Money talk—why do women continue to ignore the conversation?
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There’s a phrase of motherly advice that’s been handed down to daughters for generations. “No man is a financial plan”. So why do women continue to ignore this warning and hand control of their financial futures over to their male partners?
Dr Sally Kelty says male entitlement has placed women in significant financial peril. As a criminologist and psychology researcher at the University of Canberra, Kelty has seen first-hand gaslighting opportunities created for males when women do not understanding or take control of their finances. Meanwhile, women continue to face higher levels of poverty and homelessness, particularly in older age, when their partnerships break down. Combined with the gender wage gap and lost earnings through child-rearing, it paints a bleak financial picture and a cautionary tale for young women entering their careers.
“Women are perfectly capable of looking at and understanding stocks like any man.”
“However, it’s almost like it would be considered normal that women are hopeless with money, or how would a woman be expected to know about the stock market? That’s the man’s job. So still, in our society, we have some very entrenched beliefs about the role of women.”
According to studies researched by Kelty, when men control money, there is a greater risk of financial abuse in relationships.
“It’s mostly done so that there is power and dominance over the relationship,”
“The man will dominate above or over their female partner,” Kelty said.
Australian feminist writer and social media influencer Clementine Ford has devoted the past few weeks to drilling down on the lack of financial literacy among women and their continued deferral of financial control to their partners.
“The system is designed to f**k women. Know that from the start. The expectation and social pressure put on women to perform the majority of unpaid domestic labour are deeply embedded. Women are the first to sacrifice paid work to pick up whatever slack is considered ‘best for the family’,” Ford says.
So how do women change the system and gain financial security?
Founder of Girls that Invest, Simran Kaur, believes that investing is the answer.
“Women’s super-funds are much lower than our male counterparts,” Kaur said. “That’s because all the time we take off is not compensated for. As you and I know, that (compensation) compounds quite often, but it means the gap also compounds over time.”
“It’s important for everyone, especially women, as we have unique challenges, and I think it’s worth addressing.”
The MotleyFool, a private financial and investing advice company, has found only 18 per cent of women are investing in Australia, and only 9 per cent say they believe they are better investors than men. However, according to recent research by Adviser Voice, a continuing professional development service, women are proven to be better investors, taking risks and impacting social and environmental changes. In addition, women are more inclined to invest in ethical, ecological and socially responsible organizations, stock markets and properties.
Kaur reassures investors by saying, “my true belief is that if you’ve got a long-term strategy, you know what you’re investing for, and you know what you’re buying, then the ups and downs of the market are just part of the overall experience of it.”
“So, you’ve got to task some risks to get some reward, and if the general risks you’re taking make you uncomfortable, that’s a perfect time to review whether you are over-diversified or are taking too much risk. Should you maybe invest in other ways that don’t carry as much risk and therefore are not as much reward?”
Further financial guidance can be found in Kaur’s book, Girls that Invest, now available throughout Australia.
Women investing can positively impact their personal lives and the lives of other Australians. By encouraging other women to invest and investing ourselves, we can lower the risk of financial abuse, gain control of our finances, and therefore gain control of our futures.
As leading money coach for Australian Women, Natasha Janssens, says, “many women have learned helplessness about money, leaving their financial futures in the hands of others.”
“Taking action now is the best move you’ll ever make.”
The attached audio piece with Sally Kelty and Simran Kaur discusses the pitfalls of ignoring financial autonomy while discussing some practical measures to help women better navigate secure financial futures.
