Take action to support the women in your life and see them enjoy a brighter future.
Many of us aren’t even aware of this on a daily basis. We receive a healthy salary, can afford the life we like, and manage day to day finances without much issue.
However, a lack of financial literacy doesn’t always present itself on the surface.
For many, it’s not until pre-retirement that they realise they haven’t done enough. For some, it’s the loss of a partner or support person that thrusts the responsibility of assets and money management onto their unprepared shoulders.
So what can we do to mitigate these problems?
With professional support and a generous attitude to sharing financial knowledge, together we can help New Zealand women win with their finances.
We all have someone we can guide.
You may not consider yourself expert enough to give the right advice, but the next best thing is to support and guide the woman in your life toward understanding her financial position and finding the resources to make informed decisions.
Even sharing a blog post can open a conversation and ignite a spark of awareness. You could guide your mother, sister, daughter, aunt, wife, or female colleague toward a better future where she can enjoy financial security and live the life she deserves.
If you’re reading this article, chances are you already have a degree of financial literacy. How could you use that privilege to raise up those around you?
Maree Gordon, Financial Planner at NZFP, has seen both ends of the spectrum when dealing with clients who need a financial plan:
“I see smart and successful businesswomen, and I see women who are completely oblivious to their financial situation. All too often I see clients in concerning situations that don’t need to happen, overwhelmed by stress that could have been avoided if we were to increase our communication around financial literacy.”
Good decisions are guided by knowledge.
Think of a significant woman in your life – how involved in her personal and household finances is she? Does she know where her Kiwisaver is, and how long it will last her in retirement? Does she know what her debt level is, and when her mortgage will be paid off?
Would she be comfortable and confident in making important financial decisions alone?
If you answered “No” to any of these, what knowledge, guidance or contacts could you share to support her toward a “Yes”?
In NZ, the
average woman’s Kiwisaver is 19% lower
than the average man’s, and she’s on track to retire with $80K less. Couple this with the fact that women tend to live longer and therefore need more funds for their retirement years, and you can see why financial education and planning are so important.
If you want to see the women in your life enjoy long, comfortable, financially secure lives, starting early and creating a plan are essential.
So, where can you start?
Maree Gordon believes the most important thing women can do, and the best way we can support the women in our lives, is to understand their situation:
“Ask questions, start to dig in and understand the details of your income, your expenses, your debt and how many years it will take you to be debt free. Understand what your surplus is, and how much extra could be saved or invested each year.”
Invite open discussions around shared credit cards, what steps you will take when your mortgage rolls over and costing out insurance for assets. Talk freely about what personal insurance your family has, who’s life is it on, who owns that insurance and why.
Understand what other investments you may have, who’s name they’re in, are they accessible now or locked until age 55, 60, or 65? What is the risk level of these investments?
Know what Kiwisaver fund you’re in, how much you contribute, and if you’ve paid enough to get the government contribution. Set a goal you want to reach, and figure out what it’ll take to reach that goal realistically.
Plan toward retirement with practicality, rather than trusting it’ll work itself out somehow.
An experienced financial adviser can support this process by knowing what to look for and where to start. Make the process easy with a trusted professional who will keep you on track toward your goals and actively facilitate better money management.
Your awareness is the seed of financial knowledge – so share it, and help it grow in others.
Share your knowledge widely and generously: speak with those around you about their financial situation, and guide them toward the knowledge that will set them up for success and independence.
Whether your loved one is 40, 60, 80, or 14, 16, or 18, use your financial awareness and understanding to share information or invite conversation.
Get those special women in your life to take ownership of their personal financial situation.
Help your daughter, sister, mother, or auntie to create a better financial future for herself. Help her to win.
