west-coast-girls-211427">Girlhood misery, bullying and beauty combine for Laura Elizabeth Woollett's 'unlikeable' west-coast girls</a>
</strong>
</em>
</p>
<hr>
<h2>People are complicated</h2>
<p>But the point here is not deciding whether characters are good or bad, moral or immoral, their actions justified or unjustified. The point is – perversely – a simple one: <em>it’s complicated</em>.</p>
<p>One of the things Agatha notes about Millie is that she is gifted at impressions. For instance, when Agatha asks her what the students she’s eavesdropping on mean when they talk about “believers”, Millie does the following impression of “a cool, nature-y Christian person who is … probably white”:</p>
<blockquote>
<p>So, Agatha. Listen. Can I talk to you for a second? God’s really putting Hannah on my heart this week … The other day? […] And keep this between you and me – but the other day she did blah blah blah? And yeah, it just wasn’t the sweet Hannah that we know. And I need to figure out a way to hold her accountable while I do my best to shower her with grace. But I also want to start asking important questions, like, is this a godly friendship? Is she going through a rough season? And maybe she is! And that’s okay. But if that’s the case, is my birthday weekend at Hilton Head the best place for her to do that?</p>
</blockquote>
<p>Millie’s ability to do comedic impersonations is one of the things Agatha finds most appealing about her – perhaps unsurprising, given she’s essentially in the business of comedic impersonations herself, with her Teen Vogue pieces. </p>
<p>But it’s also symptomatic of the broader theme running through the book: the tension between who people are (complex, three-dimensional) and who we interpret them to be (frequently stereotypes or caricatures, because we lack key pieces of context). </p>
<p>This is a book liberally peppered with similes and comparisons. “She looked like the kind of person who slept eight hours every night”, “she looked like any of the redheaded celebrities when their names were put into search engines with <em>grocery store</em> or <em>no makeup</em>”, “he had the complexion of a person who loves ‘being out on the lake’”. These approximations are a sentence-level demonstration of the impossibility of capturing the complexity of a whole human being. </p>
<p>Tellingly, the first time Agatha meets Millie, she interprets her as a caricature of her job: “she looked like an adult poking fun at campus life, someone dressing like an RA for Halloween”.</p>
<h2>Life under capitalism</h2>
<p>There is no denying Come and Get It is a book about money. The crisply folded $20 bill is hardly the only financial motif. However, in many ways, the characters’ relationships to money are some of their most legible attributes. </p>
<p>Millie is painstakingly saving it, in order to buy a house. Kennedy spends it in order to make herself feel better. Agatha is financially secure, but not so secure she cannot be capable of irritation at her ex-partner’s financial cavalierness, and profoundly tempted by the money Teen Vogue offers her.</p>
<p>This is interesting, but perhaps not particularly revelatory, especially when it comes to the murky ethical territory money leads the characters into. Life under capitalism is complicated. We know this.</p>
<p>The ways this book considers the gulf between the version of ourselves in our own minds and the one read by other people, though, are fascinating – making it a worthy follow-up to Such a Fun Age. </p>
<p>People are fundamentally, and perhaps ungraspably, complicated – something Reid does a substantially better job of capturing in this book than Agatha does in her Teen Vogue pieces.</p><img src="https://counter.theconversation.com/content/219705/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Jodi McAlister does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Kiley Reid’s follow-up to her Booker longlisted debut is a novel about money. But it’s most interesting when it explores the gap between our imagined selves and what our actions reveal.Jodi McAlister, Senior Lecturer in Writing, Literature and Culture, Deakin UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2219762024-02-01T02:57:48Z2024-02-01T02:57:48ZLabor is in power - but the Coalition still attracts the most money<p>Who funds Australia’s political parties? Besides the occasional scandal – think <a href="https://theconversation.com/labor-announces-inquiry-by-former-attorney-general-lavarch-into-scandal-ridden-nsw-head-office-125209">Aldi bags full of cash</a> – most Australians would not hear much about it. </p>
<p>But money matters: political donations can <a href="https://grattan.edu.au/report/whos-in-the-room/">buy access to politicians</a> and create opportunities to sway public decisions in the donor’s favour. </p>
<p><a href="https://transparency.aec.gov.au/Download">New data</a>, released today by the Australian Electoral Commission, provide the best information available on political party funding and Australia’s major donors. So let’s follow the money.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/big-money-was-spent-on-the-2022-election-but-the-party-with-the-deepest-pockets-didnt-win-198780">Big money was spent on the 2022 election – but the party with the deepest pockets didn't win</a>
</strong>
</em>
</p>
<hr>
<h2>Even in a non-election year, fundraising continued apace</h2>
<p>In the 2022-23 financial year, Australia’s political parties collectively raised $259 million, with most of the money (81%) flowing to the major parties.</p>
<p>It initially appeared that Labor had raised a whopping $220 million, but this has since been revised down to just $84 million after correcting for a typo in Labor’s ACT branch return.</p>
<p>This leaves the Coalition well ahead at $125 million – continuing their long history as the frontrunner in fundraising.</p>
<h2>Who are the major donors?</h2>
<p>A few big donors dominate the $16.6 million in donations to political parties that are on the public record.</p>
<p>The single largest donor to Labor was Anthony Pratt, the paper and packaging businessman, who gave $1 million. This continues Pratt’s long history of big donations to both major parties, totalling more than $11 million over the past ten years.</p>
<p>Other major donors to Labor were Labor Services & Holdings ($598,000) – an investment vehicle for the party – and Labor Business Roundtable ($100,000), which runs fundraising events for the party.</p>
<p>The Coalition’s biggest donors were the Cormack Foundation ($3.46 million) – an investment vehicle for the party – and fundraising body the Kooyong 200 Club ($193,000). The Coalition also received $100,000 from Meriton Property Services, $90,000 from Laneway Assets, and $80,000 from John McEwen House.</p>
<p>But some of the largest single donations were to minor parties. Former MP Clive Palmer’s mining company Mineralogy gave $7 million to the party he founded, the United Australia Party. And Heston Russell, a former member of the defence force, gave $650,000 to the now-disbanded Australian Values Party that he founded.</p>
<h2>Federal politics is awash in dark money</h2>
<p>These are the big donors on the record, but declared donations make up only 6% of political parties’ total income. There are other sources of income on the public record, including public funding, but about a quarter of the money remains hidden.</p>
<p>Labor’s funding is a little more murky: 27% of Labor party income in 2022-23 was hidden, compared with 22% for the Coalition.</p>
<p>In the main, this isn’t because pollies are walking away with briefcases full of cash from shadowy carpark rendezvous. Giant holes in disclosure laws create plenty of perfectly legal dark corners. </p>
<p>At the federal level, parties were not obliged to disclose donations below $15,200 in 2022-23. This means, hypothetically, a donor could have donated $15,000 every week, adding up to $780,000 over the year, and political parties would not be required to declare it. The donor themselves has an obligation to tally their own donations and declare themselves when they reach the threshold, but there is no effective way to police this.</p>
<p>Even among the declared funds, it can be difficult to distinguish investment income from political fundraising, because income from fundraising events is not classified as a “donation” – it is instead grouped in with everything else in an ambiguous category of “other receipts”. </p>
<h2>Are donations swaying decisions?</h2>
<p>Some groups only donate – or donate much more – when particular policy issues are “live”. </p>
<p>Gambling was one of the top issues in the 2023 NSW state election, with the Liberal Party proposing tighter regulation of pokies. Gambling groups <a href="https://theconversation.com/tasmanias-gambling-election-shows-australia-needs-tougher-rules-on-money-in-politics-110977">have a history</a> of making big political donations when gambling restrictions are on the table. </p>
<p>Donations from gambling groups to NSW election campaigns are banned, but industry players still made their presence felt nationally. The ALP received $197,000 in income from pokies supporters (including Clubs NSW, Clubs Australia, and the federal and NSW branches of the Australian Hotels Association), while the Coalition received $123,000.</p>
<p>And accounting firm PwC – whose <a href="https://theconversation.com/grattan-on-friday-the-pwc-scandal-should-be-ripe-for-the-national-anti-corruption-commissions-attention-206867">unethical behaviour</a> in managing conflicts of interest in work for the public service came to the fore last year – continued its regular pattern of political donations and other party support, giving $422,000.</p>
<p>Explicit quid pro quo is probably rare, but there is still substantial risk in more subtle influences – that donors get more access to policymakers and their views are given more weight. These risks are exacerbated by a <a href="https://theconversation.com/influence-in-australian-politics-needs-an-urgent-overhaul-heres-how-to-do-it-103535">lack of transparency</a> in dealings between policymakers and special interests.</p>
<h2>The states show us a better way</h2>
<p>Many of the states have <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_departments/Parliamentary_Library/pubs/rp/rp2122/Quick_Guides/ElectionFundingStates">stronger rules</a> on money in politics than the Commonwealth.</p>
<p>For example, NSW and Victoria require election donations to be reported within 21 days, and cap total donations. They have lower thresholds for when donations must be made public, and have banned donation-splitting, so it’s harder to flout the threshold. And NSW sets limits on election spending, taking away the drive for politicians to fundraise quite so frenetically.</p>
<p>The effect of these rules is clear. Donations in the lead-up to the last federal election were dominated by a handful of people and organisations: 5% of donors contributed 73% of declared donations. In contrast, in the most recent NSW and Victorian elections, the top 5% of donors contributed just a third of donations. Better rules help to reduce the potential influence of individual donors.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/federal-parliament-just-weakened-political-donations-laws-while-you-werent-watching-149171">Federal parliament just weakened political donations laws while you weren't watching</a>
</strong>
</em>
</p>
<hr>
<h2>Federal donations reform is on the horizon</h2>
<p>The federal donations disclosure regime has long lagged the states. But there are finally signs of change afoot.</p>
<p>A federal parliamentary committee inquiry into the 2022 election has recommended several changes to better regulate money in Australian politics, including:</p>
<ul>
<li><p>lowering the donations disclosure threshold to $1,000 to reduce the amount of dark money in the system</p></li>
<li><p>introducing “real time” disclosure requirements so that Australians know who’s donating while policy issues – and elections – are still “live”</p></li>
<li><p>introducing expenditure caps for federal elections to reduce the fundraising arms race.</p></li>
</ul>
<p>It is still to be seen if the government will implement these recommendations. It should, because better rules around donations would ensure Australians know who funds our political parties and enable us to keep our politicians in check.</p>
<hr>
<p><em>This article was amended in several places after the AEC corrected a mistake in Labor’s ACT branch return. The original article stated that Labor raised substantially more ($220 million) than the Coalition ($125 million). This has since been revealed to be incorrect.</em></p><img src="https://counter.theconversation.com/content/221976/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The Grattan Institute began with contributions to its endowment of $15 million from each of the Federal and Victorian Governments, $4 million from BHP Billiton, and $1 million from NAB. In order to safeguard its independence, Grattan Institute’s board controls this endowment. The funds are invested and contribute to funding Grattan Institute's activities. Grattan Institute also receives funding from corporates, foundations, and individuals to support its general activities as disclosed on its website.</span></em></p><p class="fine-print"><em><span>Elizabeth Baldwin does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Labor may now be in office, but it’s the Coalition that still attracts the big bucks. And there remains much murkiness about who donates to whom - and why.Kate Griffiths, Deputy Program Director, Grattan InstituteElizabeth Baldwin, Associate researcher, Grattan InstituteLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2205202024-01-11T13:24:37Z2024-01-11T13:24:37ZSellout! How political corruption shaped an American insult<figure><img src="https://images.theconversation.com/files/568059/original/file-20240105-15-op8mrg.jpg?ixlib=rb-1.1.0&rect=6%2C55%2C4034%2C2967&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Alf Bruseth, 'Politician Coin Bank' (1938).</span> <span class="attribution"><a class="source" href="https://www.nga.gov/collection/art-object-page.20772.html"> Index of American Design</a></span></figcaption></figure><p>If you follow politics, sports, Hollywood or the arts, you’ve no doubt heard the insult “sellout” thrown around to describe someone perceived to have betrayed a core principle or shared value in their pursuit of personal gain. </p>
<p>The term has recently been hurled at a range of well-known targets: Donald Trump’s former chief of staff Mark Meadows for <a href="https://www.msnbc.com/deadline-white-house/watch/-hail-mary-attempt-fails-appeals-court-rules-mark-meadows-cannot-move-case-out-of-georgia-200487493763">cooperating with</a> a special counsel investigating election fraud in 2020; Kim Kardashian for advertising <a href="https://time.com/4314413/modern-feminism-is-selling-out/">her personal brands</a> as a form of women’s empowerment; even former NFL great Deion Sanders, for leaving Jackson State, a historically Black university, <a href="https://theconversation.com/calling-deion-sanders-a-sellout-ignores-the-growing-role-of-clout-chasing-in-college-sports-196792">to coach</a> at the University of Colorado.</p>
<p>Most people, I find, are familiar with this accusation. But few people really know the full story of “selling out” – when and where the term originated, how it spread across so many different sectors of American culture, and just why this insult hurts so much. These are the questions I set out to answer in the book I’m currently writing, tentatively titled “Sellouts! The Story of an American Insult.” </p>
<p>Through my research, I found that the idea of selling out originates with American politics — and more precisely, with the scandals of the Gilded Age.</p>
<h2>Gilded Age origins</h2>
<p>This era, which gets its name from Mark Twain and Charles Dudley Warner’s 1873 satirical novel “<a href="https://www.loa.org/books/178-the-gilded-age-amp-later-novels/">The Gilded Age: A Tale of To-day</a>,” spans roughly from the 1870s to the 1900s. These <a href="https://www.jstor.org/stable/25144440">decades saw the rise</a> of industrial capitalism in the United States: people moving to cities, technologies transforming industries like the railroads, growing unrest and activism by workers, and crises erupting from an economy built around banks, stocks and corporations.</p>
<p>Until this time, the phrase “selling out” had largely <a href="https://www.oed.com/dictionary/sell_v?tab=phrasal_verbs#23525421">been used to describe</a> the sale of one’s stock or holdings – cattle, steel, grain, real estate. But <a href="https://www.oed.com/dictionary/sell_n2?tab=meaning_and_use#23522487">by the 1870s</a>, the term had quickly gained a new meaning as an insult for public figures — especially politicians — who had compromised their morals, and the needs of the community, in pursuit of illicit personal gain.</p>
<figure class="align-center ">
<img alt="Cartoon of obese men representing various industries looming over senators." src="https://images.theconversation.com/files/568056/original/file-20240105-19-bjst1t.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/568056/original/file-20240105-19-bjst1t.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=390&fit=crop&dpr=1 600w, https://images.theconversation.com/files/568056/original/file-20240105-19-bjst1t.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=390&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/568056/original/file-20240105-19-bjst1t.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=390&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/568056/original/file-20240105-19-bjst1t.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=491&fit=crop&dpr=1 754w, https://images.theconversation.com/files/568056/original/file-20240105-19-bjst1t.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=491&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/568056/original/file-20240105-19-bjst1t.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=491&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">‘The Bosses of the Senate’ by Joseph Keppler, published in the Jan. 23, 1889, issue of Puck.</span>
<span class="attribution"><a class="source" href="https://commons.wikimedia.org/wiki/File:The_Bosses_of_the_Senate_by_Joseph_Keppler.jpg">Wikimedia Commons</a></span>
</figcaption>
</figure>
<p>Of course, political scandals were hardly a novelty of the 1870s. What changed in the Gilded Age, <a href="https://networks.h-net.org/node/20317/reviews/21375/burg-summers-gilded-age-or-hazard-new-functions">historians suggest</a>, was not the frequency or severity of unethical behavior by politicians, but rather the public’s awareness of the corruption plaguing the U.S. political system. </p>
<h2>The Tweed Ring</h2>
<p>Party politics has always involved graft: skimming off the top of budgets, directing contracts to favored firms, and securing offices for friends. But <a href="https://www.washingtonpost.com/history/2023/07/02/george-santos-william-boss-tweed-tammany-hall/">William Tweed, widely known as “Boss Tweed,”</a> took this corruption to new heights.</p>
<p>In the 1860s, Tweed ran New York’s Democratic Party. His circle of influence extended to dozens of city and state offices. The Tweed Ring would provide someone with a job, and then the beneficiary would provide the ring with a kickback.</p>
<p>Whenever contracts were issued for services like carpentry, the ring inflated costs and skimmed off the extra — at first, adding a mere 10%, but later exaggerating these expenses wildly. One carpeting bill from a Tweed contractor ran to US$565,731, a cost high enough for a carpet in New York City to get “<a href="https://kennethackerman.com/books/boss-tweed/">halfway to Albany</a>.” </p>
<p>The ring would also buy up large chunks of city real estate, especially plots they knew were about to receive development projects. Estimates on the total wealth they siphoned through such graft <a href="https://www.google.com/books/edition/Boss_Tweed/ipAxruFk54AC?hl=en&gbpv=1&printsec=frontcover">range from</a> $20 million to a staggering $200 million – or around $5 billion in 2024, when adjusted for inflation.</p>
<p>Tweed’s cronies also fixed elections with a boldness that’s unthinkable today; one drunken accomplice <a href="https://www.amazon.com/Tiger-Rise-Fall-Tammany-Hall/dp/020162463X">confessed he had voted</a> at least 28 times on Election Day.</p>
<p>In 1870, The New York Times began an unprecedented journalistic exposé of Tweed and his ring. Their editorials used the phrase “selling out” to capture how city and state politics were <a href="https://www.nytimes.com/1870/11/26/archives/the-tammany-ring-and-its-agents.html">manipulated by a corrupt few</a> who lined their pockets and kept a <a href="https://www.nytimes.com/1871/10/16/archives/the-democratic-circus.html">chokehold on elections</a>. </p>
<p>The Times also attacked other newspapers, like the New York World, which took large “advertising revenues” from Tweed, as evidence that these papers would “<a href="https://www.nytimes.com/1870/11/23/archives/the-mission-of-the-democratic-party.html">sell out to the highest bidder</a>.” In a <a href="https://www.google.com/books/edition/American_Journalism/eatZAAAAMAAJ?hl=en">major coup</a>, the Times eventually published complete records of the city’s finances, proving the ring’s corruption and landing Tweed inside the Ludlow Street Jail. </p>
<figure class="align-center ">
<img alt="Cartoon of men standing in a circle pointing their fingers." src="https://images.theconversation.com/files/568057/original/file-20240105-27-m5onvj.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/568057/original/file-20240105-27-m5onvj.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=445&fit=crop&dpr=1 600w, https://images.theconversation.com/files/568057/original/file-20240105-27-m5onvj.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=445&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/568057/original/file-20240105-27-m5onvj.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=445&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/568057/original/file-20240105-27-m5onvj.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=559&fit=crop&dpr=1 754w, https://images.theconversation.com/files/568057/original/file-20240105-27-m5onvj.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=559&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/568057/original/file-20240105-27-m5onvj.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=559&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Thomas Nast’s cartoons in Harper’s transformed the public’s perception of William ‘Boss’ Tweed.</span>
<span class="attribution"><a class="source" href="https://digitalcollections.nypl.org/items/55200970-dc40-0130-375d-58d385a7bbd0">New York Public Library Digital Collections</a></span>
</figcaption>
</figure>
<p>The Times’ crusade against Tweed pioneered a new, activist form of journalism, while also helping establish “selling out” as a recognizable idea in American life. </p>
<p>Later journalists, known as muckrakers, would launch their own famous investigations, such as Lincoln Steffens’ writing on <a href="https://babel.hathitrust.org/cgi/pt?id=uc1.31822043023084&seq=7">political machines</a> in other U.S. cities, David Graham Philips’ coverage of the <a href="https://catalog.hathitrust.org/Record/100646108">widespread misdeeds</a> of U.S. senators, and Ida Tarbell’s exposure of Standard Oil’s <a href="https://catalog.hathitrust.org/Record/004490918">illicit business practices</a>.</p>
<p>All used the newly popularized phrase “selling out” to describe the corruption of a democratic society. The “corrupt government of Illinois sold out its people to its own grafters,” <a href="https://www.google.com/books/edition/The_Struggle_for_Self_government/EYYmAAAAMAAJ?hl=en">wrote Steffens</a>, whereas “the organized grafters of Missouri, Wisconsin, and Rhode Island sold, or are selling, out their States to bigger grafters outside.” </p>
<h2>A contested concept</h2>
<p>Over the next century, the idea of selling out spread from politics to numerous other corners of American culture: <a href="https://www.cambridge.org/core/journals/pmla/article/abs/on-the-literary-history-of-selling-out-craft-identity-and-commercial-recognition/2AA296CB7FEA8768D1F944CF88F7DBDB">Novelists chastised peers</a> who went to <a href="https://doi.org/10.1080/01956051.1984.10661963">write for Hollywood</a> as sellouts, while <a href="https://muse.jhu.edu/article/810368/summary">Black intellectuals</a> debated what, if anything, Black elected officials had to do to be seen as <a href="https://hls.harvard.edu/bibliography/sellout-the-politics-of-racial-betrayal/">“authentic” racial representatives</a> and not sellouts. </p>
<p>For all its many uses in American culture, however, selling out remains a contested concept. For virtually any action that some people view as a betrayal, others will see as a rational choice. </p>
<p>Consider Bob Johnson, co-founder of Black Entertainment Television, who became the first Black billionaire when <a href="https://www.google.com/books/edition/The_Billion_Dollar_BET/aF_LAgAAQBAJ?hl=en">he sold the cable channel</a> to Viacom in 2001. Some applauded his historic sale, but <a href="https://www.washingtonpost.com/archive/lifestyle/2000/11/04/but-has-the-network-sold-a-bit-of-its-soul/2c7ef34b-7c04-451b-8239-74f34a2c998b/">others accused</a> Johnson of “selling out” this unique platform for Black voices. </p>
<p>Trump supporters may similarly see Meadows as a traitor — a sellout who abandoned his party’s leader to save his own skin. But Democrats may see him as a Republican who has chosen the values of the country over protecting his party’s standard-bearer. Each side follows its own logic.</p>
<p>Selling out, then, is not always a clear-cut transgression. When a group feels like one of its own has betrayed some shared values, there are often meaningful questions to be asked about what that group’s values ought to be in the first place.</p>
<p>Some critics have <a href="https://www.newyorker.com/news/our-columnists/ibram-x-kendi-hasan-minhaj-and-the-question-of-selling-out">wondered whether</a> selling out is an <a href="https://mumbrella.com.au/is-selling-out-no-longer-a-concept-for-gen-z-356761">obsolete notion</a> in <a href="https://lithiumagazine.com/2020/05/22/what-does-it-mean-to-be-a-sell-out-in-2020/">an age when</a> so many people aspire to be an influencer or entrepreneur. But as long as this term gets used to scold public figures like Meadows, it means Americans still believe some form of loyalty — to a community or a shared principle — matters more than personal gain.</p>
<p>But what does it say that so many Americans share the concern that success and integrity are in conflict, as if one comes at the expense of the other? Is it an increasingly unavoidable moral contradiction in a capitalist society?</p>
<p>“Selling out” evokes a widespread fear that anyone who pursues success will corrupt both their morality and their community. Some people – say, billionaires in their private jets – can perhaps suppress this fear more easily than others. But everyone knows its name.</p><img src="https://counter.theconversation.com/content/220520/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Ian Afflerbach does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Why do so many Americans share the concern that success and integrity are in conflict, as if one comes at the expense of the other?Ian Afflerbach, Associate Professor of American Literature, University of North GeorgiaLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2205592024-01-11T12:50:07Z2024-01-11T12:50:07ZCurious Kids: how much money is there in the world?<figure><img src="https://images.theconversation.com/files/568279/original/file-20240108-29-9nfec1.jpg?ixlib=rb-1.1.0&rect=7%2C7%2C5128%2C2595&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/pound-gbp-coin-gold-money-on-1044478525">Bukhta Yurii/Shutterstock</a></span></figcaption></figure><p><strong>How much money is there in the world? – Tsubamé, aged ten, London</strong></p>
<p>If we want to add up how much money there is in the world, a good place to start would be counting all the notes and coins out there – in people’s wallets and money boxes and in cash machines. </p>
<p>Let’s start with pounds. There is about <a href="https://stats.bis.org/statx/srs/table/T2?c=GB">£84 billion</a> (or 84,000,000,000) of British money out there in coins and notes. There’s also <a href="https://stats.bis.org/statx/srs/table/T2?c=US">US$2,236 billion</a> in US money, <a href="https://stats.bis.org/statx/srs/table/T2?c=XM">€1,578 billion</a> in the money of the European Union and <a href="https://stats.bis.org/statx/srs/table/T2?c=CN">¥9,616 billion</a> in Chinese money – plus money in many other currencies. </p>
<p>As money is not the same in every country, summing up all the coins and notes in the world means that you need to measure how much a US dollar, an Indian rupee, or a Chinese yuan is worth in Great British pounds. If this is done with <a href="https://stats.bis.org/statx/srs/table/CT2">the latest available data</a>, then added up, you will find a total of £6,113 billion. </p>
<hr>
<figure class="align-left ">
<img alt="" src="https://images.theconversation.com/files/282267/original/file-20190702-126345-1np1y7m.png?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/282267/original/file-20190702-126345-1np1y7m.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=293&fit=crop&dpr=1 600w, https://images.theconversation.com/files/282267/original/file-20190702-126345-1np1y7m.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=293&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/282267/original/file-20190702-126345-1np1y7m.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=293&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/282267/original/file-20190702-126345-1np1y7m.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=368&fit=crop&dpr=1 754w, https://images.theconversation.com/files/282267/original/file-20190702-126345-1np1y7m.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=368&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/282267/original/file-20190702-126345-1np1y7m.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=368&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption"></span>
</figcaption>
</figure>
<p><em><a href="https://theconversation.com/au/topics/curious-kids-36782">Curious Kids</a> is a series by <a href="https://theconversation.com/uk">The Conversation</a> that gives children the chance to have their questions about the world answered by experts. If you have a question you’d like an expert to answer, send it to <a href="mailto:curiouskids@theconversation.com">curiouskids@theconversation.com</a> and make sure you include the asker’s first name, age and town or city. We won’t be able to answer every question, but we’ll do our very best.</em></p>
<hr>
<p>This amount could change very quickly and is probably already outdated at the moment you read this article. </p>
<p>This is partly because countries print more money all the time. But it’s also because the exchange rate – how much a British pound, say, is worth in another currency, like US dollars – is not always the same. <a href="https://www.xe.com/currencyconverter/convert/?Amount=1&From=GBP&To=USD">Today, £1 is worth</a> around US$1.30 – one dollar and 30 cents in US money. Ten years ago, it was much more: <a href="https://www.xe.com/currencycharts/?from=GBP&to=USD&view=10Y">one dollar and 70 cents</a>. </p>
<p>How many US dollars you get for a pound depends on how much people want to use British money. That’s why when some people decide to create their own money, such as cryptocurrencies like bitcoin, they spend so much time <a href="https://theconversation.com/why-sports-sponsorship-is-unlikely-to-save-cryptocurrency-firms-from-crypto-winter-195582">trying to convince others</a> to use it. </p>
<p>But counting coins and notes does not tell us everything about how much money there is in the world. For instance, people have money in their bank accounts that do not correspond to any specific coin. In the UK, around 96% of money exists only in electronic form. When you include that, the total is not £84 billion but <a href="https://stats.bis.org/statx/srs/table/T2?c=GB">£2,223 billion</a>. If you add up again the figures available for the entire world – money in coins and notes, plus electronic money in bank accounts – you get roughly £46,557 billion. </p>
<h2>Wealth – but not money</h2>
<p>What’s more, many things that are worth a lot are not money itself. Very rich people keep only a little part of their fortune in cash. They prefer to also own things like businesses that are likely to make them even richer.</p>
<p>Perhaps a better way to count how much money there is in the world is to look at the value of the things we buy and sell. That is a tricky thing to do, because you don’t want to double count anything. If farmers sell the milk of their cows to a cheese maker, who then sells cheese to a shop, which sells it to people, all the value – the milk, the cheese and the people selling it, is contained in what you pay at the shop: the final sale. </p>
<p>When you sum up all these final sales, you will find that last year, in the entire world, there was around <a href="https://data.worldbank.org/indicator/NY.GDP.MKTP.CD">£79,437 billion</a> worth of value created. </p>
<figure class="align-center ">
<img alt="Diamonds with one held in tweezers" src="https://images.theconversation.com/files/568282/original/file-20240108-25-lhu7a2.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/568282/original/file-20240108-25-lhu7a2.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/568282/original/file-20240108-25-lhu7a2.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/568282/original/file-20240108-25-lhu7a2.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/568282/original/file-20240108-25-lhu7a2.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/568282/original/file-20240108-25-lhu7a2.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/568282/original/file-20240108-25-lhu7a2.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Diamonds aren’t money, but they can make you rich.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/brilliant-cut-diamond-held-by-tweezers-1069154252">Bjoern Wylezich/Shutterstock</a></span>
</figcaption>
</figure>
<p>But there are also a lot of things that have value and are not exchanged. If you own a bag of diamonds and keep it in your bedroom, you are rich. But this is not money. And you are not exchanging it either. So it does not count in any of the numbers I have given you so far.</p>
<p>And sometimes, things that have value cannot easily be turned into money. Imagine that you own a beautiful forest, with a nice clean river to swim in during the summer, and some very rare birds and old trees. And underneath that forest, there is a lot of oil. </p>
<p>By owning this forest, you are very wealthy. Like the diamonds in your bedroom, owning the land and the forest and the oil makes you rich. But once you decide to turn your wealth into a lot of money, you will need to destroy the forest: cut down the trees for wood to sell, and drill into the earth to get the oil out. </p>
<p>People might have enjoyed spending time with friends walking in the forest, or paddling in the rivers. This has value, and it is lost when the forest is gone. And the wealth you held by owning the forest is gone too.</p>
<p>If we want the money we use to still be worth something in the future, we sometimes need to restrain from destroying what we own to get cash today.</p><img src="https://counter.theconversation.com/content/220559/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Renaud Foucart does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>We can look at the value of the things we buy and sell.Renaud Foucart, Senior Lecturer in Economics, Lancaster University Management School, Lancaster UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2181502023-11-30T15:47:36Z2023-11-30T15:47:36ZRaising a child to 18 in the UK costs more than £200,000 – here’s why<figure><img src="https://images.theconversation.com/files/562669/original/file-20231130-29-k3nu1e.jpg?ixlib=rb-1.1.0&rect=845%2C0%2C5854%2C4476&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/little-girl-her-mother-sitting-table-1136829101">Pixel-Shot/Shutterstock</a></span></figcaption></figure><p>Before having our first baby last year, we wondered whether we had the money, time and necessary skills to raise a child. Perhaps you find yourself contemplating the same? Many people certainly have, as birth rates have been <a href="https://ourworldindata.org/demographic-transition">declining</a> across the world for the past 200 years.</p>
<p><a href="https://docs.iza.org/dp15233.pdf">Research</a> attributes this trend to the <a href="https://press.princeton.edu/books/hardcover/9780691130026/unified-growth-theory">escalating demand</a> for these three resources. Since the 1970s, economists have <a href="https://www.nber.org/system/files/chapters/c2963/c2963.pdf">argued</a> that the increasing need for money, time and skills is rooted in the belief that all three resources are crucial investments in a child’s education, or “human capital”, preparing them for a successful and self-determined life. </p>
<p>Economic historians ascribe this growing demand for human capital to the transition from an agricultural economy to a highly skilled manufacturing and services-based economy, first in western societies and then globally. <a href="https://link.springer.com/article/10.1007/s11698-011-0061-8">Empirical</a> <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2831373/">evidence</a> supports the idea that this transition has caused birth rates to slow down. For instance, <a href="https://link.springer.com/article/10.1007/s10887-016-9138-3">analysis</a> of individual returns from the 1911 Irish census suggest that a child remaining in school between the ages of 14 and 16 caused an up to 27% reduction in fertility.</p>
<hr>
<p><em><a href="https://theconversation.com/uk/topics/should-i-have-children-148388?utm_source=TCUK&utm_medium=InArticleTop&utm_campaign=Parenting2023">Should I have children?</a> The pieces in this series will help you answer this tough question – exploring fertility, climate change, the cost of living and social pressure.</em></p>
<p><em>We’ll keep the discussion going at a live event in London on November 30. <a href="https://www.waterstones.com/events/the-conversation-should-i-have-children/london-tottenham-court-road">Click here</a> for more information and tickets.</em></p>
<hr>
<h2>An expensive business</h2>
<p>Parenting has become more expensive and time-consuming. In its annual <a href="https://cpag.org.uk/sites/default/files/files/policypost/Cost_of_a_child_2022.pdf">cost of a child</a> report, the Child Poverty Action Group – a charity that works to alleviate poverty and social exclusion – estimated the cost of raising a child in the UK until the age of 18 in 2022 at £150,000 for couples and over £200,000 for single parents. In 2021, the cost of bringing up a child stood at <a href="https://cpag.org.uk/policy-and-campaigns/report/cost-child-2021">£194,000 for a single parent</a>.</p>
<p>One of the biggest expenses tied to parenthood is the cost of childcare for babies and toddlers. The same report concluded that childcare now constitutes around 60% of the overall cost of raising a child in the UK, up from 40% in 2012. </p>
<p>The high cost of childcare is partly due to the <a href="https://www.ifo.de/DocDL/dicereport110-db5.pdf">high ratio</a> of staff to children that is required in UK childcare settings. But it is also higher than in many other countries because the government provides fewer subsidies.</p>
<figure class="align-center ">
<img alt="A mother entering kindergarten with her pre-school aged child." src="https://images.theconversation.com/files/562670/original/file-20231130-23-w268ni.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/562670/original/file-20231130-23-w268ni.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/562670/original/file-20231130-23-w268ni.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/562670/original/file-20231130-23-w268ni.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/562670/original/file-20231130-23-w268ni.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/562670/original/file-20231130-23-w268ni.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/562670/original/file-20231130-23-w268ni.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">The cost of childcare will be one of your biggest expenses.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/mother-entering-kindergarten-yard-her-preschooler-2100589987">Dusan Petkovic/Shutterstock</a></span>
</figcaption>
</figure>
<h2>International variation</h2>
<p>How much you can expect to pay for childcare varies significantly across countries. In part, this depends on whether the government considers childcare and early education as a <a href="https://policy.bristoluniversitypress.co.uk/exploring-the-world-of-social-policy">private issue or a public concern</a>. </p>
<p>In 2022, the <a href="https://data.oecd.org/benwage/net-childcare-costs.htm">OECD</a> (a forum of 38 mainly high-income countries) estimated that net childcare costs in the UK range from 5% to 25% of the average income (depending on wage estimates). Childcare costs can even make up over 50% of women’s income. The UK is a country in which childcare and education is seen predominantly as a private problem.</p>
<p>In contrast, Sweden’s childcare costs range from 3% to 5% of average income, and Germany’s constitute just 1%. Both of these countries see childcare and education largely as a public issue. </p>
<p>Child benefits, tax privileges for parents, and <a href="https://op.europa.eu/en/publication-detail/-/publication/a8464ad8-9abf-11e8-a408-01aa75ed71a1/language-en">parental leave policies and compensation rates</a> also vary significantly across EU and OECD countries, as does <a href="https://www.oecd.org/els/family/PF1_6_Public_spending_by_age_of_children.pdf">total public spending</a> per child and age group. </p>
<h2>Supporting parents</h2>
<p>Contributions to a child’s human capital, whether through child benefits, tax credits, nursery vouchers, schooling hours or university education, have become policy in most developed countries. However, the specifics of this contribution differ widely, and the UK is not currently <a href="https://www.oecd.org/education/school/48980282.pdf">at the forefront</a>. </p>
<p>But change seems to be on the way. As part of the <a href="https://www.gov.uk/government/news/chancellor-unveils-a-budget-for-growth/%22%22">UK government’s 2023 spring budget</a>, chancellor Jeremy Hunt announced a raft of changes to childcare support. This includes providing 30 hours of free childcare per week (phased in from April 2024 until September 2025) for children from nine months old and with working parents. This arrangement already exists for three- to four-year-olds (the age at which most children begin school). </p>
<p>However, it remains to be seen whether the process of <a href="https://educationhub.blog.gov.uk/2023/03/16/budget-2023-everything-you-need-to-know-about-childcare-support/">making subsidies available for the youngest age group</a> will actually lower the overall cost of childcare. Parents will still have to pay for any care above 30 hours. Demand for childcare and, consequently, fees may well also increase as a result of the subsidies if the supply of childcare does not keep pace.</p>
<figure class="align-center ">
<img alt="UK chancellor, Jeremy Hunt on the way to deliver his 2023 spring budget." src="https://images.theconversation.com/files/562673/original/file-20231130-23-x0r9lr.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/562673/original/file-20231130-23-x0r9lr.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/562673/original/file-20231130-23-x0r9lr.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/562673/original/file-20231130-23-x0r9lr.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/562673/original/file-20231130-23-x0r9lr.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/562673/original/file-20231130-23-x0r9lr.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/562673/original/file-20231130-23-x0r9lr.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">UK chancellor, Jeremy Hunt, with his 2023 spring budget.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/london-downing-street-uk-15th-march-2275340645">Sean Aidan Calderbank/Shutterstock</a></span>
</figcaption>
</figure>
<h2>Bank on your relatives, or stay at home?</h2>
<p><a href="https://pure.coventry.ac.uk/ws/files/25659231/Waight_Hand_me_down_Chapter.pdf/%22%22">Research</a> has investigated the role of informal networks, and to what degree they can reduce the costs of having a child. These networks could include your friends or relatives providing childcare. </p>
<p>However, while informal support networks may reduce the costs of child rearing, they can be <a href="https://www.cambridge.org/core/journals/social-policy-and-society/article/role-of-social-support-networks-in-helping-low-income-families-through-uncertain-times/95BF2265C88196AF1BFD9076A96AC304/">fragile</a>. The needs of your friends or relatives can change, hindering their ability to provide free (or cheap) childcare.</p>
<p>Another key determinant of the cost of a child is to what extent parents reduce their working hours. <a href="https://www.journals.uchicago.edu/doi/10.1086/719688">Research</a>, which was published in April 2023, analysed childrens’ test scores to gauge whether a child benefits more from the income their mother brings home by working longer hours during their childrens’ preschool years, or loses more through the fewer hours spent together. The findings suggest that the increased income from working longer hours had an altogether positive effect. </p>
<p>So, money clearly does help. But the problem lies in the fact that having a child now means you need more of it than you used to. How much this comes from your own pocket is a crucial question for the future.</p><img src="https://counter.theconversation.com/content/218150/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Childcare now constitutes around 60% of the overall cost of raising a child in the UK.Thilo R. Huning, Lecturer in the department for Economics and Related Studies, University of YorkIsabelle Huning, PhD Candidate in the School for Business and Society, University of YorkLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2177982023-11-27T02:08:28Z2023-11-27T02:08:28ZWhat is the ‘sunk cost fallacy’? Is it ever a good thing?<figure><img src="https://images.theconversation.com/files/560987/original/file-20231122-24-d8qfce.jpg?ixlib=rb-1.1.0&rect=98%2C151%2C4746%2C3280&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.pexels.com/photo/person-holding-burning-paper-in-dark-room-33930/">Eugene Shelestov/Pexels</a></span></figcaption></figure><p>Have you ever encountered a subpar hotel breakfast while on holiday? You don’t really like the food choices on offer, but since you already paid for the meal as part of your booking, you force yourself to eat something anyway rather than go down the road to a cafe.</p>
<p><a href="https://www.sciencedirect.com/science/article/pii/0167268180900517">Economists</a> and <a href="https://www.sciencedirect.com/science/article/pii/0749597885900494">social scientists</a> argue that such behaviour can happen due to the “sunk cost fallacy” – an inability to ignore costs that have already been spent and can’t be recovered. In the hotel breakfast example, the sunk cost is the price you paid for the hotel package: at the time of deciding where to eat breakfast, such costs are unrecoverable and should therefore be ignored.</p>
<p>Similar examples range from justifying finishing a banal, half-read book (or half-watched TV series) based on prior time already “invested” in the activity, to being less likely to quit exclusive groups such as sororities and sporting clubs the more <a href="https://psycnet.apa.org/record/1960-02853-001">effort it took to complete the initiation ritual</a>.</p>
<p>While these behaviours are not rational, they’re all too common, so it helps to be aware of this tendency. In some circumstances, you might even use it for your benefit.</p>
<h2>Sunk costs can affect high-stakes decisions</h2>
<p>While the examples above may seem relatively trivial, they show how common the sunk cost fallacy is. And it can affect decisions with much higher stakes in our lives. </p>
<p>Imagine that Bob previously bought a house for $1 million. Subsequently, there’s a nationwide housing market crash. All houses are now cheaper by 20% and Bob can only sell his house for $800,000. Bob’s been thinking of upgrading to a bigger house (and they are now cheaper!), but will need to sell his existing house to have funds for a downpayment.</p>
<p>However, he refuses to upgrade because he perceives a loss of $200,000 relative to the original price he paid of $1 million. Bob is committing the sunk cost fallacy by letting the original price influence his decision making – only the house’s current and projected price should matter.</p>
<p>Bob might be acting irrationally, but he’s only human. Part of the reason we may find it difficult to ignore such losses is because losses are psychologically more salient relative to gains – this is known as <a href="https://psycnet.apa.org/record/1985-05780-001">loss aversion</a>.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/560984/original/file-20231122-25-fx4vfh.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Person attempting to build a crooked bird house with tools strewn across a table" src="https://images.theconversation.com/files/560984/original/file-20231122-25-fx4vfh.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/560984/original/file-20231122-25-fx4vfh.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=450&fit=crop&dpr=1 600w, https://images.theconversation.com/files/560984/original/file-20231122-25-fx4vfh.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=450&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/560984/original/file-20231122-25-fx4vfh.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=450&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/560984/original/file-20231122-25-fx4vfh.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=566&fit=crop&dpr=1 754w, https://images.theconversation.com/files/560984/original/file-20231122-25-fx4vfh.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=566&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/560984/original/file-20231122-25-fx4vfh.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=566&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">It’s okay to quit a crafting project if it’s not looking salvageable any more.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/man-frustrated-angry-building-bad-birdhouse-151033373">Tim Masters/Shutterstock</a></span>
</figcaption>
</figure>
<p>While most of the evidence for the sunk cost fallacy comes from <a href="https://link.springer.com/article/10.1007/s40685-014-0014-8">individual decisions</a>, it may also influence the decisions of groups. In fact, it is sometimes referred to as the <a href="https://www.nature.com/articles/262131a0">Concord fallacy</a>, because the French and British governments continued funding the doomed supersonic airliner long after it was likely it would not be commercially viable.</p>
<p>Another example is drawn-out armed conflict that involves a large loss of lives for the losing side. Some may think it impossible to capitulate because the casualties will have “died in vain”.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/supersonic-flights-are-set-to-return-heres-how-they-can-succeed-where-concorde-failed-162268">Supersonic flights are set to return – here's how they can succeed where Concorde failed</a>
</strong>
</em>
</p>
<hr>
<h2>Knowing about sunk costs can help you</h2>
<p>If you find yourself justifying behaviour due to costs you’ve paid in the past rather than circumstances of the present, or predictions of the future, it’s worth checking yourself.</p>
<p>Identifying sunk costs allows you to cut your losses early and move on, rather than perpetuating larger losses. This is apparent in the housing example: the larger the crash, the cheaper the bigger house; and yet the larger the crash, the greater the perceived loss from selling the existing house. Hence, the greater the loss in opportunity inflicted by the sunk cost fallacy.</p>
<p>If you find it difficult to overcome the sunk cost fallacy, it may help to delegate such decisions to others. This may include the decision of whether to <a href="https://direct.mit.edu/rest/article-abstract/93/1/193/57894/The-Flat-Rate-Pricing-Paradox-Conflicting-Effects">go to a buffet</a> or subscribe to Netflix, with the latter potentially being a double whammy: one may feel compelled to binge-watch due to the flat fee structure and, as mentioned earlier, to finish mediocre series once halfway through.</p>
<h2>Use sunk costs to your advantage</h2>
<p>A second, less obvious benefit is actively using the fallacy to your advantage. For example, many gym memberships require upfront payments regardless of how much you use the facilities. If you find it hard to ignore sunk costs, choosing gym memberships that have large upfront fees and minimal pay-per-usage fees may be a way to <a href="https://pubsonline.informs.org/doi/abs/10.1287/mnsc.2018.3032">commit yourself</a> to a regular gym habit.</p>
<p>This can also apply to other activities that involve short-term pain for long-term gain – for example, paying for an online course will make you more likely to stick with it than if you found a free course.</p>
<p>But be warned, this doesn’t work for everything: it seems that spending wildly on a <a href="https://onlinelibrary.wiley.com/doi/abs/10.1111/ecin.12206">wedding ceremony or engagement ring</a> doesn’t have a “sunk cost” effect – it fails to increase the likelihood of staying married.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/gym-membership-how-to-get-the-most-out-of-it-according-to-a-sports-scientist-107551">Gym membership: how to get the most out of it, according to a sports scientist</a>
</strong>
</em>
</p>
<hr>
<img src="https://counter.theconversation.com/content/217798/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Aaron Nicholas does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>When we invest money, time or another resource we can’t get back, factoring that sunk cost into our future decisions can be a trap.Aaron Nicholas, Senior Lecturer in Economics, Deakin UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2171442023-11-13T16:36:50Z2023-11-13T16:36:50ZYoung people’s reluctance to talk about money is putting them at risk – here’s how to help them<figure><img src="https://images.theconversation.com/files/559048/original/file-20231113-29-3i07wn.jpg?ixlib=rb-1.1.0&rect=0%2C2%2C1000%2C663&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/couple-managing-debt-1050973406">Rawpixel.com/Shutterstock</a></span></figcaption></figure><p>Credit is an everyday, and <a href="https://www.cambridge.org/core/journals/journal-of-social-policy/article/abs/lived-experience-of-financialization-at-the-uk-financial-fringe/313183E8F34A47D046127DC416B88F8F">often essential</a>, part of young people’s lives. Gaining access to credit for the first time is an important transition to adulthood that can enable you to study, earn and invest in your future. </p>
<p>Previously, most people’s first taste of debt was either a loan for university fees, a student overdraft or a credit card. Younger generations are now <a href="https://www.statista.com/statistics/1181682/bnpl-user-age-in-uk/">much more likely</a> to use new forms of credit such as buy now, pay later (BNPL) – a kind of credit often offered at online check-outs that allows people to borrow the cost of their shopping and repay it in instalments.</p>
<p>But confusion about <a href="https://journals.sagepub.com/doi/10.1016/j.ausmj.2011.05.007">the long-term consequences of building up debt</a> is common – and is often compounded by a reluctance to talk about money and debt. This is deeply problematic. Decisions about credit can affect financial wellbeing now and in the future. </p>
<p>I recently worked on a project about <a href="https://www.financialfairness.org.uk/en/our-work/publications/young-peoples-borrowing">young people and borrowing</a> with my colleague Hussan Aslam, which was funded by the charity <a href="https://www.financialfairness.org.uk/">abrdn Financial Fairness Trust</a>. We interviewed 80 young people (aged 18-24 years old) across the UK about money. Almost two-thirds see money and credit as taboo topics. </p>
<p>This attitude stops people from talking openly and learning about debt and finance. One person we spoke to said:</p>
<blockquote>
<p>I’ve always felt in society it’s a taboo subject that people don’t really talk about that often, and when you do bring it up everyone’s a little bit sheepish to talk about it, so … where do you get the information from? It’s not something you’re just born knowing … and if you do research online there’s an overwhelming amount of different information.</p>
</blockquote>
<p>This confusion around credit and borrowing is a problem, particularly for young people who are at the start of their financial lives. But your experience of credit as a young person – both good and bad – can influence how you manage your money for the rest of your life. </p>
<p>Research shows young people are often especially <a href="https://onlinelibrary.wiley.com/doi/10.1111/j.1467-9515.2010.00731.x">financially vulnerable</a> in this respect due to limited financial know-how or experience. So getting support to get the best out of credit can help people avoid common pitfalls. </p>
<p>People don’t always know where to go for <a href="https://www.moneyhelper.org.uk/en/family-and-care/student-and-graduate-money/supporting-yourself-financially-a-guide-for-young-adults-aged-16-to-24">support online</a>, which makes it difficult to gain the knowledge to make good financial decisions. Also, the financial products that are often marketed to young people – buy now, pay later deals, for example – may <a href="https://journals.sagepub.com/doi/10.1177/03128962211032448">help them feel more in control</a> of their money, but can actually promote irresponsible financial habits.</p>
<p>Such short-term financial decision making doesn’t always result in the most rational outcomes for longer-term financial wellbeing. The subscription-style of BNPL offerings can obscure the fact that it’s a form of debt and make the product appealing to young people, especially when used online at the point of sale. </p>
<p>There was little understanding among <a href="https://www.financialfairness.org.uk/en/our-work/publications/young-peoples-borrowing">the people we spoke to</a> about how credit use, including mobile phone contracts and BNPL, could affect their credit history if they were unable to repay the loan.</p>
<h2>How to help young people</h2>
<p>Many of the organisations people interact with – from financial services firms to employers – could do more to support people that want to use credit responsibly. For example, products and services from banks and fintechs could help people keep better control of their finances. </p>
<p>For younger people, this could include no or low-interest overdrafts when graduating from an interest-free student overdraft, for example. Recent “consumer duty” regulations by the <a href="https://www.fca.org.uk/publication/policy/ps22-9.pdf">Financial Conduct Authority</a> should help to ensure firms better inform and support consumers using credit and other financial products.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/how-new-consumer-duty-rules-for-financial-products-could-reduce-debt-related-stress-210169">How new 'consumer duty' rules for financial products could reduce debt-related stress</a>
</strong>
</em>
</p>
<hr>
<p>Financial services and financial technology firms can also play a role in boosting responsible use of credit by using the data they hold for good to help young people manage their money effectively. </p>
<p>For example, <a href="https://www.financialfairness.org.uk/en/our-work/publications/young-peoples-borrowing">young people want</a> more products and services that help them control their credit and money. Traditional banks and lenders could learn from fintechs by developing apps to help people actually visualise their finances. </p>
<p><a href="https://www.fincap.org.uk/en/reviews/helping-those-who-use-credit-to-make-ends-meet">Research shows</a> the pandemic and cost of living crisis have significantly influenced credit use. So, policy and practice by governments, regulators such as the Financial Conduct Authority, lenders, educators and advice providers such as the Money and Pensions Service (MaPS) must acknowledge the role that credit plays in helping people to make ends meet. </p>
<p>They could help find better ways to support financial decision-making as people transition to financial independence. </p>
<figure class="align-center ">
<img alt="A row of people on phones, emoticons." src="https://images.theconversation.com/files/559050/original/file-20231113-27-yjn9zw.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/559050/original/file-20231113-27-yjn9zw.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=340&fit=crop&dpr=1 600w, https://images.theconversation.com/files/559050/original/file-20231113-27-yjn9zw.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=340&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/559050/original/file-20231113-27-yjn9zw.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=340&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/559050/original/file-20231113-27-yjn9zw.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=427&fit=crop&dpr=1 754w, https://images.theconversation.com/files/559050/original/file-20231113-27-yjn9zw.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=427&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/559050/original/file-20231113-27-yjn9zw.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=427&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Younger generations often seek financial advice online.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/people-watching-video-live-streamings-1338120284">Rawpixel.com/Shutterstock</a></span>
</figcaption>
</figure>
<p>Promoting trusted sources of advice would help here, rather than leaving people to rely on self-styled social media “<a href="https://www.asa.org.uk/news/asa-partners-with-fca-and-sharon-gaffka-to-educate-influencers-around-finfluencing.">finfluencers</a>”. Almost half of the young people we spoke to were influenced by social media to use credit or manage their money in a particular way. </p>
<p>The FCA and MaPs could develop more resources on relevant social media sites such as TikTok and Instagram, or other media platforms used by young people. They could create explainer videos on key topics that would help support young people who are considering using credit for the first time. </p>
<p>They could also use it to <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4216952">track and correct</a> new trends or incorrect assumptions about money among this age group.</p>
<p>Regulating <a href="https://theconversation.com/buy-now-pay-later-how-to-protect-consumers-without-regulating-it-out-of-existence-184761">buy now, pay later</a> schemes would also be a step in the right direction. The financial services sector needs to take greater responsibility to ensure good outcomes for everyone because financial decisions made today could last a lifetime.</p><img src="https://counter.theconversation.com/content/217144/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Lindsey Appleyard receives funding from abrdn Financial Fairness Trust. She is a Director of CreditU, a marketing platform which promotes UK Credit Unions.</span></em></p>Taboos around talking about money can prevent people from learning important lessons about using credit and getting into debt.Lindsey Appleyard, Assistant Professor, Coventry UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2153892023-10-19T13:18:25Z2023-10-19T13:18:25ZFootball and big money: what some professional players in Ghana told us about handling their finances<p>Footballers are among the best paid sportsmen in most parts of the world. </p>
<p>The unfortunate reality, however, is that the retirement <a href="https://www.theghanareport.com/top-5-players-who-went-broke-after-making-millions-in-football/">experiences</a> of many former professional footballers have been awful. Within the sports media landscape, there have been <a href="https://www.moneynest.co.uk/bankrupt-footballers/">reported cases</a> of once-wealthy footballers who have gone bankrupt soon upon retirement. Notable examples in Ghana are former Black Stars players Sammy Adjei, John Naawu, Joe Odoi, Prince Addu Poku and Amusa Gbadamoshie. </p>
<p>According to some <a href="https://scholar.google.com/scholar?output=instlink&q=info:0Ha1K3SHR4kJ:scholar.google.com/&hl=en&as_sdt=0,5&scillfp=13443085754161180526&oi=lle">academics</a> this unfortunate situation stems in part from the fact that the danger of falling into a professional void is high. This is because, like most sports, football confers skills that are not easily transferable to non-sporting occupations. The availability of jobs in football is also very limited. So most footballers earn a very high income during their active career period and face a high degree of income uncertainty upon retirement.</p>
<p>The lifestyle of footballers (during the active playing period and upon retirement) has also been highlighted by several <a href="https://scholar.google.com/scholar?output=instlink&q=info:cxNwMuOE4DsJ:scholar.google.com/&hl=en&as_sdt=0,5&scillfp=5439326496234156066&oi=lle">reports</a> as a key driver of the financial mess that some footballers have got themselves into. </p>
<p>Again, there have been reported cases of footballers engaging in irresponsible financial behaviour. Examples include gambling, spending on luxurious brands, lavish parties and generally maintaining an expensive and unsustainable lifestyle. A lack of financial knowledge has often been associated with this kind of financial behaviour.</p>
<p>I am a <a href="https://ugbs.ug.edu.gh/ugbsfaculty/profile-faculty_member/godfred-matthew-yaw">professor</a> of accounting who, with others, has conducted a <a href="https://www.tandfonline.com/doi/pdf/10.1080/23750472.2023.2248150">study</a> to investigate the level of financial literacy of professional footballers in Ghana and ascertain its impact on their financial behaviour and financial wellbeing. </p>
<p>We found low levels of financial literacy, and poor financial behaviour, among footballers. The results suggest that to promote responsible financial behaviour among footballers, enhancing their financial literacy is key. We found very strong support for the argument that responsible financial behaviour, proxied in this study by savings and investment behaviour, is key to attaining financial wellness in life.</p>
<h2>The study design</h2>
<p>Financial literacy has been described as the ability to use the needed knowledge and skills to manage one’s financial resources effectively to improve welfare in the future. </p>
<p>Financial behaviour, on the other hand, can be <a href="https://www.grin.com/document/934971">described</a> as the “ability to regulate planning, budgeting, checking, managing, controlling, searching and storing daily funds”. It covers spending and saving habits, borrowing patterns, budgeting and access to financial products. </p>
<p>Using questionnaires, we surveyed 300 footballers who competed in the 2020 Ghana Premier League.</p>
<p>The questionnaire had two sections: one on the demographic details of the respondents; the other on their financial literacy, financial behaviours and financial wellbeing.</p>
<p>Currently, the Ghana Premier League has 18 registered clubs. At the time of the study, these clubs employed 480 registered footballers. Compared with clubs in Europe, England, Asia and even many other parts of Africa, the net worth of Ghanaian clubs is very <a href="https://www.fifa.com/en/media-releases/fifa-publishes-global-transfer-report-2021">low</a>. Revenues from international transfers – an important funding source for most Ghanaian clubs – have been very low over the years. For instance, the Federation of International Football Associations (FIFA) in its 2021 report on international transfers <a href="https://www.fifa.com/en/media-releases/fifa-publishes-global-transfer-report-2021">recorded</a> that Ghanaian football clubs together made a net profit of only US$50 million in the last decade.</p>
<h2>Footballers’ finances</h2>
<p>Our study revealed that the population of footballers was largely youthful. Nearly 90% were 30 years old or below, which is similar to footballers in other countries. This is expected as footballers are mostly active in their prime years. About 86% had some form of education, mainly up to senior high school level. The majority of the respondents were married and close to 58% of them had three or more dependants aside from their nuclear family. Thus, most of the footballers were providers for families although 39% said they lived with their parents or friends. On average, these footballers earned GHS2,000 net monthly income (US$177 at the time of the study), which, compared to other professionals, is low. </p>
<p>Overall, we found that the footballers had a low level of financial literacy. They ranked setting of long-term goals high but their interest in seeking financial knowledge was very low. It was therefore not surprising that most of the footballers seemed uncertain about where their money was spent.</p>
<p>We found that the footballers, generally, did not exhibit responsible financial behaviour. Very few had any interest in products such as bonds, stocks, mutual funds and insurance policies. But they seemed diligent in comparing prices when purchasing a product or service in a shop.</p>
<p>Interestingly, footballers were optimistic about their financial wellbeing. Most of those surveyed were confident in their capacity to meet current financial needs, had a very positive outlook on their future financing needs and made choices to enjoy life. The average footballer is always hopeful of securing lucrative contracts in future. </p>
<h2>Better performance</h2>
<p>Efforts to enhance the financial wellbeing of footballers can begin with investing in training programmes to make them financially literate. Second, football clubs can engage financial coaches to provide practical guidance to players during their active playing days to help shape their financial behaviour. </p>
<p>Given that financial wellbeing is closely <a href="https://www.emerald.com/insight/content/doi/10.1108/JHASS-05-2021-0101/full/pdf">associated</a> with psychological wellbeing, such initiatives could have a positive effect on the performance of players on the field.</p><img src="https://counter.theconversation.com/content/215389/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Godfred Matthew Yaw Owusu does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Most Ghanaian footballers have poor levels of financial literacy and financial behaviour.Godfred Matthew Yaw Owusu, Professor of Accounting, University of GhanaLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2119842023-09-13T15:53:00Z2023-09-13T15:53:00ZShould we give our children an allowance?<figure><img src="https://images.theconversation.com/files/543792/original/file-20230614-21-ritl1a.jpg?ixlib=rb-1.1.0&rect=28%2C0%2C6256%2C5153&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/es/image-photo/happy-smiling-rich-kid-girl-millionaire-1591064878">Dmitry Lobanov/Shutterstock </a></span></figcaption></figure><p>Instead of setting an allowance, many parents decide to give money on demand to their children. When figuring out if that’s a good option, we need to be aware that the key is not so much in giving or not giving an allowance, but in how you do so.</p>
<p>Giving our children some money each week is an excellent way for them to learn to consume responsibly and to save. To achieve that, the money we give them must be accompanied by a little teaching.</p>
<p><a href="https://doi.org/10.1016/j.joep.2014.07.003">A study</a> carried out in the Netherlands found that people who had been given an allowance and taught how to manage money as children saved between 16% and 30% more in their adult life.</p>
<p>In that same study, it was also found that giving an allowance without that educational component did not improve savings in adulthood.</p>
<p>We must try to meet three conditions:</p>
<ol>
<li><p>We should give enough money so that our children can purchase something.</p></li>
<li><p>We should advise our children on purchases and savings.</p></li>
<li><p>We should monitor where our children spend their money.</p></li>
</ol>
<p>It is of little use to preach about the importance of money and the effort required for us as adults to get it if we do not give our children the chance to manage it. Spending all of their allowance on candy in one afternoon and not having anything for the next day helps them to figure out what’s really important and what’s not.</p>
<p>Only in this way do they have the chance to learn about the importance of putting away money and to develop the all-important concept of <a href="https://www.redalyc.org/journal/2745/274555484002/274555484002.pdf">delayed gratification</a>, the mechanism which allows mature humans to control impulses (to be able to resist immediate gratification in exchange for greater gratification in the future). </p>
<p>Conversely, giving our children money without supervision can be counterproductive. Some studies have found that children who receive unsupervised allowances are at greater risk of <a href="https://annali.iss.it/index.php/anna/article/view/1523">drug use</a>, <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9315462/">acting as bullies</a>, and <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4316279/">being overweight</a>. But be careful: supervising and monitoring does not mean reprimanding. Comments like “of course, since you always waste your money, now you don’t have anything left… if you keep this up, you’ll never have anything” do not help.</p>
<p>Wasting all of one’s allowance on chewing gum may be a mistake, but we learn from making mistakes. Allowing them to make mistakes if those mistakes don’t have serious consequences is a way of promoting autonomy in our children. A more useful approach is to be encouraging and to help them plan their savings in the future.</p>
<h2>Age and the appropriate amount</h2>
<p>Before primary school, it is not very effective to give an allowance; however, we can still help the littlest ones to develop the concept of money. For example, through shop-type games.</p>
<p>In these games, we can play different roles. “Today, we have money so we can buy things.” Or, “Today we don’t have so much money, so we can’t buy so many things.” With this type of activity, we promote the concept of “for me, for you, and for later.”</p>
<p>An appropriate time to start considering giving an allowance is when children acquire the concepts of addition and subtraction, usually around the age of seven. For initial allowance payments, we can ask them to spend only half and save the rest in a piggy bank. This will help them to see that by saving, they will be able to purchase more expensive things later. A weekly amount is better than a monthly one at these ages.</p>
<p>The amount you give them depends on their maturity, the expenses for which the allowance is intended, and of course the family’s financial possibilities.</p>
<p>In a <a href="https://www.scirp.org/html/8-6902140_77168.htm#txtF5">study</a>, it was observed that families with more limited financial resources place greater importance on their children adopting good consumption habits. In addition, according to that same study, these families tend to provide better lessons on how to save. Thus, the amount is not as important as the teachings that go along with the allowance.</p>
<h2>Conditions for an allowance</h2>
<p>The idea is for children to be aware that we as parents are going to cover their basic needs and that their allowance is for them to pay for little “extras”. The amount of money usually increases as the child gets older and takes on more responsibilities.</p>
<p>Teenagers who are mature enough may have an allowance to cover their leisure expenses. Entertainment, travel, and some clothing can be paid for by them. Of course, we can set limits. For example, family money should not be spent on cigarettes or other harmful activities.</p>
<p>It is important to avoid lending money if we anticipate that they will not be able to return it. This makes it difficult for them to value money and may lead to conflicts. It may be more advisable to give them the money if we think it’s a relevant expense, or to just say “no” from the start if we think they shouldn’t spend on a certain item.</p>
<p>We must always remember that we are the adults. Therefore, we are responsible for setting limits and guiding them towards responsible consumption habits.</p>
<h2>Paid housework?</h2>
<p>Although this is a controversial issue, the existing evidence suggests that giving an allowance in exchange for household chores is not a good option. In an <a href="https://www.researchgate.net/publication/227690648_Children_and_Chores_A_Mixed-Methods_Study_of_Children's_Household_Work_in_Los_Angeles_Families">observational study</a> carried out with families in the United States, it was found that giving children money for household chores was not an effective incentive for them to actually do the chores.</p>
<p>The children who received money for helping out at home did not do more chores than those who received no money. What’s more, the girls and boys who contributed around the house without receiving money in exchange for their work associated household chores with values such as duty and reciprocity.</p>
<p>However, some families offer their children tasks that are not part of the family’s typical chores (for example, washing the car) to earn extra money. This type of work could help build their autonomy and ability to save. However, there is not enough research to be able to say so with certainty.</p>
<h2>Our relationship with money</h2>
<p>Thus, ultimately, the experiences we have with money in childhood influence the relationship we have with money in adulthood. Giving an allowance to our children is the best option, as long as it is accompanied by teaching and supervision. The amount is best based on expenses, and we should help them to save part of what they get.</p>
<p>Lastly, we must not forget to make them see that most of the important things in life have nothing to do with money. If we go about our daily life with values like duty and empathy, it is more likely that they will too. Showing gratitude by giving them a hug or a smile when we see that the table is set when we get home is more valuable than a few euros.</p><img src="https://counter.theconversation.com/content/211984/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Mónica Rodríguez Enríquez no recibe salario, ni ejerce labores de consultoría, ni posee acciones, ni recibe financiación de ninguna compañía u organización que pueda obtener beneficio de este artículo, y ha declarado carecer de vínculos relevantes más allá del cargo académico citado.</span></em></p>The number of parents giving money on demand instead of pay has been increasing in recent times. Does it help children to better understand “the value of money”?Mónica Rodríguez Enríquez, Profesora, Doctora en Psicología, Universidade de VigoLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2120982023-08-27T22:42:36Z2023-08-27T22:42:36ZFinancial education has its limits – if we want New Zealanders to be better with money, we need to start at home<p>Even as an economics student at university, I remember heading into town on a Friday night knowing what I needed to pay the bills before I could spend on socialising. But despite having the financial literacy to know better, Monday could still sometimes begin with a trip to the bank to ask for an overdraft extension. </p>
<p>So it was encouraging to hear that financial education has become a political talking point ahead of this year’s election. Both <a href="https://www.stuff.co.nz/national/politics/132778326/labour-promises-compulsory-financial-literacy-lessons-for-school-children-national-backs-the-idea">Labour</a> and <a href="https://www.1news.co.nz/2023/08/20/national-also-aiming-to-make-financial-literacy-compulsory-in-schools/">National</a> are promising to deliver compulsory financial literacy classes as part of the school curriculum. </p>
<p>Labour’s proposed financial literacy programme would include the basics of budgeting, financial concepts and how to be good with money. It would also include explanations of interest rates, retirement savings, insurance, debt and borrowing. </p>
<p>And when Prime Minister Chris Hipkins said “it shouldn’t matter what circumstances you were born into, you should still be able to learn concepts to help you”, he was right. Improved financial literacy can only be a good thing for New Zealand. </p>
<p>With the country in a recession, New Zealanders are facing both <a href="https://theconversation.com/dont-let-financial-shame-be-your-ruin-open-conversations-can-help-ease-the-burden-of-personal-debt-202496">ballooning debt and a legacy of poor saving</a>. The average household debt in New Zealand is now more than 170% of gross household income. This is higher than the United Kingdom (133%), Australia (113%) or Ireland (96%). </p>
<p>And yet, researchers remain divided over whether financial education can actually have a positive impact on financial behaviour in the long term. In New Zealand and elsewhere, it seems factors closer to home have a greater influence on a person’s financial literacy than anything learned at school. </p>
<h2>Education, borrowing and debt</h2>
<p>One 2014 <a href="https://openknowledge.worldbank.org/entities/publication/44870ac3-5b7e-57f7-be49-000f56f4cc30">meta-analysis</a> of 188 research papers and articles concluded financial literacy interventions had a positive impact on increasing savings, but had no impact on reducing loan defaults. </p>
<p>A <a href="https://openknowledge.worldbank.org/entities/publication/eb8b7699-0d2f-5d6d-ab1e-4262122c1a9c">second analysis of 126 studies</a>, published in 2017, found financial education positively affected financial behaviour – but this had limits for lower-income families. Much like the earlier study, the researchers found borrowing behaviour was more difficult to change with formal education than saving behaviour. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/are-you-financially-literate-here-are-7-signs-youre-on-the-right-track-202331">Are you financially literate? Here are 7 signs you're on the right track</a>
</strong>
</em>
</p>
<hr>
<p>An important caveat is that these analyses measured the short-term response to hypothetical questions, not long-term behaviour.</p>
<p>But even when examining the impact of financial education on short-term behaviour, researchers found it was difficult to influence how people handled debt. Compulsory financial education did not improve the likelihood of getting into debt, or the likelihood of defaulting on loans. </p>
<p><div data-react-class="Tweet" data-react-props="{"tweetId":"1693149707491524799"}"></div></p>
<h2>Home and financial knowledge</h2>
<p>In his famous work on <a href="https://hr.berkeley.edu/how-social-learning-theory-works">social learning theory</a>, psychologist Albert Bandurra proposed that observation and modelling play a primary role in how and why people learn. They are particularly relevant to the development of financial attitudes, confidence and behaviour. </p>
<p>Specifically, young people learn from the financial behaviour <a href="http://abrn.asia/ojs/index.php/apjssr/article/view/61/68">modelled by their parents</a>, discussions about money in the home, and from receiving pocket money.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/financial-literacy-is-a-public-policy-problem-84695">Financial literacy is a public policy problem</a>
</strong>
</em>
</p>
<hr>
<p>It has been suggested the differences in how money and finances are dealt with in the home are linked to why women generally <a href="https://theconversation.com/hilda-survey-reveals-striking-gender-and-age-divide-in-financial-literacy-test-yourself-with-this-quiz-100451">score lower on financial literacy quizzes</a>, as do people from lower socio-economic backgrounds. </p>
<p>Parents’ education and their financial sophistication – whether they have stocks, for example – <a href="https://www.mdpi.com/1911-8074/16/4/252">have been shown</a> to affect their offspring’s financial literacy. Women are also found to have <a href="https://institute.eib.org/wp-content/uploads/2016/10/women-conf-lit.pdf">lower financial confidence</a>, even when they have the right knowledge.</p>
<p><div data-react-class="Tweet" data-react-props="{"tweetId":"1504562088575918082"}"></div></p>
<p>In a <a href="https://www.emerald.com/insight/content/doi/10.1108/YC-07-2017-00717/full/html">New Zealand study</a> of over 1,200 young people aged 14 and 15, the age of the first financial discussion between parent and child was found to be an important influence on future financial knowledge, attitudes and intentions. </p>
<p>The study found boys, on average, had their first financial discussion in the home at a younger age than girls. The age at which these initial discussions happen influence a person’s financial literacy levels at tertiary education age and beyond, even accounting for other demographic variables. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/there-are-serious-problems-with-the-concept-of-financial-literacy-84836">There are serious problems with the concept of 'financial literacy'</a>
</strong>
</em>
</p>
<hr>
<p>These findings suggest the way parents talk and manage finances in the home may be subject to a gender bias, contributing to <a href="https://onlinelibrary.wiley.com/doi/10.1111/ijcs.12179">different levels of financial literacy</a> – and confidence – between girls and boys. </p>
<p>So, as we consider adding financial education to New Zealand’s curriculum, it’s important to consider all of the factors that will feed into a student’s money literacy – and not just focus on test results in a classroom setting.</p><img src="https://counter.theconversation.com/content/212098/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Stephen Agnew does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Both major political parties have promised to introduce financial literacy to New Zealand’s curriculum. But is school really the best place to teach students about money?Stephen Agnew, Senior Lecturer of Economics, University of CanterburyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2107642023-08-23T12:27:04Z2023-08-23T12:27:04ZWhy have you read ‘The Great Gatsby’ but not Ursula Parrott’s ‘Ex-Wife’?<figure><img src="https://images.theconversation.com/files/543788/original/file-20230821-29-jhus0n.jpg?ixlib=rb-1.1.0&rect=68%2C53%2C1079%2C810&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Writer Ursula Parrott, pictured with her son, Marc, in 1935. </span> <span class="attribution"><a class="source" href="https://www.neh.gov/sites/default/files/styles/large/public/2023-04/Ursula_w_son_Fig_12_Gordon.jpg?itok=LBc8_0fM">ACME Newspapers</a></span></figcaption></figure><p>In 1925, F. Scott Fitzgerald published “<a href="https://www.simonandschuster.com/books/The-Great-Gatsby/F-Scott-Fitzgerald/9781982146702">The Great Gatsby</a>.” Four years later, Ursula Parrott published her first novel, “<a href="https://www.simonandschuster.com/books/Ex-Wife/Ursula-Parrott/9781946022561">Ex-Wife</a>.” </p>
<p>I probably read “The Great Gatsby” a dozen times between junior high school and my late 20s. But I had never even heard of Ursula Parrott or her 1929 bestseller until I stumbled across a screenplay adaption of one of Parrott’s short stories. </p>
<p>Fitzgerald, in fact, had been hired to write that screenplay. Even though “Infidelity” was never produced because it was <a href="https://collections.new.oscars.org/Details/Collection/627">deemed too risqué by Hollywood’s Production Code Administration</a>, its very existence piqued my curiosity.</p>
<p>Why was the most famous author of the Jazz Age hired to adapt a story by a totally unknown writer? And who on earth was Ursula Parrott?</p>
<p>I acquired a used copy of “Ex-Wife” on eBay and soon realized that Ursula Parrott was not unknown; she was just forgotten. </p>
<p>In April 2023, <a href="https://www.ucpress.edu/book/9780520391543/becoming-the-ex-wife">I published a biography</a> of Parrott. Since then, I’ve continued to try to understand just how and why she and her writing drifted into obscurity – how “The Great Gatsby” is required reading but few have heard of “Ex-Wife” or its author.</p>
<h2>Greeted by mixed reviews</h2>
<p>Both “Ex-Wife” and “The Great Gatsby” are modern novels of love and loss, money and (mostly bad) manners. They’re set in New York and saturated with the energy, language and spirit of the time. <a href="https://timesmachine.nytimes.com/timesmachine/1929/08/11/91915237.html?pageNumber=30">Both garnered mixed reviews</a>, deemed by many critics as entertaining and of the moment <a href="https://www.theatlantic.com/entertainment/archive/2015/04/to-early-reviewers-the-great-gatsby-was-not-so-great/390252/">but not great literature</a>.</p>
<p>At first, “Ex-Wife” was far more successful than “Gatsby,” blasting through a dozen printings and selling over 100,000 copies. It was translated into multiple languages and reprinted in paperback editions through the late 1940s. </p>
<p>Meanwhile, “The Great Gatsby” went through <a href="https://boydellandbrewer.com/9781571133717/american-icon/">a mere two printings totaling less than 24,000 copies</a>, not all of which sold. By the time Fitzgerald died in 1940, the novel had essentially been forgotten.</p>
<p>“Ex-Wife” centers on a 24-year-old woman named Patricia whose husband is divorcing her. Supporting herself with a job in department store advertising, she learns to navigate life in Manhattan as a divorcée. </p>
<p>Whereas “The Great Gatsby” is largely a suburban novel with trips into the city, “Ex-Wife” is fully immersed in Manhattan, especially Greenwich Village, where Parrott herself lived after she married her first husband. The novel’s characters drink Clover Clubs, Alexanders, brandy flips and Manhattans while frequenting the Brevoort, the Waldorf, Delano’s and Dante’s. </p>
<p>“Ex-Wife” revels in the rhythms of the city: One chapter even includes musical bars from George Gershwin’s hit “<a href="https://www.loc.gov/item/ihas.200156779">Rhapsody in Blue</a>” sprinkled between paragraphs. </p>
<figure class="align-center ">
<img alt="Musical notes appear on a page underneath dialogue." src="https://images.theconversation.com/files/544084/original/file-20230822-15-g3yjz0.jpeg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/544084/original/file-20230822-15-g3yjz0.jpeg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=297&fit=crop&dpr=1 600w, https://images.theconversation.com/files/544084/original/file-20230822-15-g3yjz0.jpeg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=297&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/544084/original/file-20230822-15-g3yjz0.jpeg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=297&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/544084/original/file-20230822-15-g3yjz0.jpeg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=373&fit=crop&dpr=1 754w, https://images.theconversation.com/files/544084/original/file-20230822-15-g3yjz0.jpeg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=373&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/544084/original/file-20230822-15-g3yjz0.jpeg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=373&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Chapter 12 of ‘Ex-Wife’ features bars from ‘Rhapsody in Blue.’</span>
<span class="attribution"><span class="source">Marsha Gordon</span>, <a class="license" href="http://creativecommons.org/licenses/by-sa/4.0/">CC BY-SA</a></span>
</figcaption>
</figure>
<p>But “Ex-Wife” is not all martinis and music. Parrott uses it to address, in unsparing directness, the challenges that women faced and the limited paths available to them. This alone sets it apart from the male protagonists of “The Great Gatsby” and the novel’s scant attention to the experiences of its female characters.</p>
<p>Parrott’s witty and biting novel was, in fact, concerned first and foremost with a generation of young women who had abandoned Victorian sensibilities: They got educations and jobs, drank, had premarital and extramarital sex, and cast aside pretensions of being the fairer, gentler sex. </p>
<p>But in shedding these mores, they also sacrificed protections. Patricia reflects on how men of their generation used women’s self-sufficiency and independence as an excuse to leave them to fend for themselves: “Freedom for women turned out to be God’s greatest gift to men.” </p>
<figure class="align-right zoomable">
<a href="https://images.theconversation.com/files/543765/original/file-20230821-29-lmgeo5.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Book cover featuring drawing of a young, forlorn woman." src="https://images.theconversation.com/files/543765/original/file-20230821-29-lmgeo5.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/543765/original/file-20230821-29-lmgeo5.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=837&fit=crop&dpr=1 600w, https://images.theconversation.com/files/543765/original/file-20230821-29-lmgeo5.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=837&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/543765/original/file-20230821-29-lmgeo5.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=837&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/543765/original/file-20230821-29-lmgeo5.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=1052&fit=crop&dpr=1 754w, https://images.theconversation.com/files/543765/original/file-20230821-29-lmgeo5.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=1052&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/543765/original/file-20230821-29-lmgeo5.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=1052&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">‘Ex-Wife’ sold four times as many copies as ‘The Great Gatsby’ in the 1920s and 1930s.</span>
<span class="attribution"><a class="source" href="https://substackcdn.com/image/fetch/f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2Ff689e048-ef86-4a0b-bcff-e59400fd1186_413x576.jpeg">Screen Splits</a></span>
</figcaption>
</figure>
<p>“Ex-Wife” depicts a culture in which women often suffer at the hands of men. At one point, Patricia is brutally raped. In another scene, her husband throws her through a glass window during a fight, a moment as harrowing for its rendering of domestic violence as it is for Pat’s nonchalant reaction to it. In one of the book’s most moving episodes, Pat is compelled to procure a risky abortion at her soon-to-be ex-husband’s insistence but at her financial, physical and psychological cost. </p>
<p>“One survives almost everything,” Patricia unhappily realizes.</p>
<p>She survives, however, thanks only to a streetwise female friend and mentor, her own ability to earn a living, practiced if not heartfelt flippancy, the numbing effects of alcohol and an acceptance that everything in her life is both transient and precarious.</p>
<h2>Art imitates life</h2>
<p>Ursula Parrott <a href="https://www.ucpress.edu/book/9780520391543/becoming-the-ex-wife">had a keen understanding</a> of gender inequality and male privilege: Her own publisher made passes at her, her banker once proposed sexual favors in lieu of interest payments, and she experienced a rape not unlike the one she depicted in “Ex-Wife.”</p>
<figure class="align-right ">
<img alt="Black and white photograph of woman sitting on balcony smiling and using a typewriter." src="https://images.theconversation.com/files/543763/original/file-20230821-19-vgphn.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/543763/original/file-20230821-19-vgphn.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=777&fit=crop&dpr=1 600w, https://images.theconversation.com/files/543763/original/file-20230821-19-vgphn.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=777&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/543763/original/file-20230821-19-vgphn.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=777&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/543763/original/file-20230821-19-vgphn.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=976&fit=crop&dpr=1 754w, https://images.theconversation.com/files/543763/original/file-20230821-19-vgphn.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=976&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/543763/original/file-20230821-19-vgphn.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=976&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Ursula Parrott in California in 1931, two years after the publication of ‘Ex-Wife.’</span>
<span class="attribution"><span class="source">AP Photos</span></span>
</figcaption>
</figure>
<p>Before she became a novelist, Parrott, who earned a degree in English from Radcliffe, had desperately wanted a career in journalism. However, she was barred from employment at all New York newspapers because her ex-husband, <a href="https://www.nytimes.com/1987/09/21/obituaries/lindesay-parrott-ex-times-reporter.html">reporter Lindesay Parrott</a>, marked his professional territory by warning the city’s editors – all male, of course – not to hire her. </p>
<p>There is a similar form of male chauvinism at work in the way that Parrott’s writing was often treated by critics during her lifetime. Many described her books and short stories as romantic or melodramatic, fit only for consumption by women.</p>
<p>“Melodramatic,” <a href="https://www.ucpress.edu/book/9780520391543/becoming-the-ex-wife">Parrott once smartly observed in a letter</a>, is “just a word men use to describe any agony that might otherwise make them feel uncomfortable.”</p>
<h2>Gatsby’s boosters</h2>
<p>I am convinced that “Ex-Wife” deserves a place <a href="https://www.theparisreview.org/blog/2021/01/11/why-do-we-keep-reading-the-great-gatsby/">alongside Fitzgerald’s novel</a> in classrooms and in the hands of a new generation of readers based on the merits of its style and contents. </p>
<p>But more importantly, I’m convinced that the reason Fitzgerald’s novel is so ingrained in American life and letters has little to do with its originality, craft or quality and everything to do with <a href="https://bookshop.org/p/books/so-we-read-on-how-the-great-gatsby-came-to-be-and-why-it-endures-maureen-corrigan/110705">the way books were marketed and promoted</a> over the arc of the 20th century. </p>
<p>“The Great Gatsby” <a href="https://www.washingtonpost.com/news/achenblog/wp/2015/03/20/why-the-great-gatsby-is-the-great-american-novel/">owes its resuscitation from obscurity</a> in the 1940s to the efforts of prominent male critics and scholars – and even to the American military.</p>
<p>Fitzgerald had important friends and admirers, among them the esteemed literary critic Edmund Wilson, who was instrumental in the republication of “Gatsby” in 1941. <a href="https://paw.princeton.edu/article/enduring-power-gatsby">Thanks to Wilson’s efforts</a>, Fitzgerald’s novel could be taken up by other well-regarded and influential scholars like Lionel Trilling, <a href="http://thenation.s3.amazonaws.com/pdf/1949.pdf">who wrote admiringly</a> about Fitzgerald in The Nation in 1945, and <a href="https://www.nytimes.com/1989/03/29/obituaries/malcolm-cowley-writer-is-dead-at-90.html">Malcolm Cowley</a>, who edited collections of Fitzgerald’s short stories and celebrated his literary gifts.</p>
<figure class="align-center ">
<img alt="Seated man in suit holding a cigarette and looking out a window." src="https://images.theconversation.com/files/543773/original/file-20230821-10983-meide4.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/543773/original/file-20230821-10983-meide4.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=456&fit=crop&dpr=1 600w, https://images.theconversation.com/files/543773/original/file-20230821-10983-meide4.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=456&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/543773/original/file-20230821-10983-meide4.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=456&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/543773/original/file-20230821-10983-meide4.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=573&fit=crop&dpr=1 754w, https://images.theconversation.com/files/543773/original/file-20230821-10983-meide4.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=573&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/543773/original/file-20230821-10983-meide4.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=573&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Critics like Lionel Trilling rescued ‘The Great Gatsby’ from obscurity.</span>
<span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/news-photo/the-american-literary-critic-lionel-trilling-is-shown-here-news-photo/515252642?adppopup=true">Bettmann/Getty Images</a></span>
</figcaption>
</figure>
<p>After Trilling, a parade of writers took up Gatsby’s cause, praising it for precisely the same traits that might also have been found in “Ex-Wife,” had anyone bothered to look: its use of contemporary language, its critique of hedonistic behavior, its rich attention to period detail and its depressing portrayal of aimless, unmoored characters trying and failing to find meaning in modern America.</p>
<p>Consider just one instance of differential legacy-tending: during World War II, the American military <a href="https://www.mentalfloss.com/article/62358/how-wwii-saved-great-gatsby-obscurity">provided over 150,000 free copies</a> of “The Great Gatsby” to American soldiers – ensuring a readership that well exceeded the number of people who had, to date, actually bought the book.</p>
<p>But when the <a href="https://www.nypl.org/blog/2012/07/25/victory-book-campaign-and-nypl">Victory Book Campaign</a> started its drive to collect novels for overseas servicemen, it explicitly warned potential donors to desist from handing over any “women’s love stories,” specifically naming Ursula Parrott among the authors whose books they would not be putting in soldiers’ hands.</p>
<h2>Making the case for ‘Ex-Wife’</h2>
<p>There are, of course, many other factors at play here. <a href="https://www.theawl.com/2014/01/all-the-drunk-dudes-the-parodic-manliness-of-the-alcoholic-writer/">There’s the tendency to romanticize</a> the tragic lives of male authors who drink heavily, spend recklessly and make bad decisions – departments in which Fitzgerald and Parrott seem pretty equally matched. </p>
<figure class="align-right zoomable">
<a href="https://images.theconversation.com/files/543768/original/file-20230821-19874-9e3281.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Newspaper clipping suggesting authors to avoid when sending troops books." src="https://images.theconversation.com/files/543768/original/file-20230821-19874-9e3281.png?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/543768/original/file-20230821-19874-9e3281.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=726&fit=crop&dpr=1 600w, https://images.theconversation.com/files/543768/original/file-20230821-19874-9e3281.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=726&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/543768/original/file-20230821-19874-9e3281.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=726&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/543768/original/file-20230821-19874-9e3281.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=912&fit=crop&dpr=1 754w, https://images.theconversation.com/files/543768/original/file-20230821-19874-9e3281.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=912&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/543768/original/file-20230821-19874-9e3281.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=912&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Book donors were discouraged from sending ‘women’s love stories’ to troops during World War II.</span>
<span class="attribution"><span class="source">Moberly, Missouri Monitor</span></span>
</figcaption>
</figure>
<p>There’s also what can only be described as a collective <a href="https://www.usatoday.com/story/life/books/2013/05/07/why-the-great-gatsby-is-the-great-american-novel/2130161/">refusal to categorize</a> “The Great Gatsby” as a romance novel, a category that has historically been used <a href="https://theconversation.com/if-the-romance-writers-of-america-can-implode-over-racism-no-group-is-safe-130034">to diminish women’s writing</a>.</p>
<p>“The Great Gatsby”‘s ascension from obscurity to ubiquity is only one example of how Parrott’s book was passed over. “Ex-Wife” and William Faulkner’s “<a href="https://www.penguinrandomhouse.com/books/48428/the-sound-and-the-fury-by-william-faulkner/">The Sound and the Fury</a>” were marketed alongside each other by publishers Jonathan Cape and Harrison Smith. Faulkner biographer Carl Rollyson observes that Faulkner’s book <a href="https://www.nysun.com/article/even-as-william-faulker-struggled-ursula-parrott-thrived">sold “less than a tenth” as many copies as Parrott’s</a>. But Faulkner amassed critical praise in the right places, and Parrott, Rollyson concludes, “did not manage herself or her work the way writers like Faulkner did.” </p>
<p>But this is not merely a question of self-management. It is true that Parrott did not publish during the last, difficult decade of her life. After a series of public scandals, missed deadlines, ongoing battles with alcohol and financial missteps, she tried to write herself back into literary society, to no avail. </p>
<p>The real difference, in my view, is that Parrott had nobody to tend to her legacy – no Trilling or Wilson or Cowley in her corner to bring her writings back into circulation or make a case for her genius or her novel’s importance.</p>
<p>However, there is no reason to believe that the erasure of “Ex-Wife” from cultural memory is a fait accompli, or that “The Great Gatsby” will always be the go-to Jazz Age novel. Writer Glenway Wescott, <a href="https://newrepublic.com/article/116002/moral-scott-fitzgerald">in his February 1941 tribute to Fitzgerald</a>, wrote of “The Great Gatsby”: “A masterpiece often seems a period-piece for a while; then comes down out of the attic, to function anew and to last.”</p>
<p>Consider this article a “better late than never” effort to make the case that “Ex-Wife” deserves to come out of the attic of America’s lost literary past to be read, discussed and taught as one of the important American novels of the 1920s. </p>
<p>After McNally Editions republished “<a href="https://www.mcnallyeditions.com/books/p/ex-wife">Ex-Wife</a>” in May 2023, reviewers remarked on the “freshness of its prose” and the “remarkable erotic freedom” it depicted, as <a href="https://www.nytimes.com/2023/04/30/books/she-wrote-frankly-about-divorce-and-suffered-the-consequences.html">The New York Times</a> review put it; <a href="https://thebaffler.com/latest/the-dark-side-of-the-jazz-age-fletcher">The Baffler described Parrott’s writing</a> as “deftly crafted, wryly observed, and thoroughly unsettling.”</p>
<p>“The Great Gatsby” is a fantastic period piece. But “Ex-Wife” manages to be both that and to remain timely. Women’s lives and bodies continue to be subject to all manner of scrutiny, critique and legislation, which means that many of the things that Parrott wrote about in “Ex-Wife” – the double standard, women in the workplace, work-life balance, rape and even abortion – remain astonishingly relevant today.</p>
<p>In “Ex-Wife” – and in many of her 19 other books and over 100 stories – Parrott wrote from what amounts to Daisy Buchanan’s point of view rather than Nick Carraway’s, to use “The Great Gatsby” again as a reference point. </p>
<p>Imagine what a different story “Gatsby” would have been had the reader seen the world through Daisy’s eyes? </p>
<p>Or don’t imagine. Rather, give “Ex-Wife” a read.</p><img src="https://counter.theconversation.com/content/210764/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Marsha Gordon has received funding from the National Endowment for the Humanities Public Scholar Program and the National Humanities Center.</span></em></p>‘Ex-Wife’ originally outsold ‘The Great Gatsby,’ but critics sniffed at the novel, deeming it a melodramatic period piece − even though it tackled timeless issues like gender, money and power.Marsha Gordon, Professor of Film Studies, North Carolina State UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2105272023-08-10T12:41:29Z2023-08-10T12:41:29ZBeyoncé has a prenup − but do you need one if you’re not a millionaire?<figure><img src="https://images.theconversation.com/files/541566/original/file-20230807-26-p288xv.jpg?ixlib=rb-1.1.0&rect=152%2C49%2C2815%2C1877&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">A prenup allows couples to separate their debt from the debts of their spouse.</span> <span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/news-photo/beyonce-and-jay-z-perform-during-the-global-citizen-news-photo/1067795190?adppopup=true">Kevin Mazur via Getty Images </a></span></figcaption></figure><p>A prenuptial agreement can seem like something only high-profile people like <a href="https://www.hellomagazine.com/brides/494142/jeff-bezos-prepares-jaw-dropping-prenup-to-protect-his-138billion-fortune/">Jeff Bezos</a> – with his US$138 billion fortune to protect – actually need.</p>
<p>But prenups – contracts entered into before marriage that detail how assets will be divided in the case of divorce – can be a good idea for anyone going into a marriage, according to <a href="https://doyledivorcelaw.com/blog/9-reasons-you-need-a-prenuptial-agreement/">lawyers</a> and <a href="https://www.psychologytoday.com/us/blog/bringing-compassion-matrimonial-law/201810/the-unexpected-upside-getting-prenup">marriage counselors</a>. They have been in regular use since 1983, when a group of attorneys and law professors drafted the <a href="https://helloprenup.com/upaa/">Uniform Premarital Agreement Act</a>, a set of rules regulating prenups that 28 U.S. states have since adopted. </p>
<p><a href="https://theharrispoll.com/briefs/popularity-of-prenups-rising-2022/">A recent poll</a> showed that the percentage of couples with prenups has risen from 3% in 2010 to 15% in 2022. <a href="https://www.newyorker.com/news/us-journal/prenups-arent-just-for-rich-people-anymore">Nearly 40%</a> of married or engaged couples between the ages of 18 and 34 have signed prenups, while just 13% of couples between 45 and 54 have done so. </p>
<p><a href="https://scholar.google.com/citations?user=6kPZNuMAAAAJ&hl=en&oi=ao">As a law professor</a> who specializes in family law, I teach my students what prenups are and how to make sure they stand up in court. I also <a href="https://law.richmond.edu/faculty/atait/">write about</a> what happens to property when couples get divorced, especially unique forms of property like <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3036997">family businesses</a> or <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3259129">trust funds</a>. </p>
<h2>A shield from unwanted debt</h2>
<p>But prenups can be about more than what you own – they can also be about what you owe.</p>
<p>Millennials have accumulated <a href="https://fortune.com/2023/02/27/millennials-debt-pandemic-credit-interest-rates/">more debt</a> than previous generations, and prenups can help millennial couples navigate some of the concerns about debt in marriage. They can help couples address questions about the shared debt incurred during the marriage and who will pay what if the marriage ends. For example, couples can agree in a prenup to allocate <a href="https://www.tateesq.com/learn/prenup-student-loans">student loan debt</a> to the person who took out the loan. </p>
<p>They can also choose to protect one person from the other’s <a href="https://www.newyorker.com/news/us-journal/prenups-arent-just-for-rich-people-anymore">medical debt</a>, especially if they know that large medical bills are on the horizon. Prenups can insulate one spouse from potential debt and financial risk from their <a href="https://state48law.com/benefits-of-a-prenuptial-agreement-for-business-owners/">partner’s business</a>. </p>
<figure class="align-center ">
<img alt="A couple signs a prenup agreement." src="https://images.theconversation.com/files/541349/original/file-20230806-20589-vq6fu7.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/541349/original/file-20230806-20589-vq6fu7.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/541349/original/file-20230806-20589-vq6fu7.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/541349/original/file-20230806-20589-vq6fu7.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/541349/original/file-20230806-20589-vq6fu7.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/541349/original/file-20230806-20589-vq6fu7.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/541349/original/file-20230806-20589-vq6fu7.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Prenups allows couples to make their own rules rather than being at the mercy of state laws.</span>
<span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/photo/couple-who-signs-a-contract-at-a-new-residence-royalty-free-image/1124316087?phrase=a+couple+signing+a+prenup&adppopup=true">kokouu/E+ via Getty Images</a></span>
</figcaption>
</figure>
<h2>A shield from state laws</h2>
<p>Couples may also be drawn to prenups because these agreements allow them to make arrangements that, if executed correctly, take precedence over state laws.</p>
<p>When you get divorced, you can either follow the terms in a prenup or the terms that state law provides and be at the mercy of a divorce court’s estimation of who should get what. </p>
<p>State rules that generally divide all assets and debt equally were initially created for divorcing couples with conventional and gendered household patterns. For example, stay-at-home mothers raising children, working fathers with full-time employment, and assets like a house, life insurance and pension. </p>
<p>Younger couples are likely to organize their <a href="https://www.pewresearch.org/social-trends/2020/05/27/as-millennials-near-40-theyre-approaching-family-life-differently-than-previous-generations/">households much differently</a>. Both spouses <a href="https://www.forbes.com/sites/avivahwittenbergcox/2020/10/13/the-rise-resilience-and-challenges-of-2-career-couples/">generally work</a>. Expectations about who is responsible for child rearing <a href="https://www.nytimes.com/2015/07/31/upshot/millennial-men-find-work-and-family-hard-to-balance.html">are more varied</a>. Millennials and Gen Z workers are frequently <a href="https://www.buzzfeednews.com/article/annehelenpetersen/millennial-burnout-cant-even-anne-helen-petersen">freelance employees</a> or independent contractors, with less income security and fewer benefits like employer-provided pensions or health and life insurance. </p>
<p>Prenups are a helpful way to address these emergent work-life arrangements. For example, one spouse can choose to keep their income or pension benefits as separate property, not to be divided upon divorce.</p>
<h2>New ways to draft a prenup</h2>
<p>New platforms like <a href="https://helloprenup.com">Hello Prenup</a> – a “Shark Tank” success story – can be helpful for younger couples. The company aims to make the prenup process more accessible and less costly – think Turbo Tax but for prenups. Online platforms like Rocket Lawyer or Legal Templates, which provide outlines for all kinds of legal documents, also offer a <a href="https://www.rocketlawyer.com/sem/prenuptial-agreement?id=1319&partnerid=103&cid=15098121101&adgid=134763364211&loc_int=9008455&loc_phys=9109325&mt=b&ntwk=g&dv=c&adid=450847162998&kw=prenuptial%20agreement%20form&adpos=&plc=&trgt=&trgtid=kwd-29682911&gad=1&gclid=CjwKCAjw5remBhBiEiwAxL2M955oQgvm6K7G5HI0VwPv9dOAPRh95YgbNtrlS-rnXrW3wsEAK1J_bRoC8SAQAvD_BwE">prenup template</a>. </p>
<p>These platforms provide state-specific documents and explain the process, walking clients through things like <a href="https://helloprenup.com/prenuptial-agreements/can-online-prenups-be-valid/">financial disclosure rules</a> that are important if a prenup ever ends up being questioned in court.</p>
<h2>A valuable conversation</h2>
<p>Prenups make the news because of celebrity agreements and sensational provisions, like <a href="https://www.yahoo.com/entertainment/16-times-contents-celeb-couples-181602719.html">fidelity clauses</a> or <a href="https://www.usmagazine.com/celebrity-news/pictures/celebrity-couples-with-and-without-prenuptial-agreements/">sobriety requirements</a>. However, for most couples, these items are less important. Many people draft prenups to feel financially safe and know what will happen if they divorce. </p>
<p>One of the most significant benefits of prenups is that they get couples to talk about their financial lives and what it might look like to merge – or separate – finances as a part of marriage. And, considering conflicts around money are one of the <a href="https://www.thejimenezlawfirm.com/what-percent-of-marriages-end-in-divorce-because-of-money/">biggest causes of divorce</a>, prenup conversations may be the best kind of wedding planning you can do.</p><img src="https://counter.theconversation.com/content/210527/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Allison Anna Tait does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>A prenuptial agreement can help millennial couples navigate concerns about student debt in their marriage.Allison Anna Tait, Professor of Law, University of RichmondLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2089122023-07-24T20:09:39Z2023-07-24T20:09:39ZBees have appeared on coins for millennia, hinting at an age-old link between sweetness and value<figure><img src="https://images.theconversation.com/files/538671/original/file-20230721-25-7t24i7.jpg?ixlib=rb-1.1.0&rect=22%2C137%2C1894%2C1661&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">NZ Post Collectables</span></span></figcaption></figure><p>In 2022, the Royal Australian Mint issued a $2 coin decorated with honeybees. Around 2,400 years earlier, a mint in the kingdom of Macedon had the same idea, creating a silver obol coin with a bee stamped on one side.</p>
<p>Over the centuries between these two events, currency demonstrating a symbolic link between honey and money is surprisingly common. </p>
<p>In a recent study in <a href="https://s3.ap-southeast-2.amazonaws.com/assets.mmxgroup.com.au/ACR/Bee+Article.pdf">Australian Coin Review</a>, I trace the bee through numismatic history – and suggest a scientific reason why our brains might naturally draw a connection between the melliferous insects and the abstract idea of value.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/536400/original/file-20230709-15-2u5ywn.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/536400/original/file-20230709-15-2u5ywn.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=600&fit=crop&dpr=1 600w, https://images.theconversation.com/files/536400/original/file-20230709-15-2u5ywn.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=600&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/536400/original/file-20230709-15-2u5ywn.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=600&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/536400/original/file-20230709-15-2u5ywn.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=754&fit=crop&dpr=1 754w, https://images.theconversation.com/files/536400/original/file-20230709-15-2u5ywn.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=754&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/536400/original/file-20230709-15-2u5ywn.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=754&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">A Royal Australian Mint 2022 two-dollar coin representing 200 years since the introduction of the honeybee to Australia.</span>
</figcaption>
</figure>
<h2>What is currency and why is it important?</h2>
<p>Money is a store of value, and can act as a medium of exchange for goods or services. Currency is a physical manifestation of money, so coins are a durable representation of value. </p>
<p>Coins have had central role in many communities to enable efficient trade since ancient times. Their durability makes them important time capsules.</p>
<p>Ancient Malta was famous for its honey. The modern 3 Mils coin (<a href="https://en.numista.com/catalogue/pieces1775.html">1972-81</a>) celebrates this history with images of a bee and honeycomb. According to the information card issued with the coin set,</p>
<blockquote>
<p>A bee and honeycomb are shown on the 3 Mils coin, symbolising the fact that honey was used as currency in Ancient Malta. </p>
</blockquote>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/536403/original/file-20230709-23-drk2lj.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/536403/original/file-20230709-23-drk2lj.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=582&fit=crop&dpr=1 600w, https://images.theconversation.com/files/536403/original/file-20230709-23-drk2lj.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=582&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/536403/original/file-20230709-23-drk2lj.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=582&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/536403/original/file-20230709-23-drk2lj.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=732&fit=crop&dpr=1 754w, https://images.theconversation.com/files/536403/original/file-20230709-23-drk2lj.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=732&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/536403/original/file-20230709-23-drk2lj.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=732&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">A circulating 3 Mils coin from Malta showing a honeybee on honeycomb.</span>
</figcaption>
</figure>
<p>In ancient Greece, bees were used on some of the earliest coins made in Europe. A silver Greek obol coin minted in Macedon between 412 BCE and 350 BCE, now housed in the British Museum, shows a bee on one side of the coin. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/536411/original/file-20230709-182252-v4evxr.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/536411/original/file-20230709-182252-v4evxr.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=293&fit=crop&dpr=1 600w, https://images.theconversation.com/files/536411/original/file-20230709-182252-v4evxr.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=293&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/536411/original/file-20230709-182252-v4evxr.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=293&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/536411/original/file-20230709-182252-v4evxr.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=368&fit=crop&dpr=1 754w, https://images.theconversation.com/files/536411/original/file-20230709-182252-v4evxr.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=368&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/536411/original/file-20230709-182252-v4evxr.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=368&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">An ancient obol from Macedon, dated between 412 BCE and 350 BCE, shows a bee one side.</span>
</figcaption>
</figure>
<p>Bees also feature on coins minted elsewhere in the ancient Greek world, such as a bronze coin minted in Ephesus dated between 202 BCE and 133 BCE. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/536407/original/file-20230709-27-a2jvo3.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/536407/original/file-20230709-27-a2jvo3.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=546&fit=crop&dpr=1 600w, https://images.theconversation.com/files/536407/original/file-20230709-27-a2jvo3.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=546&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/536407/original/file-20230709-27-a2jvo3.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=546&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/536407/original/file-20230709-27-a2jvo3.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=686&fit=crop&dpr=1 754w, https://images.theconversation.com/files/536407/original/file-20230709-27-a2jvo3.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=686&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/536407/original/file-20230709-27-a2jvo3.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=686&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">A bronze coin minted in Ephesus, dated between 202BCE and 133BCE, featuring a honeybee.</span>
</figcaption>
</figure>
<p>The use of bees on ancient coins extended for many centuries including widely circulated bronze coins, and new varieties <a href="https://coinweek.com/bee-all-that-you-can-bee-honeybees-on-ancient-coins/">continue to be discovered</a>.</p>
<h2>Why we might like bees on coins</h2>
<p>Why have bees appeared so often on coins? One approach to this question comes from the field of neuro-aesthetics, which seeks to understand our tastes by understanding the basic brain processes that underpin aesthetic appreciation.</p>
<p>From this perspective, it seems likely the sweet taste of honey – which indicates the large amount of sugar it delivers – promotes positive neural activity <a href="https://brill.com/view/journals/artp/10/1/article-p1_2.xml">associated with bees and honey</a>. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/from-rock-carvings-to-rock-music-the-prevalence-of-bees-in-art-throughout-human-history-173069">From rock carvings to rock music – the prevalence of bees in art throughout human history</a>
</strong>
</em>
</p>
<hr>
<p>Indeed, primatologist Jane Goodall once proposed that obtaining high-calorie nutrition from bee honey may have been <a href="https://www.sciencedirect.com/science/article/abs/pii/S0066185668800032">an important step</a> in the cognitive development of primates.</p>
<p>Our brain may thus be pre-adapted to liking bees due to their association with the sweet taste of honey. Early usage of bees on coins may have been a functional illustration of the link between a known value (honey) and a new form of currency: coins as money. </p>
<h2>The bee on modern coins</h2>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/536393/original/file-20230709-17-jywq3f.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/536393/original/file-20230709-17-jywq3f.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=588&fit=crop&dpr=1 600w, https://images.theconversation.com/files/536393/original/file-20230709-17-jywq3f.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=588&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/536393/original/file-20230709-17-jywq3f.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=588&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/536393/original/file-20230709-17-jywq3f.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=738&fit=crop&dpr=1 754w, https://images.theconversation.com/files/536393/original/file-20230709-17-jywq3f.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=738&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/536393/original/file-20230709-17-jywq3f.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=738&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">A 1920 Italian bronze ten-centesimi coin featuring featuring an Italian honeybee on a flower.</span>
</figcaption>
</figure>
<p>The use of bees as a design feature has persisted from ancient to modern times. A honeybee visiting a flower is shown on a series of ten-centesimi bronze coins issued in Italy from <a href="https://en.numista.com/catalogue/pieces1960.html">1919 to 1937</a>. </p>
<p>(As an aside, the world’s last stock of pure Italian honeybees is found in Australia, on Kangaroo Island, which was declared a sanctuary for Ligurian bees by an <a href="https://www.legislation.sa.gov.au/home/historical-numbered-as-made-acts/1885/0342-Lingurian-Bees-Act-No-342-of-48-and-49-Vic,-1885.pdf">act of parliament</a> in 1885.)</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/536416/original/file-20230709-15-60yst8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/536416/original/file-20230709-15-60yst8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=586&fit=crop&dpr=1 600w, https://images.theconversation.com/files/536416/original/file-20230709-15-60yst8.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=586&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/536416/original/file-20230709-15-60yst8.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=586&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/536416/original/file-20230709-15-60yst8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=737&fit=crop&dpr=1 754w, https://images.theconversation.com/files/536416/original/file-20230709-15-60yst8.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=737&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/536416/original/file-20230709-15-60yst8.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=737&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">A coin from Tonga showing 20 honeybees emerging from a hive.</span>
</figcaption>
</figure>
<p>More recently, a 20-seniti coin from the Pacific nation of Tonga shows 20 honeybees flying out of a hive. This coin was part of a series initiated by the Food and Agriculture Organization of the United Nations to promote sustainable agricultural and cultural development around the world. </p>
<p>Bees are relevant here because their pollinating efforts contribute to about one-third of the food required to feed the world, with a value in excess of <a href="https://zenodo.org/record/2616458">US$200 billion per year</a>, and they are threatened by climate change and other environmental factors.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/bees-face-many-challenges-and-climate-change-is-ratcheting-up-the-pressure-190296">Bees face many challenges – and climate change is ratcheting up the pressure</a>
</strong>
</em>
</p>
<hr>
<h2>Bees on coins, today and tomorrow</h2>
<p>Public awareness of bees and environmental sustainability may well be factors in the current interest in bee coins. The diversity of countries using bees as a design feature over the entire history of coins suggests people have valued the relationship with bees as essential to our own prosperity for a long time. </p>
<p>In Australia, the 2022 honeybee $2 coin is part of a series developed by the <a href="https://www.ramint.gov.au/about-mint">Royal Australian Mint</a>. In 2019, the Perth Mint in Western Australia also released coins and stamps celebrating native bees.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/536405/original/file-20230709-15-iditcb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/536405/original/file-20230709-15-iditcb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=373&fit=crop&dpr=1 600w, https://images.theconversation.com/files/536405/original/file-20230709-15-iditcb.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=373&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/536405/original/file-20230709-15-iditcb.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=373&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/536405/original/file-20230709-15-iditcb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=469&fit=crop&dpr=1 754w, https://images.theconversation.com/files/536405/original/file-20230709-15-iditcb.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=469&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/536405/original/file-20230709-15-iditcb.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=469&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Australian native bee coin and stamps released in 2019 by the Perth Mint.</span>
</figcaption>
</figure>
<p>Despite the decline of cash, bee coins still appear to be going strong. The buzzing companions of human society are likely to be an important subject for coin design for as long as coins continue to be used.</p><img src="https://counter.theconversation.com/content/208912/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Adrian Dyer receives funding from the Australian Research Council and the Alexander von Humboldt Foundation.</span></em></p>The surprising frequency of bees on coins through history shows the enduring importance to human societies of our buzzing companions.Adrian Dyer, Associate Professor, Monash UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2044272023-07-03T11:50:55Z2023-07-03T11:50:55ZWhy are some Beanie Babies worth more than others? Prices for collectibles are about supply and demand<figure><img src="https://images.theconversation.com/files/529648/original/file-20230601-27-v2vms0.png?ixlib=rb-1.1.0&rect=7%2C4%2C1590%2C1192&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">From limited editions to spelling errors, only the rarest Beanie Babies are worth money.</span> <span class="attribution"><a class="source" href="https://flickr.com/photos/housingworksauctions/432628528">iStock</a>, <a class="license" href="http://creativecommons.org/licenses/by-sa/4.0/">CC BY-SA</a></span></figcaption></figure><figure class="align-left ">
<img alt="" src="https://images.theconversation.com/files/281719/original/file-20190628-76743-26slbc.png?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/281719/original/file-20190628-76743-26slbc.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=293&fit=crop&dpr=1 600w, https://images.theconversation.com/files/281719/original/file-20190628-76743-26slbc.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=293&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/281719/original/file-20190628-76743-26slbc.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=293&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/281719/original/file-20190628-76743-26slbc.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=368&fit=crop&dpr=1 754w, https://images.theconversation.com/files/281719/original/file-20190628-76743-26slbc.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=368&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/281719/original/file-20190628-76743-26slbc.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=368&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption"></span>
</figcaption>
</figure>
<p><em><a href="https://theconversation.com/us/topics/curious-kids-us-74795">Curious Kids</a> is a series for children of all ages. If you have a question you’d like an expert to answer, send it to <a href="mailto:curiouskidsus@theconversation.com">curiouskidsus@theconversation.com</a>.</em></p>
<hr>
<blockquote>
<p><strong>Why are some Beanie Babies worth more than others? – Theo R., age 8, Rockford, Illinois</strong></p>
</blockquote>
<hr>
<p>Most Beanie Babies are not worth much money. A new one at the store might be priced as low as US$5, depending on its size. If you buy a new Floppity the rabbit or Hissy the snake today and try to resell it tomorrow, you will likely lose money. That’s because Beanie Babies are made in large enough quantities that anyone who wants one can get one.</p>
<p>Still, every so often, a Beanie Baby resells for a lot of money. It’s not always easy to know when this happens, because many transactions are private, and not every for-sale listing leads to an actual purchase. Still, some Babies seem to have traded online for <a href="https://www.actionnetwork.com/news/most-expensive-beanie-babies-sales-2021">hundreds or even thousands of dollars</a> in recent years. You might wonder why.</p>
<p><a href="https://scholar.google.com/citations?hl=en&user=aMoG0UkAAAAJ">I study the prices</a> of things people like to collect, such as paintings, diamonds and wine. The reason a particular Beanie Baby – or anything, really – can sell for a high price is because, when an item is attractive but rare or difficult to get, it becomes more valuable. Economists describe this situation as the demand being greater than the supply. </p>
<h2>Beanie bubble</h2>
<p>Beanie Babies were launched in 1993 by a toy company called Ty. In the late 1990s, <a href="https://www.penguinrandomhouse.com/books/313121/the-great-beanie-baby-bubble-by-zac-bissonnette/">some people went nuts</a> for these plush toys. The craze started with <a href="https://www.realclearmarkets.com/2019/10/09/a_look_back_at_the_beanie_baby_bubble_227222.html">collectors in the Chicago suburbs but quickly spread</a> – helped by the rise of online auction websites such as eBay. Collecting Beanie Babies became a fad not just among kids who thought they were cute or wanted to play with them, but also among adults who thought the plushies offered a way to get rich quick.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/527054/original/file-20230518-15-dksmo.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Close-up of a table with a small stuffed animal in a clear plastic case in the middle. On either side, hands exchange US dollars." src="https://images.theconversation.com/files/527054/original/file-20230518-15-dksmo.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/527054/original/file-20230518-15-dksmo.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=392&fit=crop&dpr=1 600w, https://images.theconversation.com/files/527054/original/file-20230518-15-dksmo.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=392&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/527054/original/file-20230518-15-dksmo.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=392&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/527054/original/file-20230518-15-dksmo.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=493&fit=crop&dpr=1 754w, https://images.theconversation.com/files/527054/original/file-20230518-15-dksmo.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=493&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/527054/original/file-20230518-15-dksmo.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=493&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">A successful bidder pays $200 for a Princess Beanie Baby during a Beanie Baby auction at a California mall in 1998. The auction attracted hundreds of people who stood in line starting at 3 a.m. for the chance to bid.</span>
<span class="attribution"><a class="source" href="https://newsroom.ap.org/detail/BeanieBeaniesAuction/56d17d8970774dc28ff4519d41af0cb9">AP Photo/John Hayes</a></span>
</figcaption>
</figure>
<p>As more and more people started looking for certain Beanie Babies – especially those Ty had produced only in very limited quantities – resale prices went up. A bear given to Ty’s employees for Christmas quickly started selling for <a href="https://www.wbur.org/hereandnow/2015/03/02/beanie-baby-bubble">more than $5,000 on eBay</a>. </p>
<p>Some buyers believed collecting Beanie Babies was a great way to make money. They bought at high prices, thinking they could resell at even higher prices. </p>
<p>Economists call this a bubble. A bubble is when a lot of enthusiastic people buy a particular thing at prices that far exceed its true value. It’s happened <a href="https://fortunly.com/infographics/historical-financial-bubbles-infographic/">many times throughout history</a>, with everything from companies to gold to artworks.</p>
<p>The hype about Beanie Babies started to cool down at the turn of the century, as collectors began to realize that many of the stuffed animals were not scarce after all. When people started to sell their collections, <a href="https://thehustle.co/the-great-beanie-baby-bubble-of-99/">prices fell even further</a>. </p>
<h2>Rarity makes a Beanie worth more</h2>
<p>Today, only a tiny fraction of Beanie Babies are worth something. Their value has nothing to do with how nice they look or how much fun they are to play with. Valuable Beanie Babies are simply the ones that are very rare.</p>
<p>For example, Ty sometimes made small batches of animals with slightly different materials. Ty also gradually changed the tag – the heart-shaped paper attached to the animal’s head with its name. The Babies with the <a href="https://www.lovetoknow.com/home/antiques-collectibles/value-beanie-babies">oldest tags are typically more valuable</a>. Occasionally, Ty <a href="http://www.aboutbeanies.com/Tag_Errors.shtml">goofed with the spelling</a> on the tags. For example, Pinchers the lobster was <a href="https://nerdable.com/beanie-baby-tag-errors-to-look-out-for/">for a short time labeled as “Punchers.</a>” </p>
<p>To be worth money, rare Beanie Babies must also be in perfect condition. In fact, the most valuable animals have never been played with: they look brand-new, still have their tags and are stored in plastic cases.</p>
<p>This is similar for other collectibles. The most expensive bottles of wine or postage stamps are the ones that are old, rare and have never been opened or used. Rarity and condition are very important in determining the price of lots of collectibles, including Pokémon and <a href="https://doi.org/10.1111/joie.12262">Magic: The Gathering cards</a>, as well as <a href="https://www.nytimes.com/2023/04/13/technology/heritage-auctions-vintage-videocassettes.html">videocassettes</a> and sports memorabilia.</p>
<h2>Beanie Babies’ value is what people will pay</h2>
<p>It’s a little hard to know what rare Beanie Babies are worth now, because every toy is different and prices vary widely.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/527081/original/file-20230518-25-a06z7v.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Screen shot of an eBay listing for $11,000 of a Patti the platypus Beanie Baby" src="https://images.theconversation.com/files/527081/original/file-20230518-25-a06z7v.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/527081/original/file-20230518-25-a06z7v.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=314&fit=crop&dpr=1 600w, https://images.theconversation.com/files/527081/original/file-20230518-25-a06z7v.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=314&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/527081/original/file-20230518-25-a06z7v.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=314&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/527081/original/file-20230518-25-a06z7v.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=394&fit=crop&dpr=1 754w, https://images.theconversation.com/files/527081/original/file-20230518-25-a06z7v.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=394&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/527081/original/file-20230518-25-a06z7v.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=394&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">An owner can list a Beanie Baby for any price on a site like eBay, but that doesn’t mean a buyer will pay that much.</span>
<span class="attribution"><span class="source">Screen capture by The Conversation</span></span>
</figcaption>
</figure>
<p>Just because someone lists their <a href="https://www.ebay.com/itm/394419857304">Patti the platypus for $11,000</a> doesn’t mean a buyer will come forward to pay that amount for it. The best way to learn about the current value of something is to look at recent sales of items that are very similar. </p>
<p>Even if some Beanie Babies are worth a lot of money today, nobody knows if they will keep their value in the future. It’s possible a new toy will come along that people like better. </p>
<p>The truth is, <a href="http://doi.org/10.1257/aer.20160522">prices of all collectibles fluctuate over time</a>, as people’s tastes – and their beliefs about other people’s tastes – change. The value of anything is what other people are willing to pay for it. </p>
<hr>
<p><em>Hello, curious kids! Do you have a question you’d like an expert to answer? Ask an adult to send your question to <a href="mailto:curiouskidsus@theconversation.com">CuriousKidsUS@theconversation.com</a>. Please tell us your name, age and the city where you live.</em></p>
<p><em>And since curiosity has no age limit – adults, let us know what you’re wondering, too. We won’t be able to answer every question, but we will do our best.</em></p><img src="https://counter.theconversation.com/content/204427/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Christophe Spaenjers does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>An expert in high-end collectibles explains why certain items can become valuable – and also how they can lose worth.Christophe Spaenjers, Associate Professor of Finance, University of Colorado BoulderLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2080082023-07-02T20:02:59Z2023-07-02T20:02:59ZHow do I tell my kids we are currently short on money – without freaking them out?<figure><img src="https://images.theconversation.com/files/534234/original/file-20230627-7269-19eu48.jpg?ixlib=rb-1.1.0&rect=0%2C31%2C5276%2C3480&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.pexels.com/photo/a-father-talking-his-children-8763031/">Pexels/Pavel Danilyuk</a>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span></figcaption></figure><p>I was a teenager during Australia’s 1990s “<a href="https://www.theguardian.com/business/2019/nov/17/remembering-the-recession-the-1990s-experience-changed-my-view-of-the-world">recession we had to have</a>”, and remember clearly a friend asking his dad for some money to go to the movies. </p>
<p>With equal parts frustration and resignation, the dad explained he’d been retrenched and wasn’t certain employment was on the horizon in his near future. So he really didn’t have any spare money for cinema tickets.</p>
<p>Rather than being scary or upsetting, as rather clueless teenagers this felt like something of a lightbulb moment. </p>
<p>Many kids learn about their parents financial difficulties this way. Something they’ve always been able to have is suddenly denied them. The penny drops. </p>
<p>But it’s not easy talking to your kids about the cost-of-living crunch. Many fear worrying their kids or leaving them with a lifelong “scarcity mindset”, where a person is forever cursed with a feeling spending money is always wrong. </p>
<p>So how can parents communicate the financial realities to their children? And how might the messaging be different with younger kids versus teens?</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/534235/original/file-20230627-27-1hrzvg.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="A man and child talk in a park." src="https://images.theconversation.com/files/534235/original/file-20230627-27-1hrzvg.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/534235/original/file-20230627-27-1hrzvg.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=382&fit=crop&dpr=1 600w, https://images.theconversation.com/files/534235/original/file-20230627-27-1hrzvg.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=382&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/534235/original/file-20230627-27-1hrzvg.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=382&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/534235/original/file-20230627-27-1hrzvg.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=480&fit=crop&dpr=1 754w, https://images.theconversation.com/files/534235/original/file-20230627-27-1hrzvg.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=480&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/534235/original/file-20230627-27-1hrzvg.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=480&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Keep calm and don’t let your own anxieties rub off on your kids.</span>
<span class="attribution"><a class="source" href="https://www.pexels.com/photo/young-man-holding-and-talking-to-a-boy-in-the-park-13621144/">Pexels/Archer Hsu</a>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span>
</figcaption>
</figure>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/are-you-and-your-partner-thinking-of-separating-heres-how-to-protect-the-kids-mental-health-194912">Are you and your partner thinking of separating? Here's how to protect the kids' mental health</a>
</strong>
</em>
</p>
<hr>
<h2>For younger kids, keep things calm and simple</h2>
<p>Most primary-aged children are oblivious to macro conditions outside their home and immediate community. They haven’t yet developed the ability to put sudden changes into perspective. </p>
<p>The key here is not to have your own anxieties rub off on your kids.</p>
<p>Children this age look to their parents as beacons of information and will very much <a href="https://jamanetwork.com/journals/jamanetworkopen/fullarticle/2794157">mirror</a> any fear or anxiety you express. They may even blow things out of proportion.</p>
<p>Keeping things calm and simple is key.</p>
<p>Provide a basic explanation that things cost money, and you don’t have as much money as normal right now, so as a family there are certain things you just can’t afford. </p>
<p>Very young children can be relentlessly narcissistic in their outlook – this is developmentally normal. </p>
<p>They might even demand you work more or harder so they can afford their desired items and activities. The best you can do is laugh it off and offer to try – but explain that for now, the kids will have to come up with something else to do.</p>
<p>Consider a plan to substitute their previous activities with free ones. For example, explain they can’t play their usual sport this season, but you are going to head to the local park every week to kick the ball around and have a picnic instead.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/534236/original/file-20230627-23-66qldg.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/534236/original/file-20230627-23-66qldg.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/534236/original/file-20230627-23-66qldg.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=401&fit=crop&dpr=1 600w, https://images.theconversation.com/files/534236/original/file-20230627-23-66qldg.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=401&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/534236/original/file-20230627-23-66qldg.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=401&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/534236/original/file-20230627-23-66qldg.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/534236/original/file-20230627-23-66qldg.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/534236/original/file-20230627-23-66qldg.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Is there a free alternative to the things they want to buy and do?</span>
<span class="attribution"><a class="source" href="https://www.pexels.com/photo/black-boy-throwing-ball-to-father-5240426/">Pexels/Anete Lusina</a>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span>
</figcaption>
</figure>
<h2>Ask teens for their opinions and ideas</h2>
<p>Depending on their intrinsic interest in the news and understanding of maths, finance and economics, a sudden and unexpected drop in finances may also come as a shock to teenagers. </p>
<p>But at around 12 years of age, children undergo somewhat of an explosion in <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3621648/">frontal lobe function</a>. Their capacity to comprehend and process even complex information increases quite markedly.</p>
<p>So teens may not only understand your current situation, but be able to help out.</p>
<p>Giving teens a “role” to play in assisting the family builds a sense of competence and offers a team-based problem-solving approach to the emotional concerns they may be feeling. In other words, they’ll feel less powerless.</p>
<p>This approach is underpinned by what psychologists and researchers call “<a href="https://selfdeterminationtheory.org/theory/">self-determination theory</a>”.</p>
<p>This well-studied concept posits that most humans have an innate need to:</p>
<ul>
<li><p>experience and demonstrate autonomy (making your own choices, acting on your own volition)</p></li>
<li><p>competence (feeling like you’re good at something, have achieved something worthwhile) </p></li>
<li><p>relatedness (working well with others, especially people important to you). </p></li>
</ul>
<p>So working as a team towards a common goal is a great way for a family to pull together and help each others’ mental wellbeing.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/534240/original/file-20230627-21-k5oqyc.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/534240/original/file-20230627-21-k5oqyc.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/534240/original/file-20230627-21-k5oqyc.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/534240/original/file-20230627-21-k5oqyc.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/534240/original/file-20230627-21-k5oqyc.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/534240/original/file-20230627-21-k5oqyc.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/534240/original/file-20230627-21-k5oqyc.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/534240/original/file-20230627-21-k5oqyc.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Ask your teen for suggestions and show you take their opinions seriously.</span>
<span class="attribution"><a class="source" href="https://www.pexels.com/photo/girls-sitting-on-the-floor-while-having-conversation-5999067/">Pexels/cottonbro studio</a>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span>
</figcaption>
</figure>
<p>Discuss with your teens what activities, events and items might need to go on the backburner or be discontinued.</p>
<p>And don’t forget, teens have a very well-honed hypocrisy radar – there’s no point suggesting they cut back on recreational activities, for example, if you are not willing to do the same.</p>
<p>Use this as an opportunity to discuss the difference between “wants” and “needs” and ask them to sort family spending into those categories. Discuss points of disagreement calmly.</p>
<p>Ask your teens to brainstorm ways to improve your financial efficiency – and help you in doing so. They might enjoy coming up with ideas such as grocery shopping with a strict meal plan in cheaper stores, looking for specials, riding or walking to school where possible, getting a part time job or helping out with childcare.</p>
<p>Rather than fixating on what we have to go without, work with your teenagers to come up with proactive ideas on what you can do differently. Frame it as working together to achieve the same aim.</p>
<p>Teach your kids there can be challenges in life, but how you go about managing them is the key. This will help them develop into resilient adults.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/is-it-ok-to-prank-your-kids-do-they-get-it-and-wheres-the-line-195932">Is it OK to prank your kids? Do they get it? And where’s the line?</a>
</strong>
</em>
</p>
<hr>
<img src="https://counter.theconversation.com/content/208008/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Rachael Sharman does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>It’s not easy talking to kids about the cost-of-living crunch. Many fear landing their kids with a lifelong ‘scarcity mindset’, where a person is cursed with a feeling spending money is always wrong.Rachael Sharman, Senior Lecturer in Psychology, University of the Sunshine CoastLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2080922023-06-22T22:26:56Z2023-06-22T22:26:56ZAs the Bank of Canada prepares for a digital Canadian dollar, democratic concerns loom large<figure><img src="https://images.theconversation.com/files/533037/original/file-20230620-23-x5ntzt.jpg?ixlib=rb-1.1.0&rect=43%2C7%2C4819%2C3361&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">The Bank of Canada recently concluded public consultations where it sought input from Canadians about the possibility of a national digital currency.</span> <span class="attribution"><span class="source">(Shutterstock)</span></span></figcaption></figure><p>The Bank of Canada is preparing for the possibility of the Canadian government requiring it to issue a digital version of the Canadian dollar. Although the central bank is leading the project for the new currency, any future decision to issue it <a href="https://www.cbc.ca/news/business/digital-dollar-central-bank-digital-currency-1.6841693">rests with the Canadian Parliament and government</a>.</p>
<p>As a part of this process, the central bank <a href="https://www.bankofcanada.ca/2023/05/bank-canada-launches-public-consultations-digital-dollar">recently concluded a public consultation on June 19</a> where it sought input from Canadians about the possibility of a national digital currency.</p>
<p>If the Bank of Canada were to issue the digital dollar, it could have significant implications for how Canada tackles future financial challenges.</p>
<p>However, we must not overlook the important democratic concerns associated with this currency. For the sake of our democracy, and to maintain trust in the Bank of Canada and this new digital dollar, these concerns must be addressed before a decision to issue this money is made.</p>
<h2>Mitigating financial risks</h2>
<p>The digital Canadian dollar is important for mitigating two potential future threats: the mass adoption of external currencies and the next financial crisis. </p>
<p>Most of the digital money in our economy is <a href="https://lop.parl.ca/sites/PublicWebsite/default/en_CA/ResearchPublications/201551E">commercial bank money</a> that’s created mainly through loans. This money can be risky during bank runs, which occur when everyone tries to withdraw money at the same time, rendering commercial banks vulnerable to insolvency. </p>
<p>A currency backed by the central bank could provide <a href="https://www.thestar.com/business/opinion/2023/04/29/why-a-bank-of-canada-digital-dollar-would-put-an-end-to-bank-run-crises.html">a more reliable alternative</a> to this commercial bank money. </p>
<p>Introducing the digital Canadian dollar could also <a href="https://www.bankofcanada.ca/2020/02/contingency-planning-central-bank-digital-currency/">lower the likelihood of mass adoption of alternative digital currencies</a>, like cryptocurrencies and privately issued currencies. Such a scenario would undermine the Bank of Canada’s ability to control the country’s monetary policy. Prevention is better than a cure.</p>
<p>In the face of these two scenarios, a digital Canadian dollar would ensure stability and monetary sovereignty.</p>
<h2>A promise for a better future</h2>
<p>The digital Canadian dollar has the potential to pave the way for a more promising future by bridging the present with the infinite digital possibilities of tomorrow.</p>
<p>It would serve as an alternative to existing commercial payment methods while seamlessly integrating with electronic payments and other innovative aspects of the digital economy.</p>
<p>Additionally, the ability to <a href="https://doi.org/10.38105/spr.j0hildxtyi">digitally trace transactions promotes a safer society</a> by assisting in the fight against money laundering, crime and terrorism. </p>
<p>In some visions of central bank digital currencies, it is possible <a href="https://www.bis.org/publ/arpdf/ar2023e3.pdf">to program the money</a> and <a href="https://edps.europa.eu/data-protection/our-work/publications/techdispatch/2023-03-29-techdispatch-12023-central-bank-digital-currency_en#_ftnref8">incorporate social policies</a> directly into it. </p>
<p>This could mean, for example, that specific populations or regions could receive better interest rates to promote economic equity, or automatically subsidize essential goods and services to low-income households or senior citizens. </p>
<figure class="align-center ">
<img alt="A Canadian flag hangs from the front of a glass-fronted office building." src="https://images.theconversation.com/files/533010/original/file-20230620-25-3f3spb.JPG?ixlib=rb-1.1.0&rect=12%2C12%2C8614%2C5729&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/533010/original/file-20230620-25-3f3spb.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/533010/original/file-20230620-25-3f3spb.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/533010/original/file-20230620-25-3f3spb.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/533010/original/file-20230620-25-3f3spb.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/533010/original/file-20230620-25-3f3spb.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/533010/original/file-20230620-25-3f3spb.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">The Bank of Canada building is pictured in Ottawa in December 2022.</span>
<span class="attribution"><span class="source">THE CANADIAN PRESS/Sean Kilpatrick</span></span>
</figcaption>
</figure>
<p>Since transactions are digital, it is possible to envision a future in which the Canada Revenue Agency could also use the digital currency <a href="https://www.bankofcanada.ca/wp-content/uploads/2019/08/sdp2019-7.pdf">to combat the underground economy</a> and automate tax collecting.</p>
<p>Together with another digital revolution — that of AI — it is easy to imagine insights gained from the enormous amounts of data.</p>
<h2>The dark side of the digital dollar</h2>
<p>Implementing this new digital currency, despite its potential benefits, <a href="https://theconversation.com/central-bank-digital-currencies-could-mean-the-end-of-democracy-187505">could introduce several risks to our democracy</a>. We risk paving the way for a future government taking control of our financial data. </p>
<p>Digital currencies can be programmable by being assigned functions to operate only under certain conditions. This could eventually lead to an economy controlled by the government at an individual level. The government would be able to <a href="https://www.wired.com/story/chinas-digital-yuan-ecny-works-just-like-cash-surveillance/">monitor its citizens</a>, <a href="https://edps.europa.eu/data-protection/our-work/publications/techdispatch/2023-03-29-techdispatch-12023-central-bank-digital-currency_en#_ftnref8">determine how money can be limited and used</a>, identify <a href="https://www.cato.org/cato-journal/spring/summer-2021/financial-freedom-privacy-post-cash-world#">political dissidents</a> and <a href="https://www.cato.org/study/risks-of-cbdcs">take action against them</a>. </p>
<p>The Canadian government has already proved it is willing to use <a href="https://www.cnn.com/2022/02/20/americas/canada-trucker-protest-covid-sunday/index.html">financial tools against protestors</a>. Moreover, centralized digital infrastructures are inherently vulnerable to software updates that could override initial safeguards. Issuing a central bank digital currency may be a point of no return.</p>
<p>While the Bank of Canada’s consultation is <a href="https://www.ctvnews.ca/business/what-a-canadian-digital-currency-could-look-like-expert-on-arguments-for-and-against-it-1.6414630">a step in the right direction</a>, the current information about the digital Canadian dollar fails to address the risk of a future government exercising greater authority in this digital domain.</p>
<h2>Mitigating concerns and building trust</h2>
<p>Democratic concerns <a href="https://www.thestar.com/business/opinion/2023/05/16/the-bank-of-canada-is-exploring-a-digital-currency-heres-why-that-is-terrifying.html">must be a part of the discussion</a> about a national digital currency. Similar worries about privacy, surveillance and national digital currency were also raised in the <a href="https://www.cnil.fr/en/digital-euro-what-stake-privacy-and-personal-data-protection">European Union</a>, the <a href="https://thehill.com/opinion/finance/3897860-fight-chinas-surveillance-coin-with-a-us-freedom-coin/">United States</a> and <a href="https://www.ft.com/content/92fb7d93-8705-44a0-850b-65f2ddef1018">elsewhere</a>.</p>
<p>Launching the digital Canadian dollar is a political decision, not a technological one. Ensuring freedom is the same. For the digital Canadian dollar and the Bank of Canada to be trusted, these worries must be addressed and mitigated. If the decision to issue this digital money is made, it needs to be done in a responsible manner.</p>
<p>It is essential to raise awareness about the potential misuse of the digital Canadian dollar and carefully assess its impact on Canadian democracy and civil liberties. Unlike the current suggested version, safeguards must be part of the digital Canadian dollar package. What these safeguards are is a discussion we should urgently have.</p><img src="https://counter.theconversation.com/content/208092/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Ori Freiman does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>While a digital national currency does have the potential to mitigate key financial issues, we cannot ignore the democratic risks such a currency could introduce without safeguards.Ori Freiman, Postdoctoral Fellow, Digital Society Lab, McMaster UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2076212023-06-18T22:45:37Z2023-06-18T22:45:37ZKnow thyself, know thy finances: which of the 5 money personalities are you?<figure><img src="https://images.theconversation.com/files/532311/original/file-20230616-13202-mzflma.jpg?ixlib=rb-1.1.0&rect=0%2C7%2C5071%2C3383&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Getty Images</span></span></figcaption></figure><p>When it comes to money, are you a big spender or a fearful saver? Do you give away all your money or ignore financial demands until they become urgent? </p>
<p>After decades of focus on financial literacy, it has become clear there is more to how we manage our money than access to information. Now new research has identified five distinct money personalities that drive how we spend.</p>
<p>Commissioned by Te Ara Ahunga Ora (Retirement Commission) for their free, independent personal finance site <a href="https://sorted.org.nz/">Sorted</a>, <a href="https://assets.retirement.govt.nz/public/Uploads/Financial-Capability-Research/Report-Money-Personality-Tool-Project-AUT-vFINAL.pdf">our study</a> included an extensive review of the research on personality traits, values and attitudes. We then created an online survey, completed by nearly 500 New Zealanders, exploring how people engaged with their money. </p>
<p>The research findings form the backbone of a <a href="https://sorted.org.nz/tools/money-personality-quiz">new online money personality quiz</a> designed to help people understand their money personality and inform their financial decisions and behaviour.</p>
<p>With New Zealand <a href="https://www.rnz.co.nz/news/business/492013/new-zealand-in-recession-as-gdp-falls-for-second-quarter">officially in a recession</a>, it has never been more important to understand money management. Despite our best intentions, we often struggle to make “good” financial decisions consistently – including saving enough, using debt wisely, and staying on top of insurance policies and KiwiSaver.</p>
<h2>Doing better with our money</h2>
<p>According to Te Ara Ahunga Ora, New Zealanders are <a href="https://assets.retirement.govt.nz/public/Uploads/Research/TAAO-RC-NZ-FinCap-Survey-Report.pdf">good with the basics of financial capability</a> – budgeting and keeping track of money. But we score lower than comparable countries like Canada, Norway, Australia and Ireland on more advanced financial capabilities like long-term savings. We also lack confidence when it comes to our cash.</p>
<p>There is a growing body of evidence that personality traits, money values and attitudes each play a crucial part in either aiding or hindering us making those “smart” financial decisions. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/the-coming-storm-for-new-zealands-future-retirees-still-renting-and-not-enough-savings-to-avoid-poverty-179661">The coming storm for New Zealand’s future retirees: still renting and not enough savings to avoid poverty</a>
</strong>
</em>
</p>
<hr>
<p>Attitudes towards saving, the degree to which we value material possessions, and how comfortable we are with risk, will all affect the financial decisions we make – and, as a result, our financial wellbeing. </p>
<h2>The 5 money personalities</h2>
<p>We identified five distinct money personalities, each with their own strengths and weaknesses: the enterpriser, socialite, minimalist, contemporary and realist.</p>
<p><strong>An enterpriser</strong> is a financially confident, future-orientated planner who enjoys looking after their finances and is proud of being money savvy. Their strengths include self-control, financial knowledge and making their money work for them. </p>
<p>An enterpriser is unlikely to make impulsive or emotional purchases. However, their aspirational approach – viewing money as a priority and a symbol of success – may pair badly with materialism, causing them to spend money to gain status rather than for value or utility. Enterprisers benefit from learning about investing and planning for the future.</p>
<p><strong>The minimalist</strong> is frugal, confident with their saving ability, and on top of their financial situation. Minimalists value a simpler life, scoring low on materialism and are not prone to impulsive or emotional purchases. </p>
<p>Their weakness is not always making their money work as hard for them as it could, as they are less likely to take financial risks – even where there is a potential for higher investment returns. Low-cost, passive investment strategies may appeal to minimalists.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/532312/original/file-20230616-19-kiyb4a.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/532312/original/file-20230616-19-kiyb4a.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/532312/original/file-20230616-19-kiyb4a.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/532312/original/file-20230616-19-kiyb4a.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/532312/original/file-20230616-19-kiyb4a.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/532312/original/file-20230616-19-kiyb4a.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/532312/original/file-20230616-19-kiyb4a.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">New research has identified five distinct money personalities that can help explain how different people manage their money.</span>
<span class="attribution"><span class="source">Jordi Salas/Getty Images</span></span>
</figcaption>
</figure>
<p><strong>A socialite</strong> is a joyful risk taker, outgoing, and confident with their money handling. A generous extrovert, they are more likely to be materialistic than other personality types and tend to live for today rather than plan for tomorrow. </p>
<p>Their high tolerance for risk suggests some socialites may take on unwise levels of financial risk. Those in this group who are also impulsive or prone to emotional purchases may find themselves overspending or vulnerable to over-extending themselves with consumer debt. </p>
<p>Socialites may like to explore active investment strategies and riskier investment classes, however. Taking calculated risks and building financial resilience is an important focus for them.</p>
<p><strong>A contemporary</strong> doesn’t enjoy managing their money and they lack confidence when it comes to financial matters. They are likely to say they’re a spender despite being less materialistic than others; living for today, they tend to engage in impulsive emotional spending and are generous to a fault. </p>
<p>For contemporaries, the focus is increasing financial resilience by paying down debt and building an emergency savings fund, enabling them to share their wealth with others without affecting their own financial well-being. Working on their money mindset and general financial knowledge may allow them to build confidence and savings, then take a passive or “set and forget” approach to their financial life.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/a-400-a-week-shortfall-people-in-their-40s-face-a-bleak-retirement-on-kiwisavers-current-trajectory-185576">A $400-a-week shortfall: people in their 40s face a bleak retirement on KiwiSaver's current trajectory</a>
</strong>
</em>
</p>
<hr>
<p><strong>A realist</strong> is future-focused, very conservative with risk, and values money highly. But they are not confident with their money handling, despite paying close attention to their financial situation. </p>
<p>The most introverted personality type, a more aspirational realist may be materialistic but is unlikely to make impulsive or emotional purchases a habit. This suggests building confidence and encouragement to take appropriate investment risks is important. Given they do not like making money decisions, automation of bill payments and savings may appeal. </p>
<h2>Know thy money self</h2>
<p>Each money personality offers different challenges when it comes to making financial decisions. </p>
<p>Taking Sorted’s money personality quiz is fun, but it’s also a useful financial decision you can make right now. </p>
<p>It’s not just about the label. Knowing your money personality can help you understand your strengths and weaknesses when it comes to financial decision making, giving you tools to improve your financial resiliency and security.</p><img src="https://counter.theconversation.com/content/207621/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Te Ara Ahunga Ora commissioned this research project in partnership with Sorted. Ayesha Scott has received funding from the Auckland University of Technology (AUT) and AUT Business School. Ayesha collaborates with Good Shepherd NZ and BNZ and has consulted for KiwiSaver providers as an independent expert reviewer.</span></em></p><p class="fine-print"><em><span> Te Ara Ahunga Ora commissioned Aaron Gilbert to conduct this research project in partnership with the Sorted team. He has also received research funding from the Auckland University of Technology (AUT) and AUT Business School. </span></em></p>A new study by the Retirement Commission has identified the different personality characteristics that influence how we manage our money – you can test your own with their online quiz.Ayesha Scott, Senior Lecturer - Finance, Auckland University of TechnologyAaron Gilbert, Professor of Finance, Auckland University of TechnologyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2073812023-06-15T09:25:13Z2023-06-15T09:25:13ZSuccession is as much about technology as it is about money, power and family<p><em>Warning: the following article contains spoilers.</em></p>
<p>Technology is key to Succession’s tale of the Roy family media dynasty, with the drama playing out on screens within the show and in the homes of the viewers beyond it.</p>
<p>The final series is no exception. This is best illustrated in episode three, Connor’s Wedding. The siblings, Kendall (Jeremy Strong), Roman (Kieran Culkin) and Shiv (Sarah Snook) – Connor (Alan Ruck), as always, is left out – find out through a phone call with Shiv’s husband Tom (Matthew Macfadyen) that their father Logan (Brian Cox) has suffered a heart attack and that they must say their goodbyes.</p>
<figure>
<iframe width="440" height="260" src="https://www.youtube.com/embed/2XAxyeKDXsg?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
</figure>
<p>Through technology – Roman’s iPhone and Tom’s Samsung, propped against Logan’s ear – the children share their emotional farewells. This proves one of the more emotional interactions with technology in a series otherwise littered with sterile, often absurd uses of technology. </p>
<p>This includes Kendall pinching to zoom in on a photo of his father’s will, heightening the drama as he seeks to ascertain whether his name has been underlined or crossed out as his successor.</p>
<p>And there are so many memorable tech moments. Gerri’s threat to publicly expose Roman’s “dick pics”. Kendall’s keynote at the Living Plus conference after his father’s death, where doctored footage of Logan haunts his presentation. </p>
<p>Cousin Greg (Nicholas Braun) stepping in for Tom to lay off ATN employees via Zoom with a brutal lightheartedness. Or PR executive Hugo (Fisher Stevens) being caught out chuckling at the ATN test reel of Kerry (Logan’s mistress), from behind a laptop screen. </p>
<h2>Technology and communication</h2>
<p>In the finale, scenes featuring technology operate in concert with one another. In episode five, Kill List, when the Waystar entourage travel to Norway to finalise the deal with Matsson (Alexander Skarsgård), the Swedes mock them in their native tongue, leaving them humiliated but in the dark.</p>
<figure>
<iframe width="440" height="260" src="https://www.youtube.com/embed/bx5YL6Gac4c?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
</figure>
<p>However, in the last episode, the tables are turned. Matsson and his sidekick are discussing Tom’s potential to replace Shiv as their future American CEO, not knowing that Greg is eavesdropping using a translation app. The tension is ramped up as Greg stares at the dot, dot, dot of the app while it translates sentence by sentence.</p>
<p>In a series where people rarely say what they think and second-guess everybody else, viewers delighted in the real time voice-to-text translation happening as the Swedes conversed. The dramatic irony is exquisite as the previous conversation, in which Tom makes his “pain sponge” pitch to Matsson, plays itself out. </p>
<p>This information bleeds into the subsequent scene in the Caribbean, where Kendall and Shiv have travelled to see Roman, who has retreated to his mother’s villa following his disastrous attempted eulogy at Logan’s funeral. Kendall receives a call from Greg confirming the intel about Shiv’s exclusion.</p>
<p>After confronting her with the news, she immediately phones Matsson, who does not answer. We listen to the dial tone in anticipation – the interface between information being passed and received, between digital and analogue, between Shiv’s potential triumph and her failure to become CEO.</p>
<p>United behind Kendall in their mission to sabotage the merger, the siblings join Connor at Logan’s apartment to claim his remaining possessions. They adjourn to a private room to review a video recording of their late father attending a dinner.</p>
<figure>
<iframe width="440" height="260" src="https://www.youtube.com/embed/77PsqaWzwG0?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
</figure>
<p>A few minutes in, CFO Karl (David Rasche) sings Robert Burns’ Scottish folk melody <a href="http://www.robertburns.plus.com/greengrow.htm">Green Grow The Rashes O</a> – an aural symbol of Logan’s heritage, featured prominently in episode six of season two, Dundee. It is somewhat ironic, given Burns’ song’s message is that men who live only to pursue money and status do not live happy lives.</p>
<p>“You’re butchering it”, barks Logan across the table, as the camera pans to him and then back to Karl, capturing the Scotman’s emotional response in handheld camera work reminiscent of the footage of the opening credit sequence.</p>
<p>Teary-eyed, his children watch on. It’s an interface with the past, with the deceased, through a screen in a moment of nostalgia, reflection, commemoration and memory – for the characters and audiences alike.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/succession-and-scotland-logan-roy-and-the-art-of-nation-branding-204962">Succession and Scotland: Logan Roy and the art of 'nation branding'</a>
</strong>
</em>
</p>
<hr>
<h2>Succession’s digital culture</h2>
<p>Every episode of Succssion has moments depicting characters interacting with technology such as these. And while technology is, from the start, both the narrative subject and a means of communication, it also plays a key role in forging and involving an online community of fans.</p>
<p>Succession’s digital culture is rife, evidenced by the 89,000 followers of <a href="https://instagram.com/kendallroylookingsad?igshid=MzRlODBiNWFlZA==">@kendallroylookingsad</a> on Instagram, viral fan theories on TikTok (such as @gigiontherun’s 2021 <a href="https://www.businessinsider.com/succession-characters-tom-use-samsung-iphone-android-fan-theories-finale-2023-5?r=US&IR=T#:%7E:text=Some%20%22Succession%22%20viewers%20on%20Reddit,in%20the%20show%27s%20final%20season.">iPhone theory</a>), the analysis of the <a href="https://www.reddit.com/r/SuccessionTV/comments/12i5rut/season_4_poster_significance/">season four promotional poster</a> on Reddit and the <a href="https://imgflip.com/memegenerator/458361243/Kendall-Roy-sad-mic">existence</a> of “sad Kendall” meme generators.</p>
<p><div data-react-class="InstagramEmbed" data-react-props="{"url":"https://www.instagram.com/p/Cs09uTGNRjr/?igshid=MzRlODBiNWFlZA%3D%3D","accessToken":"127105130696839|b4b75090c9688d81dfd245afe6052f20"}"></div></p>
<p>As I watched the series finale, I was constantly wondering which scenes would become memes, or inspire fan theories and new readings. More cynically, perhaps, I couldn’t help but ponder if the finale baited this very culture, whether through Matsson’s laidback “<a href="https://www.gq-magazine.co.uk/article/succession-season-4-episode-5-lukas-matsson-alexander-skarsgard-style#:%7E:text=His%20uniform%20is%20one%20of,less%20Theranos%2C%20more%20Loch%20Ness.">gorpcore</a>” fashion or Tom placing a red-circle sticker on Greg’s forehead as a signal of ownership. </p>
<p>Checking Instagram on my phone the morning after the finale, there was one memorable standout from Instagram’s @kendallroylookingsad account, showing the defeated son looking out over New York harbour accompanied by the caption: “Sad because Kendall has looked sad for the last time.”</p>
<p>The post says it all – a singular example of technology being used to express feelings on a show which is about technology as much as it is about money, power and dysfunctional family. Succession’s spin-off digital culture is ultimately very meta, revealing how technology was not just a central theme of the show, but a means for fans to interact with it, even after its run has ended.</p><img src="https://counter.theconversation.com/content/207381/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Michael Samuel does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>How technology is central to the show’s most dramatic and pivotal moments – and how it might define its legacy.Michael Samuel, Lecturer in Digital Film & Television, Department of Film and Television, University of BristolLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1994502023-06-07T16:43:40Z2023-06-07T16:43:40ZHow cashless societies can boost financial inclusion – with the right safeguards<figure><img src="https://images.theconversation.com/files/529827/original/file-20230602-27-pq5zrq.jpg?ixlib=rb-1.1.0&rect=60%2C60%2C5702%2C3767&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Accepting digital payments.</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/smiling-auto-driver-showing-qr-barcode-2114566886">WESTOCK PRODUCTIONS/Shutterstock</a></span></figcaption></figure><p>Cashless societies, where transactions are entirely digital, are gaining traction in many parts of the world, particularly after <a href="https://www.worldbank.org/en/news/feature/2022/07/21/covid-19-boosted-the-adoption-of-digital-financial-services">a pandemic-era boom in demand for online banking</a>. </p>
<p>Improvements in digital payment infrastructure such as mobile payments, digital currencies and online banking, make it more convenient for people and businesses to buy and sell things without using cash. Even the Bank of England is looking into how a <a href="https://www.bankofengland.co.uk/the-digital-pound">digital pound</a> might work, showing the potential for a significant shift from physical cash to digital payments in the UK.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/how-a-digital-pound-could-work-alongside-cryptocurrencies-199462">How a digital pound could work alongside cryptocurrencies</a>
</strong>
</em>
</p>
<hr>
<p>Fintech companies have accelerated the transition towards cashless payments with innovations including mobile payment apps, digital wallets, cryptocurrencies and online banking services. The COVID pandemic was also <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3794790">a tipping point</a> that created <a href="https://www.worldbank.org/en/news/feature/2022/07/21/covid-19-boosted-the-adoption-of-digital-financial-services">unprecedented appetite for digital transactions</a>. Fintechs emerged as a life line for many during lockdowns, particularly vulnerable populations that needed <a href="https://www.gpfi.org/sites/gpfi/files/sites/default/files/5_WB%20Report_The%20impact%20of%20COVID-19%20on%20digital%20financial%20inclusion.pdf">emergency lines of credit and ways to make and receive payments</a>. </p>
<p>By 2021, <a href="https://www.worldbank.org/en/news/feature/2023/02/02/latest-global-findex-data-chart-10-years-of-progress-in-financial-inclusion">approximately 71% of adults in developing countries had bank accounts</a>. But this leaves nearly 30% of the population still needing access to essential financial products and services. Fintechs can provide more affordable and accessible financial services and products. This helps boost financial inclusion, particularly for the “unbanked”, or those without a bank account. </p>
<p>In the UK, <a href="https://www.money.co.uk/guides/unbanked-what-its-like-not-to-have-a-bank-account">around 1.3 million people</a>, roughly 4% of the population, lack access to banking services. The government and financial institutions have worked together to promote the adoption of digital payments, and the UK’s <a href="https://www.requesttopay.co.uk/">Request to Pay service</a> allows people and businesses to request and make payments using digital channels such as Apple Pay and Google Pay. </p>
<p>But other countries are moving faster towards a cashless society. In Sweden, only about <a href="https://worldpay.globalpaymentsreport.com/en">10% of all payments were made in cash in 2020</a>. This move towards cashless payments in the country has been facilitated by mobile payment solutions like <a href="https://www.swish.nu/about-swish">Swish</a>, which people can use to send and receive money via mobile phone. </p>
<h2>Boosting financial inclusion</h2>
<p>India has gone <a href="https://www.economist.com/special-report/2023/05/15/a-digital-payments-revolution-in-india">even further</a>. In less than a decade, the country has become <a href="https://www.forbes.com/sites/tomgroenfeldt/2022/10/23/india-is-a-digital-finance-leader-and-poised-for-explosive-growth/?sh=246baed41d0d">a digital finance leader</a>. It has also made significant progress in promoting <a href="https://bfsi.economictimes.indiatimes.com/news/policy/jan-dhan-3-0-digital-banking-micro-insurance-among-top-focus-areas/87885159">digital financial inclusion</a>, mainly through the government’s flagship programme, the Pradhan Mantri Jan Dhan Yojana (<a href="https://www.pmjdy.gov.in/scheme">PMJDY</a>). </p>
<p>India’s banks also participate in mobile payment solutions like Unified Payments Interface (<a href="http://cashlessindia.gov.in/upi.html">UPI</a>), which can connect multiple accounts via one app. India’s digital infrastructure, known as <a href="https://www.imf.org/en/Publications/WP/Issues/2021/02/26/Indias-Approach-to-Open-Banking-Some-Implications-for-Financial-Inclusion-50049">the India Stack</a> also aims to expand financial inclusion by encouraging companies to develop fintech solutions.</p>
<p>Many developing economies are <a href="https://blogs.worldbank.org/voices/expanding-digital-financial-services-can-help-developing-economies-cope-crisis-now-and-boost-growth-later">using digitalisation to boost financial inclusion</a> in this way. Kenya introduced its <a href="https://www.vodafone.com/about-vodafone/what-we-do/consumer-products-and-services/m-pesa">M-Pesa mobile money service</a> in 2007. While microfinance institutions that provide small loans to low-income individuals and small businesses were first introduced in Bangladesh in the 1970s via the <a href="https://grameenbank.org/">Grameen Bank</a> project. </p>
<p>Digital lending <a href="https://www.statista.com/statistics/1202533/india-digital-lending-volume/">has also grown in India</a> in recent years. Its fintechs use algorithms and data analytics to assess creditworthiness and provide loans quickly and at a lower cost than traditional banks. </p>
<p>These innovative platforms have helped to bridge the gap between the formal financial system and underserved populations – those with low or no income – providing fast access to financial services. By removing barriers such as high transaction costs, lack of physical branches and some credit history requirements, fintech companies can reach a wider range of customers and provide financial services that are tailored to their needs. </p>
<p>It’s the tech behind these systems that helps fintechs connect with their customers. The increased use of digital payment methods generates a wealth of data to gain insights into consumer behaviour, spending patterns and other relevant information that can be used to further support a cashless society. </p>
<h2>Helping the UK’s unbanked</h2>
<p>Countries like the UK could also promote digital financial inclusion to help unbanked people. But this would require a combination of government support, innovation and the widespread adoption of mobile payment solutions. </p>
<p>There are some significant challenges to overcome to create a true – and truly fair – cashless economy. For example, a cashless system could exclude people who do not have access to digital payment methods, such as the elderly or low-income populations. According to a recent study by Age UK, <a href="https://uk.sports.yahoo.com/news/two-five-over-65s-bank-230100907.html">75% of over 65s with a bank account</a> said they wanted to conduct at least one banking task in person at a bank branch, building society or post office. </p>
<p>Providing more cashless options could also increase the risk of cybercrime, digital fraud such as phishing scams and data breaches – particularly among people that aren’t as financially literate. </p>
<p>There is a dark side to fintech: algorithm biases and predatory lending practices negatively affect <a href="https://www.elibrary.imf.org/view/journals/001/2022/080/article-A001-en.xml?rskey=fjtbht&result=16">vulnerable and minority groups as well as women</a>. Even major financial firms such as Equifax, Visa and Mastercard <a href="https://www.businessinsider.com/visa-and-mastercard-alert-consumers-about-equifax-data-breach-2017-9?r=US&IR=T">can get compromised</a> by data breaches, creating valid concerns about data security for many people. </p>
<p>Cross-border transfer of personal data by fintech companies also concerns regulators, but there is still a lack of internationally recognised data protection standards. This <a href="https://link.springer.com/chapter/10.1007/978-3-031-11954-5_3">should be addressed</a> as the trend towards cashless societies continues.</p>
<figure class="align-center ">
<img alt="Two hands hold a fan of GBP banknotes: £5, £10, £20, £50." src="https://images.theconversation.com/files/529828/original/file-20230602-27-zmqc5a.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/529828/original/file-20230602-27-zmqc5a.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/529828/original/file-20230602-27-zmqc5a.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/529828/original/file-20230602-27-zmqc5a.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/529828/original/file-20230602-27-zmqc5a.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/529828/original/file-20230602-27-zmqc5a.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/529828/original/file-20230602-27-zmqc5a.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Paying with cash.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/pounds-banknotes-held-by-mans-hands-1958384521">Nieves Mares/Shutterstock</a></span>
</figcaption>
</figure>
<h2>Building guardrails</h2>
<p>Regulations affect how fintech companies can provide financial services but ensure they operate within the law. Since fintech companies generally aim to disrupt markets, however, this can create a complex relationship with regulators. </p>
<p>Collaboration between regulators and fintech companies will boost understanding of these innovative business models and help shape future regulatory frameworks. Countries like India have shown the way in this respect. An <a href="https://www.fca.org.uk/firms/innovation">innovation hub run by UK regulator the Financial Conduct Authority</a> is a good start. It supports product and service launches and offers access to synthetic data sets for testing and development. </p>
<p>Fintech can help finance become more inclusive. But it needs policies and regulations that support innovation, promote competition, ensure financial stability and – most importantly – to help protect the citizens of these new cashless societies.</p><img src="https://counter.theconversation.com/content/199450/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Thankom Arun does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>The UK could learn a lot from developing economies about using digital payments to boost financial inclusion.Thankom Arun, Professor of Global Development and Accountability, University of EssexLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2042072023-04-24T16:14:02Z2023-04-24T16:14:02ZChatGPT: how to use AI as a virtual financial adviser<figure><img src="https://images.theconversation.com/files/522314/original/file-20230421-20-89ix5g.jpg?ixlib=rb-1.1.0&rect=0%2C0%2C5991%2C2559&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Tech support for investors.</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-illustration/ai-robot-analysis-future-financial-expert-2264241731">Darunrat Wongsuvan/Shutterstock</a></span></figcaption></figure><p>From chatbots and virtual assistants to <a href="https://www.ft.com/content/aae4f11a-aa7b-47ce-b9a7-eb39f345dab3">fraud detection</a> and <a href="https://www.elibrary.imf.org/view/journals/087/2021/024/article-A001-en.xml">risk management</a>, artificial intelligence (AI) is now being used in many <a href="https://www.forbes.com/sites/qai/2023/02/24/artificial-intelligence-applications-in-investing/?sh=30aff5c5e216">areas of finance</a>. But what could an AI system like ChatGPT do for your bank balance?</p>
<p>AI tools might seem overly complex or expensive to non-experts, but advances in <a href="https://oxsci.org/chatgpt-natural-language-processing/">natural language processing and machine learning</a> could turn ChatGPT and similar products into virtual personal finance assistants. This would mean having an expert on hand to help you make sense of the latest financial news and data. </p>
<p>Staying on top of business news and financial market trends is important for making informed investment decisions and gaining an edge in the markets. Companies already use these tools to perform what finance professionals call “<a href="https://dl.acm.org/doi/10.3115/1118693.1118704">sentiment analysis</a>”. </p>
<p>This involves analysing financial news and statements to generate insights and predictions for investors about shares and other investments. For example, <a href="https://www.cnbc.com/2019/08/02/this-etf-run-by-a-robot-is-beating-the-marketheres-how-it-works.html">Morgan Stanley’s AI models</a> analyse a wide range of data – including news articles, social media posts and financial statements – to identify patterns and predict stock prices. </p>
<p>Researchers have started to explore the potential of AI tools like ChatGPT, but given how new this technology is, much of the academic research remains in the early stages. A recent preprint <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4412788">study</a>, the results of which have not been reviewed by other academics, tested ChatGPT’s predictions about stock market performance based on sentiment analysis of news headlines. </p>
<p>ChatGPT determines if a headline is good, bad or irrelevant for a firm’s stock prices and computes a score. This research found a high correlation between ChatGPT’s responses and stock market movements, showing some ability to predict the direction of returns.</p>
<p>AI tools may also be able to help investors decipher monetary policy announcements, providing insights into their potential effects on financial markets. <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4399406">Another recent preprint</a> evaluated ChatGPT’s ability to understand what announcements from the US central bank, the Federal Reserve, might mean for financial markets. </p>
<p>It compared this to professional investors’ efforts to do the same. The study found that, particularly when ChatGPT models are fine tuned, they are more accurate than other machine learning models used by professionals to analyse and understand “Fedspeak”.</p>
<p>Monetary policy decisions, such as interest rates or asset purchase programmes, can have a <a href="https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1540-6261.1997.tb04816.x?casa_token=nI99tv3YOYQAAAAA%3AAgJsU9RILIeswy6aUdZT38P1ibqjdIXdsKwbtjwxuWEtOcR-U59N-YFSeFCu8MeXCexnE5OugDTsDLvHxQ">big effect on financial markets</a>. So AI’s ability to assess what <a href="https://www.federalreserve.gov/newsevents/pressreleases.htm">central bank announcements on policy changes</a> will mean for financial markets could provide valuable insights into the effects of these actions. This could help you make more informed investment decisions.</p>
<figure class="align-center ">
<img alt="The flag of the US Federal Reserve Board waving in front of the US flag and a blue sky with clouds." src="https://images.theconversation.com/files/522317/original/file-20230421-16-kpu52u.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/522317/original/file-20230421-16-kpu52u.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=316&fit=crop&dpr=1 600w, https://images.theconversation.com/files/522317/original/file-20230421-16-kpu52u.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=316&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/522317/original/file-20230421-16-kpu52u.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=316&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/522317/original/file-20230421-16-kpu52u.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=398&fit=crop&dpr=1 754w, https://images.theconversation.com/files/522317/original/file-20230421-16-kpu52u.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=398&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/522317/original/file-20230421-16-kpu52u.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=398&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">AI tools can help decipher central bank announcements.</span>
</figcaption>
</figure>
<h2>Tailored financial guidance</h2>
<p>The ability to <a href="https://www.forbes.com/sites/qai/2023/02/10/can-i-invest-with-openai-can-and-should-openai-pick-my-stock-portfolio/?sh=27cd020e4a82">identify trends in specific market sectors</a> could also be helpful for people seeking more tailored financial guidance.</p>
<p>For example, an AI tool could be used to analyse financial data, such as balance sheets and income statements, from technology companies. It could identify patterns that might indicate opportunities or problems. An investor could then adjust their portfolio, potentially increasing returns or even just helping to reduce exposure to certain risks.</p>
<p>In addition to analysing market trends, AI could also be used to build an investment portfolio tailored to an <a href="https://www.businessinsider.com/ai-in-finance-fintech-chatgpt-generative-tools-credit-suisse-2023-3?r=US&IR=T">individual’s specific investment goals and risk tolerance</a>. Using information on your preferences such as your current financial situation and risk attitude, for example, the AI could generate a customised portfolio that accounts for the level of return you’d like to make, but also the kinds of risks you’d like to avoid.</p>
<h2>Your assistant, but not your only guide</h2>
<p>AI tools show tremendous potential as personal financial assistants, but also <a href="https://www.forbes.com/sites/bernardmarr/2023/03/03/the-top-10-limitations-of-chatgpt/?sh=407872268f35">present some challenges</a>. </p>
<p>There are several factors that AI tools may not be able to account for, such as unexpected events or changes in market conditions, as well as human behaviour. A tool like ChatGPT cannot fully comprehend the intricacies of human language and conversation, which can lead to responses that lack depth and insight. </p>
<p>There is also a <a href="https://www.sciencedirect.com/science/article/pii/S0306452223000799">need for greater transparency</a> about how these tools make decisions. For an investor to leave their portfolio in the hands of one of these “robots”, they would need to be able to understand how, for example, it reaches its conclusions and what data it uses. Some financial planning companies already offer <a href="https://www.investopedia.com/terms/r/roboadvisor-roboadviser.asp">robo-advisors</a> – services that use algorithms to design individual investment plans – that can also do this, but, of course, you pay a fee to the financial advisers for this.</p>
<p>The <a href="https://hbswk.hbs.edu/item/chatgpt-did-big-tech-set-up-the-world-for-ai-bias-disaster">potential for bias</a> in the recommendations of these tools must also be considered. ChatGPT’s training data may have underlying biases that could affect its predictions. The <a href="https://www.theguardian.com/commentisfree/2023/mar/03/fake-news-chatgpt-truth-journalism-disinformation">accuracy and reliability</a> of ChatGPT’s predictions need careful evaluation given recent reports that it has repeated disinformation. </p>
<figure class="align-center ">
<img alt="Woman looking and pointing at financial charts, screen and laptop, window in the background." src="https://images.theconversation.com/files/522315/original/file-20230421-20-2qcpbo.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/522315/original/file-20230421-20-2qcpbo.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/522315/original/file-20230421-20-2qcpbo.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/522315/original/file-20230421-20-2qcpbo.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/522315/original/file-20230421-20-2qcpbo.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/522315/original/file-20230421-20-2qcpbo.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/522315/original/file-20230421-20-2qcpbo.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">shutterstock.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/business-woman-study-financial-market-calculate-1204727542">GaudiLab/Shutterstock</a></span>
</figcaption>
</figure>
<p>No single model or algorithm can predict financial market movements with complete accuracy. So AI tools like ChatGPT should only be used to <a href="https://ifamagazine.com/article/supplement-or-substitute-how-do-advisers-view-chatgpt-potential-impact-on-financial-services/">supplement your own judgment, not as a replacement</a>.</p>
<p>While AI could be an excellent aid for investing, it is important to do your homework thoroughly about potential investments, understand and accept the right level of risk for you, and diversify your portfolio when deciding where to invest.</p><img src="https://counter.theconversation.com/content/204207/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Eun Young (EY) Oh does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>AI tools could help you to learn more about investing in shares and other financial markets – but it’s not a perfect solution.Eun Young (EY) Oh, Senior Lecturer in Economics and Finance, University of PortsmouthLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1964662023-04-12T12:10:36Z2023-04-12T12:10:36ZThrough role play and simulation, this course teaches strategic ways to strike business deals that do more than just make money<figure><img src="https://images.theconversation.com/files/514753/original/file-20230310-1836-rzh994.jpg?ixlib=rb-1.1.0&rect=0%2C82%2C5499%2C3565&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Business deals can focus on much more than profits.</span> <span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/photo/three-women-and-two-men-in-a-business-meeting-royalty-free-image/607477465?phrase=business%20negotiation&adppopup=true">Hinterhaus Productions via Getty Images</a></span></figcaption></figure><figure class="align-right ">
<img alt="Text saying: Uncommon Courses, from The Conversation" src="https://images.theconversation.com/files/499014/original/file-20221205-17-kcwec8.png?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/499014/original/file-20221205-17-kcwec8.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=375&fit=crop&dpr=1 600w, https://images.theconversation.com/files/499014/original/file-20221205-17-kcwec8.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=375&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/499014/original/file-20221205-17-kcwec8.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=375&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/499014/original/file-20221205-17-kcwec8.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=471&fit=crop&dpr=1 754w, https://images.theconversation.com/files/499014/original/file-20221205-17-kcwec8.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=471&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/499014/original/file-20221205-17-kcwec8.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=471&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption"></span>
</figcaption>
</figure>
<p><em><a href="https://theconversation.com/topics/uncommon-courses-130908">Uncommon Courses</a> is an occasional series from The Conversation U.S. highlighting unconventional approaches to teaching.</em> </p>
<h2>Title of course:</h2>
<p>“Negotiation Strategy: Fostering Collaborative Dynamics in Competitive Environments”</p>
<h2>What prompted the idea for the course?</h2>
<p>I designed this class to help undergraduate <a href="https://michiganross.umich.edu/undergraduate/bba">business students</a> find the skills and confidence they need to develop solutions to better the world around them through business. </p>
<p>Students arrive on campus with energy, ambition and an instinct that business can somehow be a force for good. So I developed a course to help students learn how to be true to themselves when they negotiate business deals. This course teaches them that financial gains are not the only way to measure success in business. Successful negotiators seek to maximize profits and at the same time embrace an inclusive and collaborative approach.</p>
<h2>What does the course explore?</h2>
<p>Everything about the course is designed to teach students how to negotiate both <a href="https://www.simonandschuster.com/books/Negotiating-Rationally/Max-H-Bazerman/9780029019863">rationally</a> and <a href="https://www.sup.org/books/title/?id=24170">genuinely</a>. Students learn strategies to increase monetary gains. At the same time, they learn how their <a href="https://hbr.org/2014/06/negotiate-from-the-inside-out">identity</a> and <a href="https://hbr.org/2014/05/make-your-emotions-work-for-you-in-negotiations">emotions</a> can be aligned with business strategy to fuel ambition and explore creative solutions to challenging environmental and social problems.</p>
<p>Students <a href="https://www.sciencedirect.com/topics/psychology/zone-of-proximal-development">explore new ways of thinking and feeling</a> when they negotiate. In one of the negotiation reflections, for example, I invite students to describe how feeling angry can help define ethical problems. Another scenario highlights to students how expressions of sadness potentially build empathy and trust needed to resolve conflict. Class discussions motivate learning <a href="https://michiganross.umich.edu/news/motivation-learn-rises-stories-exceptional-success">diverse paths for exceptional success</a>.</p>
<p>It is a highly interactive educational experience capped at 36 students. The course design invites students to role-play negotiations in teams of anywhere from two to six students. Class experiences open a window to observe personal patterns of competitive and cooperative behaviors.</p>
<p>Role-play exercises and negotiation simulations demonstrate how not to get stuck in win-lose propositions. For example, imagine two manufacturing companies fighting to secure supply of a metallic compound only to discover they have complementary technology that could create a better product. Both companies would make more money and customers would benefit from this new product. It’s a win-win. Now imagine their innovative technology could reduce pollution and create jobs in a region with high unemployment. Students learn they don’t need to choose between <a href="https://www.inc.com/shirli-kopelman/dont-choose-between-profits-and-positive-impact.html">profits and positive impact</a>. They can achieve both. </p>
<h2>Why is this course relevant now?</h2>
<p>When faced with challenges such as the recent collapse of banks and massive layoffs, students will broadly consider: What can a person like me do in a situation like this to make things better?</p>
<p>Good negotiators understand how to approach business decisions by asking what is <a href="https://doi.org/10.1016/S0167-2681(99)00023-2">appropriate</a> based on their personal values. Students learn that the way societal problems are framed <a href="https://www.scientificamerican.com/article/the-use-and-misuse-of-game-theory/">limits how they imagine solutions</a>. If people think only about profits, they miss opportunities to do good. </p>
<p>The course introduces <a href="https://doi.org/10.1037/apl0000065">decision frameworks</a> that transform the <a href="https://doi.org/10.1111/ncmr.12172">competitive nature of business</a> into collaborative opportunities. </p>
<h2>What’s a critical lesson from the course?</h2>
<p><a href="https://www.sup.org/books/title/?id=24170">Being yourself in business</a> means approaching work with the same <a href="https://doi.org/10.1111/ncmr.12172">logic</a> that applies to community, locally and globally. </p>
<p>Every solution starts with oneself, with who you are in relationship to people. Success in business isn’t confined to winning competitive games studied by economists. The course highlights the <a href="https://www.worldcat.org/title/23287084">interpersonal</a> character of human understanding, communication and <a href="https://www.sup.org/books/title/?id=23433">coordination</a>. Students learn to build their personal way forward.</p>
<h2>What materials does the course feature?</h2>
<p>• “<a href="https://www.gsb.stanford.edu/faculty-research/books/primer-decision-making-how-decisions-happen">A Primer on Decision Making</a>,” by James March</p>
<p>• “<a href="https://www.pon.harvard.edu/daily/negotiation-skills-daily/six-guidelines-for-getting-to-yes/">Getting to Yes</a>,” by Roger Fisher, William Ury and Bruce Patton</p>
<p>• “<a href="https://www.sup.org/books/title/?id=24170">Negotiating Genuinely</a>,” by Shirli Kopelman</p>
<p>• “<a href="https://www.pearson.com/en-us/subject-catalog/p/mind-and-heart-of-the-negotiator-the/P200000006425/9780135641262">The Mind and Heart of the Negotiator</a>,” by Leigh Thompson</p>
<h2>What will the course prepare students to do?</h2>
<p>Students will learn to see themselves as resources. They will see who they are as an essential part of understanding what is on the negotiation table and how to navigate a discovery process. They will be prepared to perform with dynamic flexibility, dignity and integrity. The experience in class offers a blueprint for engaging collaboratively in diverse professional endeavors. It paves the path for <a href="https://hbr.org/2014/06/negotiate-from-the-inside-out">negotiating from the inside out</a> to pursue profits and make the world better.</p><img src="https://counter.theconversation.com/content/196466/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Shirli Kopelman does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Students learn the art of dealmaking can involve much more than money.Shirli Kopelman, Professor of Management & Organizations, University of MichiganLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2029752023-04-11T16:12:18Z2023-04-11T16:12:18ZFour myths about the financial side of divorce<figure><img src="https://images.theconversation.com/files/519270/original/file-20230404-16-ruc4et.jpg?ixlib=rb-1.1.0&rect=8%2C0%2C5734%2C3837&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">News headlines tell you little about the realities of divorce for most couples</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/divorce-concept-unrecognizable-black-woman-removing-1577838859">Prostock-studio/Shutterstock</a></span></figcaption></figure><p>It’s no wonder many people think divorce involves going to court, huge legal fees and decades of spousal payments, considering these are the cases that dominate our headlines. However, the kinds of divorce cases reported in the news involve the very rich, and are far removed from the reality for most couples.</p>
<p>The Law Commission of England and Wales, the body responsible for law reform, <a href="https://www.lawcom.gov.uk/project/financial-remedies-on-divorce/">recently announced a review</a> of the law of finances on divorce, with a scoping report due in September 2024. Review of this law is much needed, given the legislation governing how couples in England and Wales sort out their financial affairs upon marriage breakdown mainly dates back to the 1970s (the <a href="https://www.legislation.gov.uk/ukpga/1973/18">Matrimonial Causes Act 1973</a>).</p>
<p>The problem is that key politicians <a href="https://hansard.parliament.uk/lords/2023-03-08/debates/3AB3D708-24E5-4FF2-8481-05EFA27E2593/DivorceFinancialProvision">who have been calling for change</a> still rely on the issues raised in these <a href="https://hansard.parliament.uk/lords/2018-05-11/debates/89A33706-7DCD-4FA0-AE0D-B06E11FAF264/Divorce(FinancialProvision)Bill(HL)">exceptional, “big money” divorce cases</a>. </p>
<p>We need to correct the misleading narrative about divorce if reform is to address the needs of the 110,000 couples <a href="https://www.gov.uk/government/statistics/family-court-statistics-quarterly-july-to-september-2022">who get divorced in England and Wales each year</a>. Although there is limited research about this issue, we do know enough to challenge the following myths.</p>
<h2>1. Spouses are often forced to fund costly legal battles</h2>
<p>Family courts grant divorces and the fee is currently £593. However, it is not mandatory for a divorcing couple to get an additional order regarding their finances, and there is no need for expensive court hearings. </p>
<p>In fact, <a href="https://www.gov.uk/government/statistics/family-court-statistics-quarterly-july-to-september-2022">fewer than 40%</a> of those divorcing each year do so. While there is no authoritative data on average legal costs incurred in these cases, it seems that, for many couples, the costs of sorting out their financial arrangements need not be high because the courts are not involved.</p>
<p>And even those couples who do use the courts for their financial matters overwhelmingly settle rather than fight their case, which limits their legal costs. Only <a href="https://www.gov.uk/government/statistics/family-court-statistics-quarterly-july-to-september-2022">13% of financial orders</a> made in a divorce are actually decided by a judge after contested litigation. The rest are consent orders: orders finalised by the judge on terms that have already been agreed by the divorcing couple.</p>
<h2>2. Everything is split 50/50</h2>
<p>The law does not lay down a principle of equal sharing of the marital assets on divorce. However, the courts <a href="https://www.lawteacher.net/cases/miller-v-miller-mcfarlane-v-mcfarlane.php">do accept this is a desirable goal</a> if this can be done while meeting both parties’ needs – and those of their children. </p>
<figure class="align-center ">
<img alt="Businessman separates stacked coins" src="https://images.theconversation.com/files/519273/original/file-20230404-24-iuma7c.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/519273/original/file-20230404-24-iuma7c.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=403&fit=crop&dpr=1 600w, https://images.theconversation.com/files/519273/original/file-20230404-24-iuma7c.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=403&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/519273/original/file-20230404-24-iuma7c.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=403&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/519273/original/file-20230404-24-iuma7c.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=506&fit=crop&dpr=1 754w, https://images.theconversation.com/files/519273/original/file-20230404-24-iuma7c.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=506&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/519273/original/file-20230404-24-iuma7c.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=506&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Assets aren’t always split 50/50.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/businessman-separates-stack-coins-concept-saving-1865938936">Miha Creative/Shutterstock</a></span>
</figcaption>
</figure>
<p>Research suggests that, rather than rigidly applying a 50/50 split, couples focus on their needs first and <a href="https://research-information.bris.ac.uk/en/publications/financial-remedies-on-divorce-the-need-for-evidence-based-reform">particularly those of their children</a>. This can result in an unequal split of the value of the main asset most couples have – the former marital home. </p>
<h2>3. Men have to pay lifelong maintenance</h2>
<p>Some news media object to the current law as they claim it allows an ex-wife to be supported <a href="https://www.dailymail.co.uk/news/article-5965629/Surveyor-marriage-ended-16-years-ago-WINS-Supreme-Court-battle.html">for the rest of her life</a> by her former husband (or vice versa). The argument is that this casts ex-wives as dependants who cannot look after themselves, and prevents husbands from moving on after their divorce. </p>
<p>In reality, lifelong maintenance is rare, and even limited ongoing financial support is uncommon. The most recent data found that only 16% of court orders involved any kind of ongoing spousal support – of which, two-thirds were for a fixed term. Nearly all such orders involved <a href="http://www.nuffieldfoundation.org/sites/default/files/files/briefing%20paper%20Jun%202018%20FINAL.pdf">dependant children</a>, with the order terminating when the youngest child reaches a certain age or stage of education.</p>
<h2>4. London is the divorce capital of the world</h2>
<p>Some news media <a href="https://www.theguardian.com/lifeandstyle/shortcuts/2015/feb/24/divorce-rich-husband-london-english-law">report</a> that the courts’ endorsement of the principle of equal sharing has led to some wives, married to oligarchs, sheikhs and tycoons, seeking divorce through an English court due to its “generous” treatment of them. For example in 2021, a High Court judge ordered Sheikh Mohammed bin Rashid al-Maktoum, the emir of Dubai, to pay a <a href="https://www.businessinsider.com/why-london-divorce-capital-world-for-mega-rich-2019-7?r=US&IR=T">£554 million divorce settlement</a> to his former wife, Princess Haya.</p>
<p>By their nature, these cases are atypical – that’s why they make headlines. But why should the fact that English law takes spousal equality seriously be a matter for regret? The 1970s legislation aimed to ensure the non-financial contributions of spouses, such as home-making and caring, should be recognised. Judges have been clear <a href="https://uk.practicallaw.thomsonreuters.com/3-503-7596?transitionType=Default&contextData=(sc.Default)&firstPage=true">it is discriminatory to assume</a> the breadwinner spouse is making a greater contribution to the relationship and should keep a larger part of the wealth than the other who takes on the role of carer. Surely this is an enlightened position.</p>
<p>That doesn’t mean we shouldn’t update the law, though. Working patterns have changed but women still earn, on average, <a href="https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/bulletins/genderpaygapintheuk/2022#:%7E:text=Image%20.csv%20.xls-,The%20gender%20pay%20gap%20has%20been%20declining%20slowly%20over%20time,up%20from%207.7%25%20in%202021.">less than men</a>. They are still more likely to assume the bulk of <a href="https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/articles/familiesandthelabourmarketengland/2021">child care</a>, <a href="https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/articles/familiesandthelabourmarketengland/2021">work part-time </a>, and, in consequence, have <a href="https://adviser.scottishwidows.co.uk/assets/literature/docs/women-retirement-report-2022-press-release.pdf">smaller pensions compared with men</a>.</p>
<p>The result is that, far from being treated generously, women still come out of divorce <a href="https://ses.library.usyd.edu.au/bitstream/handle/2123/26207/Fisher_2018_AJFL_Final.pdf?sequence=1">financially worse off than men</a>. </p>
<p>But there is still so much we don’t know about how divorced couples divide their assets. Since the norm is for couples to stay out of the courts, there is no official record of how the majority of the divorcing population arranges their finances. That’s why <a href="https://research-information.bris.ac.uk/en/persons/emma-hitchings">one of us</a> (Emma) is leading the Fair Shares Study, expected to publish in autumn 2023. This will provide the <a href="https://www.bristol.ac.uk/law/fair-shares-project/">first nationally representative picture</a> of couples’ finances on divorce. </p>
<p>We need a law that meets the needs of all divorcing couples rather than the few wealthy exceptions, and a major corrective to the myths that abound in this area of family law.</p><img src="https://counter.theconversation.com/content/202975/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Emma Hitchings receives funding from The Nuffield Foundation and previously from the Law Commission, the Bar Council and the Ministry of Justice. </span></em></p><p class="fine-print"><em><span>Gillian Douglas receives funding from The Nuffield Foundation as a co-investigator on the project, 'Fair Shares: Sorting out money and property on divorce'. Her previous research on financial and property aspects of family law has been funded by the ESRC and Joseph Rowntree Foundation.</span></em></p>Huge legal bills are the exception not the rule, and there isn’t much data about how couples decide to split their assets when a marriage breaks down.Emma Hitchings, Professor of Family Law, University of BristolGillian Douglas, Professor Emerita of Law, King's College LondonLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2024962023-03-28T01:44:23Z2023-03-28T01:44:23ZDon’t let financial shame be your ruin: open conversations can help ease the burden of personal debt<figure><img src="https://images.theconversation.com/files/517807/original/file-20230327-28-t0byzo.jpg?ixlib=rb-1.1.0&rect=212%2C24%2C5177%2C3612&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Getty Images</span></span></figcaption></figure><p>Nearly <a href="https://www.ipsos.com/en-nz/19th-ipsos-new-zealand-issues-monitor">two-thirds of New Zealanders</a> are worried about the cost of living, and a quarter are worried about <a href="https://www.canstar.co.nz/wp-content/uploads/2023/03/Consumer-Pulse-Report-NZ-2023-Final-4.pdf">putting food on the table</a>. But the <a href="https://visionwest.org.nz/food-hardship-part-one/">shame</a> that can come with financial stress is preventing some people from seeking help. </p>
<p>According to a recent survey, a third of New Zealanders were not completely truthful with their family or partners about the state of their finances, and 12% <a href="https://www.stuff.co.nz/business/money/129477493/financial-infidelity-research-finds-kiwis-hiding-debts-from-their-partners">actively hid their debt</a>. This shame and worry about money can spill over into <a href="https://www.nzherald.co.nz/bay-of-plenty-times/news/concerns-buy-now-pay-later-schemes-could-fuel-addiction-as-kiwis-spend-17b-last-year/VOV3VIDIG2MZBGJEGPMLGWDMJI/">addiction</a>, <a href="https://www.newsroom.co.nz/i-had-serious-concussion-bad-credit-and-15000-debt-abuse-survivor">violence</a> and <a href="https://corporate.dukehealth.org/news/financial-strains-significantly-raise-risk-suicide-attempts">suicide</a>. </p>
<p>Considering the effect of financial stress on our wellbeing, it is clear we need to overcome the financial stigma that prevents us from getting help. We also <a href="https://www.apa.org/topics/money/family-financial-strain">owe it to our kids</a> to break the taboo around money by communicating our worries and educating them on how to manage finances better. </p>
<h2>The burden of growing debt</h2>
<p><a href="https://www.stuff.co.nz/business/money/300817697/mortgage-pain-homeowners-facing-repayment-hikes-of-up-to-900-a-fortnight">Ballooning mortgage repayments</a> are compounding the financial distress of many New Zealanders. At the beginning of 2023, an estimated 11.9% of home owners were behind on loan payments, with more than <a href="https://www.rnz.co.nz/news/business/485045/data-shows-430-000-new-zealanders-behind-in-credit-repayments-in-january">18,400 mortgagees in arrears</a>. </p>
<p>Given the <a href="https://www.treasury.govt.nz/publications/an/an-21-01-html">majority of household wealth</a> in New Zealand is in property, our financial vulnerability is closely linked to the ebbs and flows of the <a href="https://content.knightfrank.com/research/84/documents/en/global-house-price-index-q2-2021-8422.pdf">second most overinflated property market</a> in the world. </p>
<p>There are also cultural reasons for growing financial distress. Many households have taken on significant debt to “<a href="https://www.stuff.co.nz/business/7616361/Keeping-up-with-the-Joneses">keep up with the Joneses</a>” and to pursue the quintessential <a href="https://www.interest.co.nz/property/99890/westpac-commissioned-survey-suggests-many-new-zealanders-still-pine-quarter-acre">quarter-acre dream</a>. Social comparison and peer pressure act as powerful levers contributing to problem debt and over-indebtedness. </p>
<p>The average household debt in New Zealand is more than <a href="https://tradingeconomics.com/new-zealand/households-debt-to-income">170% of gross household income</a>. That is higher than the United Kingdom (133%), Australia (113%) or Ireland (96%). </p>
<p><div data-react-class="Tweet" data-react-props="{"tweetId":"1506745740504174595"}"></div></p>
<h2>The rise of problem debt</h2>
<p>And we are digging a deeper hole. Over the past year, <a href="https://www.rnz.co.nz/news/business/485045/data-shows-430-000-new-zealanders-behind-in-credit-repayments-in-january">demand for credit cards increased by 21.7%</a>. The use of personal debt such as personal loans and deferred payment schemes <a href="https://www.nzherald.co.nz/business/demand-for-personal-credit-rises-arrears-also-up-as-cost-of-living-bites/YCEM74CII5FQBPJXO3UOG4Y3GY/">is also climbing</a>. There is a real risk this debt could become problem debt. </p>
<p>Problem debt can have severe and wide-reaching consequences, including <a href="https://theconversation.com/over-300-000-new-zealanders-owe-more-than-they-own-is-this-a-problem-173497">housing insecurity</a>, <a href="http://www.socialinclusion.ie/publications/documents/2011_03_07_FinancialExclusionPublication.pdf">financial exclusion</a> (the inability to access debt at affordable interest rates), <a href="https://www.tandfonline.com/doi/full/10.1080/07409710.2012.652016?journalCode=gfof20">poor food choices</a> and a plethora of <a href="https://bmcpublichealth.biomedcentral.com/articles/10.1186/1471-2458-14-489">health problems</a>. </p>
<p>Yet, the hidden <a href="https://spssi.onlinelibrary.wiley.com/doi/10.1111/sipr.12074">psychological</a> and <a href="https://link.springer.com/article/10.1007/s11205-008-9286-8">social cost of financial distress</a> remains often unspoken, overlooked and underestimated. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/how-financial-stress-can-affect-your-mental-health-and-5-things-that-can-help-201557">How financial stress can affect your mental health and 5 things that can help</a>
</strong>
</em>
</p>
<hr>
<p>Even before the pandemic, <a href="https://www.scoop.co.nz/stories/BU1909/S00616/research-shows-financial-stress-impacts-mental-wellbeing.htm">69% of New Zealanders were worried</a> about money. The share of people worrying about their financial situation was higher for women (74%), and particularly women aged 18-34 (82%). It is no coincidence that the latter are particularly at risk of problem debt through so-called <a href="https://acfr.aut.ac.nz/__data/assets/pdf_file/0008/691577/Gilbert-and-Scott-Study-2-Draft-v10Sept2022.pdf">“buy now, pay later” schemes</a>. </p>
<p>The stigma of financial distress extends beyond the vulnerable and the marginalised in our society. A growing number of <a href="https://www.rnz.co.nz/news/political/467417/middle-income-families-hoping-for-help-in-budget-as-rising-costs-sting">middle-class New Zealanders </a> are quietly suffering financial distress, isolated by financial stigma and the taboos around discussing money. When pressed, one in two New Zealanders would rather <a href="https://www.scoop.co.nz/stories/BU2203/S00384/research-shows-wed-rather-talk-about-politics-than-our-finances.htm">talk politics over money</a>. </p>
<h2>Time to talk about money</h2>
<p>Navigating financial distress and <a href="https://digitalcommons.law.seattleu.edu/cgi/viewcontent.cgi?article=2526&context=sulr">stigma</a> can feel overwhelming. Where money is a taboo subject, it may feel safer to withdraw, maintain false appearances, be secretive or shun social support. </p>
<p>This tendency to avoid open discussions and suffer in silence can lead to <a href="https://loneliness.org.nz/lonely/at-home/financially-struggling/">feelings of isolation</a> and contribute to <a href="https://theconversation.com/how-financial-stress-can-affect-your-mental-health-and-5-things-that-can-help-201557">poor mental health</a>, such as depression, anxiety and emotional distress. </p>
<p>Sadly, the trauma of living in financial distress can also <a href="http://irep.ntu.ac.uk/id/eprint/39442/1/1307565_Wakefield.pdf">break up families</a>. Losing the symbols of hard-gained success and facing the prospect of a reduced lifestyle can be tough. It often triggers feelings of personal failure and self doubt that deter us from taking proactive steps to talk openly and seek help. </p>
<p>But what can families do to alleviate some of this distress? </p>
<p><div data-react-class="Tweet" data-react-props="{"tweetId":"1504562088575918082"}"></div></p>
<h2>Seek help</h2>
<p>First, understand that <a href="https://www.ft.com/content/86767aac-98e0-4dae-8c5a-d3301b030703">you are not alone</a>. Over 300,000 New Zealanders <a href="https://theconversation.com/over-300-000-new-zealanders-owe-more-than-they-own-is-this-a-problem-173497">owe more than they earn</a>.</p>
<p>Second, seek help. There are many services that help people work through their financial situation and formulate a plan. In the case of excessive debts, debt consolidation or <a href="https://goodshepherd.org.nz/debtsolve/">debt solution loans</a> may help reduce the overall burden and simplify your financial situation. </p>
<p>For those struggling with increasing interest on their mortgages, reaching out to your bank early is critical. During the 2008 recession, banks in New Zealand <a href="https://www.beehive.govt.nz/release/banks-exchange-letters-crown-support-distressed-mortgage-borrowers">worked with customers</a> to avoid defaulting on mortgages, including reducing servicing costs, capitalising interest and moving households to interest-only loans. It is essential to understand that the <a href="https://www.stuff.co.nz/life-style/homed/real-estate/130677426/are-we-on-the-brink-of-a-wave-of-mortgagee-sales">banks do not want mortgagees to fail</a>, and that options exist. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/are-you-financially-literate-here-are-7-signs-youre-on-the-right-track-202331">Are you financially literate? Here are 7 signs you're on the right track</a>
</strong>
</em>
</p>
<hr>
<p>To help future generations avoid debt traps, we need open communication about money – also known as “<a href="https://link.springer.com/article/10.1007/s10834-020-09736-2">financial socialisation</a>”. This includes developing values, sharing knowledge and promoting behaviours that help build <a href="https://files.eric.ed.gov/fulltext/EJ1241099.pdf">financial viability and contribute to financial wellbeing</a>. </p>
<p>The lessons about handling money from family and friends are crucial for <a href="https://www.frontiersin.org/articles/10.3389/fpsyg.2020.02162/full">improving our children’s financial capability</a>, helping them be <a href="https://www.fsc.org.nz/it-starts-with-action-theme/growing-financially-resilient-kids">more financially resilient</a> and better able to survive the stresses we are experiencing now – and those <a href="https://www.stuff.co.nz/business/money/300836616/heres-how-much-household-costs-are-expected-to-increase">yet to come</a>.</p><img src="https://counter.theconversation.com/content/202496/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Matt Raskovic is also a visiting professor at Zhejiang University in China and is also Vice-President Administration at the Academy of International Business (AIB). </span></em></p><p class="fine-print"><em><span>Aaron Gilbert receives funding from Te Ara Ahunga Ora (Retirement Commission).</span></em></p><p class="fine-print"><em><span>Smita Singh does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Personal debt in New Zealand is growing. But instead of hiding the true extent of what we owe, New Zealanders should be talking about how we got here – and what needs to change.Matevz (Matt) Raskovic, Associate Professor of International Business & Strategy, Auckland University of TechnologyAaron Gilbert, Professor of Finance, Auckland University of TechnologySmita Singh, Senior Lecturer International Business, Strategy & Entrepreneurship, Auckland University of TechnologyLicensed as Creative Commons – attribution, no derivatives.