How they slug you to use a credit card
YOUNGER-than-expected Australians are leaving gifts to charities in their wills many decades before they’re likely to die.
The trend has been noticed by charities, which traditionally approached people in their 60s for bequests but now see a passion to make a difference prevalent among younger generations.
Simone Busija, 45, is leaving a gift in her will to Peter MacCallum Cancer Centre.
Aggressive stomach cancer runs in her family, she lost her father and uncle to it, and was told she had an 80 per cent chance of getting it too. So Mrs Busija had her entire stomach removed and today lives a full life, being able to eat small amounts of food after her oesophagus was attached to her small intestine.
“I was so thrilled with the treatment I had … I really was compelled to do something to show my appreciation to Peter Mac,” she said of including the gift in her will.
“I think while you are able-bodied and able-minded it’s really good to think about it. Most people have been touched by cancer in some way – it’s the ultimate way to give something back.”
All wills can be challenged, so it is wise to let your loved ones know about your wishes.
Natalie Abela, a partner at commercial law firm Cowell Clarke, said communication was the key to minimising the risk of a challenge.
“As well as speaking with your family to explain your decision, it’s important to notify the charity and provide detailed instructions to your solicitor when making your will,” she said. “That way all parties are clear about your intentions.”
Include a Charity campaign manager Helen Merrick said it was a good idea to include a charity’s Australian Business Number in your bequest because charity names sometimes changed, and also to check your preferred charity’s website for suggested wording.
“We encourage people to talk to their loved ones – you want your family to know you are looking after them but still want some of your estate to go to other causes,” she said.
The biggest barrier is a lack of people with wills, with research finding less than half of Australian adults have one.
Ms Merrick said people who didn’t believe they had much to give should remember superannuation, and said charities had noticed Australia’s generous young generations.
“Charities always focused on 65plus, but a lot of people who are younger are supporting charities, have strong feelings and want to … leave a legacy,” she said. CREDIT card customers are frittering away their money by paying unnecessary fees that can easily be avoided.
New data examining the spending habits of nearly 60,000 Australian card users across 4.1 million transactions was compiled by Pocketbook, a ZipMoney company, and found many people are getting stung.
It showed annual fees are biting hardest ($87 a year), then international transaction fees, late payment fees ($38) and cash advance fees $35.
In terms of total fee revenue, financial institutions are making the most money from slugging consumers with international transaction fees (38 per cent of total fee revenue), followed by annual fees (34 per cent), cash advance fees (9 per cent) and late payment fees (8 per cent).
ZipMoney’s chief growth officer Andy Mitchell said international transaction fees have the most exorbitant charges and consumers needed to pay attention.
“International transaction fees are incurred in one of two situations, either Australian consumers are staying at home and buying goods from overseas or consumers here are travelling overseas and using a card while over there,’’ he said.
“As a result they are incurring foreign currency conversion fees ... and some other peripheral fees they are incurring from the banks.”
Mr Mitchell urged consumers to monitor their statements and check what charges they are paying and take action if it’s too much.
“By shopping around you’ll find a way to reduce the fees that fit into your behaviour,’’ he said.
Consumer finance expert Heidi Armstrong said it’s vital card customers use their plastic wisely and are mindful of the charges they pay for the privilege of paying on credit.
“Fees can spiral out of control but so too can the interest,’’ she said.
“Before you open your statement try and guess what you are paying in fees and then compare that to the actual statement – many people might get a shock.”