A system for measuring a physical characteristic of a bearing includes a permanent magnet and a magnetic sensor. The permanent magnetic is coupled to at least a portion of a bearing, and has a magnetic field that changes as a function of the physical characteristic. For example, the permanent magnet has a magnetic characteristic that changes as a function of temperature. The magnetic sensor is operably disposed in a magnetic field sensing relationship with the permanent magnet, and is configured to generate a voltage signal and/or current signal corresponding to a sensed magnetic field.