playing it safe: women, advertising and financial...
TRANSCRIPT
Women are increasingly in control of household finances
1 in 3women admit that if they were
separated from their partner they would need help to get up to speed
with their personal finances
Between 1998 and 2013, the number of working mothers who are the main breadwinner rose by
But many women feel less confident when it comes to finances
Research suggests that a majority of women of all ages
will be in charge of every household financial decision
by 2020
80%And now one in five women in the UK are the main breadwinner
Fewer women than men feel
confident making investment decisions
53% 38%
Women are increasingly holding and earning more money
The Centre for Economics and Business Research (CEBR) thinks female millionaires will outnumber male ones by 2020, and by 2025 women will control 60% of the
nation's private wealth.
The number of women
earning £1m+ a year is growing
three times faster than the number of men
Fewer women than men own a stocks and shares ISA
But they are not yet realising the full potential of this wealth
17% 10%Women’s outcomes at retirement remain poorer than men’s – even when gender pay gap issues are accounted for
Our experts felt that the industry has not reflected the change in women’s roles yet
…the rise of the professional, 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
[FS Companies] are still talking to women like they’re a little bit irrelevant.
Consumer champion
Women’s role in society is changing…
…but financial services remains constant in its
approach
Products are unisex… …but ways of talking and visualising them often aren’t
…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
Women are increasingly making decisions about
financial products…
…but industry is dominated by (older) men
The need to feel safe defines women’s approach to financial planning to a much greater extent than men’s• For the women we spoke to, maintaining financial
security was especially important because: • You are providing for the family – and children above all else• You can respond to emergencies quickly 55%
62%
Security
Men Women
When it comes to planning my finances, the most important things to me are:
(n:2084)
You have responsibilities. The key thing for me was what if
something happens tomorrow?
I worry about money and our finances, our future, I take that
stress on
Having kids, getting a mortgage, all these things
made us more responsible. You have more important people
than yourself involvedWhen you have children, it’s vital to plan your money – it’s
their future at stakeIf you don’t there are
implications, charges, you lose money, you’ve got to be savvy
about it
While men are significantly more likely to choose elements that relate to ‘making money’ as important in their financial planning
• Which women rejected and criticised as a less than sensible approach…
24% 24% 24%
18%16% 15%
Growth Returns Profit
Men Women
When it comes to planning my finances, the most important things to me are:
(n:2084)
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’
Men are more inclined to short-term gain over long term profit and sensibility
I was taught very early on ‘look
after the pennies and the pounds will look after themselves’
They [men] don’t think of the risks
And when women think about financial services, confusion and worry is top of mind in an alien world
Not very accessible to the everyday person, not just women, the
everyday worker
Unwelcoming, patronising, full of jargon
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
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
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
Money management becomes a significant part of their lives –every day, multiple times a day
I manage my money in my sleep. I wake up early, 2 o clock in the morning, the first thing I do, pick
up my mobile, make sure the money’s there
Because I use my banking apps, it’s
essential. I’m literally standing on
the school run making payments to
people
I think this [card reader] is my life now when it comes to finances…I actually have one of these
in every single bag.
• Spending a lot of time managing their money
• Checking accounts almost addictively
• Thinking about £££ 24/7
• Therefore highly reliant on remote banking
• Keeping card readers in multiple places
It consumes me, it’s part of me, keeping up my own finances is something I think of multiple times a
day
They extend their control to the household to ensure that the family as a unit is on track• Often taking the
lead on joint accounts
• And being responsible – often solely - for larger household decisions
• Monitoring budgeting for for big expenses like family holidays
I’ve always managed my money. I’m very bossy, we’ve got our joint account, we’ve got our separate accounts…I’m just better at it
It is a lot of responsibility, sometimes I just
wish I could switch it off [dealing with finances] just for
one day
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
And they are highly emotionally invested in the roles they have created – feeling pride in the precision it requires• They view their role as
driven by a need for discipline and precision –and are proud that they do it well• Being in charge of the
money is a point of pride• Often contrasted with
their partners’ more laissez faire approach
• Or keeping up with their friends
It’s being really stringent that money is in the right place, being
disciplined
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
My friends and I are quite competitive about our finances,
being savvy
Do you think our partners are like that
because they know that someone else is
taking care of it?
In my mind here’s a checklist, of what’s gone out, what’s gone in…I’m being organised, every
single day
Women’s financial approaches in case-study
Sometimes it’s difficult for me to ‘leave the office’, I can be on holiday and still
do it
• Work can be very intense and demanding and finances require constant monitoring
• Relies on apps • Is the lead for financial
planning for holidays and home improvements but relies on her partner to initiate investment conversations
If you don’t keep up, there are implications…you have
to keep control
• Prides herself on being financially savvy
• Feels she is the only one in her family who really knows what’s going on with their finances
• Manages both her and her husband’s accounts
• Despite high level of control does not invest
When you have children. I need to provide properly
and be organised
• When it comes to managing her money, Liz lives by her spread sheet
• Planning for the future financially is really important because that is the kids’ future
• She sets funds aside well in advance for special things like holidays and birthdays
Women generally feel less confident about investing than men do – seeing it as an unnecessary gamble
• Investing is:• Risky, a gamble• Short term, quick wins• For ‘spare’ cash• Full of confusing language – tracker funds,
percentages, FTSE?
-8%
13%
NET: Agree
NET: Disagree
I think I am less knowledgeable than other people when it comes to investing my money
[Investing] would be too risky for me
I suppose we are more risk averse
Men are more inclined towards the
short term gain over long term
profit and sensibility…There’s
more risk in the short term gain
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
What is a dividend?!!
We’re meant to be financial queens but I don’t know
Not one of the women in our workshop of highly financially engaged and confident women knew what a dividend was
Instead they count on ‘safer’ options: long term, tangible, easy to understand, sensible…
I’ve invested in property,but I didn’t look at it as an
investment. It was something for the kid’s
future
Save as much tax free as you can, take it out, move it to the next place, you got to be savvy about it
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
PROPERTYTheir ownBuy to let
SAVINGSCash ISAsPremium bondsInstant access
PENSIONSWorkplacePersonal
• Tangible asset• Feels long term - can
pass on to children• Have experienced
inheriting property• It’s the ‘done’ thing
• Understood and simple• Secure – can’t lose• Accessible and can be
repurposed in an emergency
• Sensible to have one –even if you don’t trust them
In fact investing is for someone else
• The stereotype investor is not them, instead they are
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
I associate investment with wealthy people so it’s hard
for me to relate to. Investment is out of my
reach
Most of my friends are in banking, most of them are
male, when it comes to finances, it’s down to them
But many would like to know more
Often feeling that investing was something they ought to be looking at…
• …but that their current financial set up meant it was not viable at this point in time (because investing is for very rich people)
• …or that they didn’t have the time (because investing is complicated and requires dedication)
I just don’t know a lot about investing; I’m not really very knowledgeable but
feel I should know more?
I wouldn’t mind knowing a bit more about it. It’s been opened up to a wider
audience
Yeah, if I had some spare money, I’d like to know how to invest it properly
Yes! I do want to master the game! But should it be a game?
The biggest gap is the lack of a ‘trusted voice’ that they could turn to for help to navigate these uncharted waters
So much to do already it’s hard to keep up – can I add
another thing?
So much information –what’s the right
information?
I know I might need advice, but how do I find an
adviser?
I’m like a dry sponge. I’m ready to take in the information. I start mopping up and then I
think that’s not right and I start squeezing it out. I want to be able to absorb the right kind
of information that I can trust
Not really then knowing, makes me feel distrusting, not wanting to invest in that. I prefer to buy in independent research or
advice…but then that becomes very daunting
Martin’s money tips, I get through email, the message I feel is: ‘it’s up to you, all you
have to do is keep track of interest rates, keep up to speed’ – this makes me feel slack,
I’d like things to be simpler
Communications about investing often reinforce the sense that it’s risky and for someone else with both language and imagery
Investment typically described by:• Returns• Profit• Percentages / anticipated
growth• Risk warnings• And describe it as a game
I assume investing is risky and a gamble…
Investing is typically illustrated with:• Men• Lots of technology• In ‘rich’ settings• Posh, historic settings• Traditional corporate
I assume investing is for older, wealthier men…
An example in practice
I don’t understand…why hunters so literally?
Looks like it’s aimed at older men
Looks like you would have to have a substantial
amount to invest
Snap reaction from the room:
Profit hunters – already aligned with the wrong priority
‘No boundaries’ – confirms fears over being risky, out of control
Image shows men – engaged in a hyper-masculine, risk filled game – ‘big game hunting’
Brand is unknown and name is alienating
Style and focus of images speaks to a colonial past
This is targeted to everyone
Looks quite simple, easy to understand
This could be me and my husband, although we’d be on the couch
at my house
An example in practice
Snap reaction from the room:
Couple working together to make the decisions (albeit slightly patronising as if man is helping woman)
Language points to simplicity –not risk or need to be an
‘expert’Set in a home – not the city
Five rules for engaging with women
12345
Respond to women’s need for security with tangible account of what happens to their £££
Recognise their need to have control as far as possible
Make it clear that the outcome is more than just profit: This is preparing for the future
Choose words and images with care – investment is sensible, not a risky game
Celebrate the role that women themselves take great pride in
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