The federal government announced in the 2018–19 budget that it would be providing $10 million for initiatives that “develop women’s financial capability” and put “women in control of their financial lives” as part of a $50 million fund to promote the financial capabilities of Australian consumers.
ASIC is the lead agency responsible for the National Financial Literacy Strategy, which aims to improve the financial wellbeing of Australians by advancing their financial literacy.
ASIC wants to inspire and motivate more women to talk about money so they are more confident when making financial decisions. As part of ASIC’s established financial capability program, ASIC has released a series of videos – Women talk money – featuring Australian women sharing their personal money stories and habits.
Research by ASIC found:
- 46% of women find money decisions overwhelming and stressful
- On average, women retire with half the super balance of men ($230,907 versus $454,221), and
- 85% of women under 35 don’t understand fundamental investment concepts
Women need to talk about money, so they can share stories and learn.
‘We want women to engage with their finances and secure their own futures,’ said ASIC Commissioner Cathie Armour. ‘We want to encourage them to share their personal stories and have real conversations about money so they become empowered. We believe this is the best way for women to have real control over their financial futures.
There are inequity issues to consider, the gender pay gap cannot be ignored,’ she said. ‘And workforce issues are often further complicated by the fact that women tend to be carers – whether it’s for young children or elderly parents – and career breaks create situations where women don’t have the same continuity of earning their male counterparts have.
‘Women often focus on the everyday needs of their families and lives and have looked at money in a very immediate way. We want to change this and encourage women to look at money from a longer-term perspective.
‘More than 3.5 million women visited ASIC’s Money Smart website last year and they are accessing information to make informed decisions. However, we want more women to access and share the information we have designed for women to take control of their financial lives.
ASIC Deputy Chair Peter Kell emphasised that thinking long-term is important and he wants more women to plan for the future and think about their superannuation.
‘If young women are more engaged with their super, and stay engaged with it throughout their careers, they stand a much better chance of financial independence and self-determination in later years,’ Mr Kell said.
At MC Mortgage Solutions we’re passionate about financial literacy and we encourage you to have a look at the Money Smart website. Also have a read through the other informative blogs we have here on our website and please give us a call to have a chat.