Taking Charge of your Financial Wellbeing and Future

The topic of women and money is one that’s been long overdue for some more in-depth scrutiny on the back of the fact that there’s a robust and growing body of evidence that shows an undeniable link between women’s financial confidence and financial wellbeing, in being able to meet current and ongoing financial obligations, feel secure in their financial future, and to make choices that allow them to live life to the fullest. 

Studies have shown that women are twice as likely as men to associate negative emotions with their finances, there being stark differences in women’s everyday interactions with money compared with men. The sobering fact is that women live with more debt, less savings and have less confidence in their ability to retire comfortably overall, often citing knowledge and time as the biggest barriers to getting started and getting ahead. When individuals have low financial wellbeing, they are in turn more likely to be under strain and feel high levels of stress.

In New Zealand, we are fortunate to have organisations such as the Financial Services Council who are committed to growing the financial confidence and wellbeing of New Zealanders and women in particular. On a mission to demystify the topic of women and money, FSC hopes its steadfast work in the sector will empower wāhine around the country with options, freedom and the ability to plan for contingencies when it comes to their finances. 

This year, running from May through to July, FSC has launched the It Starts With Action campaign, offering action-focused events and content ranging from webinars and in-person sessions to interactive activities for women to upskill but most importantly, reduce their money stress and know what to do with their money in day-to-day life and in planning for the future.

The campaign delves into different aspects of financial wellbeing, honing in on key issues impacting women from investing and retirement to protecting your loved ones and having financial conversations with children and partners. “Our Financial Resilience Index released this month shows that money and wellbeing continue to be closely linked, so this is a really important initiative in helping to close that gap and ensure a level playing field. We can only enact change through collective effort,” says FSC Chief Executive Richard Klipin, who has welcomed the initiative. FSC’s campaign will see an event run each fortnight pertaining to each theme and will provide marketing resources, which organisations planning their own satellite activities, projects or events in support can use to champion the cause under the It Starts With Action umbrella. The FSC will also be profiling these activities and those organisations involved.As a part of FSC’s mandate to demystify money for women in the form of authentic impactful action, FSC actively reports on the status of the financial well-being of New Zealanders. In taking a closer look at how Kiwi women approach their finances and the obstacles they may face in achieving financial confidence and wellbeing, their latest research summed up in the report, Money and You – Women and Financial Wellbeing in New Zealand has revealed some sobering statistics. 

The statistics identify women as a priority group in Te Ara Ahunga Ora Retirement Commission’s National Strategy for Financial Capability, with whom FSC has partnered to spearhead engaging conversations and tangible actions that will help shift the current data.

“This report is the first time we’ve shone a light on gender and financial wellbeing in New Zealand, following the recent launch of the FSC’s Diversity and Inclusion initiative with the campaign #itstartswithaction and our commitment to support Te Ara Ahunga Ora Retirement Commission’s National Strategy for Financial Capability”, says FSC Chief Executive Richard Klipin.

The findings revealed over 80 percent of Kiwi women rated their level of financial wellbeing as moderate, low or very low. Furthermore, 60 percent of women rated their investing literacy low, and over 70 percent felt that financial wellbeing influences their overall wellbeing. “Women often relate to money in different ways to men, and financial capability messages have not always resonated with them. By focussing on women’s particular needs, in ways that will reach them, the sector will support women’s financial empowerment,” says Retirement Commissioner Jane Wrightson.

The campaign calls on a collective effort on the part of all FSC members to take action in support of this campaign with the ambitious goal of involving as many industry stakeholders, leaders, non-profits, individuals and organisations beyond the financial services sector as possible. “This support could take the form of running an event, carrying out a social media campaign, publishing your gender pay gap, or something else entirely,” says Kristy Redfern, Co-Chair of the FSC’s Diversity and Inclusion Committee. Founding Champions Mercer (N.Z.) Ltd, for example, have launched a new digital platform, The Table, designed to support New Zealand women at any stage of their life to help grow their wealth. “It’s not too late to get involved at either an individual or organisational level,” says Clarissa Hirst, It Starts With Action project lead and FSC Head of Content, Communications and Marketing. “This is about taking action big or small, so everything counts.”