Here is a New Zealand Herald article that contains some shitty and some good advice about money.
Thumbs down
Buying over renting
Buy property young, preferably in your 20s. Move heaven and earth to get the deposit. Rent is wasted money.
Buying a house is not for everyone. Sometimes it doesn’t make financial sense for a particular person. Insurance, rates, money spent on repairs (~$5k~ a year) etc. sometimes make renting a better choice. Run the numbers.
Avoid fines
It’s moronic to incur fines. Like the maniac driver in a big red American-style pickup truck who overtook me on State Highway 2 on December 17, just to be pulled over and fined.
Yes, you shouldn’t speed etc. etc., but this doesn’t contain any useful advice if you do get a fine. Actual advice would be to set up an automatic payment account to a ‘Stupid mistakes’ savings account so you have money to pay inevitable fines.
NEVER SPEND MONEY EVAAAA
Every dollar is precious. Think before you spend it.
I regret frittering money on coffees and unnecessary eating out. It would be better to direct that money towards savings.
Needs and wants are often confused. This is perhaps the biggest financial mistake that people make.
If you enjoy a coffee a day, buy a coffee a day. If you enjoy eating out, eat out. There’s no point earning money if you don’t spend it on stuff you love. Cut back on the stuff you don’t care about, optimize existing spending (subscriptions and phone/internet/TV/power etc. plans) and/or earn more money.
Have a budget!!@@111
Track your spending. You can’t budget if you don’t know what you’re spending.
Perhaps the most popular piece of financial advice ever given out. How many people who write this actually do in it in practice, I’m not sure. Tracking your spending by typing into a spreadsheet or basically anything with mainly manual entry is doomed to fail. Xero with BNZ and ASB by itself both offer spending tracking services within online banking. Or, Xero allows the import of other bank’s transactions. Do mainly electronic transactions (because they can automatically coded into categories) and use these.
Credit cards
Credit cards make you look rich. Anyone can live well for a few years, but the debt catches up.
Credit cards with benefits that are automatically paid off each month are excellent.
Thumbs up
Judging people
People are too quick to judge others’ financial decisions, me included.
1) No one wants unsolicited advice. 2) You have your own problems to worry about.
Pay bills
Pay your taxes on time. The IRD has a big stick.
Pay all bills on time. Automate them. The IRD and other companies are always up for negotiation around deadlines.
Experiences
Spending money on experiences is good spending. I am eternally grateful that I sold all but one of my shares at age 22 (by coincidence in August 1987) and went backpacking through Latin America. It’s good spending if the experience enriches life.
Yes. Also, give experiences as presents instead of physical things.
Save for things. Automatically.
Save before you buy. A bit of a radical concept in 2011, but it can change people’s financial future.
Enter into interest-free deals cautiously
Interest-free hire purchase deals are for suckers. You still pay ad establishment fee and the majority of people fail to clear the debt on time and pay interest anyway.
These places invariably have great clauses such as charging you if you pay anything over the set monthly amount. Once you’ve finished paying the item off you get mailed offers from the company for ever and ever.
Avoid interest
Interest payments on personal loans, credit cards and HP are “idiot tax”. Why throw money away unnecessarily?
Work out how much something will really cost when interest is added before jumping into these. There’s calculators online that will help.
KiwiSaver
KiwiSaver is good.
Get in it.
Advice
Take your advice from people who have been through several cycles. Johnny-come-latelies going through their first financial cycle underestimate the risks.
Ask older people what they would have liked to have known at your age. What would they save for if they could turn back the clock?
Read a book
You can learn more about money. The easiest and cheapest way to improve your knowledge is to get a book out of the library.
We hadanelectionandareferendum. Then things went a bit awry with the tea tape situation. We found out that our media could be a little more ballsy, but that they’ll get searched by the police anyway.
We won the Rugby World Cup.
An ad for drink driving made the list of top YouTube videos.
It’s written in plain English, and it’s no surprise that Judge Adams has a Masters in Creative Writing and has written a book of poems.
“[6] Imagine a large, vacated, open-plan office. It is well-lit, day or night, and there are windows along one side. At one end, it connects, through a door, to another similar room; at the other end, a door connects it to a large kitchen-dining area. It is not flash but the basics are provided. The room is furnished with tables made of cardboard. Four large tables have been created; achieved by pushing six tables together, three on one side and three on the other. Sellotape strips join them together, and ensure that there is no gap into which a slip of paper could disappear. A single cardboard table stands at the head of each large table – this is the place for the table leader. The folding chairs have slightly padded seats. On these seats the counters will sit for several hours each day. This is the Waitakere electorate offìce.”
Some interesting bits from the judgment:
Dual votes
On Election Day I remember having a discussion on Twitter about what happens if it turns out there is more than one vote for a voter. I asked at a polling place but they weren’t too sure either. Basically, the election people find out what happened from the voter, and if they seem legit, they allow their actual vote.
“[22] All the polling place records are collected and a thorough check is made in order to discover if anyone has been given more than one ballot paper; this is referred to [as] “dual votes”. Where dual voting seems to have occurred the Returning Officer conducts a check – even having her staff call to the home of the voter – so that the voter can shed light on the matter. The rule is that dual votes are both disallowed but if enquiry shows that the real voter received only one paper, their vote is allowed.”
Unenrolled voters
Nearly 400 votes weren’t counted because the voters weren’t enrolled to vote.
“[24] … In Waitakere, 393 people who cast votes were found not to be enrolled anywhere so their votes remained unopened, never counted. Those votes did not form any part of the official count.”
National paranoia
A National Party scrutineer wanted the building guarded by police. The judge: “The police were likely to have more productive tasks on hand”.
“[42] At approximately 8:15pm on the Wednesday evening a National Party scrutineer, Mr Mark Brickell, requested that I ask police to guard the building. He submitted that, if word leaked out that the vote seemed closer than the official count, there might be an attempt to interfere with the voting forms. I saw no evidence of any such risk; the suggestion had not been made earlier; the police were likely to have more productive tasks on hand; the building seemed secure. I provided a hand-written decision which gave my reasons. I permitted either party to employ security guards to attend outside the building provided they notified me, and I gave them my cellphone number for that purpose. I received no call. In the morning the ballot papers were still where I had left them.”
<3
Best. Judgment. Ever.
“[47] … My favourite was the voter who emphasised their tick for Carmel Sepuloni by drawing a little orange heart in the rectangle containing her name.”
We don’t like admitting mistakes, or we love trees
Or we don’t know that we can get another voting paper if we screw one up?
“[49] … Quite a few voters had made ticks that they had scribbled over with the orange pen, but left a clear tick in another circle, which I took to be a clear indication of their preference. It seems that voters are shy of admitting they have spoiled their paper, because they could easily have obtained another. This might be fruitful area for voter education.”
The downside of transparent orange ink
Christopher Nimmo on the blog post: “But orange is just such a perfect colour for highlighting!”
“[52] … In one, the voter had made a tick for Carmel Sepuloni, and drawn a wavering line through her name. It is possible that the intention was to highlight the choice but I could not exclude the possibility that the voter had struck out her name. For me, this decision is much closer to my line than the previous decision. My level of doubt about whether the line was a change of heart of an emphasis is high; the possibility that a vote was intended is real. Nevertheless, close though it is to the line, I could not be sure that the voter clearly indicated that choice and for lack of clarity I treated it as informal.”
I think this all illustrates that in New Zealand the people dealing with votes actually care.
“I may heartily dislike the results of our latest election, but I couldn’t and wouldn’t dispute its validity. We’re lucky that way.” –Lucy Steward, comment on Legal Beagle.
Their reply to “Random” Pak’nSave Bag Searches. No comment on women with handbags or what happens if I did have something in my bag that I had bought from another supermarket.
Dear Matt,
I can confirm that our bag policy is applicable regardless of a customer’s age and is simply designed to prevent an ongoing shoplifting issue which we are trying to manage. We have a prominent sign in-store which clearly states that ‘We reserve the right to check all bags and may require you to leave large bags with a staff member while shopping.’
While I do appreciate having your bag checked is an inconvenience, unfortunately due to the level of shoplifting we experience in-store, it is an unavoidable part of how we are forced to do business, we would certainly prefer to not check customer’s bags but sometimes even with cameras and other security measures we are left with no option. I apologise if you felt you were unfairly treated and I hope you will continue to shop at my store.
My staff remain committed to giving our customers the best possible shopping experience, and by endeavouring to keep shoplifting to a minimum we hope we can deliver the lowest everyday prices.
I wrote about the Ministry of Education’s search and seizure guide for schools a couple of months ago, but I missed this article that contains some really disturbing comments from those involved in education. Basically, the police used to assist schools with draconian drug dog and weapon searches of entire schools, but have stopped after their lawyers realized that they’re probably not legal.
The rights of a few
“Education Minister Anne Tolley said a law change might be needed, because it was wrong for the rights of one or two pupils to take precedence over the rights of the whole school community.” [emphasis mine]
Because, you know, it’s only the students with drugs and knives that are being protected by making sure searches are reasonable! As Michael Bott points out later in the article, you’re violating the rights of every student when you conduct unreasonable searches en masse.
“Every step has to be taken to prevent [exposure to drugs and weapons].”
An extremely single-minded approach. When do strip searches become a reasonable step?
Exempting teachers from the law
“Crown Law is also investigating possible law changes to protect teachers from being charged with assault or false imprisonment”.
The police being the only sensible people in the room
“They will still help schools with searches but only when there is evidence of pupils carrying weapons or illicit drugs.”
“Screw reasonable suspicion and screw the police lawyers”
“Secondary Principals Association president Patrick Walsh – principal of John Paul College in Rotorua – said … it was unfortunate that police would now offer searches only if there was “reasonable suspicion that drugs are being peddled at the school”. The searches should continue until their legality was tested in court or ministry lawyers ruled they were unlawful, he said.” [emphasis mine]
What is this I don’t even.
Second-class citizens
“‘No other New Zealand citizens are subject to the same intrusive search criteria,’ lawyer Michael Bott said.”
Random drug searches of innocent pupils “were ‘deemed OK by virtue of their age and the fact that they’re compelled to attend the school’”.
Hekia Parata is the new Minister of Education, so hopefully she isn’t as ridiculous as Anne Tolley. Though, Anne Tolley becomes the Minister for Police and Corrections, so good luck with that everyone.
Image credit: U.S. Navy photo by Mass Communication Specialist 1st Class Peter D. Lawlor http://www.flickr.com/photos/anhonorablegerman/5722364868/
Megaupload uploaded a $3 million+ viral video attempt in the form of a song, The Mega Song, to YouTube. Containing endorsements from many musicians that have contracts with Universal Music Group, they weren’t the happiest of campers.
Macy Gray sings in the video, which features will.i.am, P. Diddy, Kanye West, Kim Kardashian (who comes running whenever someone utters the word “endorsement”), Lil John, The Game, Floyd Mayweather, Chris Brown, Jamie Foxx, Serena Williams and Ciara on camera. (Side note: It’s accepted that Chris Brown can do endorsements now?)
Using YouTube’s content management system, which Universal has access to as copyright holders, they took the video down. They didn’t own any content in it. They just didn’t like it.
The lawsuit
Now Megaupload aren’t the happiest of campers, and are suing Universal, trying to prevent Universal from interfering with the video, which is now back up, after YouTube appears to have asked Universal as to why exactly they took it down.
The New Zealand connection (read: Universal don’t know what their own artists sound like)
Apart from Kim Schmitz/Kim Dotcom, Chief Innovation Officer at Megaupload having a house here in New Zealand where he also has permanent residency (which he celebrated by giving Auckland a $500,000 USD New Year fireworks display), Universal claimed that they took down the video because it contained content from one of their artists, Gin Wigmore.
Wigmore, of course, doesn’t appear in the video at all, in audio or visual form (but was approached to sing in it), so perhaps Universal have forgotten what their artists actually sound like, and mistook Macy Gray for her.
will.i.am
Two takedown notices were received, the second one from will.i.am (well, his lawyer), who appears in the video, saying “When I’ve got to send files across the globe, I use Megaupload”.
Ira Rothken, lawyer for Megaupload, says that written permission in the form of signed Appearance Consent and Release Agreements were provided by everyone in the video, including will.i.am. will.i.am’s signed form, which you can read here (pdf, will.i.am’s real name is William Adams), is pretty convincing.
The Hollywood Reporter has Ken Hertz, will.i.am’s lawyer, says that he “never consented to the ‘Megaupload Mega Song’”. Because he delivered that line to camera for another reason?
Dotcom says that will.i.am assured him that he “had not authorized the submission of any takedown notice on his behalf”.
Universal’s takedown rights “not limited to copyright infringement”
Universal claim that they can takedown the video under an agreement with YouTube–not the Digital Millennium Copyright Act. In a letter (pdf) to YouTube from Kelly Klaus, a Universal lawyer, says that “As you know, UMG’s [takedown] rights in this regard are not limited to copyright infringement, as set forth more completely in the March 31, 2009 Video License Agreement for UGC Video Service Providers, including without limitation in Paragraphs 1(b) and 1(g) thereof.”
In that case the DMCA’s rules and protections around takedown notices wouldn’t apply. If this is true, YouTube isn’t exactly open about it. They claimed that the video had been taken down by a copyright claim in the message displayed when people tried to watch it:
Rothken says “What they are basically arguing, they can go ahead and suppress any speech they want without any consequences. That’s not a workable paradigm”.
This is, perhaps, a huge tick in the column against the Stop Online Piracy Act, which is currently being debated.
On 15 December I shopped at Riccarton Pak’nSave with a group of other young people.
After purchasing items at a self-checkout directly in front of one of your staff (really, she was right beside me), she requested to search my bag. I had not touched the bag during my visit so this request was not based on any actual evidence that I had attempted to steal something, like from a store detective or a camera.
It was extremely obvious that this was not a random search, as she called it. It was because of my age. Three other people from our group were selected for a “random” search. I wonder how many women with handbags were searched that day? I know my friend that came through the self-checkout after us wasn’t.
I declined the request.
I waited for the rest of our group and left the store. I was followed by a store manager who put his arm touching up against me, and tried to stop me from leaving. I declined again, which I have the right to do, no matter your signage, and walked away.
It’s disgusting to treat your paying customers like this.
Do you consider that bags contain personal possessions? That most people wouldn’t decline your request to search, because it makes them look and feel like a criminal? That searching personal possessions could reveal, say, a private medical condition?
I wonder what the purpose of these “random” searches are. Say I did consent to the search, I had items in my bag that I didn’t buy or steal from Pak’nSave, but that you sell. I didn’t have the receipt. What would happen then? Would you accuse me of stealing those items? Would you call the police on me? If not, why are you searching young people? Scare tactics? That isn’t the definition of a reasonable search.
If it is your policy to target young people or people with backpacks (read: young people), it needs to change. It is discriminatory and wrong.
If you weren’t the only supermarket at Westfield Riccarton, I wouldn’t shop with you again.
Update 28 September 2012: This post was written before I started working for a bank (who I love dearly), and at least some views expressed in this post have changed since then (eg. case-insensitive passwords (and ASB isn’t the only bank that does this) are irrelevant when users are locked out after three incorrect login attempts–Facebook does something similar to this, accepting the actual password, the password with the first letter capitalized (to account for automatic capitalization on mobile devices), and the password with the case of letters reversed (to account for the caps lock key being on), and that a charge for a bank cheque is not so unreasonable in the context of a lot of bank cheques being for a large amount). Also some bank policies have changed since this post was published (eg. ASB no longer charges $2 for automatic payments added/amended online–progress!) There is, however, no way of getting around ASB’s $0.20 fee for a Netcode over-$500-transfer-authorization if you don’t have a token–it is charged even if you call the 0800 number and ask them to release the payment. Except for a note regarding the previous sentence, this post hasn’t been edited from the original form.
And useful (see: next day bank transfers).
What it said.
I’m with ASB and they are great, however no one is perfect. Here’s some things that I hate about banks in New Zealand. Many of these problems are shared by the entire industry.
Or the fact that ASB keeps trying to convert me to one even though I’m not allowed one.
Here’s mailer number one, received the week of my 17th birthday:
And mailer two, from today:
Irrelevant: check. Impersonal: check. You know how to make a guy feel special ASB. (Case in point: I’m not 18 so they couldn’t give me my own credit card even if they really really wanted to).
This is upsetting because I have a feeling tertiary accounts have less fees than youth accounts. At least, it isn’t emphasized that service fees apply to tertiary accounts like it is for youth accounts on ASB’s fee exemption page. Service fees apply for everyone, see comment from ASB below.
Stupid bank fees
ASB isn’t the only bank that charges stupid fees, but here are some examples of theirs:
$2 to set up or amend an automatic payment or add a person you might want to transfer money to again (like the power company, or mum). Online. On the internet. Changing an entry in a database. By yourself.
20 cents for each time you use Netcode, ASB’s text verification service, which you can choose to happen on login. Google, who isn’t even in New Zealand doesn’t charge for this (see below). Probably get charged 20 cents again by your mobile service provider for receiving the text. Some sort of verification is required for some transactions that take you over a $500 daily transfer limit, or if you’re sending money overseas. Alternatively, you can ring their call center to get transactions verified for free11@!! I wonder if the time of the person you speak to on the phone is worth less than 20 cents?See update at top of post–20 cents is charged even if you call the 0800 number.
Alternatively you can pay $12 a year for a physical Netcode token, which you’d need if you are regularly out of cellphone reception and probably if you travel overseas. RaboDirect provides these for free. BNZ provides the NetGuard card for free.
5 cents for each email alert. For the virtual stamp. Or the person who licks it. Or something.
20 cents for text alerts and text banking. I think they charge you when they receive a text banking message from you. Plus you probably get charged to send texts to them by your service provider. In contrast, Westpac provides a certain number of text alerts free per month as long as you log in to online banking that month.
$5 for bank cheques. Plus because you probably have an “electronic” account, and if you’re not a youth/student, a fee of $3 because that’s a manual transaction.
Password policies
“Please note, your password must be eight characters long, and contain at least two letters (a-z) and at least two numbers (0-9). For example, redbus73 and 8cube224 are valid passwords.”
This is ASB’s. I assume other banks are as ridiculous. Would you like a nine character password? YOU CAN’T. MUST BE EIGHT.
Microsoft’s (now defunct) password checker says both of their examples are weak. ASB lets you use both of their examples as real passwords, because security.
@MothershipNZ and @FromAQuasar point out that ASB passwords aren’t case sensitive and also that some symbols aren’t allowed.
Stupid marketing policies
Here’s an entry form I picked up from BNZ’s tent at The Show:
Note the classy clause at the bottom: “By providing your details, you consent to use contacting you about our products, services and promotions, from time to time (including via text message without an unsubscribe facility).”
Once you’re in, they have you.
I guess if you rang them they’d remove you from their text messaging scheme, but really, why not let people unsubscribe via text using common keywords like stop, or unsubscribe?
Visa Debit cards
And their annual fees. $10 a year for having the card. National Bank got half of the memo and isn’t charging the annual fee if you have their Freedom account. But you have to be earning $30k+ a year and pumping it into that account. Anyway, I like the image they’re using in their ads for it (see top image).
Sure, debit cards are great if you are under 18 or don’t trust yourself with a credit card. But really, if you can, you should just get a credit card.
Banks (looking at you Westpac and BNZ) seem to love converting people to these debit cards, even if the person already has a credit card with the bank. I don’t understand. Family members have received Visa Debit cards in the mail from Westpac, even though they have a credit card with Westpac. If you already have a Visa or credit card, why would you want a Visa Debit?
It’s a bit of a have, because people naturally think this is their replacement EFTPOS card and start using it, probably not realizing that once they start using it they’re going to be charged an annual fee. If they’re lucky, maybe the fee will be waived for a year or two!
When you go into BNZ to request an EFTPOS card, the tellers like to order you in a Visa Debit card instead*, because, you know, they know best.
*May have happened just once.
Lack of security
That’s Google’s 2-step verification programme.
There’s a number of ways to use it. I have the Google Authenticator application on a couple of devices (it works without needing an internet connection), I can get a code sent to me by text (for free!!@@) if the application isn’t working, I can use the backup codes if I have to, and I can tell Google that it doesn’t need to ask me for a verification code on the computer I’m using for another 30 days if I trust it.
It works, it’s good, it’s free. And it’s not even protecting my money.
Side note: security has to actually be built-in by design and be compulsory for it to be useful. Kerry Thompson points out that security conscious people probably have limited use for 2-factor authentication systems, because they already take precautions. The people who aren’t security conscious are also the people who don’t think they need 2-factor authentication, they think they’ll be covered by the bank, or won’t use it because of the cost (hi ASB’s 20 cent per text charge).
See also: Google doesn’t have an eight character password policy and Google gives a detailed account of recent account activity (ASB shows the last time I logged in, but I rarely look at it, and out of context it’s kind of useless).
How about encouraging people to set up an automatic payment to a savings account every pay period and sign up for Kiwisaver?
Also, you would think an application that consists of one button would be easy to set up, but Westpac’s Impulse Saver requires you to apply to use it, and makes you wait for a callback from a customer service person.
Phone banking on mobiles
Westpac and BNZ seem to be the only two banks who try to ban calls from mobile phones to their phone banking numbers. It’s trivial to get around this with Westpac, just call their main 0800 number and press one to get to phone banking. On BNZ it seems like that works too, at least after their call center hours.
Visa and MasterCard undermining credit card PINs
Visa and MasterCard aren’t banks, but whatever.
McDonald’s, in association with Visa and MasterCard has the policy of not requiring a PIN or signature for credit card transactions under $35.
How they can guarantee security, I’m not sure, because they just took away the only security of a PIN or signature. I’m not sure why Visa and MasterCard don’t make this opt-in or opt-out.
Zero liability can’t apply if you don’t realize there’s a fraudulent charge on your statement, so good luck everyone.
Next day bank transfers
Or please stop relying on a cron job for transfers.
10 years after one-off payments were introduced, they still take up to the next business day to go through to accounts at other banks. I realize this might require some consultation with the People In Charge Of The Money, but can we please get rid of this? Thanks. Also, could we please do transfers on non-business days to accounts at other banks and get rid of the 10pm cut off for not-my-bank transfers?
“Inspired by a New Yorker story, Jumpers, written by Tad Friend, director Eric Steel decided to train cameras on the Golden Gate Bridge over the course of 2004 to capture the people who attempted to leap off the famed structure, the site of more suicides than anywhere else in the world.
He also tracked down and interviewed the friends, family members, and eyewitnesses to further recreate the events leading up to the incident and to try to explain what led these people to want to kill themselves, especially at this specific site.
The documentary’s primary subjects all struggled with mental illness, including severe depression, schizophrenia, and bipolar disorders, and the documentary struggles to understand their illness while illuminating the anger and hurt of their loved ones.”
Eric Steel and his crew filmed the Golden Gate Bridge, which has become a suicide magnet, but has no suicide barrier, for 365 days during daylight hours. They captured 23 of the 24 suicides that took place that year (when I first watched this I didn’t realize that the 23 suicides shown weren’t reenactments).
Cue ethical dilemma of if you’re filming the bridge, and think someone who is hanging around the bridge is going to jump, should you intervene?
There’s some interesting interviews with family members, including one family who provide charming quotes like:
“We didn’t get a mental illness.”
“She wanted more and more support, do you think that was because of a medication change?” “No I think it was because she was ill.” “Oh ’cause she wasn’t feeling well.”
“I’ve always thought of myself as a stronger person than her.”
If you don’t want to watch the whole documentary, consider just watching Kevin Hines’ interview. He jumped, and in what could have been the last few seconds of his life, realized that he didn’t want to die. He survived.
Their reply to 
