Financial acumen: helping women to manage their money
AFTER years of talking about money with women and men, Ann Morrell says there are definite differences between the sexes when it comes to their finances.
‘‘Men are probably more fixated on the technical aspects,’’ she says.
‘‘Many have a grasp already on how compounding interest works or what the sharemarket does.
‘‘Whereas women, they are looking more for how is the money going to improve their lives — more the touchyfeely side of things.’’
Research by the Financial Services Council has found 60% of women worry about money on a regular basis and 80% rate their financial wellbeing as moderate, low or very low.
Women often earn less than men, take career breaks to have a family and then work parttime, meaning their income is lower for longer — and that feeds into how much they can save for retirement.
A financial adviser with Trustees Executors, she believes women could be doing more to help themselves.
When it comes to the mistakes women make, she says the age and stage of the individual plays a big role.
‘‘It is not just a gender thing. Personally, I think there is a generational issue with regards to financial literacy.’’
Most of the clients the financial adviser sees are older — those who have accumulated some wealth and now want to protect and invest it. is a divorce, the woman can be left totally unstuck.
‘‘Often the men in their lives, or the stronger dominant partner, may well have been in control of all of the finances, and I have seen circumstances where women have been left suddenly alone and had no idea what was going on in the finances within the household.
‘‘It is absolutely shocking.’’
What to do about it?
‘‘I think that a really good place to start is with generational discussions around how does money work. I think that every parent should be talking to their child from age 5 onwards about savings and how your savings grow over time,’’ she says.
‘‘I think again, talking about it and making the topic less complicated is a really good start.’’
She urges women to talk to friends and family about money and find out what they are doing.
For those looking for a steer on what to do with their KiwiSaver, they could start by talking to their scheme provider.
‘‘Talk to your provider and make sure you are in the right fund, are you maximising your contributions to it?’’
Seeking professional, qualified help is key, she says.
‘‘Most advisers would give up half an hour of their time for free to chat with somebody. I have done it often myself in terms of young women who have made contact and want to know where to start.’’ inclusion committee last year. As well, research showed women were highly stressed by money issues and had low confidence in themselves.
Then the FSC was approached by the Retirement Commission about raising awareness.
The campaign involves financial companies ranging from banks to KiwiSaver providers, financial advisers and trustee companies talking about money to their women stakeholders — both staff and clients — alongside a website that aims to bust common myths with videos of women from the industry.
Every fortnight there will be different topics such as raising financially resilient kids, protecting what matters to you and retirement saving — culminating in a conference at the end of July.
‘‘It’s the first campaign we have really done in a concerted way,’’ Mr Klipin says. ‘‘The momentum is really growing.’’
He said the campaign’s success would depend on women taking action with their finances.
‘‘I think in the end, what will resonate is how many actions are being taken by women across Aotearoa to change their behaviour or habits, or reinforce the fact they are actually pretty good with money. They don’t need to be selfdoubting around the issues where they are actually in pretty good stead.’’
Retirement Commissioner Jane Wrightson said women often related to money in different ways to men, and financial capability messages had not always resonated with them.
‘‘By focusing on women’s particular needs, in ways that will reach them, the sector will support women’s financial empowerment.’’ —