What drives women’s money decisions?
Research[1] shows women are often motivated by one key driver when it comes to managing money – and it’s not their own financial wellbeing.
Since 2011, industry super fund-owned bank ME has produced a bi-annual study called the Household Financial Comfort Report. Over the years, this study has consistently found that women lag behind men when it comes to financial comfort. And there’s a simple reason why.
According to Roslyn Russell, Research Professor in the School of Economics, Finance and Marketing at RMIT University, women tend to base their financial decisions around the wellbeing of their family, rather than themselves.
A study Russell co-authored called Women and Money in Australia: Across the Generations found that 80% of women indicated that providing for the daily needs of the family was a high priority.
It’s often not until women reach their 40s that they start saving for their own future. By this stage, it can be much harder to achieve financial independence.
Taking care of your own financial health doesn’t have to be synonymous with neglecting the wellbeing of your family. Taking the three simple steps below can be the key to a financially fitter you.
- Aim to grow savings
Setting just a few dollars aside into a savings account each pay day can be the start of something big – a savings pool for the future.
Growing savings is not just good for your financial health. Professor Russell says: “Saving is like magic. There’s a psychological benefit to saving, and it provides you with a sense of security.”
- Set some goals
Try mapping out some financial goals, like where you want to be in retirement. This gives you something to work towards, and benchmarks to tick off as they are achieved.
- Get to know about money matters
Take advantage of the wealth of resources available on money matters including Ed – ME’s free online school of money. The more you know, the better placed you are to make informed decisions about how to spend and save your money.
Spread the word
Share your money learnings with other women. In particular, when women teach their daughters the value of financial independence, the result can be a powerful exchange of knowledge that helps to close the financial comfort gap.
This article is brought to you by ME. For more information, please visit www.mebank.com.au
Members Equity Bank Limited ABN 56 070 887 679 AFSL and Australian Credit Licence 229500.
[1] http://researchbank.rmit.edu.au/view/rmit:40136
