Women controlling their own purse strings..
It is more important than ever that IFAs are looking after their female clients. Anna Sofat, managing director of Addidi Wealth, says: Women’s relationship with money has changed out of all proportion over the last 30 years, with women now handling all areas of their personal finances themselves – a far cry from than their mothers’ generation.
“Historically, women did not work, tended to rely on their family or husbands for financial support and never had to deal with money matters.
“Today, most women work and have to make important decisions as to how they manage the household income, rather than just handling a weekly budget for food and clothing, as used to be the case.
“With independent incomes, today’s women are taking out mortgages, ISAs or pensions and shop around for general insurance such as car, home and holiday insurance.
“Women are also investing substantial sums in equity portfolios and although they tend to be more risk averse than male investors, they are increasing in confidence and beginning to branch out into more specialist investment areas such as angel investing.
“More and more women are buying property in their own right, either because they are single or as a result of divorce, so they are much more confident in dealing with home ownership issues. While women initially found it hard to handle credit card debt 10 to 20 years ago, they are now becoming more savvy about the different types of credit available and how to manage it in a cost effective way.
“Furthermore, a majority of the UK’s 3.4m self employed are women, as many turn to self employment as a means of supporting themselves. By doing so, they are contributing to the economy, generating jobs and wealth, as well as paying tax. Research also shows that women make more rounded business managers as they have had to learn to juggle the competing claims of work and family on their time.
“By controlling more of the nation’s wealth, women are gaining in confidence and playing a greater role in the financial policies of the UK. Today there are women in senior posts at HM Treasury, the Bank of England, the Houses of Parliament and economic think tanks. The current Economic Secretary to the Treasury is Chloe Smith, MP, and Lady Susan Rice is a member of the Court of Directors at the Bank of England.
Addidi welcomes the greater influence exercised by women in today’s economic world and feel it boasts well for a more caring capitalism going forward”
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