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Removing the stigma of women and money
Society tells women that earning money, investing money and mastering money is men’s work. Removing this stigma is the first step to solving the gap between women and men financially, an industry expert has suggested.
Removing the stigma of women and money
Society tells women that earning money, investing money and mastering money is men’s work. Removing this stigma is the first step to solving the gap between women and men financially, an industry expert has suggested.
In celebration of International Women’s Day on 8 March 2020, nestegg is celebrating all things equality and the importance of recognising and realising women’s rights through a financial lens.
During a conversation with nestegg, Fox & Hare co-founder Jessica Brady explained the challenges women face financially and what they can do to improve their outcomes.
“The very first thing we need to do is remove the stigma that exists between women and money. We will never improve financial literacy if women continue to feel shame, guilt and fear about money,” Ms Brady said.
“Beyond this, ask for help! Ask your friends, family and colleagues what they think about money. What are their top tips? Where have they made mistakes and how can you avoid them? There are a huge amount of books, podcasts and online resources to help you start on your journey.”
The finance guru believes that it is important for women to start as soon as possible to take advantage of compound interest.
“One of the best ways to build long-term wealth and master money in your 20s is to understand your options when it comes to investing. Even on an entry-level or part-time salary, you can still start small and get your foot into the investment door. In fact, the sooner you start, the better off you’ll be in the long run. In a nutshell, start investing early, ladies!” Ms Brady said.
Ms Brady also noted the importance that women get what they are owed when they are younger to ensure they do not have problems later in life.
“Get paid your worth! Make sure you are being paid your worth for your role. Be proactive about asking for a review (make sure you outline the ways you have delivered quantifiable value to the business). Your employer is adding 9.5 per cent to your super every year; if you get paid more, there is more being saved for your longer-term needs,” Ms Brady said.
Finally, the co-founder explained women looking to get ahead should focus on superannuation strategies to secure their financial futures.
“Consider if you should sacrifice your salary sacrifice. Use pre-tax money to put into your super fund. There is a cap of how much can be contributed to super via concessional contributions, so do the numbers first to make sure it’s right for you,” Ms Brady said.
She advocates for women who have taken time out of the workforce to have children to consider splitting superannuation with their partner.
“Have you elected for your partner to split their super into yours for the period you are on leave (yes, you can do that)?” she said.
“The divorce rate in Australia is high, it’s not a nice nor romantic thought – but it’s an important one for each of us to consider. What would this do to your level of financial security and what is your strategy to ensure you have a level of financial independence?”
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