Unless you’ve gone completely off the grid the last few days, you’ve probably heard the news. The Reserve Bank of Australia has created a “vomit” (in the words of economics writer Jason Murphy) new $5 Australian note.
Yep we agree Jason, it’s pretty hideous and apparently many other Aussies are finding it difficult to stomach too. When we posed the question in the Twittersphere “How do you rate the new Australian $5?”, 45% of respondents said they were “not happy Jan”.
So for those that don’t want such an ill designed piece of paper in their wallet, we’ve come up with some methods to turn that note into something more…
1. Pay with card only
Research by Westpac shows Australia will be a cash free society by 2022. So become an early adopter of the cash free movement by paying with debit or credit card only and you’ll avoid that icky $5 note hitting your wallet.
The best part about paying with card is you can earn yourself some juicy rewards points or cash back offers. For instance, with the American Express Essential Credit Card you’ll earn 1 point for every $1 spent and be charged no annual fee for the benefit.
2. Save it
If you do find yourself in the predicament of paying at a “cash only” store or restaurant, turn it into a money saving strategy by putting every $5 note you receive aside for your savings.
Say you receive six $5 notes a week, putting this into the ING DIRECT Savings Maximiser with a 3.50% interest rate will get you a healthy balance of $1,593 over a year.
3. Get investing
Once you’ve saved up a pile of $5 notes, consider trying your hand at the investment game. You can start a share portfolio with as little as $500 and can build it up each week by depositing more of those new $5 notes you don’t want.
Another option is to open a managed fund, which means an agent will look after your investments on your behalf. But keep in mind, you may need to save up a few more $5 notes for this one, as agent fees usually range between 0.5% to 2.50%.
4. Use it as pocket money
While the new $5 note may not suit your tastes, if you have kids chances are they’ll love it – because hey it’s been compared to “a mid-80s primary school mural” anyway. So an alternative use of each note you receive is to put it away as pocket money.
It’s a win win situation. Your kids will learn the value of money (and helping their parents around the house) and you’ll quickly get that new $5 note out of your pocket.
For more tips on teaching your kids the love of saving, read our guide here.
*All GIFs have been sourced from Giphy