Latest news with #AngelZhong
ABC News
05-06-2025
- ABC News
What are your options when taking money overseas?
What do you look forward to the most before an overseas holiday? It's probably not the admin. Deciding how you're going to take money overseas is one of those tasks that can seem overwhelming. Here's what experts have to say about your options while travelling. If you're planning to use physical currency overseas, Angel Zhong, a professor of finance at RMIT University in Naarm/Melbourne, says you will often get a better exchange rate (converting your Australian currency into local currency) once you've reached your holiday destination. While converting cash into foreign currency in Australia is possible, services in convenient locations (such as the airport) are typically more expensive. Professor Zhong says she wouldn't carry thousands of dollars' worth of currency around on holiday with digital payment so widely accessible. Also, if you're leaving or entering Australia with more than $10,000 in cash, it needs to be declared. In many cases you can use an existing credit card or debit card while travelling overseas. Australian consumer advocacy group Choice says "Visa and Mastercard credit cards are accepted almost everywhere for purchases and cash withdrawals". Professor Zhong says it can be convenient to use your ordinary debit card or credit card, but you would "usually incur some foreign transaction cost". Before using an existing card overseas, she suggests checking the terms and conditions. We'll go into this in more detail shortly. Another option Choice highlights is low-fee debit cards "that don't charge a currency conversion fee" with a competitive exchange rate set by Visa or Mastercard. Source: Moneysmart If you're looking to take a card overseas, the Australian Securities and Investments Commission (ASIC) recommends shopping around, as exchange rates can vary between banks and travel card providers. When reviewing the terms and conditions of cards, you want to look out for fees. ASIC says charges may include "a foreign currency conversion fee, an overseas transaction charge or an additional cash advance fee (for credit cards)". Again, being across the terms and conditions of cards is key. While some cards have no foreign transaction fees, Professor Zhong says "it could be the case that their conversion rates are high". It can be difficult to compare exchange rates between lenders and their different cards (including travel money cards) because it varies from day to day. She says comparison websites may help. A travel money card, travel debit card or travel cash card is another option offered by banks and other lenders, such as airlines and travel agents. An ASIC spokesperson says, "You can add money in your preferred currency to most travel money cards before you leave Australia" and "most allow you to top up your card with extra currency if you need it while you're travelling." A prepaid travel card may even help you stick to your getaway budget and manage exchange rates because it can be loaded with a locked-in exchange rate before you depart. Choice notes that travel money cards can have a higher exchange rate margin (or more expensive mark-up), and a no-fee debit card may be a better option. Travel cards "are better suited to longer trips … [and] usually won't be worth getting if you're only taking a one-off short trip, as some come with fees for closing or inactivity". If you're withdrawing cash overseas, Choice says a travel debit card or travel money card is generally a better option than a credit card — which can involve a cash advance fee and high interest rates Professor Zhong says you need to set up these cards before you travel, so you'll need to be more organised (compared to using one you already have). While your normal credit or debit card may have a high credit limit, such as $5,000 a travel card will often have a limit of $500 or $1,000, Professor Zhong says. This means travel money cards aren't usually a good candidate for hotel security deposits, as a pending charge could leave you without access to your money. Choice also advises checking that a card supports the currency you'll need. Not every card will work with every currency. This article contains general information only. You should consider obtaining independent professional advice in relation to your particular circumstances.
ABC News
27-05-2025
- Business
- ABC News
Here's what you need to know about credit card reward points
Movie tickets, department store wares and flights are just some of the things people 'pay' for using credit card reward points. Perhaps you've seen someone relishing their business class upgrade, partly 'paid' for with points, on social media. But, Angel Zhong — a professor of finance at RMIT University in Naarm/Melbourne — says points also come with risks. If credit card point programs are a mystery to you, here's what you need to know. Credit card rewards schemes, including point programs, vary from lender to lender, but the basic principles of each have a lot in common. Professor Zhong says, "it really depends on the specific terms and conditions, but usually you get points for every dollar that you spend." Reward points can then be spent on perks and benefits which differs between credit cards and institutions, but can include gift cards, retail purchases and discounted travel offers. These type of credit cards may "also offer exclusive perks", such as "access to airport lounges, travel insurance and concierge services". The government's MoneySmart site says credit card reward programs "sound good" because "you could earn points you can use to buy movie tickets or flights" just by spending on the card. Toni Eager is a senior marketing lecturer at the Australian National University in Canberra, on the land of the Ngunnawal and Ngambri people. She says rewards schemes, including points are "a way of keeping customers". "People might like certain reward schemes more than others, or it's something that keeps people using the card that they already have rather than going out and looking for cheaper interest rates." Dr Eager says consumers need to be financially literate to get good value from reward points schemes, which reward spending. "Whether it encourages people to overspend or changes their spending habits comes down to financial literacy." Consumer group Choice says credit cards are not for everyone. "Unless you're a big spender, credit cards with rewards schemes are mostly a gimmick, and they nearly always charge hefty annual fees and high interest rates." These costs can "easily nullify the rewards". Professor Zhong also says to be mindful that "you pay for what you get." Credit cards with extra perks will also have higher fees and interest rates. "It makes them more costly if you don't pay your balances in full or on time." She also warns that banks and lenders can change their loyalty programs including the value of points, and points can also expire. "Read the terms and conditions carefully, especially when it comes to the changing value of your points." Prfoessor Zhong says, "point hackers" are people who regularly open and cancel credit cards. The practice is known as "credit card churning". "You open multiple credit cards to take advantage of the bonuses, and then you close them and repeat the process again with new cards." She says many lenders waive the first annual fee for these types of credit cards, which can also come with bonus offers (additional points or cashback for example) and a zero per cent balance transfer fee for a set period. The card can then be cancelled before the annual fee for the second year is charged. Initial bonuses usually come with conditions, such as "spending a certain amount in the first three months". Professor Zhong says credit card churning can lower your credit score, and "frequent credit card application and cancellation might be a bit of a red flag" if you're applying for a mortgage. Doing this with different credit cards simultaneously increases the risk you miss a repayment, or you fail to make full use of the rewards, she says. MoneySmart recommends looking for a low interest rate and features you'll use in a credit card. If you're considering a credit card with a reward scheme, "check if the benefits you get are worth the higher cost". Professor Zhong says to "choose a card that aligns with your spending habits so that you can maximise the points [and] maintain a healthy financial lifestyle".
ABC News
12-05-2025
- Business
- ABC News
FULL SHOW: the new frontbench, recession indicators + why fish keep washing up dead
Prime Minister Anthony Albanese has revealed his new frontbench. So who's in, who's out and what will they do? And here's why gold bars, makeup and memes have become recession indicators. Plus how citizen scientists track dead fish in South Australia. Listen now: 01:12 - Who's on the new frontbench? 05:27 - What happened with the Nationals leadership? 10:48 - Gold prospecting in outback Australia 15:27 - What are actual recession indicators? 21:45 - Explaining South Australia's dead fish problem Guests: Shalailah Medhora, political reporter, triple j hack Shalailah Medhora, political reporter, triple j hack Angel Zhong, finance professor, RMIT Angel Zhong, finance professor, RMIT Brad Martin, South Australia project manager, Ozfish Get the whole story from Hack:
Yahoo
12-04-2025
- Business
- Yahoo
Woolworths price warning as supermarket makes little-known move: 'Dominate'
The ready-made meal sector has evolved dramatically from the ice-encrusted microwaveables relegated to the supermarket freezer section. Now, Coles and Woolworths shelves are packed with calorie-controlled fresh fare targeted to the time-poor Australians. The booming industry is expected to be worth $1.9 billion in the next five years, with Woolworths making a major play at the sector this week that could be a concern for shoppers. The supermarket giant stocks Woolworths branded meals, now including larger offerings to cater to families, and brands like Strength Meal Co, which retail for about $9.95 depending on specials. Many wouldn't know Woolworths was cleared by the Australian Competition and Consumer Commission (ACCC) to acquire Beak & Johnston Holdings, the company that owns Strength Meal Co, on Wednesday. Woolworths told Yahoo Finance the proposed acquisition would help meet customers' growing demand in the expanding industry. But, there are concerns the Fresh Food People could drive costs up by blowing the rest of the competition out of the water. RELATED 6am lines for Costco warehouse opening in $118 million move to compete with Coles, Woolworths Woolworths cleared to make major move into $1.9 billion sector: 'Strong price competition' Multi-millionaire's blunt retirement message for Aussies: 'Work until 90' 'While Woolworths may initially keep prices competitive to attract customers, reduced competition in the long term could lead to price increases, especially if Coles and Woolworths continue to dominate the sector,' RMIT professor of finance Angel Zhong told Yahoo Finance. 'However, Woolworths may expand its ready-made meal offerings, providing more variety and convenience for shoppers, particularly in urban areas where demand for quick meals is high.' That could include at Woolworths' more than 100 Metro stores dotted around the country, which are smaller stores catering to shoppers looking for convenience and wanting to 'grab and go'.Zhong said the impact on consumers would depend on how Woolworths decides to integrate Beak & Johnson's products into their offerings. 'While large acquisitions can sometimes lead to higher prices due to reduced competition, Woolworths might also leverage economies of scale to keep prices competitive,' she said. The competition watchdog found the acquisition was 'unlikely' to have a substantial anti-competitive effect and Woolworths welcomed the move. 'Woolworths has been a customer of Beak & Johnston Group (B&J) for more than 37 years with the company providing a range of popular Woolworths-branded products including lasagnes, ready meals, and pies,' a Woolworths spokesperson told Yahoo Finance. Woolworths currently holds a minority 23 per cent interest in subsidiary and ready meal provider B&J City Kitchen. Its acquisition is still subject to approval from New Zealand's regulator. The ready-made meal industry has been growing in popularity as time-poor consumers look to cut back on meal preparation, with Zhong noting there had been increased demand post-pandemic due to consumers' busier lifestyles. The biggest players in the industry are My Muscle Chef, Lite n' Easy, McCain Foods and Vesco Foods, who sell Lean Cuisine in Australia. Coles subsidiary Chef Fresh previously purchased rival ready-made meal supplier Jewel Fine Foods in 2020, after it went into voluntary administration. Ibisworld has forecast revenue from the prepared meals production industry to increase by 1.1 per cent over the next five years to $1.9 billion. Woolworths told Yahoo Finance the proposed acquisition would continue its focus on meeting customers' growing demand in the 'expanding' industry. 'Customers are looking for value and convenience now more than ever, and we're seeing significant opportunity to deliver this in the ready meal category,' a spokesperson said. Coles, meanwhile, has reported sales of 'convenient food solutions' increasing by 50 per cent over the past three years, with the supermarket finding nearly eight out of 10 shoppers decide what they will eat within a day of consumption. Zhong said Woolworths was strengthening its position in the growing ready-made meal market and it could make it harder for smaller companies to compete with the supermarket giants. 'To stay competitive, smaller companies might need to innovate more aggressively, focusing on niche markets or unique product offerings that differentiate them from the major players,' Zhong said. "Woolworths' acquisition could lead to changes in supply chain dynamics, potentially affecting suppliers and distributors within the sector." Coles and Woolworths currently control around 65 per cent of Australia's grocery market. 'This acquisition further entrenches their dominance, making it harder for independents like IGA, Aldi, or specialty meal providers to compete,' Zhong in to access your portfolio
Yahoo
17-02-2025
- Business
- Yahoo
1,400 Aussie jobs in limbo as looming cash deadline approaches: 'Stop the squeeze'
The Transport Workers Union (TWU) is concerned about a looming deadline for Australia's cash transport industry and what it will mean for hundreds of employees. Armaguard was given a 12-month lifeline mid-last year, and questions are being raised about what will happen when that deal expires. RMIT's finance expert Professor Angel Zhong told Yahoo Finance that the beleaguered cash-in-transit company will likely be saved by the same industry stakeholders that propped it up in 2024. But, the TWU wants assurances sooner rather than later that that will happen. 'For years, workers in the cash-in-transit industry have borne the brunt of cost-cutting, from job insecurity to pay cuts and plummeting safety," TWU national secretary Michael Kaine said. RELATED Aussie 'cash crisis' averted ahead of major Armaguard deadline: 'Significant liability' $3,000 superannuation boost Aussies urged to cash in on: 'More money to retire on' Cleaner's $1,270 struggle reveals huge cost-of-living problem faced by millions: 'Can't get ahead' "Customers like the banks and retailers have had a direct impact on that through their unsustainable contracts with Armaguard." The Australian company is estimated to employ roughly 1,400 people, who now hang in the balance until another deal or arrangement can be organised. The TWU is also concerned that essential services in remote and regional areas of the country that still depend on cash, like grocery stores and fuel stations, are at risk too. The TWU made an application to the Fair Work Commission (FWC) on Monday and is using the government's new supply chain laws to ensure a new deal is organised to protect Armaguard's staff. There has been a series of discussions recently between Armaguard and its backers about what will happen when the $50 million deal runs out in June. The agreement was funded through the Commonwealth Bank, ANZ, NAB, Westpac, Coles, Woolworths, Bunnings and Australia laws set minimum standards and entitlements for all employees engaged in a company's supply chain, and the union is hoping to use the legislation to ensure it has a seat at the table while these discussions take place. The TWU's application can help the FWC call an urgent conference for Armaguard's stakeholders, and force these supply chain clients into future long-term deals "The cash-in-transit industry is in crisis with declining safety standards, unsustainable operating models and declining rates of remuneration and funding, a significant amount of which can be attributed to contracting pressures from their largest customers, including the major banks," the TWU said. "There is an urgent need for a long-term solution given the continued necessity for cash in the Australian economy, and this must be properly funded by the company's large customers like banks and retailers." Kaine added that a new deal will give peace of mind to more than 1,400 workers as well as those who rely on the availability of cash in their community. 'We need to see a reliable and safe operator while cash is still part of our society, and that means banks and retailers must stop the squeeze to ensure Armaguard remains viable into the future," he said. It's unclear whether that $50 million funding arrangement will be repeated in June or if a different deal will be brokered. Zhong told Yahoo Finance that it's a very delicate tightrope for everyone to walk. "I would say that is more likely for an agreement of collaboration to happen," she said. "For example, all the major banks could collectively support Armaguard and share the cash distribution burden. "But any new agreement will also require approval from the ACCC. So it is a complex, complicated situation and a fine balance between competition concerns and also the need to maintain a critical piece of financial infrastructure." Westpac has also reportedly been pushing for a shared arrangement with its fellow Big Four banks, as the current setup sees it solely responsible for all the notes and coins in Armaguard's depots before they are distributed across Australia. "It's an unusual model because it actually places significant balance sheet liability on Westpac, while at the same time, other banks benefit from the distribution network without carrying the same financial burden," Zhong said. That 20-year legacy agreement ends in mid-July this year. Westpac told Yahoo Finance that while it can't comment directly on the discussions, the bank "recognises the importance of cash to all Australians" and "will continue to support our customers and community to ensure the circulation of cash through the economy". If no new deal can be brokered to support Armaguard in the future, Zhong predicts the government will have no choice but to step in and provide the funding.
