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1 FEMALE FINANCES FORGED IN FEELINGS AND FAMILY Women more likely to see money choices as life or family decisions rather than ‘financial’ decisions 3 September: Research released today as part of MoneySmart Week shows how significant the influence of family and relationships are to women’s approach to personal finance. “Our research confirms that gender very strongly shapes financial decision making and wellbeing,” said Professor Roslyn Russell of RMIT University’s School of Economics, Finance and Marketing. The qualitative study led by Professor Russell focused on the factors that underpin or influence how women make decisions about money. Key themes that influence women’s money decisions include: Family • Experiences had as a child played a significant role in shaping women’s views about money • Providing for children was the most common significant factor in financial decision- making • “The woman’s money is the family’s money, the man’s money is his money” “Having information or knowledge wasn’t enough to motivate women to make changes to their financial management habits,” said Russell. “The major motivation for seeking financial education or information was to provide a more comfortable, easier life for their families or children.” Relationships • Negative outcomes of decisions made by a spouse had life-long consequences in how women viewed money and made financial decisions. • Finances were inseparable from their emotional journey and the relationships held with family, partners, children, and friends. Trust • The trust that women had in a source of information was more critical than the information itself. • Without a trustworthy source, no decision was deemed better than the wrong one. “What was interesting was the lack of confidence, or the perception of roles within the family, which held them back from being part of financial decisions. “Several women allowed all large financial decisions to be made by their partner or spouse, and in many cases this put them at significant disadvantage,” said Russell. MoneySmart Week is urging women to get more active in financial decision-making beyond managing day-to-day budgets. The Week is the perfect opportunity for women – and men – to do a money health check and find out which areas of their finances need most attention. The Money Health Check provides people with a personalised action plan with some simple steps they can take towards better money health.
