Lets Talk About Money

15 Comments

The gender pay gap is a well known and depressing fact. Research by the University of Canberra has found that over the course of a lifetime the average Australian woman can expect to earn approximately $1m less than the average male. Throw in a university degree and the deficit leaps to $1.5m – which is kinda sucky. It will come as no great surprise that Australia also boasts a significant (and stubborn) gender wealth gap across all age groups. A study has revealed that in 2010, single men’s wealth was on average 23% higher than single women’s wealth holdings.* The sad thing is this disparity has grown over the past ten years. With many women taking time out of the workforce to care for children things only get worse over our lifetimes and women end up retiring with 43% less super than men.**

Believe it or not there are better ways to manage your cash.

Believe it or not there are better ways to manage your cash.

It seems that part of the problem (according to the interwebs anyhow) is that women are still less confident with money and are not taking an interest in investing (either in property, shares of otherwise). Of course this is a generalization but its the vibe I’m getting from the interwebs. The message that women are lagging behind men in financial literacy is coming over loud and clear. Here’s a couple of snippets.

From Amanda Steinberg – CEO and Founder of Daily Worth

As women, we’ve been socialized to think we’re bad with money, or that engaging with money is somehow ‘unfeminine,’” Ms. Steinberg explained. “It’s ironic that a gender typically so concerned with health, wellness and family security would also be averse to understanding the fundamentals of investing.

Then there’s this from a report by the Australian Financial Literacy Association.

This report tells us that many women already have the budgeting and saving habits that are essential to putting yourself in charge of your money. When it comes to investing, planning for the future and retirement – all the things that allow you to take control of your money in the longer term – women are less confident in their ability.

And finally this from the Australian Workplace Gender Equality Agency.

Research by the ANZ Bank identified that women, as a social group, had lower levels of financial literacy than men. The Australian Divorce Transitions Survey similarly found that women were less knowledgeable than men about the value of their superannuation and their partner’s superannuation. Other research showed that while women were generally confident in their abilities to manage money on a day-to-day basis, and were aware of the need to provide for their retirement, they were less confident than men in their abilities to make long term investment decisions, and tended to be conservative in any investment decisions they did make.

I don’t know about you but I this stuff is making my want to do a Sir Patrick Stewart face palm. Actually make mine a double.

doublefacepalm med

As dire as this sounds I am not 100% convinced that it is true. I qualify this by ashamedly admitting that over the last few years I have been lost in the haze of child rearing and have taken my eye off the money ball. Nevertheless I am a statistical sample of one – not proof of anything. I’d like to turn the question over to the blog reading public.

Do you ladies and man (Yes you – Tunnel Ed – the only male reader of this blog), believe that women are less financially competent than men? Do you have investments under your own name? Do you have equal input into the big financial decision of your household?

When it comes to managing your money, what are your greatest concerns? Is it getting rid of that pesky mortgage, saving enough for retirement, covering your kids’ education? All of the above?

How are you tackling these problems?

What would you like to learn more about?

Love

Mumabulous

 

Miley shorts the USD

Miley shorts the USD  (very bad financial pun)

 

Preferable to leaving it in the bank with interest rates the way they are.

Preferable to leaving it in the bank with interest rates the way they are.

 

*http://www.smh.com.au/national/rich-man-poor-woman-the-gender-wealth-gap-widens-20141108-11igay.html

**http://www.australiansuper.com/superannuation/women-and-super.aspx

Oh my! How did that get there?

Oh my! How did that get there?

15 thoughts on “Lets Talk About Money

  1. I see terms like investment and mortgage and finances and kind of just laugh. It’s awful, but we as a family have no investments, no mortgage and our finances, these days, are the pay cheque to pay cheque kind. We don’t earn terrible money, but the cost of living has gone up massively for us- from power bills to groceries. When it comes to home ownership- we are locked out. We don’t even dream about it anymore.

  2. LOLing at Kit. Now I’m completely distracted from the reply I was going to give….

    Anyhoo, will try and carry on. I think financial literacy is also heavily influenced by class and family upbringing as well. I grew up in a working class family, with parents who came from no money. My father was an immigrant and my mother was from a very large, very poor family and she spent stints being fostered out as a child. My parents did incredibly well to overcome that poverty to establish themselves as adults by, buying a house and remaining debt free, but there wasn’t money left for investments (other than owning their own house, which was a massive step for them compared to their parents). It wasn’t even on their radar.

    I was lucky to have grown up in a working class family where my father worked hard at a manual job and didn’t drink or gamble everything away. My parents were responsible with their money, but not risk-takers. By example, I was taught how to to be frugal, how to save and to fear credit cards, which has held me in good stead as an adult but that was about as sophisticated as financial literacy got. For me personally it is more a class thing than a gender thing, but I can see in the bigger picture how that contributes. I am living example of a woman who has fuck all super and a career that has been impacted by children. But, we’ve focused on having a house as our main asset which we own 2/3 of and will probably invest from that foundation later in life, once the kids are grown.

    Woah. Essay. Hope that makes any sense whatsoever. Was I even on-point?

  3. TL DR; Refer to “Rich Dad, Poor Dad”. And even that is sexist….

  4. I honestly never thought kids would cost so much. I was one of these naïve people who only thought about babies, not growing children. Now I have 4 kids 15-8yrs and they are costing me a fortune. I am now heading into full time work just to stay ahead… Still trying to win this tattslotto game.

  5. Which is kind of funny given most households I know have the finances managed by the woman. Then again, I have no shares or investments other than my house and my HECS debt… #TeamIBOT

  6. Yeah… I call BS on that theory, too. I think it’s WAY more complicated than that.

    Defining someone as ‘single’ doesn’t really cover the nuances. I’m single but have spent the last 13 years being the sole parent to my daughter after a divorce that sucked dry every investment I had. I’d love to be busy investing but in truth I, like many other women, am focused on immediate needs and the basics.

    Once those commitments are done (if they ever are!) I’ll be starting again, from nearly scratch, so I’ll get myself a good Index fund and throw everything I’ve got at it and the mortgage. It really isn’t rocket science but you need the funds to invest in the first place.

    That’s my theory anyway…

  7. I’m in charge of the finances in our house so blowing that theory out of the water. I think the fact that women are underpaid for the same jobs as men and are the primary carers of children put us at a disadvantage in statistics.

  8. I have slowly started learning about the Stock Market, making very slow and small progress in the education. I call it my hobby to take the stress out of such a worthy yet daunting venture. I want to be prepared to play with my money and I do say play because I want to take it very seriously but I don’t want to be frozen by fear when I do say, right I am game enough now. Previously I have done a number of jobs so my Super is all over the place, getting administration fees charged left right and centre, however I feel confident that when I say it is time, I will investigate with a open yet thorough eye and get all my financial setting comfortable to the point where I sleep well at night. As for the statistics on woman still not earning what men do, I find it disappointing but a fight worth changing. Because as history already illustrates without us taking charge and doing the excellent jobs we do many changes would not be in place today – Amen to all of us sisters.

  9. I’m a tight arse and always question Scotto who likes to spend. He looks after the bills however because I find it all painful. I read something the other day about women being less inclined to negotiate salaries or they’re less aggressive than men so the CEO of a particular company (who is a woman) has cut out negotiations. That’s positive I guess and just shows there should be more women in charge. I can not believe that in this day and age a company deems it appropriate to have different pay scales for men and women.

  10. I AVOID THESE ISSUES LIKE THE MEASLES

    Willing and eager to read anything you have to say.

  11. I used to have my financial stuff together but a nasty divorce totally wiped that out, for now I just focus on the mortgage and then when I’m working again I’ll start getting back on track.
    The statistics on the financial outcome of divorce are pretty interesting most often it’s a financial blip for men and something a large portion of women never regain the ground on.

  12. I’m the holder of the purse strings in our family. I think the only reason why women could possibly considered not as good with money is because we are usually tasked with the more important task of caring for people and in such times it’s hard to put money at the top of the list x

  13. I’m all in. I managed my money for years before I met the husbie (who incidentally is in banking), so I was always going to be involved. We make decisions together. We have a joint account and I have a separate business account for my business. I manage my own affairs. I can’t imagine being any other way. x

  14. Personally, I would like to have a stable enough income to buy a house one day!

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