I didn't do anything with the badges it just doesn't work. And you get the Golden Sash when you enter the first city, together with exp share and ItemFinder.
But a friend of my told me that they change the start story, you start with Kenneth and his story, you get the Golden Sash at the start. I think so you can use surf, during his story.
But somehow, I can't use Surf anymore and so I can't continue the story.