Security is the by-word for good financial planning for many. 3 ... with their personal finances ... How differently do
November 2016
Playing it Safe Women and investing
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Key Takeaways
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Key takeaways
Key takeaways from this work 1
The financial role that women play is changing – yet their levels of investing remain lower than men.
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Women feel less knowledgeable generally, and specifically lack confidence about investing. Security is the by-word for good financial planning for many.
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By contrast, men are more likely to place ‘making money’ as a priority.
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Women tend to see investing as ‘not for them’. Instead, it is thought to be the preserve of ‘older, wealthier men’.
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Advertising for investment products often reinforces this, with many ads focused on growth potential and lacking a compelling female context (i.e. reassuring).
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Key takeaways
What did we do Expert Interviews
Workshop
• Interviews conducted with 6 experts
• With 12 female participants at the forefront of women’s changing relationship with the financial services industry
• Mix of industry representatives, financial journalists, academics, think tank experts • Provided an overview of the issues at play and informed workshop design
• 4 single parents, 4 women who ran their own business and 4 women who were the main breadwinners in their household
Nationally Representative Survey • Online • 2084 participants across the UK • Questions run between 13 and 15 May 2016
• Explored their views of how the FS industry treats them
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The Context
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The context
Women are increasingly in control of household finances Research suggests that a majority of women of all ages will be in charge of every
household financial decision by 2020.
Between 1998 and 2013, the number of working mothers who are the main breadwinner rose by
80%
And now one in five women in the UK are the main breadwinner
But many women feel less confident when it comes to finances 53%
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38%
Fewer women than men feel confident making investment decisions
1 in 3 women admit that if they were separated from their partner they would need help to get up to speed with their personal finances
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The context
Our experts felt that the industry has not reflected the change in women’s roles yet ”…the rise of the professional, …but financial services remains constant in its approach
independent, high net worth woman has only really come about in the last 35 years, which compared to how long financial services has been around is a drop in the ocean” Economist
Women are increasingly making decisions about financial products…
…but industry is dominated by older men
“…the more you go into the bank, the more detailed and complicated the products get…the more older men are in charge of those products” Economist
Products are unisex…
…but ways of talking and visualising them often aren’t
“[FS Companies] are still talking to women like they’re a little bit irrelevant.” Consumer Champion
Women’s role in society is changing…
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How differently do women and men feel about financial services?
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How differently do women and men feel about financial services?
The need to feel safe defines women’s approach to financial planning to a much greater extent than men’s Men
Maintaining financial security is important
Women 62%
55%
• You are providing for family – and children above all else • You can respond to emergencies quickly
” You have responsibilities. The key thing for me was what if something happens tomorrow?”
” When you have children, it’s vital to plan your money – it’s their future at stake”
” I worry about money and our finances, our future, I take that stress on”
“If you don’t there are implications, charges, you lose money, you’ve got to be savvy about it”
Security When it comes to planning my finances, the most important things to me are: (n:2084)
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How differently do women and men feel about financial services?
While men are significantly more likely to choose elements that relate to ‘making money’ as important in their financial planning Which the women in our session rejected and critisised as an approach
Men 24%
Women
24%
24%
• Framing their approach as much more sensible 18% 16% “There’s more of an understanding with women, you have to wait for things patiently, I always save through the year. My husband just says ‘let’s get a loan’”
“I was taught very early on ‘look after the pennies and the pounds will look after themselves’”
”Men are more inclined to shortterm gain over long term profit and sensibility”
“They [men] don’t think of the risks”
Growth
Returns
15%
Profit
When it comes to planning my finances, the most important things to me are: (n:2084)
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How differently do women and men feel about financial services?
And when women think about financial services, confusion and worry is top of mind in an alien world “I’d like things to be simpler, if things weren’t allowed to be so variable… jumping through hoops, that’s what it feels like”
“Unwelcoming, patronising, full of jargon”
“Not very accessible to the everyday person, not just women, the everyday worker”
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How differently do women and men feel about financial services?
Their response is to develop a set of techniques to help them to take back control
Embedding money management practices in their day to day lives
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Controlling as much as they can in their own household
They take great pride in their role and contrast it with their friends’ or partner’s approach
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How differently do women and men feel about financial services?
Their response is to develop a set of techniques to help them take back control Embedding money management practices in their day to day lives
“It consumes me, it’s part of me, keeping up my own finances is something I think of multiple times a day”
“Because I use my banking apps, it’s essential. I’m literally standing on the school run making payments to people”
“I manage my money in my sleep. I wake up early, 2 in the morning, the first thing I do, pick up my mobile, make sure the money’s there”
Controlling as much as they can in their own household
“I’ve always managed my money…we’ve got our joint account, we’ve got our separate accounts…I’m just better at it”
“The way I manage finances, I make sure all the bills are paid, the savings are dealt with and have a little bit extra to have a treat.”
“Because I know exactly what’s coming in and going out, I manage everything. He doesn’t like to admit it, but it works”
Taking great pride in their role and contrasting it with other people
“Women have upped their game. I still do more with the kids and I’m the breadwinner, and I do more round the house and I deal with the money”
“It’s being really stringent that money is in the right place, being disciplined”
“My friends and I are quite competitive about our finances, being savvy”
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How do women think about investing (in a world where they are striving for control?)
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How do women think about investing (in a world where they are striving for control?)
Women generally feel less confident about investing than men do – seeing it as an unnecessary gamble Investing is… • Risky, a gamble 13%
• Short term, quick wins • For ‘spare’ cash • Full of confusing language – tracker funds, percentages, FTSE?
” [Investing] would be too risky for me”
“I suppose we are more risk averse”
”When you look at trading stocks etc, it’s a male orientated industry. So when it comes to investing, men know a bit more than the average women”
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-8%
NET: Agreement NET: Agree
I think I am less knowledgeable than other people when it comes to investing my money (n:2084)
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How do women think about investing (in a world where they are striving for control?)
Not one of the women in our workshop of highly financially engaged and confident women knew what a dividend was
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“What is a dividend?!! We’re meant to be financial queens but I don’t know”
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How do women think about investing (in a world where they are striving for control?)
Instead they count on ‘safer’ options: long term, tangible, easy to understand, sensible… SAVINGS Cash ISAs Premium Bonds Instant Access
PROPERTY Their own Buy to Let • • • •
Tangible asset Feels long term - can pass on to children Have experienced inheriting property It’s the ‘done’ thing “I’ve invested in property, but I didn’t look at it as an investment. It was something for the kid’s future”
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• • •
Understood and simple Secure – can’t lose Accessible and can be repurposed in an emergency
“Save as much tax free as you can, take it out, move it to the next place, you got to be savvy about it”
PENSIONS Workplace Personal •
Sensible to have one – even if you don’t trust them
“I have no faith in pensions at all, the time where you used to pay into a pension scheme and it’s secure and guaranteed is gone”
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How do women think about investing (in a world where they are striving for control?)
In fact investing is for someone else
“I associate investment with wealthy people so it’s hard for me to relate to. Investment is out of my reach”
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“Most of my friends are in banking, most of them are male, when it comes to finances, it’s down to them”
“Men buzz off that, that’s the reason it’s always been a male dominated industry, men are egotistical, it’s all about the win”
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How do women think about investing (in a world where they are striving for control?)
Communications about investing often reinforce the sense that it’s risky and for someone else with both language and imagery I assume investing is risky and a gamble… • Investment typically described by:
I assume investing is for older, wealthier men… • Investing is typically illustrated with:
• Returns
• Men
• Profit
• Lots of technology
• Percentages / anticipated growth
• In ‘rich’ settings
• Risk warnings
• Posh, historic settings
• And describe it as a game
• Traditional corporate
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How do women think about investing (in a world where they are striving for control?)
An example in practice Snap reaction from the room… “Looks like you would have to have a substantial amount to invest”
“Looks like it’s aimed at older men”
“I don’t understand…why hunters so literally?”
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How do women think about investing (in a world where they are striving for control?)
An example in practice Snap reaction from the room… “This is targeted to everyone”
“This could be me and my husband, although we’d be on the couch at my house”
“Looks quite simple, easy to understand”
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How can the industry better engage with women?
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How can industry better engage with women?
Five rules for engaging with women 1
Celebrate the role that women take great pride in – reflect the role they have taken on and the success of their approach to money management
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Respond to women’s need for security with a tangible account of what happens to their money
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Make it clear that the outcome is more than just profit: This is preparing for their family’s future
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Recognise women’s need to have control: choose words carefully, rejecting vocabulary that celebrates the risk
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Become that trusted advisor
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How can industry better engage with women?
The Parent Trap Tracker Fund – ‘Free your future, invest for your children’ Key Features • Low risk • Guaranteed return • Flexible for getting cash out in an emergency • A financial mentor to help you be sure you are getting the most for your money A product designed for: • Parents • Families
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“Are you one of those parents that stays up late at night worrying about your children’s future…?”
“…opportunity to invest that allows you low risk, a guaranteed return, a mentor and a safety blanket for your children”
“It’s designed for families who want to save and invest in their children’s university fees or a deposit for their future property” 24
How did we use this?
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How did we use this?
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How did we use this?
What was the response?
• •
Female fund managers Female investors
Confidence in decisions…?
Broader financial education
Fit with a campaign focus
• •
Personal finance and investing Careers in finance
• •
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Not just women who are confused Are those who are confident making decisions, making the right ones?
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Questions…
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