Who's tight? We're giving more than ever

Aussies may be throwing less money in charity buckets but we're giving more online. Picture: Ross Schultz Source: News Limited

IT'S official - the humble donation bucket and doorknock appeal is dying a slow and miserable death.

But the good news is Aussies seem to be more generous than ever and are using their phones to give to charity with donations via mobile devices up by 293 per cent in the past year alone.

In fact we're so generous we gave more than $6 million to charities in the past 12 months, accounting for just over half of overall PayPal donations to charities.

And we're feeling at our most giving between 6pm and 8pm when most people are using multiple devices.

According to PayPal figures, one in four transactions occur on mobiles, with Australians also giving smaller amounts but more often.

The number of donations given to charities via a mobile has almost quadrupled compared to the previous year with 75 per cent of money going directly to local charities.

On a global scale, the total value of mobile donations using PayPal jumped 242 percent compared to the same time in December 2011.

PayPal spokesperson Adrian Christie said the ease and convenience of mobile devices meant charities had become an unexpected beneficiary of Australia’s changing spending patterns.

UNICEF is just one of the charities cashing in on the mobile donation boom.

Jonathan Dawson, Direct Marketing Manager-Acquisition, UNICEF Australia said donations from mobile devices had quadrupled in value over the past three years and now form 10 per cent of digital donations.

Mr Dawson said Australians had always been generous but mobile phones meant it was easier for people to give, but stopped short of saying mobile donations meant the death of the charity bucket.

"I think there’s still space for the bucket, but the more ways and the quicker they are the better," he said.

"Mobiles can be used whenever it’s the right time for the supporter, they don’t have to sit in front of a computer screen.

"Also with a mobile versus a bucket it gives the charity a huge opportunity in following up with the supporter to show them how their money has been put to good use to change the life of children. With a bucket you might just give and forget."

Other charities such as The Leukemia Foundation and MND and Me Foundation are also cashing in on the boom.

Both charities are among PayPal’s top five Australian merchants to receive the largest amount of donations via mobile.
 

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Belt tightening Aussies giving up the pies

Aussies are ditching meat pies as they try and save money. Picture: Brodie Campbell Source: adelaidenow

THE humble meat pie or sausage roll from the corner store has become the latest victim of cautious economic times.

Instead, we might treat ourselves to a chocolate bar as a "cheap and cheerful instant reward" to have with our home-made lunch.

Confectionary sales in convenience stores and petrol stations have climbed 19 per cent since 2010 while sales of baked goods have fallen nine per cent, according to an industry report by BIS Shrapnel.

"In these past two years we have seen a jump in chocolates and lollies which is very much a recessionary reaction," said head of BIS Foodservice Sissel Rosengren.

"It is because chocolates are a cheap way we can reward ourselves quickly.

"At the same time there has been the decline of the pie purchase at the convenience store because they can't compete with supermarkets and quick service restaurants."

Social researcher and statistician Charlie Nelson said "falling out of love with credit cards", unemployment prospects and losses sustained during the GFC had an impact on discretionary spending.

"A lot of these people are very, very determined to build their savings," he said.

"People are realising it's a couple of bucks a day but every year it's a few hundred bucks.

"People are feeling now that they have less money left over from meeting all their commitments than they did a year or two ago.

"You put all these things together, you don't like plastic any more, people are keen to save money, and concerns about unemployment, it's no wonder people are looking at ways to cut back on things."

Ms Rosengren said service station convenience stores had also grown, with their total market value almost tripling since 2010 helping squeeze out old-fashioned corner stores which are unable to compete with them, in addition to battling supermarkets and fast food outlets.

"The cost of living and the cost of food in this country has gone up astronomically since 2005," Ms Rosengren said. "It's a tough retail market out there and that is part of the reason behind the demise of the corner store."

Confectionery sales in the "route trade" market have grown 19 per cent since 2010 to $711 million with chocolate accounting for two-thirds of that at $457m.

Despite a 5 per cent drop in sales since 2010, drink sales still make up 59 per cent of the market worth $1.9 billion annually.
 

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Job ads rise, giving seekers hope

More advertisements for jobs gives the unemployed hope. Source: Bloomberg

JOB seekers have been given a blast of good news with businesses showing tentative signs of steeping up their hiring intentions.

The recent run of encouraging signs the Australian economy is turning a corner were further boosted with the latest ANZ job advertisements pointing upwards for the second consecutive month.

Despite some major corporations warning in recent weeks about looming cost cutting programs as profit growth slows, the surge in consumer confidence, strengthening property prices and rising sharemarket has seen job advertisements reach their highest level in five months.

The leading employment survey shows job ads were up 3 per cent in February for a second consecutive month, after a rise of 0.6 per cent in January.

ANZ head of Australian economic research Ivan Colhoun said the employment market was showing signs of improvement.

"In early 2013, there are again early signs of some stabilisation in hiring intentions which come as concerns about the global backdrop, including the US fiscal cliff, have moderated," he said.

"The extent to which the increase in job advertising in January and February represents a similar temporary or sustained pick-up is unclear at this stage.

"Nevertheless, we forecast an improvement in the European and Chinese economies and remain confident that the US recovery will continue despite a large fiscal drag."

This comes as the Reserve Bank is tipped to leave interest rates on hold at 3 per cent tomorrow as it assess these early green shoots of a recovery following a weak 2012.

Most economists expect unemployment will rise from its current setting of 5.4 per cent this year but are forecasting it will stay below the 6 per cent threshold.

"Rising Australian house prices, equity markets, consumer confidence and, to a lesser extent, business confidence in recent months are important signs that accommodative monetary policy should
support stronger domestic economic activity," he said.

"Anecdotal evidence suggests that Australian firms are generally keeping a close eye on their bottom line, including labour costs."

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Earning more super, but giving more away

Source: The Australian

AUSTRALIANS' super balances are back on the march upwards, but experts say workers are being ripped off in spending around $20 billion last year on fees.

ING research shows the average Australian spent close to $2000 on fees last year, while some older Australians are paying as much as $6000.

But the latest SuperRatings survey for January shows super funds got off to a flying start in 2013, registering their 12th monthly gain in the past 13 months.

The average median growth fund rose 2.6 per cent in January, putting the sector on track for a fourth consecutive positive financial year return.

The sharemarket rally has seen the total gain for the seven months since 1 July 2012 jump to almost 11 per cent.

The data also shows industry super funds have delivered slightly stronger long term returns over 3-10 year periods than most of their retail competitors.

Over the past five-year period industry funds have on average delivered an annual return of 2.8 per cent compared with 2.1 per cent for retail fund, according to ChantWest

But ING Direct's head of superannuation Michael Christofides said workers are often paying far more in fees than they think to both retail and industry funds.

"Too many Australians are getting ripped-off when it comes to fees they're paying for superannuation," he said.

"Consumers have the right to be frustrated at paying such large fees, particularly when the research shows there is no correlation between fees and performance."

The research shows most workers pay on average 1.26 per cent of their annual inflows in fees - but with some personal funds that can run to over 2c in every dollar lodged.

For someone who started work at 20 and retires at 67 years this could run to as much as $174,000 in super fees.

Financial services researcher Canstar warns says the high fees may put a major dent in some people's retirement income goals.

"Small differences in fees can have a large cumulative effect. Don't underestimate the effect fees have on your ultimate balance when looking for a superannuation fund," Canstar research manager Chris Goth said.

This comes as the banking industry joins the chorus of financial institutions calling on the Gillard government not to tinker with the superannuation system in this year's federal budget.

Australian Bankers' Association chief executive Steven Munchenberg says many bank customers are concerned that the government will increase the level of tax on super savings.

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