New Report Sheds Light on Women and Money

Press Release

3 April 2008

A new report on what Australian women think about money was launched today by Mr Paul Clitheroe, Chairman of the Financial Literacy Foundation's Advisory Board.

Financial literacy - Women understanding money is the result of a comprehensive survey of women's self-reported abilities, attitudes and behaviour on a range of money management issues, from budgeting and saving to investing and protecting money.

"There's no question that it's important to focus on financial issues for women," said Mr Clitheroe. "Women are more likely to have time outside the paid workforce and lower incomes, which in the end means less superannuation. Not only that, women's savings need to go further because they tend to live longer."

Many women already have good budgeting and saving habits. But when it comes to investing, planning for the future and retirement - all things that allow people to take control of their money for the longer term - women say they're less confident in their ability.

• Over 70% of women say they're confident in their ability to manage money, except for investing (63%), understanding financial language (60%) and ensuring enough money for retirement (60%).

Women and men have similar day-to-day money management habits, but women are more likely to say that they regularly budget for day-to-day finances (women 53% men 44%). Women are also more likely to invest in their own home (women 64% men 60%), but less likely to have other investments (women 43% men 49%), say they understand financial language (women 60% men 68%), have the ability to plan for their long-term future (women 77% men 84%) and ensure enough money for retirement (women 60% men 65%).

Importantly, the report found that women want to learn more about managing money better.

"I'm pleased to see that investing, planning for the future and retirement are all areas where women are interested in learning more - and when it comes to taking charge of your money, there's no better place to start than wanting to learn," said Mr Clitheroe. "And it's not just important for women - I'd encourage everyone to take control of their long-term financial plans, as well as putting themselves in charge of their money day to day."

The report also contains valuable information about the way women prefer to learn about money, and measures the impact of certain attitudes - from finding money stressful and overwhelming to living for today - that can stop women from learning, particularly about planning and retirement.

Further information

The Financial Literacy Foundation's research reports, Financial literacy - Women understanding money (April 2008) and Financial literacy - Australians understanding money (September 2007), and Women understanding money, a series of 14 information sheets for women looking to build their money skills, are available by contacting the Foundation at financial.literacy@treasury.gov.au or visiting www.understandingmoney.gov.au.

The Understanding Money initiative aims to give all Australians the opportunity to better manage their money. For more information please visit www.understandingmoney.gov.au.