A woman’s relationship with money is as complex and as individual as her personality. But one trait appears to be pretty universal, most women feel stressed and a little overwhelmed when it comes time to think about money. Some choose not to think about it at all until a life event forces them to, or they find themselves disadvantaged and financially dependent.
Have a read of the statistics below from the 2018 Study by Merrill Lynch on Women & Financial Wellness:
61% of women would rather talk about their own death than money
Women’s Number 1 financial regret is not investing enough money
41% of mothers say that being a working parent has made it harder to advance in their careers
An average woman spends 44% of her adult life out of the workforce
2/3 of care provided to older adults is done by women
When a woman reached retirement age, she may have earned a cumulative $1,055,000 less than a man who has stayed continually in the workforce
Women live 5 years longer than men
This is why Nicole Heales, is so passionate about helping women understand their finances. Nicole’s entire business is focussed on teaching women to be clever with money, so they can enjoy the life they want.
Nicole’s entire business is focussed on teaching women to be clever with money, so they can enjoy the life they want.
“It’s a relatively new thing for women to have to think about managing money, historically we’ve grown up in households where mum was in charge of the household budget, but not necessarily other financial aspects, like mortgages, super, insurances. Times have changed, and women need to take control and consider all aspects of money management, regardless of their relationship status”, says Nicole.
"Times have changed, and women need to take control and consider all aspects of money management, regardless of their relationship status”
Nicole believes developing a healthy confidence in managing your money is achievable for all women. “Finances don't have to be tricky, they're actually simple, but you need to understand why you’re doing something and what you need to have in place to gain a sense of financial resilience and security,” she says.
Many women think they don’t know enough when it comes to managing their money which affects their confidence. “It’s best to break it all down and deal with and understand each aspect of financial management individually to stop you feeling overwhelmed,” says Nicole.
That’s why Nicole is so thrilled to be a part of the Thrivers community and kick-off the wealth workshops by focusing on a spending plan. A spending plan is the first very important step to simplifying your relationship with money.
A spending plan is the first very important step to simplifying your relationship with money.
If you want to understand and then improve your finances, you need to do some homework around the way you are currently spending money. We call this your Spending Plan.
To gain financial clarity you need to look at your spending patterns. Are you an impulsive spender or do you know what you’re spending your money on? Are you too busy to even think about it?
“If I could only give you one piece of financial advice it would be spend less than you earn” says Nicole.
You need to open all your bills and take a look at your credit card and bank statements and work out where your money is going and whether you are consistently spending more than you’re earning.
According to ASIC’s MoneySmart website, the average Australian cardholder pays up to $700 on interest annually. A Wesley Mission report released in 2015 found that women were less likely to pay off their credit cards debt on time. You can’t be financially secure with a credit card debt.
The ASIC MoneySmart website provides a budget planner to help you calculate your income and expenses and a TrackMySPEND free app which helps you to record your expenses on the go.
Knowledge is power and the best way to become confident about managing your money is to learn as much as you can.