women & money - home | national financial literacy … 10 childhood – earning and managing...

Women & Money Across the generations

Roslyn Russell & Jozica Kutin School of Economics, Finance and Marketing College of Business [email protected]

ARC Discovery Grant – DP110103808 May 2015

The National Survey

Online survey in 2014

2,013 women completed the survey

Aged 18 to 60+ years

Sampled to achieve even spread across age groups.

18 to 29 years (n = 368)

30 to 39 years (n = 401)

40 to 49 years (n = 392)

50 to 59 years (n = 343)

60+ years (n = 509)

Image source:http://goodcents.123abc.co.nz/wp-content/uploads/2011/07/Children.jpg

Survey content

Experiences of money management in childhood and adolescence

Financial Self-Efficacy scale

Financial capabilities

Perspectives on their financial futures

Responsibility for household decision making

Demographics, income, educational background and employment

Childhood & Money

Negative childhood experiences with money 18% Family did not feel financially secure during childhood 36% Thought their family was less or much less careful with money than other families

14% Photo used on a CC License, by Dawn Huczek, taken from Flickr

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

18 to 29 30 to 39 40 to 49 50 to 59 60+ years

Less careful Careful

Parents were less or much less careful with money compared to their friends parents.

Did not feel that family was financially secure when growing up.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

18 to 29 30 to 39 40 to 49 50 to 59 60+ years

Not secure Secure

Image source: http://www.momtrends.com/2011/11/moving-saving-tips-for-moms/

Parents engaging in conversations about money

Discussed* their personal financial decisions with you 36%

Talk about importance of saving for the future 79%

*When you were growing up, how often did your parents….. Sometimes/often vs. never

74% Talk with you about how to handle money

Displayed concern or worry about money 74%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

18 to 29 30 to 39 40 to 49 50 to 59 60+ years

Sometimes or often Never

Talked to you about how to handle money. Discussed their personal financial decisions with you.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

18 to 29 30 to 39 40 to 49 50 to 59 60+ years


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

18 to 29 30 to 39 40 to 49 50 to 59 60+ years


Display concern or worry about money. Talk with you about the importance of saving for the future.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

18 to 29 30 to 39 40 to 49 50 to 59 60+ years


Childhood – Earning and managing money

Parents or relatives regularly gave you money 51%

Personally managed a bank or savings account, or a deposit book when you were under 16 years old

53%

*When you were a teenager….. Yes vs. No

64% Regularly earned money by working for it

Image source: http://www.thisismoney.co.uk/money/saving/article-2476725/Quarter-

parents-expect-kids-work-pocket-money.html

Did your parents or relatives regularly give you money?

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

18 to 29 30 to 39 40 to 49 50 to 59 60+ years

Yes No

Image source: http://www.thisismoney.co.uk/money/saving/article-2476725/Quarter-parents-

expect-kids-work-pocket-money.html

Saving when young

“I wish I’d had someone to advise me earlier in life about saving and investment. I wasted a lot of money and opportunities growing up and as a result struggled financially until recently. I also was a single parent with children who were successful at sport so I constantly took out loans so as not to disadvantage them.”

Photos used on a CC License, by M Yashna and Matthew G taken from Flickr

When you were growing up, who influenced you the most in your understanding of how to handle money?

My mother 32%

Nobody really 20%

27% Both parents equally

My father 17% My grandparents 3% Photo used on a CC License, by Milena Mihaylova, taken from Flickr

“Makes me think about the influence of parental (and grandparental) advice and behaviour when I was young and how much of that has stayed with me throughout my life.”

“My parents battled for money my entire life. One of my worst memories is having to leave a department store empty handed after my mother and I were told that our account was over the limit. I cried a lot when our car was repossessed.”

Photos used on a CC License, by Alan Levine and Jocelyn., taken from Flickr

Live life to the fullest now.

Have a comfortable retirement.

Provide the day-to-day needs of my family.

Provide for the education costs for my children.

Save for a holiday.

Financial Priorities

http://theproscons.com/wp-content/uploads/2014/06/onlineeducation2.jpg http://goodlifezen.com/wp-content/uploads/2009/06/woman-on-holiday.jpg

http://theproscons.com/wp-content/uploads/2014/06/onlineeducation2.jpg

Financial Priorities – all women

Have a comfortable retirement. 50% Live life to the fullest now. 32% Save for a holiday 30%

Provide the day-to-day needs of my family. 80% Provide for the education costs for my children. 60%

http://www.nytimes.com/2006/04/05/nyregion/05dinner.html?pagewanted=all&_r=0 Photos used on a CC License, by Quique Lopez and Dawn Huczek, taken from Flickr

Financial Priorities – only households with children

Have a comfortable retirement. 41% Live life to the fullest now. 25% Save for a holiday 24%

Provide the day-to-day needs of my family. 90% Provide for the education costs for my children. 73%

http://www.nytimes.com/2006/04/05/nyregion/05dinner.html?pagewanted=all&_r=0 Photos used on a CC License, by Quique Lopez and Dawn Huczek, taken from Flickr

Provide for the education costs for my children (n = 897).

Provide for the day-to-day needs of my family (n = 1659)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

18 to 29 30 to 39 40 to 49 50 to 59 60+ years

High Medium Low

My financial priorities…

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

18 to 29 30 to 39 40 to 49 50 to 59 60+ years

High Medium Low

Family the priority 40% feel guilty when spending money on themselves rather than their family

Photos used on a CC License, by M Yashna and Matthew G taken from Flickr

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

18 to 29 30 to 39 40 to 49 50 to 59 60+ years

Strongly agree Agree Neither Disagree Strongly disagree

Have a comfortable retirement (n = 1856)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

18 to 29 30 to 39 40 to 49 50 to 59 60+ years

High Medium Low

My financial priorities…

Photo used on a CC License, by Mike Schmid, taken from Flickr

“I am not worried about my retirement finances because I don’t have enough in super to worry about. I might have enough to hold for possible hip/knee replacement but other than that I will have to rely on pension or possible work. I am 52 at present…. My husband receives a defence force superannuation for an injury that means he cannot undertake paid employment. We live ok but there is nothing left for house repairs, holidays, or new furniture or cars.” “I do know that if I retire at 67 I can comfortably live for 2 years!!”

Photos used on a CC License, by Marcel Oosterwijk and Francisco Osorio, taken from Flickr

Life Events negative effect on financial circumstances

Marriage 17% Death 32%

31% Having children

Illness 58%

Divorce or Separation 59%

Change in employment 38% Financial gain 7% Retirement 27%

Impact of divorce “I would like to add that my former husband was reckless with

money and it was only after the children could earn their own

living and divorce that I managed my finances so much better.

I am retired on the State Super pension without which my

circumstances would be so much harder. All women should join a

secure Super fund, no one should rely on anyone else to support

them through life, economic dependency is slavery.”

“divorce destroyed my financial situation”

“I am in this awful financial position because I have divorced a financially abusive spouse.”

Financial Capabilities

Keeping up with bills

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

18 to 29 30 to 39 40 to 49 50 to 59 60+ years

Real problems

Falling behind

Constant struggle

Struggle from time totime

Keeping up with all

Frequency of running out of money in last 12 months

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

18 to 29 30 to 39 40 to 49 50 to 59 60+ years

Never

Rarely

Sometimes

Most of the time

Always

I am very organised in managing my money day-to-day

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

18 to 29 30 to 39 40 to 49 50 to 59 60+ years

Strongly disagree

Disagree

Neither

Agree

Strongly agree

Staying informed, keeping an eye on . . .

16% 50% 30% 22%

27% 23% 30% 16%

Currently held products

Product 18 to 29 30 to 39 40 to 49 50 to 59 60+ Investments 13% 24% 27% 36% 40% Mortgage 19% 50% 44% 38% 17% Life insurance 11% 27% 32% 33% 17% Credit card 42% 68% 70% 70% 76% Loan/Credit 19% 22% 24% 17% 9% Private Health 33% 54% 54% 53% 61% Savings account 66% 63% 65% 63% 64% Self managed Superannuation

4% 2% 8% 9% 14%

Question

1 It is hard to stick to my spending plan when unexpected expenses arise

2

It is challenging to make progress toward my financial goals

3

When unexpected expenses occur I usually have to use credit

4

When faced with a financial challenge, I have a hard time figuring out a solution

5

I lack confidence in my ability to manage my finances

6

I worry about running out of money in retirement

Financial Self-Efficacy Scale

Financial Self-Efficacy score

6

8

10

12

14

16

18

20

22

24

18 to 29 30 to 39 40 to 49 50 to 59 60+

FSE and Financial Futures

6

8

10

12

14

16

18

20

22

24

Verynegative

Negative Neither Positive Verypositive

FSE and Childhood experiences

6

8

10

12

14

16

18

20

22

24

Verynegative

Negative Neither Positive Verypositive

Thinking about your childhood, how do you feel about your experiences with money?

Conclusions

• Need to understand and work within women’s own frame of reference and account for the importance of their financial priorities instead of trying to change them.

• Importance of the past - there are significant relationships between women’s past experiences, present and the future.

• Financial self-efficacy is a critical factor – we need to explore this further.

• Recognise the devastating effect of family breakdown and illness on women’s financial options and security.

• Need early and sustained intervention

women & money - home | national financial literacy … 10 childhood – earning and managing...

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