Women and Finance
Women are different in their financial advice needs to men.
Over and over again we see survey results pointing to the differences in 'financial thinking' between the sexes:
- More women admit to being not knowledgeable about their finances than men.
- A recent study by BT found that more than 1/3 of women didn't know how much super their employer contributed, whilst more than ¼ got the amount wrong.
- The same BT survey found that 25% of women surveyed did not know how much they needed to live in retirement.
- Results also showed women were dramatically less able to determine how much capital they need to provide the level of income they need in retirement.
These knowledge gaps in women make them quite vulnerable to critical life changes. Women are more exposed to stress and pressures from their lack of financial confidence.
The positive result of that same BT survey found that women are more likely to admit they have a gap in their knowledge and are more willing to admit they need help.
This willingness to admit needing help presents an opportunity for women to look at addressing this gap in 'financial thinking'. This recognition is the ideal catalyst for the beginning of fundamental change.
In our experience, we find that single women without a partner are more likely to seek help than a woman who is part of a couple. This brings two further issues:
Single women who do seek advice are typically very concerned about their financial security. They express a real anxiety about their financial future, much more so than single males.
Women who are part of a couple often play the submissive role in financial decision making. In times of relationship breakdowns, more women than men blame their partners for financial mismanagement. Yet women in relationships are less likely to seek advice.
We need to ask ourselves why would women believe they need less advice than men ?
- Women live longer than men
- Women retire earlier than men
- Many women have disrupted working lives as a result of having families
- Many women earn significantly less than men over their working life
- Women end up with significantly less superannuation than men as a result of disruptions to their working life.
In reality women have a real need for financial advice but tend to give their decision making process or trust to others.
While we recognise the complexity of the roles women take on in families, we believe it is critical part of each person's self development to learn skills in 'financial thinking' and therefore be accountable.
It is the small choices we make along the way lead to very powerful outcomes. |
