Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697635643065.pdf (Australia)
August 2007 Women’s Financial Literacy R e s e a R c h R e p o R t Economic security for women in retirementSubmission 48 - Attachment 2 Acknowledgements WIRE Women’s Information would like to gratefully acknowledge: • the 114 women interviewed for the study for sharing their stories and experiences, which, for many, was a very emotional experience • the researcher Robyn Dale URCOT and Jo Argent WIRE Communications Officer • the Helen Macpherson Smith Trust, for funding • the 00 women who contributed to the this project on-line survey • the nine women who completed product examination using the Gender Lens • this publication is based on a report prepared by URCOT for WIRE • the members of the Research Steering Committee, Carolyn Ingvarson, Alex Haynes, Alice Dunt, Katrina Knell, Liz Gillies, Deb Parnell and Samiro Douglas • ING Australia Limited for their support • the assistance provided by Margaret Callinan, Research Manager Financial Facts, ING Australia Limited • the editors of this report, Dave Husy from DeveloPlan Pty Ltd and Toni Jordan Corporate and Freelance Writer • the designer, Fresh Design Network • S4W for design and publishing assistance Glossary actU Australian Council of Trade Unions oecD adFLaG Adult Financial Literacy Advisory Group asX cae caLD cota IRV LsI MDGs NeFe® Australian Securities Exchange Centre for Adult Education Culturally and linguistically diverse Council on the Ageing Industrial Relations Victoria Learning Styles Inventory Millennium Development Goals National Endowment for
 Financial Education® Organisation for Economic Co-operation and Development Office of Women’s Policy, Department for Victorian Communities Product Disclosure Statement Security4Women Union Research Centre on Organisation and Technology Women’s Financial Network Women’s Information and Referral Exchange Inc. oWp pDs s4W URcot WFN WIRe WIs Women’s Information Services  W O M E N ’ S I N F O R M A T I O N W O M E N ’ Economic security for women
E A R C H R E P O R T Economic security for women in retirementSubmission 48 - Attachment 2 Contents ackNoWLeDGeMeNts GLossaRy eXecUtIVe sUMMaRy RecoMMeNDatIoNs INtRoDUctIoN Project background Phase one Phase two Project funding Project management Research methodology Sensitivity to the needs of women Literature review Interviews and focus groups Gender Lens On-line quantitative survey Summary FINaNcIaL LIteRacy aND WoMeN: a ReVIeW oF IssUes Defining financial literacy Women’s financial situation Structural discrimination Labour market participation, pay equity and financial literacy Gender and financial literacy Financial knowledge Financial information and advice Women and learning ReseaRch FINDINGs Money and emotion Financial literacy and confidence Fear of the future Implications for financial literacy strategies Factors affecting the perception of money Family belief systems Class, poverty and money Money is a private matter Implications for financial literacy strategies august 2007 2 2 5 7 9 9 9 10 11 11 1 1 1 1 1 1 15 16 16 16 17 17 19 0 0 1 22    4 4 4 6 6 7 W O M E N ’  Economic security for women in retirementSubmission 48 - Attachment 2 Contents Financial behaviour Financial status Partnering up Factors influencing changes in financial behaviour Financial priorities Seeing your money Implications for financial literacy strategies Building financial control Dealing with the language of money Credit and more credit
 Financial advice Preferred information and support Financial planners Implications for financial literacy strategies Learning financial literacy Learning approaches When to learn about money Implications for financial literacy strategies Financial media: a Gender Lens review Implications for financial literacy strategies Differences among women in the study Women in the regional area Indigenous women Culturally and Linguistically Diverse (CALD) women coNcLUsIoNs ReFeReNces appeNDIX Appendix A: Literature
 Review Appendix B: Focus Group Participation List Appendix C: Focus Group Questions Appendix D: Gender Lens Bibliography Appendix E: On line Survey Questions 7 7 7 8 8 9 9 0 0 1 1 4 5 5 6 6 7 7 9 41 4 4 4 44 46 47 49 50 64 65 66 67 4 W O M E N ’ S I N F O R M A T I O N W O M E N ’ Economic security for women in retirementSubmission 48 - Attachment 2 Executive Summary august 2007 Financial literacy is a global concern.
This study, funded by the Helen Macpherson Smith Trust, sought to discover what women in Victoria understood their financial literacy levels to be, and also ways to improve these levels.

The study researched current trends, best practice models and user-friendly information that support women to increase their financial literacy.

Over 00 women were engaged through this research.

Three methods were used to collect their views: a web-based survey, focus groups and interviews.
In addition, the research utilized a literature review and a Gender Lens to explore research questions.
This study utilised a generic definition of financial literacy, according to three components identified by Hogarth (00): • information about a range of topics, including managing money and assets like banking, investments, credit, insurance and taxes • understanding how financial concepts work, such as the relationship between time and rates, and aggregating assets in insurance • confidence to plan and to make financial decisions The literature demonstrates that women face financial vulnerability through structural discrimination in the economy and the labour market.
The literature also reflects financial literacy as a gender issue, with women bearing the brunt of financial pressure in families.

An important issue raised in comparative studies is the need for specific financial information, services and products to meet women’s specific priorities, needs and learning approaches.

The overarching finding is that women’s relationship with money is driven by personal life experience.
Unless financial information acknowledges and understands this, it will not readily affect this relationship.

Fundamentally, gender is pivotal in all areas of providing financial information, programs and products.

The research elicited a number of themes.

For women, emotion, money and family were interwoven.

Women felt overwhelmed by what they did not know and embarrassed when they discovered what they had foregone, or that they had wasted opportunities to become financially literate.
The feelings of hopelessness, shame and inadequacy in their finances ran deep across all socio-economic groups.

Women in the study were generally fearful about money.

Their lack of financial literacy was a frightening prospect, and many found the language of money to be frightening.

Many women in this study did not have either the first hand experience or the ready access to information to make informed decisions.
They also lacked confidence and knowledge on how to go about accessing the financial market.

The research found a number of factors influenced the perception of money, including family, class and financial status, and considerations of the ‘privacy of money’.

Besides emotional and social factors, the research identified additional influences on women’s financial behaviour, especially with regard to taking control of finances.
Most particular among these was the importance of significant life changes – new employment, divorce or separation, death – in stimulating learning and control for women.

These are often negative events, and extremely stressful stimulators to action.

Women too, have a need for money to be ‘visible’, and property is seen as a preferred investment option for many.
W O M E N ’ Economic security for women in retirementSubmission 48 - Attachment 2 Women are not a homogeneous group and experiences vary, especially amongst CALD women.

The research suggests that family and childhood experiences are integral in shaping different attitudes to money and financial matters among all women.

For example, Indigenous women are particularly aware of, and responsive to issues of poverty and death.
These issues were significant because all of the Indigenous women in the focus groups had financially helped their families following a death.

They were very aware of not just the cost of the funeral, but also the costs associated with the wake, relatives’ visits and supporting grieving family members, and foregoing wages to attend funerals.

The research illustrated that women need information directed at and sympathetic to their own life circumstances.
Two of the major barriers identified in this study were the language and style adopted by financial professionals such as financial advisors, accountants and bankers.

As a result, many participants in this study were wary, distrustful and reluctant to engage these types of professionals unless they were highly recommended by someone they trusted.

Both the form and content of financial products often alienate women.
Materials and presentations relating to financial matters need to be in a language that is interesting, enticing and readily understood by women from a broad range of backgrounds.

The findings have implications for a range of stakeholders, most particularly government agencies and the financial services sector.
It is clear that addressing constraints of financial literacy amongst women will require a holistic and integrated strategy relying heavily on education, communication, services and products that recognise and respond to women’s needs and priorities.

While this project produced rich and meaningful results, it was relatively small.

It also demonstrated that there is limited qualitative data available on the subject.
This shows there are some gaps in our knowledge of the experiences of women and therefore our capacity to develop meaningful policy.

6 W O M E N ’ S I N F O R M A T I O N W O M E N ’ Economic security for women in retirementSubmission 48 - Attachment 2 Recommendations august 2007 The recommendations in this report are drawn from the data generated by the research.
They are intended to empower women, to give girls and women confidence in financial matters, and to assist women to move from information to action with confidence.

Based on the research findings, these recommendations have been formulated for consideration by key stakeholders, including government, the finance industry, philanthropic organisations, business organisations (e.g.

through corporate social responsibility arms), and community organisations.
RecommendAtion Recommended Action Recommendation 1: support group learning opportunities for women to build their individual financial knowledge and confidence.

1.

A stakeholder analysis is funded to identify the potential range of partners required to support these recommendations such as funding partners, promotional partners, development partners etc.

.
.

State and Federal governments (through for example the OWP and Federal Office for Women) explore partnerships to fund the development of a range of programs.

For three optional models, see below.
Three possible models could be: Model 1 A workshop/program developed combining two streams of expertise: • first theme facilitated by a trainer skilled in women- sensitive training to explore women’s emotional relationship with money • second theme to be facilitated by a financial advisor involving building financial knowledge.1 Model 2 Ongoing group program similar to a CAE Book Club or ASX Women’s Share Club model, developed from women-sensitive principles to support women to learn together and build confidence and familiarity with financial language in a supportive non-threatening environment.
(It is important to note that Model  would not provide financial industry advice unless this was nominated and would then need to be delivered by a financial adviser.

The intention would be to explore women’s emotional relationship to money and build confidence in preparation for seeking financial industry assistance).

Model 3 Implement a ‘Train the Trainer’ model based on adult learning principles, e.g.

revise MoneyMinded for women. .


Targeted granting rounds are initiated to fund the delivery of a range of pre-developed programs in local communities e.g.

Neighbourhood Houses, Community Centres, Women’s Health Centres.

1 This model has been developed from both an analysis of the literature and findings from the research.

2 MoneyMinded: ANZ bank MoneyMinded, is an adult education program developed by the ANZ bank that targets low income earners.
The program is delivered by community educators and financial advisors and covers six core topics.

It is flexible and enables educators and participants to select workshops that are relevant to the participants’ needs.

Core topics include: planning and saving; easy payments; understanding paperwork; living with debt; everyday banking and financial products; and rights and responsibilities.

The program has a modular format that makes it adaptable to suit the individual needs of a range of clients.
W O M E N ’ Economic security for women in retirementSubmission 48 - Attachment 2 RecommendAtion Recommended Action Recommendation 2: strengthening communities through financial awareness Recommendation 3: Building capacity in the financial industry to engage women 1.
The Financial Literacy Foundation is encouraged to take on board the findings of this research to expand their program to include a specific multimedia community awareness campaign to encourage women to build financial literacy using the learning from this research.

.

Partnerships are explored across government and industry groups to seek funding to develop and implement a community awareness campaign explaining the role of finance industry advisors to women.

.
.

The initiative of the Financial Literacy Foundation (FLF) to include financial literacy in the core curriculum in years , 5, 7 and 9 from 008 is supported and its expansion encouraged.

1.

A gender assessment toolkit (gender checklist or similar) is developed, pre-tested and implemented to assist financial advisors to understand and use the findings of this research when assisting female clients.

.
.

Gender is considered (Gender Lens or similar framework) in reviewing existing financial information material and developing new financial information materials.

.

Independent interpretative literature is developed to enable women to learn the language of the finance industry and understand basic financial principles.

Recommendation 4: Building better information 1.

Fund further targeted research to investigate gaps identified in this research.
Recommendation 5: addressing the specific needs of Indigenous women 1.

To explore the development of a partnership between the Australian Funeral Directors Association, the national peak industry body, and major banks with First Nations Australian Credit Union to develop and implement an Indigenous funeral saver plan.
8 W O M E N ’ S I N F O R M A T I O N W O M E N ’ Economic security for women in retirementSubmission 48 - Attachment 2 Introduction august 2007 Australian women are likely to live into their eighties and many will have little financial security and will be dependent on government pensions in the later stages of their lives.

A number of structural barriers render women more financially vulnerable than men.
Women are increasingly balancing caring responsibilities, not just of children, but also of aged parents.

They are underpaid in relation to men and therefore have less capacity to build superannuation.

Also, women are more likely to be underemployed than men and are more likely to retain the custody of children after a separation along with the responsibilities this entails.

Increasingly, women are becoming responsible for their own financial security.
In order to do this successfully, women need a better understanding of financial issues to exert control in an informed way.

Women’s financial literacy has become important to governments because women are more likely to struggle to achieve financial independence across their life course.

As the population ages, this will become a more pressing problem for society and the economy.
This project explores the issues of financial literacy for women and represents the voices of the more than 00 women who participated in it.

The strength of this study is the women’s voices, ideas and concerns raised through the research process.

This report is written to present and emphasise women’s voices.
Project background The Women’s Information Referral Exchange (WIRE – Women’s Information) received funding from the Helen Macpherson Smith Trust to progress the key findings of the Women’s Financial Literacy Project Phase One, which was managed by the Council on the Ageing (COTA).

Integral to Phase One was the delivery of a series of workshops to prepare women for financially secure retirements.

PHaSe one In this first phase, COTA retained the Women’s Financial Network (WFN) to deliver the workshops.
Along with the Helen Macpherson Smith Trust, the project received financial support from the Victorian State Government’s Office of Senior Victorians and the Office of Women’s Policy (OWP).

The Women’s Financial Literacy Project Phase One aimed to address women’s lack of adequate financial planning for their retirement.
An overall aim of the project was to address women’s low level of financial literacy by deconstructing the many myths women have about retirement, as well as by providing broad and practical skill development in financial management. The specific aims of the project were to: • address the low levels of financial literacy of Victoria’s older women • raise women’s financial awareness and literacy so they are better able to navigate the maze of financial products and information available in the market place.
3 The OWP has recently released an evaluation of the training in Phase One.

This evaluation is very positive and, in part, success has been measured by the number of women visiting a financial advisor.

A further evaluation in twelve months seeking information from women about whether they then acted on the advice and felt they had some control for themselves over their financial arrangements would serve to consolidate these findings.
W O M E N ’ Economic security for women in retirementSubmission 48 - Attachment 2 The subsequent findings from the Phase One project identified that: • there is a lack of targeted, trusted financial information in the market place that is gender specific • women benefit significantly from access to critical, independent information that assists them to prepare for retirement, and that the sooner they can develop a financial planning strategy, the better • women need to trust the information they are given and are more likely to encounter fear of financial planning if they lack financial literacy • information within the market place is scattered and is often framed in a language that is not user-friendly to women • women report significant difficulties in considering their options because the information is not contained within one framework, and the bewildering array of products and training packages is not helpful without a meaningful framework • the majority of publicly available financial information is not independent but tied to a product PHaSe tWo This second phase of the project, also funded by the Helen Macpherson Smith Trust and supported by ING, sought to: • discover what women understood their financial literacy levels to be and what they needed to improve their financial literacy • research current trends, best practice models and user-friendly information that supports women to increase their financial literacy4 The recommendations were to provide strategies, which ultimately better equip women to navigate the maze of financial products and information available in the market place to achieve a greater level of financial security.
Key activities in this project were to: • research and map current financial resources and assess whether or not they are ‘women-friendly’ • undertake a needs analysis, and identify the gaps in the provision of ‘women-friendly’ information and training • explore with COTA (Vic) the development of a peer educator training program, adapted from existing COTA (Vic) models, which incorporates regionalisation and sustainability models6 • hold focus groups across different groups (i.e.
geographically, racially, culturally and linguistically diverse) of women both in the research and testing phase of navigating the financial maze (for both the on-line and printed materials)5 • identify information strategies to increase women’s knowledge 4 In this research we discovered that the concept of best practice was problematic in this field because very few of the initiatives have been thoroughly evaluated.
5 URCOT held the focus groups with women using a set of questions that emerged as a result of the literature examined while undertaking the literature review.

A pilot group tested the questions and then this framework was used for all groups.

6 This was not undertaken as part of this research though there is evidence to suggest either peer education or elder educators might be a useful strategy, not just for older women.
10 W O M E N ’ S I N F O R M A T I O N W O M E N ’ Economic security for women in retirementSubmission 48 - Attachment 2 august 2007 Project FundIng The Helen Macpherson Smith Trust funded this project.

As the project progressed it became apparent that additional focus groups were required to ensure the validity of the data.

ING Australia Limited contributed additional money to increase the number of focus groups.
This enabled greater breadth and depth in terms of the qualitative data, which in turn enabled a richer and more complete analysis.

Project ManageMent the steering committee A steering committee was established to drive the project.
The steering committee members were: • Carolyn Ingvarson, Chair Steering Committee • Katrina Knell, Committee Member (Convenor WIRE Board) (WIRE Board Member and Financial Planner) • Samiro Douglas, Project Co-ordinator (Manager WIRE) • Liz Gillies, Committee Member • Deb Parnell Committee Member (Policy Officer Council on the Ageing) • Alex Haynes Committee Member (Grant Manager Helen Macpherson Smith Trust) (National Coordinator Security4Women) • Alice Dunt, Committee Member (Office of Women’s Policy Project Leader) Over the period of the project, steering group meetings were held monthly.
Progress reports were presented by the research team against a set of agreed milestones.

the research team WIRE engaged URCOT, an independent, not-for-profit, action research centre affiliated with RMIT University, to undertake the project.

In addition to URCOT staff, a WIRE staff member, Jo Argent, was seconded to the project for one day a week and formed an integral part of the research team.

This was to ensure that WIRE’s knowledge base increased throughout the research process.
Under the specifications of the project, the project team was required to: • undertake a literature review • develop a gender analysis framework and test this framework with women • identify barriers for women in using financial products • develop and analyse an on-line survey • undertake a series of focus groups, ensuring a broad range of women were included • provide an analysis of the findings of the focus groups • provide a comprehensive report on the findings of the project.
The research team was also keen to investigate women’s relationships with money, and to discover what would help them engage with financial matters and become active in planning their financial futures.

The researchers were also mindful of finding strategies, based on the literature, survey and conversations, for presenting information that will move women to action.
The team sought to discover how to create ‘women-friendly’ information and support that would help women achieve financial security throughout their lives.
W O M E N ’ 11 Economic security for women in retirementSubmission 48 - Attachment 2 reSearcH MetHodology This project used a range of research methods to ensure that women’s voices were heard, that the unique experiences of women could be honoured, and also that their experience as distinct from that of men, is recognised.
A key requirement for the research was recognition of the importance of gender and its relationship with race, ethnicity, culture, class, age, sexuality, disability or other status to understand women’s experience.

SenSItIVIty to tHe needS oF WoMen Investigating women’s financial issues requires a particular attentiveness to the differences in the meaning of money for women and to how they think and talk about it.
While money is often seen to be a self-evident part of social life, people from divergent social classes and groups see it very differently.

As such they attribute different meaning to the language of money.

Whenever they interact around money, whether with other women, partners or in the workplace, there is an inevitable process of negotiation over the meaning and significance of money.

To be successful, research on women and money needs an awareness of this difference in meaning.
Researchers must engage closely with the language women use when they talk about money, and with the meaning they attribute to the symbols of money.

Social context, also, is important in eliciting the relationship between different women and money.

The use of appropriate methods is relevant on two levels.

Firstly, a suitable method enables the researcher to make sense of the data collected in the project, and secondly, it is important in gathering the data itself.
As one of the project team members noted ‘Glazed Eye Syndrome’ was common where women quite literally glaze over when talking about their financial futures.

lIterature reVIeW The methodology chosen for this project comprised a number of phases.

The first phase was a literature review of local, national and international literature.

This was completed in order to present what is known about women’s financial literacy that is sensitive to values, context, and underlying theoretical framing.
The review explored the area of financial exclusion and disadvantage.

Overseas evidence of financial exclusion has illustrated that there is a nexus between lack of financial literacy, financial exclusion and social disadvantage.

This literature review also provided an opportunity to test some of the assumptions and to illustrate the gaps in the literature, which helped to develop the questions for the focus groups.
It was used to form the basis of the questions that were asked of women throughout the remaining phases of the project (See Appendix A).

Several phases of the project were completed simultaneously.

With the assistance of a financial consultant from ING Australia Limited, a range of financial products and intermediaries were mapped.

This exercise explained the role of the different professionals in the broad financial area, the type of financial product, a description of it and when it would be used.
Products were explained so that women would have some knowledge and familiarity with language.

InterVIeWS and FocuS grouPS A number of interviews and focus groups were conducted with 114 respondents in Melbourne and a regional centre, Shepparton.

The project team decided to focus on two geographical areas to ensure that there was genuine representation from women outside the metropolitan area, and to explore whether there were differences in the experiences of women in the city and in regional Victoria.
Comparative data is useful because it tests assumptions as information is obtained.

1 W O M E N ’ S I N F O R M A T I O N W O M E N ’ Economic security for women in retirementSubmission 48 - Attachment 2 august 2007 In Shepparton, four focus groups were held, with a total of 5 women attending.

In addition, three interviews were held with financial planners.
In the Melbourne metropolitan area, 11 focus groups were held with a total of 71 women attending.

In addition, five interviews were conducted (see Appendix B for greater detail).

In total, 107 women took part in the focus groups and another eight people were interviewed.

Specific groups of women were targeted to take part in the focus groups.

These groups included, financial planners, Indigenous women, CALD women, businesswomen, women from ‘middle’ Australia and young women.
Some women who could not attend focus groups asked for an interview, and others we approached for an interview.

Prior to the session, each of the focus group participants or lead contacts was sent a copy of the focus group invitation flyer and a copy of the aims of the project.
Afterwards, participants were given a voucher or the book ‘Why saving is like dieting and budgets don’t work’, written by Susan Jackson.7 While patterns can quite easily be discerned, there are startling exceptions within each group.

Consistent overall was the high levels of disclosure from women of intimate events in their lives that shape their current beliefs and practices.
The first question, which asked about how women learnt about money (see Appendix C), elicited much emotion and subsequent reflection.

While the research team was initially surprised, they realised this is because our childhood events and memories stir our adult emotions.

gender lenS Using the results of the literature review and the focus groups, a Gender Lens was developed through which a number of financial products were scrutinised.
The framework for the Gender Lens emerged from a particular perspective, that of how we make meaning from our interactions and experiences, either with each other and/or our cultural symbols including language.

This framework, though a well-recognised theoretical approach, symbolic interactionism, emerged from the data as the research was conducted.

Nine women were asked to scrutinise the material using the Gender Lens framework (See Appendix D for the Gender Lens bibliography).
on-lIne QuantItatIVe SurVey An on-line quantitative survey was designed and up-loaded onto WIRE’s website.

Participants were invited to complete the survey through WIRE’s comprehensive email bulletin distribution list, S4W’s newsletter and URCOT networks.

In addition to the focus group questions, some of which were redeveloped to fit within survey design requirements, demographic data was collected.
The project team used the first 00 responses for the purpose of this project but continue to collect the data from the survey (see Appendix E for the survey questions).

The survey asked women their: • age • income • education level • postcode • relationship status • parents’ country of origin • languages spoken at home • identification with being Indigenous The survey also asked women a series of questions based on the focus group questions.

(See Appendix E for the complete list of survey questions).
These questions were reframed as quantitative questions so they could be analysed using a Likert scale.

The survey also included questions requiring a qualitative response.8 7 This book was written by a financial planner and selected for its capacity to engage through both the title and its content.

The research team told women this was not an endorsement of any financial planner.
8 While 200 responses were received, not all respondents completed all of the questions so not all of the totals add up to 100%.

This is common in surveys.

Percentages have been rounded up to the next percentage point.

W O M E N ’ 1 Economic security for women in retirementSubmission 48 - Attachment 2 Survey sample profile As Table 1 shows, 17 (86%) respondents had post secondary qualifications.
Of these, 16 (68%) had either postgraduate or undergraduate qualifications.

This is not surprising given that the respondents were self-selecting online, or were prompted to go to the survey through WIRE’s email bulletin (which goes out to volunteers, members, professionals who are registered on the WIRE database, and to women’s and general welfare and community services).
This is consistent with other online survey demographics, but may limit the use of these types of instruments for policy making, given that the sample may not be fully representative of the overall population.
table 1: SurVey SaMPle educatIonal QualIFIcatIonS EDUCATIONAL QUALIFICATIONS NUMBER PERCENTAGE Postgraduate Undergraduate Diploma Year 1 Year 10 78 58 6 0 5 9 9 18 10  Despite the self-selection required in a web-based survey, and the reservations in using such a frame, the respondents were diverse.

For example, 111 (55%) were partnered, while 86 (4%) were separated, single or widowed.
Twenty women (10%) said one or more parents were born overseas (United Kingdom and New Zealand parents were excluded from this figure), and ten women (5%) said they speak a language other than English at home.

Five women identified themselves as Indigenous.

Table  shows the majority of respondents were in the middle age brackets with 145 women (7%) in the ages 5–65 although a significant number ( or 17%) were between the ages of 5 and 4.
table 2: SurVey SaMPle age ProFIle AGE OF RESPONDENTS NUMBER PERCENTAGE 15-4 years 5-4 years 5-44 years 45-54 years 55-64 years 65 plus years 10  40 64 41 10 5 17 0  1 5 14 W O M E N ’ S I N F O R M A T I O N W O M E N ’ Economic security for women in retirementSubmission 48 - Attachment 2 In terms of income, Table  shows 71 (6%) women said that they had independent salaries in excess of $5,000 per annum with 1 (11%) of these women earning in excess of $10,000 per annum.
august 2007 table 3: SurVey SaMPle FInancIal StatuS SALARY PER ANNUM NUMBER PERCENTAGE $1-$1,000 $1,001-$1,000 $1,001-$5,000 $5,001-$10,000 $10,001 plus 10 7 74 50 1 5 19 7 5 11 Qualitative data derived from open-ended responses were correlated and analysed according to recurrent themes.

The frequency of these themes has been incorporated into the quantitative survey data.

SuMMary Table 4 shows the research sample for the project.
table 4: Project SaMPle RESEARCH ACTIVITY Focus groups Interviews On–line survey responses Product examination using the Gender Lens Total respondents NUMBER OF RESPONDENTS 106 8 00 9  This document is the final report bringing together the results of the research.

WIRE has already begun developing a communications strategy based on the results and recommendations in this report.

Further funding will be sought to implement this strategy.
W O M E N ’ 15 Economic security for women in retirementSubmission 48 - Attachment 2 Financial Literacy and Women: A Review of Issues deFInIng FInancIal lIteracy The depth of research available on the financial status of women and their financial literacy varies significantly.

Much of the work focuses on the general issues of financial literacy, without recognition of the importance of gender.
Different authors have attempted to clarify the concept of financial literacy, for example, Hogarth (00), considers a number of different definitions and suggests that they involve three elements that are germane to this study.
These elements are: • information about a range of topics, including • understanding how financial concepts work, managing money and assets, including banking, investments, credit, insurance and taxes such as the relationship between time and rates, and aggregating assets in insurance • confidence to plan and to make financial decisions (pp.15-16) WoMen’S FInancIal SItuatIon Australian women are likely to live into their eighties.
The evidence shows that many women struggle to achieve both financial independence and the capacity to sustain the livelihood to which they have become accustomed after they have left paid employment.

As a result, many will have little financial security and will be dependent on government pensions.

Not only does this cause concern in itself, but it leads to anxiety about their futures (OWP 005, p. 5).
There are a number of themes which emerge in the research about women’s engagement with money and also to their financial situation generally.

Firstly, women’s participation in the labour market shapes their capacity to achieve financial independence, leaving them dependent on government pensions and compulsory superannuation, rather than private savings (including superannuation driven by voluntary contributions, by either employers or employees, or share options).
The key characteristics of their participation are: • segmentation into employment sectors, such as hospitality, sales and administrative work, which are relatively poorly paid with fewer ancillary financial benefits • a greater likelihood that they will experience an interrupted working life with consequences both for pay and for capacity to save (including through superannuation) • a greater likelihood of caring responsibilities, • twice as likely as men to be underemployed reflected in the choice of part-time employment Secondly, most women do not understand how to position themselves for financial security; this is the key issue in relation to the notion of financial literacy, and access to financial information.
Given that the major emphasis of government policy about provision for ageing is on private savings and management of those savings, this is a major concern.

Thirdly, as with more general issues of pay equity, there are structural issues which mean that, even where a policy framework is apparently gender neutral, there is discrimination against women.

The discrimination derives from the ways in which women are able to participate in the labour market as described above.
16 W O M E N ’ S I N F O R M A T I O N W O M E N ’ Economic security for women in retirementSubmission 48 - Attachment 2 august 2007 The fourth and final theme is the differences in the experience of women according to various socioeconomic circumstances.
It appears that any measures to address financial literacy issues must also address the discrete needs of Indigenous women, women from CALD backgrounds, rural women and women with disabilities.

Social class and age are also significant determinants of preparedness for financial independence.

This theme brings together the connections between financial exclusion, social disadvantage and financial literacy.
Structural dIScrIMInatIon Much of the research reflects the structural dimensions of women’s economic and social circumstances.

A cogent overall framework for making sense of structural discrimination has been provided by Ruyter van Steveninck and de Groot (1998), drawing on the work of Diane Elson.
They suggest picturing the economy as a gendered structure, in which a ‘commodity’ economy (financial transactions, dominated by males), is distinguished from a ‘care’ economy (non-financial, dominated by women).

This has the following consequences: • At the macro-level, although men and women • At the meso-level, laws, norms and rules work in both economies, the commodity economy is relatively male-intensive and the care economy is relatively female-intensive.
• At the micro-level, men and women as well as boys and girls have different roles and responsibilities in households.

(Ruyter van Steveninck and de Groot 1998, p. 4).

which govern public services and markets are gendered.

Men and women have differing rights in many respects.

As a result, men and women have different access to opportunities offered by public services and markets.
This framework provides a helpful starting point for recognising the structural constraints which influence both the direct causes of men’s and women’s financial circumstances, but also the attitudes and priorities which women articulate in making decisions about financial management, including managing for retirement.

This framework is articulated at a relatively abstract level.
One specific and practical way of making sense of its implications, pointing towards possible areas for further research, is the importance of having a bank account.

Both American and British research (Braunstein and Welch 00, AdFLAG 000) note that this is linked with greater inclination to save, and more financial literacy.
labour Market PartIcIPatIon, Pay eQuIty and FInancIal lIteracy Studies in many countries have described the differences between male and female participation in the workforce and the segregation of women into lower paid occupations, with significant consequences for women’s pay.
While there is an established body of knowledge on these patterns in OECD countries, more formal research is being undertaken in newly emerging countries such as Bosnia Herzegovina, where early choices about investment in education for boys and girls again have significant longer term outcomes for inequality (see Lokshin and Mroz 00).
This research reflects a much wider policy choice within the World Bank to focus on economic initiatives which address gender, on the basis that achieving the Millennium Development Goals (MDGs)11 depends on greater economic empowerment of women.

This is not only in their own interests, but is also in the interests of men and children as well.
‘In sum, the business case for expanding women’s economic opportunities is becoming increasingly evident; this is nothing more than smart economics’ (World Bank 006).

11 The eight Millennium Development Goals (MDGs) - which range from halving extreme poverty to halting the spread of HIV/AIDS and providing universal primary education for all by the target date of 2015 - form a blueprint agreed to by all the world’s countries and all the world’s leading development institutions.
They have galvanized unprecedented efforts to meet the needs of the world’s poorest people.

W O M E N ’ 17 Economic security for women in retirementSubmission 48 - Attachment 2 The European Women’s Lobby (004) released an important report which challenged the ways in which governments frame budgets without addressing the financial circumstances of women.
Their simple proposition is that, while government budgets are framed on the assumption that they are gender neutral, public spending has different consequences for women and for men.
The Lobby points out, for example, that: • Government budgeting, and much financial analysis, usually takes the ‘household’ as the basic unit, but this neglects the extent to which there is an unequal distribution in household internal incomes and resources, especially where the primary earner is male (see also, Schmitz 005).
• Given the pay gap between women and men, women’s segregation into a narrow range of occupations, and their concentration into lower paid jobs, women do not benefit from a reduction in the higher levels of taxation.

They do, however, benefit from increases in the minimum wage.
• Given women’s disproportionate participation in part-time employment, breaks in paid employment, and lower earnings, government policies which use the taxation system to reward savings in superannuation penalise women because they simply cannot afford to increase their private provision.

In Australia, there have been a number of studies and campaigns over the years that have drawn attention to the lack of pay equity between men and women.
As recently as 005, the Victorian Government’s Industrial Relations Victoria (IRV) sponsored an inquiry into pay equity.

This report was undertaken by URCOT.

“One of the issues for women is the intersection of the domestic division of labour and undervaluing of work that is seen to be an extension of domestic or women’s work (childcare, for example).
The critical gender pay equity issues for women in low paying feminised occupations (dental nursing, for example) and industries (retail, for example) arise from the lower rates of pay that attend women’s work compared to those in masculinised areas.

This distinction is more important than the comparative assessment of female and male rates of pay within an occupation or industry sector.
Undervaluation is often obscured because men and women are seen to be doing different work and assumptions are made about the expertise required by women workers and their contribution to the infrastructure that supports productivity” (Industrial Relations Victoria 2005 p.7) As well as undervaluation, the report documented some of the continuing structural factors which drive the pay gap, and also pointed to possible solutions.
More generally, Todd and Eveline (005) provide an analysis of pay inequity in Western Australia.

This study draws attention to some of the regional disparities, but overall, a very clear picture emerges about Australian circumstances: in 004, women’s full-time adult total earnings were 18.79% less than those of men.

Across the total labour force, bearing in mind that women are much greater in part-time employment, the gap was 4.1% (Todd and Eveline 005, p. 6).
When linked with other issues affecting women’s participation in the labour market (see Campbell and Charlesworth 004), this raises important questions about the capacity of most women, especially those outside professional occupations, to exercise much control over their financial affairs.
18 W O M E N ’ S I N F O R M A T I O N W O M E N ’ Economic security for women in retirementSubmission 48 - Attachment 2 august 2007 As the proportion of older women in the total population increases, so does concern about their financial preparedness for retirement.

Moen et al (001) discuss the ways in which gender is a key source of variation in retirement pathways.
They discuss the ways in which women’s different labour market trajectories influence their retirement patterns, especially when they are in a couple relationship, in which there will typically be two retirement pathways occurring more or less simultaneously.

Much of the research on ageing, retirement, financial security and gender adopts a life course approach, which considers the inter-linkages among different phases of a person’s life, rather than looking at each phase as a separate domain.
Foster (004), for example, uses this approach in Britain to examine the gendered life course patterns of men and women and their implications for their retirement incomes.

He concludes that the typical life course pattern experienced by women leaves them vulnerable to low retirement incomes, and points out that as long as retirement incomes are based in one way or another on earnings during paid employment, current indications are that this situation will remain unchanged.
There remains a serious need for women themselves to understand better how their paid employment earnings can influence their retirement incomes.

A survey by S4W in 005 demonstrated very clearly that many women have little understanding of how the Australian superannuation system works, or how they can make decisions which will increase their prospects for later life (S4W 005).

gender and FInancIal lIteracy Gender is an important consideration when regarding financial literacy.
Hira and Mugenda (000) found differences in the ways in which men and women view money matters, and that women were more likely than men to be dissatisfied with their current circumstances and their spending habits.

However, not all of the news is bad: Barber and Odean (001) also indicated gender differences, in that men were more confident than women in making investment decisions, but this manifested as overconfidence, leading them to trade more often than women, reducing their overall returns.
Goldsmith and Goldsmith (006) found that male students both felt that they knew, and did know, more about finances than women students, but that financial education improved both the knowledge base and the gap between actual knowledge and perceived knowledge in both genders.

There are a number of dimensions to the issues of need.

Partly this is a question of social division; partly it is a question of the status of relationships.
With respect to the latter, there is an important difference in approaching retirement from paid employment, depending on whether women are in continuing relationships or not.

However, as Moen et al (001) point out, the transition to retirement can itself be a very stressful time in which an apparently stable relationship might well be disrupted.
These relationship patterns can vary considerably depending on whether the partners retire at the same time, or whether one continues in paid employment while the other retires.

Also, they note that for many people, retirement really means a transition to alternative employment.

One aspect of increasing economic polarisation is the increasing levels of household debt.
Worthington (006) describes the scale of this problem across OECD countries, noting that Australia historically had a relatively low level of household debt, at a ratio of 56%, debt to income.

In recent years, this has risen to 15%, a high level when compared with other countries.

Not surprisingly, housing costs (mortgages), including housing investment, and credit cards have been key drivers.
Recently the risk associated with this kind of borrowing has increased, accompanied by a growth in financial stress.

Worthington demonstrates that the likelihood of experiencing household stress is linked with basic demographic characteristics, such as the presence of children, the number of dependents, the age of the household head, and whether the householder was born in or a recent immigrant from northern Africa, the Middle East, or Asia (006, p. 1).
Poor financial literacy and management is likely to contribute to this stress.

Also, stress is greater when the household is dependent on government benefits.

W O M E N ’ 19 Economic security for women in retirementSubmission 48 - Attachment 2 Campbell notes that, while many American households make effective investment decisions, a minority, typically poorer and less well-educated, tend to make significant mistakes.
This is especially important given that some financial products involve a cross-subsidy from naïve to sophisticated consumers (Campbell 006).

Measures to address the circumstances of specific groups affect not only practical financial issues, but also aspects of their identity which are central to being able to take up the rights of citizenship: the sense of inclusion, dignity, trust and respect (see Scutella and Sheehan 006).
FInancIal knoWledge Braunstein and Welch (00) provide, from a North American perspective, a comprehensive review of issues arising for and from poor financial knowledge.
They note that while there have been both legislative and other initiatives, often from the financial services industry itself, aimed at increasing the level of information available to consumers, there is a lack of knowledge about how to interpret this information and to act on it appropriately, often leading to significant financial stress.
They emphasise the importance of financial literacy, not only in response to deceptive and predatory lending practices, but also in understanding the sheer complexity and accessibility of financial products now available (00, p. 447).

Interestingly, they also argue that increasing the degree of financial literacy amongst consumers contributes to the development of a more competitive, efficient market (00, p. 445).
However, they point out that the success of financial literacy training depends on more than just passing on information.

The focus, timing, format and location of training can all influence actual outcomes, quite apart from practical characteristics.

In 000, the British Secretary of State for Education and Employment called for action to better understand and address a lack of adult financial literacy.
This was a reaction to evidence that 1.5 million households lack access to financial services, and that  million people are without any bank account (see AdFLAG 000, p. 8).

A key focus of this report was the difference between supply of services including information about finances, and demand for services, which enables people to gain greater understanding of resources and financial management issues.
One of the important insights of that project was the importance of matching education with practical experience.

For those people without much prior contact with the financial system, the provision of basic access accounts was helpful so that they could apply new knowledge about how to manage their affairs.
FInancIal InForMatIon and adVIce Braunstein and Welch (00) investigated the range of providers of financial literacy: banks, employers, community services and government, which all contribute either directly or indirectly, through programs or individual counselling, to increasing financial literacy.

While bank initiatives give greater priority to managing credit, community and government programs focus on encouraging people, especially those on low incomes, to increase their level of savings and assets.
Employers tend to give priority to assisting employees to plan for retirement.

Braunstein and Welch comment on the effectiveness of financial literacy initiatives, referring to the importance of a connection to personal experience, but noted also that linking literacy with stronger forms of intervention, such as compulsory savings (superannuation, for example) was significant.
Hogarth comments on the range of delivery strategies being used by different providers, and notes the difficulty in finding meaningful learning experiences, especially for people on low incomes who have expressed a preference for learning from friends and peers successful in managing money.
As people’s time becomes more pressed, the need for more diverse methods, including web-based programs and DVDs, will increase, although the effectiveness of these kinds of methods is yet to be demonstrated (Hogarth 00, pp.

-4).
-4).

0 W O M E N ’ S I N F O R M A T I O N W O M E N ’ Economic security for women in retirementSubmission 48 - Attachment 2 august 2007 The National Endowment for Financial Education® (NEFE®) (000) have emphasised that effective delivery of information is a challenge, and have cautioned against a single ‘women and money’ message; there is no one ‘woman’ to whom these messages should be directed.
Similarly, they draw attention to the limitations of evaluations focused on ascertaining responses to the programs themselves.

What really matters is what happens five years later.

Women go through many transitions, and their financial literacy needs to adapt to changing circumstances.
More recently, the Australian Council of Trade Unions (ACTU) has taken an interest in financial education as financial markets become more complex and households assume more responsibility and risk in relation to financial decisions.

They have undertaken a major review of financial education programs, with a view to highlighting implications for policy making (see OECD 005).
WoMen and learnIng Research suggests that there is an appreciable difference in the way that women and men learn and apply their learning (Derichs-Kunstmann 006, Philbin, Meier, Huffman and Boverie 1995).

In delivering material to women, particularly material that might be confronting, difficult to hear or may require a significant change to behavioural patterns developed over many years, it is important to bear in mind these differences.
While some find the argument that women and men learn differently contentious, their concerns tend to lie in the underlying assumptions and in trying to understand the implications rather than the phenomenon itself (Roberts 1997).

Studies in learning for girls and learning for women show consistent results.
For example, a study conducted on both girls and boys learning mathematics, in particular, Phi and Fibonacci numbers, indicates that girls and boys respond better to different teaching and learning processes.

In fact, males and females have different conceptual preferences in learning.

The study found that girls respond much better to the ‘real’.
Girls were asked to bring to class sunflowers, artichokes, black-eyed Susans and field daisies, not because of the femininity attached to flowers, but because they are perfect examples of these numbers that are tangible and relate to experience.

This study further found that girls learn well in groups and respond as well to what the writer refers to as ‘story problems’ as they do in undertaking role plays (006).

For women, Derichs-Kunstmann (006) found that the same holds true.
In her work with adults and learning, learner participation was the primary determinant in successful learning for women and men.

Participants must be able to bring to the learning process their unique life experiences and competences and must get involved in the learning.

How they do this differs according to gender.


Studies using Kolb’s Learning Styles Inventory (LSI)1 indicate that women learn in a more applied way than men and that they need to understand the usefulness of the knowledge they are learning (p. ).

Significantly, in another study once again based on Kolb’s work, Philbin and her team (006) assert that there is a significant difference in learning styles between women and men across all ages and cultural backgrounds.
Traditional types of learning and imparting knowledge are developed around a learning style that suits men rather than women and that women tend to be ‘concerned with others’ in the learning compared with man who were more likely to be ‘compared with self’ (p. 5).

In relation to the details of the findings, women tended to score much higher on the concrete experience orientation where men tended towards abstract conceptualisation.
12 Kolb’s LSI was published in 1976 and is still the framework used to measure learning styles.

While illustrated in terms of axis, essentially there are four learning styles; Accommodator (learn by doing), Divergers (learn through imagination, concrete experience and reflective observation), Convergers (learn by doing and thinking) and Assimilators (building and testing theories-abstract conceptualisation).
W O M E N ’ 1 Economic security for women in retirementSubmission 48 - Attachment 2 Research Findings The research findings are presented according to seven themes: • Money and emotion • Factors influencing the perception of money • Financial behaviour • Building financial control • Learning financial literacy • Financial media: a Gender Lens review • Differences among women in the study Each section collates the research findings from a number of issues relevant to the theme, and presents the implications for developing financial literacy strategies.
These direct the recommendations.

Money and eMotIon Emotions and money are inseparable.

For women in this study there is a strong emotional attachment to issues about money.

Many women described talking about money, even within the focus group, as scary.

Other emotions that emerge through discussions often relate to feelings of fear, guilt and being inadequate or hopeless.

Women are often required to take control over financial matters during times of profound change in their lives.
At the time when they need to be at their most astute and financially and mentally able, they are dealing with extremely stressful issues, often involving the welfare of their family or children.

This increases feelings of hopelessness.

They, and their families, expect themselves to be able to deal with major financial issues when they are emotionally the most vulnerable.

FInancIal lIteracy and conFIdence A significant number of women in the focus groups referred to themselves as hopeless with money.
When women were asked why they felt this way, they talked about the guilt they felt at not having as much as they should, about always feeling ignorant, looking at others and thinking that they should have done something, about seeking advice and not taking it, about giving their children too much, and about wanting things now.

Usually either their first family or their male partners had also told them they were hopeless with money.
This negative socialisation has the potential to become a self-fulfilling prophecy for many women, and is akin to girls and women believing they are not good at mathematics.
Selected responses from focus group participants illustrated this point: “ The reason I think I am hopeless with money is that I look at my parents and other siblings - I am the oldest and the poorest.” “ I am hopeless with money, absolutely hopeless - I want to spend it on myself - to say, this pay is just for me, but it never happens.” “ My husband is in jail - it was an incest case - I’ve had to start over - it’s really difficult.” “ I was really screwed - he tried to take a family heirloom and he took my inheritance.” “ I know I should have invested but I haven’t.” “ I feel guilty - I spend it on the kids.”  W O M E N ’ S I N F O R M A T I O N W O M E N ’ Economic security for women in retirementSubmission 48 - Attachment 2 august 2007 Women in the survey sample rated their financial literacy poorly and had never felt financially capable.
Despite this, and their claim to be open to receiving advice, in practice the data suggests they would not seek professional advice, preferring instead to seek advice from friends, family and other trusted, known sources.
Women were asked to rate themselves on a scale from 1 which is a high level of financial literacy to 5 which is a low level of financial literacy, on their level of interest, knowledge, information-seeking, confidence, literacy (how easy or hard financial literature is to read), and advice-seeking.

Table 5 details how women saw themselves in relation to their level of financial literacy.
table 5: degree oF FInancIal lIteracy (Cumulative percentage questions -7) H G H I 1   4 5 6.4% 18.1% 8.% 8.5% 14.8% L O W Overall women seemed interested, but not confident or proactive.
More specifically, 110 (55%) ranked their interest as being a 1 or a  (the top two levels), but only 50 (5%) ranked themselves in those same two levels for their knowledge, 1 (15%) for their level of confidence in their future security,  (11%) for their ability to read financial literature and 1 (15.6%) as regularly seeking information and advice.
When responding to the question asking women specifically how well informed they believed they were, a total of 74.5% completed the scale using numbers -5.

Women largely reported feeling uninformed.

Question 6 asked how easy financial information was to read.

A total of 79% completed this question using -5 on the scale, with a further 10% saying they did not know.

This leaves a total of only 11% who thought the information was easy to read.
Only  (16%) women were confident about their financial future, and 10 (51%) women were anxious about their financial future.

Fear oF tHe Future The fear of money was most palpable when women in the focus groups talked of their future.

Many were aware of the need to do something but remained petrified because of the perceived mess their finances are in or the fear of discovering what they believe intuitively; that they have ‘frittered’ away money.
Although it appears in other age groups, this fear is most noticeable for women in the 45 and over age groups.

They talked of being aware that time is running out or that it may even be too late for them to take care of their financial futures.

The strategy often used is to keep going with day-to-day activities and hope ‘things will take care of themselves’.
This fearfulness was reflected clearly by some of the responses from focus group participants: “ My husband is having a mid-life crisis - he is finding himself - I might be faced with having half of everything if he leaves.” “ I’m fearful of the future - I have no super and no-one to support me.” “ … you are made to feel inadequate.” W O M E N ’  Economic security for women in retirementSubmission 48 - Attachment 2 IMPlIcatIonS For FInancIal lIteracy StrategIeS Emotion, money and family (in its various forms) were interwoven and could not be separated.
Women felt overwhelmed by what they did not know and embarrassed when they discovered what they had foregone or ‘wasted’.

The feelings of hopelessness, shame and inadequacy in relationship to finances ran very deep across all socio-economic groups.
There is certainly a need for government, industry, community groups, employee groups and other key parties to collectively develop a campaign and communications strategy that would include media, policy development and the implementation of this report’s recommendations.

This campaign would need to engage with women at the level of underlying beliefs and emotions in relation to money and finances.
FactorS aFFectIng tHe PercePtIon oF Money FaMIly belIeF SySteMS Women in the focus groups responded to their early learning experiences about money, and this appeared to be the determinant factor influencing how they approach it.

Many focus group attendees responded to money in an opposite way to their parents, yet their practice was often remarkably similar.

Some others were very conscious both of what money meant in the family and how it was discussed or not discussed.
Women were energetic in wanting to mirror their parents or ‘not wanting to be like them’.

Many women were not taught about money but were encouraged to think things like ‘money doesn’t grow on trees’.

As one women said, ‘as a child I thought, so where does it come from?’ For many though, financial matters were still private and discussion with family and friends remains somewhat taboo.

Women participants in this study were told as children that being in debt was bad.
Credit was bad and that the only debt that was acceptable was a mortgage for the family home.

Many of the women talked about their fathers having a tight rein on the money although their mothers were more likely to run the household budget.

Many women wanted to enjoy their lives through providing for their families and going on holidays and not to have to scrimp and save.
Girls who had been taught to save for something and how to save and those who were taught the concept of interest at a young age were more likely to feel confident handling money as they grew older.

They were also more likely to save or invest when they got their first jobs.

Women who believed they managed their money well had all received advice that they trusted when young women.

This advice was, more often than not, given by a relative.
Many married women were pleased with the advice that they had received as young women, which were variations on ‘running away from home’ accounts, where women had their own private bank accounts separate from their partners.
The importance of this issue was plainly reflected in many of the comments and responses from participants in the focus groups: ‘Money doesn’t grow on trees.’ ‘If you didn’t have the money in your hands, you couldn’t buy it.’ ‘It [money] wasn’t talked about.’ ‘Money matters are men’s business.’ 4 W O M E N ’ S I N F O R M A T I O N W O M E N ’ Economic security for women in retirementSubmission 48 - Attachment 2 august 2007 ‘Every year when the cows calved, we [children] were given a calf each and had to look after it.
When it grew we sold it and saved the money.
I bought a car with the money when I turned 18.’ ‘My mother has a free flowing approach to money and I think I have inherited that from her – she married well but I don’t think this is a wise strategy.’ ‘My dad was keen to let us all know that he was the provider.’ ‘I grew up with a mother that always protected us – she made it seem like there was an endless stream of money.’ ‘Look after the pennies and the pounds will look after themselves.’ ‘Always put something away for yourself.’ From the survey results, it seems women’s lack of confidence can, in part, be attributed to not being taught about money when they were growing up.
Most felt financial language was indeed ‘another language’ and felt overwhelmed by the amount and complexity of information available.

They believed that this was a language they had not been taught.

For example, 50 (5%) women said no one talked to them about finances and money when they were growing up.

Of the 7 women (7%) who said their parents talked to them, most noted it was ‘not much’ or ‘just about saving and not getting into debt’.
There was no appreciable difference between mothers and fathers talking to them as children about money.

Some women said they were not spoken to but learnt through observing their parents’ behaviour and some said that money was a taboo subject not to be discussed, or that money was a cause of stress in the home.

Twelve mentioned that grandparents, other family members, friends or teachers provided information.
Some of the responses to the survey question ‘When you were growing up who talked to you about money and finances?’ included: ‘Mum and dad, but not in any detail, vague notions of saving and not getting into debt, no real advice, no grounding.’ ‘Absolutely no one.
My mother constantly worried about money, and would not buy anything on credit.’ ‘Nobody, children were not allowed to be told anything.’ W O M E N ’ 5 Economic security for women in retirementSubmission 48 - Attachment 2 claSS, PoVerty and Money How women think about money and what they may do with it is a class issue.
It is related to their background, the models they have observed and importantly how much money they regularly have access to.

This transcended all of the groups.

Women in the focus groups were very aware of the constraints and tensions that limited amounts of money caused in their first family.

Many women talked with passion about the hard work their mothers did and those that were in different circumstances were very pleased they were.
Women with very little money tended to budget with great expertise.

They tended to be very clear about priorities, food, shelter, their children’s education and bills being their primary concerns.

Many would say that they are very good at budgeting because they have to be.

When asked the question, ‘What would you do if you suddenly received $50,000?’, some laughed at the gross improbability of the notion but quickly focused on buying a house.
Many of their experiences were limited as was the understanding of their options.

Being poor as a child left an imprint on women.

The poverty was not simply about money but access to resources, language, information and financial role models.

Most women were aware that they needed to look after their own financial matters, many through bitter experience, and while this is a driver there is still a lack of an enabler.
Selected responses from focus group participants reflected this point: ‘I kinda grew up thinking, I don’t want to be poor - you shouldn’t have to.’ ‘Money was always a blocker in our family - always a source of tension.’ Money IS a PrIVate Matter Many women in the study focus groups were reserved in speaking about finances.

For some it was a taboo subject as children and has continued to be kept private as they moved into adulthood.
Women would only go to a professional to seek assistance if they believed they could trust them.

Apart from the embarrassment of missed opportunities and a concern that money had been frittered away, women thought that telling someone about finances meant exposing other parts of their lives as well, some of which caused great discomfort to talk about.

Some thought that it was hard to go to talk to a professional, often when they were feeling vulnerable.
They would prefer to concentrate on the financial aspects only when their whole lives would be impacted on by the financial decisions they make.

Women in Shepparton were concerned that in a small town there was greater risk.

They feared that confidential information would become common knowledge and that everyone would know their ‘business’.

Many women said the type of relationship that is required with someone helping them with their money is like the relationship with their hairdresser.
The hairdresser is someone a woman can talk to, someone who always takes your side, who listens and who doesn’t judge.
Participants in the focus groups reflected the privacy as: ‘Finances are a taboo subject - we still don’t talk about it publicly.’ ‘It’s a private matter.’ ‘It’s like going to the hairdresser.’ 6 W O M E N ’ S I N F O R M A T I O N W O M E N ’ Economic security for women in retirementSubmission 48 - Attachment 2 august 2007 IMPlIcatIonS For FInancIal lIteracy StrategIeS This project has uncovered a series of gaps in our knowledge about women and financial matters.
The link between money and emotion is very powerful.

While there is a wealth of survey data available, there is little data available from women’s experiences.

The internet survey data tended to come from women from higher socio-economic backgrounds.

Young women, some cultural groups and middle-aged women on the approach to retirement are some examples of where further exploration may well be fruitful.
This would suggest that it would be beneficial to undertake further research on the gaps that have been discovered as a result of this project.

For example, young women whose experience and responses are quite different to other women; and older women who were particularly helpful in offering the benefit of their experiences to younger women.

FInancIal beHaVIour FInancIal StatuS In the survey sample, 104 women (5%) said they were able to cover expenses and either save or invest.
Twenty-six (1%) women said they were struggling to make ends meet with 70 (5%) women saying they were making ends meet but not saving or investing.

Not surprisingly, the women most likely to invest were those earning no money or those earning in excess of $10,000 per annum.

Those women not earning money were partnered and those earning $10,000 are in a high- income bracket.

Interestingly, over half of those women are under the age of 54.
The capacity to save was very limited for low-income earners, with those earning less that $1,000 less than half as likely to save as women earning more than $1,000.

PartnerIng uP Of the 00 women surveyed, 111 women had partners.

Of the partnered women, 41% indicated that they shared responsibility for financial matters equally; 8% took care of all the financial matters while 9% ran the household budget but the partner took care of everything else.
Fourteen women (1%) indicated that their partner took care of all the financial matters.

Of this last group there was a fairly even spread in how well informed they felt about what was going on with the household finances, with a worrying minority feeling poorly informed, as Table 6 shows.

table 6: HoW Well InForMed are WoMen WHoSe PartnerS control tHe FInanceS?
L L E W Y R E V D E M R O F N I 1 7%  4%  14% 4 1% 5 14% I N F O R M E D N O T A T A L L W O M E N ’ 7 Economic security for women in retirementSubmission 48 - Attachment 2 FactorS InFluencIng cHangeS In FInancIal beHaVIour For all women attending the focus groups, their family’s needs were seen as paramount.

This was the case whether they were partnered, un-partnered, parents or non-parents.
Some women, particularly Indigenous women, were conscious of their responsibilities to their broader family, specifically nieces and nephews.

Older women were consistently mindful of grandchildren once their children were ‘on their feet’.

They are also very committed to leaving their children something so that their lives can be easier.

Women were very concerned firstly for the financial health of their children, and then their parents, particularly their mothers.
Overwhelmingly, both financial planners and women in the focus groups said it is usually when profound, often life shattering changes occurred, that the way women dealt with money changed.

With the exception of two women who were motivated by the birth of their children, the major change was either death or more commonly, divorce.

It was uncommon for women who attended focus groups to seek financial advice when they were starting employment, when they received a promotion or returned from maternity leave.
The literature however suggests that women make and change decisions about their financial situations based on ‘motivational points’ in their lives.

These include getting a job, changing jobs, promotion, returning to the workforce, divorce and so on.

This study did not find this was the case in general.

Women would seek advice at times of death and divorce though the advice could come from several quarters, family being the most trusted source of information.
Women now in their 50s were very regretful about what they had done with their money and were very concerned about their future.

In the survey, 164 (8%) women said that there had been key motivation points or events in their life that prompted them to act on their finances.

Many of these were traumatic life events and crises including: divorce and separation, illness of self or others, death of a family member, redundancy or bankruptcy or significant debt.
Interestingly survey results indicate that 4 women (17%) were motivated by divorce or death and 15 (7.5%) women indicated that ageing and impending retirement were motivators; other motivating factors included having children (6%) buying or renovating a home (5%) redundancy, impending separation, illness, children’s education, change in parents marital situation, changing jobs or debt (all less than 5%).
In this sample, other drivers were home ownership, having children, ageing/retirement, receiving an inheritance and superannuation.

FInancIal PrIorItIeS Many women who participated in the focus groups worked for the future of their families rather than explicitly for themselves.

Many women said they would share their money and assets with their families.

When women were asked what they would do with extra money once bills were paid, the groups regularly said they would share extra with their families.
Some women were keen to share it with grandchildren, others with parents, cousins or nieces and nephews.

The next most popular things to do were to buy a house, either with other family members or in their own name and to go on a family holiday.
Two responses from the groups illustrate the point: ‘I buy property for my children.’ ‘I do this [work] for my kids and my family.’ 8 W O M E N ’ S I N F O R M A T I O N W O M E N ’ Economic security for women in retirementSubmission 48 - Attachment 2 august 2007 When women in the survey sample were asked what they would do if they were given $50,000, 50 women (5%) talked of investing in a home (mortgage/deposit/buy), 6 (18%) women said they would invest the money (shares, managed fund, ethical shares, term deposits, high interest account), 1 (11%) said they would put it in superannuation, ten (5%) would invest in property and only two would save it.
Another 58 (9%) women would use it for a variety of things including: paying debts/bills; pay off credit card; buy a car; home repairs/renovation; go on a holiday or give it to family members.

Only five respondents mentioned that they would seek advice.

When asked what they would do with $1,000 the answers were far more scattered, many women seeing $1,000 as very little.
Bills, particularly credit cards, high interest accounts and terms deposits, superannuation, and investing in a home were roughly even with approximately 0 (10%) interested in each.

Somewhat further down the list was investing the $1,000.

SeeIng your Money The focus group participants liked to understand what their money is doing.

They also liked to see it.

Many women did not consider shares as a viable option to property because of the ‘virtual’ nature of shares.
Women liked property as an investment because it is tangible and because it can be passed on to their children or other family members.

Those that were interested in the share market tended to have managed investments rather than managing them themselves and they tended to have diversified portfolios.

Overwhelmingly though, women felt more comfortable with the idea of investing in property.
This issue was well-illustrated by the following responses from the groups: ‘You can see a house, touch a house; you can’t do that with shares.’ ‘Property is exactly that - it is concrete.’ ‘I don’t understand shares.’ IMPlIcatIonS For FInancIal lIteracy StrategIeS Women clearly have specific priorities and investment perceptions that require attention in the financial services sector.
It would appear that the financial services market could improve financial product types and targeting specifically for women to meet these specific needs and priorities.

It would also be beneficial for communications to emphasise the need for shared understanding of financial matters between partners in relationships.
Perhaps most importantly is for financial literacy communications to highlight for women the need to attend to financial literacy before life altering events – family crises, death, or sudden changes in financial or employment situations – create an urgent need to do so.
W O M E N ’ 9 Economic security for women in retirementSubmission 48 - Attachment 2 buIldIng FInancIal control Two thirds of the women in the focus groups felt there was something holding them back from taking the action necessary to manage their money and financial future.

These included a lack of knowledge, not enough time, confusion, and not knowing where to get advice.

Many women felt incompetent in matters pertaining to finances.
They lacked confidence and this ignorance and lack of confidence ‘freezes’ them.
The lack of control was expressed in a number of ways in the group discussion: ‘Age, lack of hope for a secure retirement.’ ‘ … my age, I feel too young to worry yet.’ ‘Knowledge and confidence, what if I do something wrong?’ ‘I feel very incompetent in financial matters and maths, I link it to school experiences and my father.’ ‘Anxiety, have impulsive tendencies, fear of having to manage/stay within budget.’ dealIng WItH tHe language oF Money Many women in the groups were confused and overwhelmed about the language of money.
Not understanding the language of money was embarrassing and as a consequence, many felt stupid.

Many women felt ignorant about money and this was often reinforced when they attended seminars.

If they had understood the seminar, they chided themselves for not following through.

Interestingly, the women do not often think of all of the positive things that they have done with money over many years but instead focus on where they have made errors.
Many documents published to help people understand money matters were not seen as helpful.

Products and literature provided by professionals in relation to women and finances do not relate to many women.

Many of the products are not in language that is easily understood or that relates to women’s experiences, nor does it appear in a format that invites the reader to continue.
Responses from participants in the focus groups included: ‘It’s like a foreign language to me.’ ‘It’s too hard to read so I put it with the junk mail.’ ‘I don’t know what they are talking about [at seminars] - I know I should so I pretend I do.’ ‘Baby boomer women are embarrassed they think, ‘I should know this but I don’t’.

The survey revealed that well-educated, middle-aged women on middle incomes do not feel confident that they know what to do to secure their financial futures.
Respondents noted that they felt intimidated and ‘clueless’ and don’t know where to start.
0 W O M E N ’ S I N F O R M A T I O N W O M E N ’ Economic security for women in retirementSubmission 48 - Attachment 2 august 2007 credIt and More credIt The availability of credit cards and the selling techniques associated with their introduction created the ‘instant pudding’ approach to money, a consequent guilt and hopelessness associated with the spending on credit, and the subsequent feelings of lack of control over the debt.
Many women in the focus groups said that they have since cut up their credit cards and use debit cards in preference.

Women were worried about the availability of credit, ranging from mobile phone plans to car and house loans, to their children.

They felt that there was an almost limitless amount of money available for young people.

Women who went without as young children were more likely to want their children to have ‘what they need and not go without’.
They did not want their children to experience the same hardships that they had growing up.

This did not mean they saw credit as an option for their children.

Many felt that all of their money was going to support their children and the latest ‘gear’ from mobile phones to designer clothes.

Women were energetic and passionate in their criticisms of banks and the ready availability of credit and mortgages for young people.
Interestingly, it is through concern for their children that many expressed criticisms rather than from their own experiences: ‘I’m still in debt now because of applying for a credit card.’ ‘My kids ask,’ Are we poor?’ They still have all the gear, just not as much as some kids.’ ‘One generation makes it, the next generation spends it!’ FInancIal adVIce Primarily there were two issues for women in the groups seeking financial advice.
The first was knowing who to go to and the second was knowing whether someone was trustworthy.

Many women did not know who to seek help from.

They were reluctant to call a financial planner directly from the phone book or the internet.

Women in metropolitan Melbourne were more likely to seek advice from professionals, accountants still being the preferred option.

The focus group of young women however all said they would seek the advice of a financial planner, not an accountant or lawyer.
Most women would rely on assistance from other people they trust in looking for financial help.

Most (80%) women who had been to see financial advisors did not go back to that financial advisor.

This was most likely to be the case when a family member or friend of the woman had not recommended the financial advisor.

When a family member or trusted friend recommended the financial advisor, there was much more likelihood of them returning.
Many talked about feeling overwhelmed at the information, not understanding the language, having to answer personal questions and just not enjoying the experience.

Interestingly, women who banked with credit cooperatives said they were happy with the financial planners they had seen through the cooperatives.

They said the people they had seen were helpful, listened and they felt they could empathise.
They attributed this to the credit cooperatives being smaller than the banks and having a strong value of personal service.

Few women were aware of the qualifications required for people giving financial advice, which may account for women believing that accountants are qualified to offer financial advice.
W O M E N ’ 1 Economic security for women in retirementSubmission 48 - Attachment 2 Women in the groups needed to trust the people that give them advice.

Often women said they would not go to visit a financial planner because they did not want to be told they had to put all of their money aside.

They wanted to be able to enjoy some of the fruits of their labours sooner, rather than later.
Women did not want to hear they are giving too much money to their children.

They also did not want to be offered strategies that clash with their beliefs.

An example of this is borrowing against the family home or investments that they do not consider ethical.

They did not want to be told they would be poor when they are old.

Women that had visited people for advice were cautious because they were concerned about being sold a product because the financial planner was receiving a benefit.
Largely, women did not want to be ‘told off or ripped off’.

When asked how finding a financial planner is different to finding a doctor or a dentist, women in the groups responded with some energy.

Responses varied from ‘this is about your whole life’ to explanations about intensely personal relationships with money.
Comments from participants included: ‘I don’t want to ask anyone - I know what to do.’ ‘I have nobody to ask.’ ‘Do they have your best interests at heart?’ ‘It seems like information overload and I get confused.’ ‘I would talk to my accountant or my lawyer because I trust them.’ ‘I want to go to Vietnam (on holidays) now and not be put under pressure to put everything into super.’ ‘When they talk mainly to my husband, we don’t go back.’ ‘I’m scared they will tell me it’s too late.’ ‘You need to know you can trust them.’ ‘You don’t know if they are pushing a product.’ ‘I thought that you had to be earning more money than I make to go to a financial planner.’  W O M E N ’ S I N F O R M A T I O N W O M E N ’ Economic security for women in retirementSubmission 48 - Attachment 2 august 2007 Women in the survey wanted advisors they can trust to be independent, that are inexpensive, that tailor solutions to their needs and that declare their interest in any product.
They wanted information written or spoken in plain language.

They also wanted sensitive, ongoing, and respectful support.

Many expressed a preference for women- only or women-friendly workshops, groups and services.

‘Scared about who to trust, hearing stories about people who made bad investments.’ ‘I am now in my early to mid-50s and find I am working harder as a single woman than ever before.

I don’t think I have enough knowledge in money management, but I don’t trust financial planners.
This is based on instinct and horror stories, not personal experience.’ On the whole, women participants in the survey did not seek out financial information or advice regularly.

Of the sample, 14.5% never sought advice, while a further 4.7% only sought advice rarely.

Only 4.5% of the sample sought advice regularly.
Reasons for this included the following: ‘Not sure if they’re really trustworthy or trying to sell a product - and I always think my own approach to the world is much less financially conservative than theirs is likely to be.’ ‘Have a reputation for being expensive and incomprehensible!’ ‘I think they are for rich people.’ ‘Not interested unless you’ve got plenty of disposable income.’ ‘Too many are dodgy that I wouldn’t see one unless they had been specifically recommended by somebody I trust.’ ‘I only talk to them if they are part of my credit union - an organisation I already trust.’ Women were generally open to seeking advice.
Of the 180 (90%) women who would seek advice, 100 (50%) would seek it from people known to them such as friends or colleagues.

Nine (only 4.5%) women noted that the person they sought advice from would need to be a qualified, accredited professional.
W O M E N ’  Economic security for women in retirementSubmission 48 - Attachment 2 Of the participants, 164 (8%) did not trust financial planners because they believe they are biased and sell products for which they receive commissions.

They also thought financial planners are self-interested, do not have the client’s concerns at heart and are not understanding or women-friendly.
On the other hand, the small minority of women who were currently seeing planners seemed quite happy with them, although some noted they did not really know how to judge their performance.

Other perceptions were that financial planners were confusing and condescending or intimidating.

Some women thought they were too expensive.


‘I don’t have a set of criteria on which to judge them.’ ‘I have one but wouldn’t know if he’s any good!’ Overall there is a general distrust of financial planners though some women said that this was due to ignorance of what financial planners do and how to identify a good financial planner.

‘Usually male, difficult to find someone who understands my situation.’ A few women said they would only see someone referred to them by people they know and trust.
Others said they didn’t know how to find good advice.

Fifteen women said that you need to find a good financial planner and this was hard to do and 11 said they didn’t know enough about advisers to comment.

One in ten women said that help with where and how to get advice would help them.

Some women said they would always seek more than one source of advice and noted that they would listen to advice but always make their own decisions.
PreFerred InForMatIon and SuPPort Of women in the survey, 46 (4%) women said they want advice that is independent and sensitive to each individual’s situation and values.

They want advice from someone who is unbiased and independent who wasn’t ‘selling something’.

A further four women said they would prefer to see fee-based advisers that did not take commissions.

A significant number of women, 5 (17.5%), wanted community-focused or funded advice, with seven wanting cheap or free advice.
There was some support also for a financial coach or mentor or someone with their own experience or background, while nine others suggested groups and other forms of ongoing support.

Information and advice must be clear, concise and easy to read, for at least  (16%) women.

Women wanted respectful and non-judgmental advice, tailored to a woman’s situation.
‘Reliable advice about safe and non- exploitative ways to maintain its value so I know I won’t end up homeless when I’m old.’ 4 W O M E N ’ S I N F O R M A T I O N W O M E N ’ Economic security for women in retirementSubmission 48 - Attachment 2 august 2007 Information on specific topics was important to one in ten of the women in the survey sample.
Topics such as superannuation, budgeting and knowing the options for investing were some of the suggestions.

‘Someone interested in my situation as a woman not just for a commission.’ ’Making financial information easier to understand, putting it in layman’s terms and de-mystifying it.’ FInancIal PlannerS The financial planners spoken to through this project were aware of how important building trust is to working with all clients, particularly women.
They also acknowledged that many women who come to see them initially feel inadequate in dealing with money.

These financial planners usually see women during traumatic times in their lives, most frequently, following a divorce.

One financial planner regularly sees women who are divorcing and are enmeshed in dealing with family court proceedings.

They talked of people believing that property is a sound investment, and that there was some type of ‘magic’ associated with property.
The other focus groups confirm this.

They said that women who believed they did not have much money were reluctant to go to planners, yet they also said that these were the very women who needed to see a planner, although not all planners work with people on quite low incomes.
The financial planners were aware that people had been reluctant to go to planners in the past, and said that there has been a massive shift in the financial planning area to offering clients strategic financial planning which takes into account lifestyle choices.

Many of the public do not appear to be aware of the shift.

It has been hard for the negative image of the profession to be broken down.

Planners cited recent television commercials with regard to superannuation as unhelpful.
The industry is highly regulated and the client generally well protected, yet the planners acknowledge many people would seek advice from accountants.

They believe that many people see money and accountants as going together and say that when people are talking to some banks, clients will be told to ‘see your accountant’.
Planners interviewed reflected this as: ‘ … you need to be a social worker, financial planner, and psychologist - women tell you about themselves’ ‘You need to build trust - it’s more personal with a woman.’ IMPlIcatIonS For FInancIal lIteracy StrategIeS Many women in this study either distrusted financial planners or did not know what function they performed.

Some women, particularly in regional Victoria, would seek assistance from an accountant or a lawyer in preference to a financial planner.
Many women were concerned about fee structures or ‘kickbacks’ for promoting products.

Many more did not know how to get advice and what to ask for.

There seemed to be a great deal of ignorance about financial planners often based in fear.

The findings suggest that there is some motivation for launching a significant campaign to promote financial planners.
This campaign would need to describe the profession, why it is different from accounting, the difference between strategic and short term advice, what their interests are in terms of products and an explanation of fees.
W O M E N ’ 5 Economic security for women in retirementSubmission 48 - Attachment 2 learnIng FInancIal lIteracy The evidence reviewed in this project indicates that women learn well together, when their experiences and individuality are recognised, when they can feel part of rather than apart from, when there is a chance to listen to others, and in being an active participant.
One key issue in all adult learning is the timeliness of the learning, which affects the capacity of any participant to transfer the learning.

The issues related to gender, learning and its applicability in terms of concrete actions needs to be thoughtfully considered.

learnIng aPProacHeS Many women enjoyed the focus group experience and learnt a substantial amount from each other over the duration of the focus group.

They felt that a broad structure was helpful to keep them on track.
Some said they were inspired by the stories of others and were going to make some immediate changes.

Overwhelmingly women want to receive information in small groups.

They want to feel comfortable and would like to know the other group members.

Most said they would prefer the group not to be a workplace-initiated group.

The issues of exposure and vulnerability were of concern to many women.

They would like to learn from each other or from members of their community or family.
They felt that small groups enabled discussion and the sharing of experiences and learning.

Women also felt that being with others meant that they could collectively ask any visiting ‘expert’ (when invited) questions and would not feel as silly when they did not know things.

Women suggested that the group members might have expertise in certain areas relating to finance and if they didn’t, they could be trained.
Women talked about the concept of small group learning in terms of a CAE Book Club or ASX Women’s Share Club model.

They suggested that group members could do homework and report back at the next meeting.

This was so that the group would develop its capacity and could empower itself.

Where there were areas of interest or where there was little internal knowledge, expert help could be obtained from outside the group.

Women wanted control over timetable and content.


Materials and presentations need to be in language that women understand and can relate to.

Examples need to mirror the circumstances and interests of women.

Women want to learn in steps and understand the language in a safe environment.

Overall women wanted to learn the language of money in a way that they could understand and then translate.

Women do not want to feel silly or to be made think they should know what the experts are referring to.
There is some initial work that needs to be done in order to demystify the language of money and to give women confidence in that language.

They felt that the language was ‘off putting’ and rather than look stupid, they would pretend they understood things, leave and not follow up.

They said that a step-by-step checklist would be very helpful in helping them to understand money matters.
‘I don’t understand their language and I do glaze over.’ ‘Advice needs to be in language I understand.’ ‘Small groups would be helpful.’ 6 W O M E N ’ S I N F O R M A T I O N W O M E N ’ Economic security for women in retirementSubmission 48 - Attachment 2 august 2007 WHen to learn about Money In most focus groups and interviews, women were adamant that money and finances should be part of the school curriculum.
Women supported with some enthusiasm the old State Bank savings schemes (later the Dollarmites) in schools and believed that this helped children in primary and secondary schools to learn about money.

The great benefit of the school bank system was that money could not be withdrawn from the account.

Women in the focus groups believed that the teaching of finance and money needs to be integrated into the curriculum and not as an add-on to the curriculum.
They also believed that practical work needed to be included in the design of the subject matter.

Young women in particular could see great benefit in learning about the share market as a compulsory part of the school curriculum rather than as an elective.

Generally, women did not embrace the internet, pamphlets or seminars as trustworthy sources for getting information.

Many said they would like to hear from members of their own communities that were managing well.
‘At school [You are] not taught about money but you are taught about road safety and safe-sex - you should be taught life skills.’ ‘It should be a compulsory part of the school curriculum.’ ‘It needs to be integrated into the curriculum for all children.’ IMPlIcatIonS For FInancIal lIteracy StrategIeS Overwhelmingly, women in the focus groups wanted small group work to be the method for learning.
They felt that these were the least threatening options and they wanted these groups to include their friends or family.

Women learn from each other very quickly, and they saw small groups as ideal for this type of learning.

Groups should be informal enough to allow for the conversational sharing of women’s life stories.

Groups in many cases could include a diverse group of women.

Women from different walks of life will have different skills and knowledge to share with each other.
Women need to be able to explore where their beliefs about money have come from in order to make the changes that they want to make.

The research has demonstrated that cultural groups may prefer to form groups of women from that same culture.

There may be a special case for cross-generational groups.

There are several models for these.


Even though older women may feel it is too late for them, they may feel motivated to attend a group to help younger women to take control of their finances at an earlier age.

Younger women may be motivated to join a group of diverse women to learn from other women with more life experience.
As a result of these findings, there is some motivation to suggest that Government could sponsor a free or inexpensive range of small, ongoing, action based, group-learning programs for women.
W O M E N ’ 7 Economic security for women in retirementSubmission 48 - Attachment 2 These could take various forms, for example: • The ‘train the trainer’ concept where women, in particular community groups are trained in group facilitation and adult learning skills.

These women then facilitate small learning groups about financial matters.
These groups would learn from each other but may also call in ‘experts’ on particular financial matters.

Workshops would be held in local community facilities or schools.

• The ‘book club’ concept where a group of women get together and set an agenda about topics they want to discuss, how they will get the information and the process of learning1.
• A community house learning group, where local community or neighbourhood houses offer structured, small group training courses similar to many of the adult education classes that are already on offer.

• The CAE Book Club or ASX Women’s Share Club model, where women gather in someone’s home and invite someone to come to speak to them on areas of particular interest.

Financial literacy has been introduced into schools at years , 5 and 7 through external providers.
While the scope of this project does not allow for an assessment of this program, this study has suggested that successful impact on behaviour would be achieved if financial literacy education is integrated into the whole of school curriculum, and is ongoing.

The research suggests that there is merit in financial literacy being taught as a core part of the curriculum in primary and secondary schools.
Further, there may be some advantage to this being taught as a parallel learning process at secondary level, so boys and girls learn separately from each other.

There are more creative learning options available for girls and young women than the reintroduction of school savings bank schemes.

With regard to adult education, the feedback from women in our study who have attended seminars run by government or private industry is that very little of the information is transferred into action.
There are various reasons for this and women talked with energy and humour about ‘glazing over’ in the seminars but then offering good feedback to the presenters because they did not want to either look stupid or hurt anyone’s feelings.

More critically though, women felt that the seminars were not aimed specifically at them, that their circumstances were not accounted for, that the language was not accessible and that often simple steps were not outlined that would offer opportunities for action.
This would suggest that government initiatives and seminars should be based on adult learning principles.

They need to be very clear about specific target groups for financial advice.

This is important so that women can engage at the level of their experience and so that learning transfer can occur.
13 An example of these is Oprah Winfrey’s ‘Debt Diet’ money groups which are supported with ‘how to’ guides: see http://www2.oprah.com/money/ jeanchatzky/groups 8 W O M E N ’ S I N F O R M A T I O N W O M E N ’ Economic security for women in retirementSubmission 48 - Attachment 2 august 2007 FInancIal MedIa: a gender lenS reVIeW To complement the feedback gathered from the focus groups, a small number of women from diverse backgrounds (including corporate managers, women in paid employment, women in unpaid work, Indigenous and CALD women) were asked to evaluate a number of pamphlets aimed at providing information on financial management and investment.
The pamphlets or booklets were: 1.

Investor Education Materials .

First Choice Investments .

OneCare – Protection for Life 4.

Manage the Managers Investing 5.

Living in Retirement 6.

Choice of Super – A quick guide to the new legislation 7.

Advice worth taking 8.

Wealth Solutions – Money matters for women 9.

Optimix Trusts 10.

Getting Advice – A practical guide to personal financial advice 11.

Helping you rebuild your financial security – after marriage breakdown 1.
Financial Planning – Easy access to proven financial strategies 1.

Your Guide to Investing 14.

Capital Global Property Securities Fund14 (see Appendix D for full biographical details) This was an important exercise because it enabled the project to identify and de-mystify barriers women face in accessing financial information, a key aim of the project.

The women were asked to appraise the products through responding to a set of defined questions.
Not surprisingly, significant patterns did emerge in their responses.

In the first place, targeting women was clearly a very important prerequisite for successful communication.

‘Wealth Solutions – Money matters for women’ was rated positive consistently on a number of key items.
This included items on whether or not the booklet appealed to women, whether the language made sense and the women could understand it, and whether it linked to their experience and included ‘me’ and other people that the participants cared about.

It was easy to follow, and encouraged people to want to learn more about the subject.
The respondents indicated that it was clear to them how the information was relevant to immediate, short-term or long-term financial decision-making, and drew their attention to the ways in which the financial needs of men and women can differ.

They felt able to trust this information.

This was the only pamphlet to be rated so positively over so many different criteria.

However, others were seen to have their positive aspects.
‘Financial Planning – Easy access to proven financial strategies’, for example, was appreciated for its language, because it was easy to follow, well paced and relatively straightforward.

It offered useful steps to gaining further assistance and information and gave a little insight into the likely outcomes if advice was followed.

The third most popular pamphlet was ‘Getting Advice – A practical guide to personal financial advice’.
This was rated positively in response to questions about whether it was easy to understand and on being well paced.

It was appreciated for the steps it offered for getting further help or for seeking additional information.

14 Items 1, 4, 5, 6, 7, 8, 10, 11, 12, 13 are aimed at investors-whether it be general information or product-based information.

In addition, items 7 & 10 are also aimed at assisting the public to determine how best to find the right adviser for them.
W O M E N ’ 9 Economic security for women in retirementSubmission 48 - Attachment 2 Some of the others clearly missed the mark.

‘Optimix Trusts’ and ‘First Choice Investments’ definitely did not appeal.

People did not see them connecting with their lives, nor did the language make sense.

Women found them harder to follow and understand, and they did not provide examples with which people could identify.
Nor did they provide useful advice about where else to go for assistance or for further information.

Optimix, in particular, was poorly paced, and did not provide a clear sense of direction.

It did not indicate that men and women might have different financial or investment needs, nor did it encourage the readers to go further and to learn more about the topic.

It did not encourage the participants to trust in the content that it offered.
This can be explained by the fact that these are Product Disclosure Statements (PDS) and as such have very rigid legislative requirements in terms of both wording and form.

Interestingly though, it appears that some make a better fist of their PDS than others.

Others, like ‘OneCare – Protection for Life’ and ‘Advice worth taking’, received mixed ratings.

They could be understood and had some connection to people’s lives.
They provided some sense of what the outcomes might be, and provided good advice on steps to be followed to gather further information, although there was little recognition of the possible differences in the needs of men and women.

The ‘Advice worth taking’ pamphlet also provided advice on potential spin-offs for the financial adviser, and perhaps because of this, conveyed sufficient credibility that readers had some confidence in its content.
Below are graphs which show the results for each of the individual questions and provide a summary of the answers received.

The numbers down the left of each table indicated the number of responses for each booklet.

The categories on the graphs are: don’t know, not at all, a little, quite a bit and very much.

The feedback received was interesting in itself, but it also confirmed the kinds of criteria which should be used to be used to evaluate financial information.
These include: • Does the language make sense?

• Does it link to my own experiences?

Do the examples include me?

• Does it outline further steps to obtaining further information?

• Does it provide a clear sense of potential • Does the information explain that women and benefits, in the end?

men may have different financial needs?

• Does it make me want to learn more about • Is the content easy to follow?

Do I feel comfortable with the pace of the information?

Do I feel I can trust this information?


• Does it outline further steps to getting help?

the subject?

• Am I clear whether this information is for now or for the future?

• Does the information tell me whether there is a commission or other benefit for the advisor?

As well as being useful criteria for evaluating materials, these also serve as an important framework for design purposes.
If a financial information product rates highly on each of these criteria across several target audiences, then it is likely to be a useful resource to support other educative processes offered for women in small groups.
40 W O M E N ’ S I N F O R M A T I O N W O M E N ’ Economic security for women in retirementSubmission 48 - Attachment 2 august 2007 IMPlIcatIonS For FInancIal lIteracy StrategIeS The process of designing and testing the Gender Lens has been particularly illuminating.

Women talked of ‘switching off’ immediately if the material did not appeal.

They responded very positively to material that reflected their own lives.
The Gender Lens has great potential to assist financial institutions and professionals ensure that material is relevant to women.

The results of the research suggest that there is need for financial institutions to use a shortened version of the Gender Lens developed in this study to test financial documentation.

Financial Planners would also use this framework as a checklist prior to giving documentary information to women.
Women were often also embarrassed about their lack of knowledge and understanding of the language of finances, both in the products and whom they might see about what.

As they shared their experiences, they began to laugh at themselves and each other.

There is a great opportunity to use humour in interpreting the vast amounts of language and literature; women’s engagement can begin at the level of their experience and acknowledge their feelings of inadequacy and apprehension.
This would suggest that interpretive literature should be developed; drawing on humour, providing information about topics such as managed funds.

This would enable women to get the information clearly and simply but also to learn the industry language.

Many women said they had read women’s magazines, some almost confessed to reading them, particularly at the dentist or the doctor’s surgery and for some in the supermarket queue.
Some believed that this would be a very good mechanism to distribute information to women.

Some women felt that women giving the advice in the magazine would be helpful, particularly if the experiences related to women readers.

Some were critical of what was available in women’s magazines at the moment.
The research indicates that there would be some advantage to initiating discussions with women’s magazine editors to ensure that women’s magazines contain clearly and simply expressed information relating to financial issues for women.

It would be preferable for this information to be supplied by women.
W O M E N ’ 41 Economic security for women in retirementSubmission 48 - Attachment 2 dIFFerenceS aMong WoMen In tHe Study WoMen In tHe regIonal area Overall, women in Shepparton were more knowledgeable and assertive about money than the women in the city.

This does not mean that they enjoyed dealing with it but many saw it as a matter of necessity and were very aware of their financial vulnerability.
The effects of living in a farming community during a drought were significant for women even those who were not ‘on the land’.

Those women who were or had been on the land were generally responsible for the family finances and were integrally involved in the work of the farm.

Some of the women in Shepparton owned businesses and were divorced or widowed, and tended to be very aware of their financial situation.
Issues of death and divorce were matter of fact rather than things that might happen in the future.

Women in Shepparton were more likely to go to their accountants or lawyers for financial help rather than a financial planner15.

They reflected these through the following illustrative comments: ‘Try not to believe that tomorrow will look after itself.’ ‘Teaching youth the value of money is very important.’ ‘I have a diversified portfolio.
It’s a good mix.’ ‘If we had proper financial advice we would have done it differently.’ ‘Women must have their own money.’ IndIgenouS WoMen Most of the Indigenous women were aware of the issue of poverty and the poverty cycle.

They talked about the challenges involved in making ends meet with meagre pensions, increasing food and utility costs and inflated rental prices.

They were all concerned about their family and actively supported family members.
One of the tensions for parents and grandparents was the cost of schooling and the common practice of schools to require full school uniform.

Children want to be like the other kids and while some schools provide inexpensive second hand uniforms, a change in design or colour of the uniform means new uniforms need to be bought.

Education was, however, seen as a very important vehicle to break the poverty cycle.

The women talked of needing a better economic base.
This involved discussion of options like setting up a cooperative food store, addressing systemic housing problems and setting up their own bank.

These women were very aware of the need for change, not wanting their daughters to be in the same financial situation.
‘When mum died, I had to beg money for her funeral, that’s why I have a funeral plan.’ 15 It is helpful to point out that it was in Shepparton that a financial planner has recently been charged with fraud, which may well have coloured the views of locals.
4 W O M E N ’ S I N F O R M A T I O N W O M E N ’ Economic security for women in retirementSubmission 48 - Attachment 2 august 2007 For Indigenous women, the issue of planning and paying in advance for funerals was very important.

This did not come up in any other groups.

The merits of funeral plans were discussed with some energy, the women sharing the information with enthusiasm.
They joked about needing to plan ahead, further ahead for some than others in the group.

All were concerned that their children or families were not burdened with the cost of their funeral.
The issue of death and funerals was significant because all of them had helped family when others had died and they were very aware of not just the cost of the burial but also the costs associated with the wake, foregone wages to attend funerals, having relatives stay and supporting the most immediate grieving family members.
The women said that they wanted to learn from community members about what they had found successful and were very interested in hearing from family and members of the community that had managed budgets well and were able to save money.

While interested in investments, particularly property, most were more interested in systemic change to the poverty cycle and opportunities for independence that would not leave their families without assistance.
All the women were interested in having community members educated in financial matters so they could, in turn, pass on that knowledge.

Many wanted to receive financial information in a small group format.

Women were amenable to ‘experts’ provided that they could ask them many questions.
Women felt that they were not good at dealing with money when faced with rent, utilities, food and education, most finding that there was not a lot left over and that it only took one unanticipated expense to throw out the financial balance.

This can range from a funeral to a root canal treatment.

There was recognition that divorce causes significant scars, particularly to the finances.

One woman lost everything after her divorce and is feeling very financially insecure as a consequence.
These women stressed that they were employed, so some help with regard to financial advice and budgeting was useful but for other community members a very different sort of assistance was needed because their ‘outgoings are more than their incomings’.

All the women thought that finances should be taught to children in schools.

They thought literacy skills and financial skills went hand in hand because if their communities could not read the bills, ‘the electricity will be cut off’.
‘[I] don’t ever want to rely on a man.’ Significantly, the interviews and the focus groups provided very different information.

Two Indigenous women were interviewed together; both held tertiary qualifications.

One of these women had bought three houses in her name by the time she was 5, had two children and a full time job in the public service.

The impetus for buying the houses came after the birth of her first child when she was 18 years old.
She has started an investment group with the people at work and is now starting up a business for her partner in her name.

The other woman is a business woman who had worked in the public sector for some time before taking a redundancy package and developing her business.

This woman invested in joint investments with her siblings and while financially very able still gets ‘physical reactions about big financial shifts’.

At times she is aware of a physical sickness when making decisions about her money.
She makes decisions with the advice of four trusted people, two of whom are people professionally qualified in relation to finances, the other two are ‘devoted to money’.

Both women were very aware of their responsibility to family, either their own children or nieces and nephews and both believed that financial management needed to be part of the school curriculum.
W O M E N ’ 4 Economic security for women in retirementSubmission 48 - Attachment 2 Comments encapsulating these ideas included the following: ‘ … it’s part of our culture - to care for family.’ ‘Roles are reversed now; in the olden days men cared for families, now it’s us.’ ‘ ... it’s not just about being Indigenous; it’s about poverty and being poor.’ ‘[I] pay rent and food always - power and gas I can do without.’ ‘Rather than live in debt, [I] will go without - [I] will buy the food.
[We] had 24 pounds a fortnight to keep seven children.

Chocolate was a treat.
I always took a child to get the pension and the child would get a banana split - a real treat.’ ‘No sooner do you get an increase in benefits but food gets more expensive.’ ‘’Victoria should never have brought pokies in - [they] have destroyed a lot of families - [there] are a lot of gamblers.’ ‘[I] live from week to week, day to day - the last dollar goes to my sisters and brothers for their children.’ ‘We need a better economic base - our own bank.’ culturally and lInguIStIcally dIVerSe (cald) WoMen Gaining access to women in multicultural groups proved fruitless.
The research team contacted several multicultural organisations that set up a focus group only to find that they received little interest from staff.

Further discussion revealed that women prefer to talk in their own cultural groups.

When attentions were directed to women of specific cultures, the response was more enthusiastic.

The responses from different cultural groups were diverse depending on group and socio-economic status.

It would be misleading to put all CALD groups into the one basket, e.g.
the differences between Muslim and German women.

muslim women The women in the Shepparton group were focused firmly on the day-to-day management of money.

They said (through an interpreter) that they felt very confident with managing money.

Many of these women had been managing household budgets and sending money overseas to repay loans to relatives.

They were thinking about securing their children’s lives rather than their own.
They want their children to go to university and have good incomes and to have houses.

The group in Melbourne was a diverse group, all having different experiences and coming from different countries.

Most had excellent English skills.


44 W O M E N ’ S I N F O R M A T I O N W O M E N ’ Economic security for women in retirementSubmission 48 - Attachment 2 Some of the women were influenced by their parents need to flee their country of birth and these experiences affected their relationship with material goods including money.
august 2007 ‘[We have] a hard life in Iraq, a hard life in Australia - we don’t want our children to have a hard life’.

The women said that the custom of zakat16 helped them to learn to save both for themselves and for others.

Women talked of the tension of wanting to be financially independent and also wanting to spend more time with their children.

While the women saw superannuation as important, their cultural tradition is for the children to care for their parents as they get older.
It is seen as an honour to look after your parents, so some did not see superannuation as essential.

German women This group talked of specific strategies taught by their parents that made them aware of money.

These women were largely capable with money and investments, although they acknowledged the emotional attachment to money.

Some said that while they felt very able, they also found it scary.
Most of these women had received professional financial advice, some from accountants, most from financial planners.

They had also acted on this advice.

At least one of these women was a businesswoman and most were well educated and spoke English well.

These women wanted to receive their information privately and did not want to discuss their financial matters with either large or small groups but simply one-on-one.
Two comments from the group illustrate these points: ‘We made everything - all of our children’s clothes - we saw our parents doing it.’ ‘I’ve seen meat scraped from the bone too often to spend money when I don’t need to.’ 16 Zakat is a Muslim custom where every male and female over the age of puberty donates 2½ per cent of their annual savings to a charity of their choice.
W O M E N ’ 45 Economic security for women in retirementSubmission 48 - Attachment 2 Conclusions As this study incorporated both qualitative and quantitative phases, the results give an important and robust insight into women’s financial literacy.

The qualitative data produced different results to studies that have relied only on survey data as the primary source.
Talking with women on a face-to-face basis enabled rich, complex information to be obtained across a wide range of groups.

It also enabled open discussion to occur, allowing women themselves to identify the help they needed, either from other participants or from other sources of information.

This meant that, for some women, the data gathering process itself was a learning experience.
This indicates the women were ready to learn, that the conditions were right for learning, that they have the capacity to learn and that they believe they can learn from each other.

Compared with other studies, we did not find a strong emphasis around stages of life and motivational points, but instead found an ongoing need for assistance from youth to old age and particularly during profound life changes like divorce or the death of a partner.
The survey results indicate that 4 women (17%) were motivated by divorce or death and 15 (7.5%) women indicated that ageing and impending retirement were motivators.

We found that all women need financial assistance: women with very little money need help with budgeting, women with a little bit of money need help with saving and investing, women with more money need a different type of help and older women need help with retirement planning.
While most of the quantitative findings were consistent with comparative research, an unexpected finding was the strong preference of women for small group learning.

This preference was overwhelming, and was revealed in response to an open-ended question about methods of receiving information and learning about finances.

Another surprise was how quickly women shared very intimate details about their lives.
The information shared often exposed difficult and challenging life circumstances, from cheeky teenagers, to custody, divorce, sea change, incest and death.

Surprising also was how little evaluative data has been collected that tracks the changes in women’s behaviour and the resulting changes in their financial literacy levels.

That is, how they have created wealth, how much wealth, and whether they feel more financially literate after each particular financial transaction.
In other words, how the learning has been obtained.

Most available evaluation instead focuses on initial behavioural change which, given our findings about women starting something or visiting a financial advisor once and then not returning, suggests that examining long term behaviour change might be useful.

While this project produced rich and meaningful results, it was a relatively small sample.
There are gaps in our knowledge of the experiences of women; specifically, more information is required about the financial literacy of young women, generation-X women, specific CALD groups and the ‘sandwich generation’.

In order to develop meaningful policy, more research is urgently required to explore this complex and crucially important area.
46 W O M E N ’ S I N F O R M A T I O N W O M E N ’ Economic security for women in retirementSubmission 48 - Attachment 2 References august 2007 ABS, Employee Earnings and Hours, Catalogue 606.0 p.

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Bentley, T. (006) ‘Women’s Financial Literacy Project: Final Evaluation Report’ Prepared for Council on the Ageing (COTA), Melbourne.
Braunstein, S. and Welch, C. (00) ‘Financial Literacy: An Overview of Practice, Research and Policy; Federal Reserve Bulletin.

Campbell, I. and Charlesworth, S. (004) ‘Background Report: Key Work and Family Trends in Australia’, Report for the ACTU’s Test Case.

Campbell, J. Y.

(006) ‘Household Finance’ The Journal of Finance, Vol.

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W O M E N ’ 47 Economic security for women in retirementSubmission 48 - Attachment 2 Research Findings Moen, P., Kim, J.E., and Hofmeister, H. (001) ‘Couples’ Work/Retirement Transitions, Gender and Marital Quality’ Social Psychology Quarterly, Vol 64, No.

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48 W O M E N ’ S I N F O R M A T I O N Economic security for women in retirementSubmission 48 - Attachment 2 Appendix W O M E N ’ Economic security for women in retirementSubmission 48 - Attachment 2 Appendix A: Literature Review PurPoSe WIRE has initiated a project on women’s financial literacy.
There is much information available on the difficulties faced by women when dealing with finances, especially in relation to retirement; however, less attention is paid to their financial literacy or to the specific circumstances of specific groups of women in Australian society.
The outcome of the project will be a report that provides deeper understanding of the barriers to financial literacy identified by women themselves, and the likely measures that would assist women from all social groups to manage their finances better.

This is especially important in preparation for periods of life without paid employment.

This report will draw principally on workshops, interviews and focus groups with women from varying circumstances, and also map existing financial products.
A key outcome will be enabling WIRE to improve their capacity to support women, and to influence the financial services market.

The purpose of this literature review is to inform the subsequent research and analysis by summarising key themes in the research on women’s financial circumstances and retirement.
key tHeMeS The existing evidence shows that many women struggle to achieve both financial independence, and the capacity to sustain their livelihood at their expected level after they have left paid employment.

This causes concern in itself, and also leads to anxiety about the future (Office of Women’s Policy 005, 5).

A number of themes emerge in this research.


Firstly, women’s participation in the labour market shapes their capacity to achieve financial independence, leaving them dependent on government pensions and compulsory superannuation rather than private savings (including superannuation driven by voluntary contributions from their employers or themselves, or share options).
The key characteristics of their participation are: • frequent segmentation into employment sectors, such as hospitality, sales and administrative work, which are relatively poorly paid with smaller ancillary financial benefits • a greater likelihood that their working life will be interrupted, with consequences both for pay and for their capacity to save (including through superannuation) • a greater chance of caring responsibilities, • twice the likelihood as men that they will be reflected in the choice of part-time employment underemployed Secondly, most women do not understand how to position themselves for financial security; this is the key issue in relation to the notion of financial literacy and access to financial information.
Given that the major emphasis of government policy about financial provision for ageing is on private savings and management of those savings, this is a major concern.

Thirdly, as with more general issues of pay equity, there are structural issues which mean that, even where a policy framework is apparently gender neutral, there is discrimination against women.

The discrimination derives from the ways in which women are able to participate in the labour market, as described above.
The fourth and final theme is the differences in the experience of women according to various socioeconomic circumstances.

It appears that any measures to address financial literacy issues also must address the discrete needs of indigenous women, women from CALD backgrounds, rural women and women with disabilities.

Social class and age are also significant determinants of preparedness for financial independence.
This theme brings together the connections between financial exclusion, social disadvantage and financial literacy.

50 W O M E N ’ S I N F O R M A T I O N W O M E N ’ Economic security for women in retirementSubmission 48 - Attachment 2 august 2007 The depth of research available on each of these themes varies significantly.

Much of the work focuses on the general issues of financial literacy, without recognition of the importance of gender.
Different authors grapple also with clarifying the concept of financial literacy.

Hogarth (00) considers a number of different definitions and suggests that they involve three elements: information about a range of topics, including managing money and assets, e.g.
banking, investments, credit, insurance and taxes; understanding how financial concepts work, such as the relationship between time and rates, and aggregating assets in insurance; and confidence to plan and to make financial decisions (00, 15-16).

Each of the themes identified above will be addressed in turn.
lInkIng labour Market PartIcIPatIon, Pay eQuIty and FInancIal lIteracy ISSueS Studies in many countries have described the differences between male and female participation in the workforce and the segregation of women into lower paid occupations, with significant consequences for women’s pay.
While there is an established body of knowledge on these patterns in OECD countries, more formal research is being undertaken in newly emerging countries such as Bosnia and Herzegovina, where early choices about investment in education for boys and girls have significant long term outcomes for inequality (see Lokshin and Mroz 00).
This research reflects a much wider policy choice in the World Bank to focus on economic initiatives which address gender, on the basis that achieving the Millennium Development Goals (MDGs) depends on greater economic empowerment of women.

This is not only in their own interests, but also in the interests of men and children as well.

‘In sum, the business case for expanding women’s economic opportunities is becoming increasingly evident; this is nothing more than smart economics’ (World Bank 006).
The European Women’s Lobby (004) released an important report which challenged the ways in which governments frame budgets without addressing the financial circumstances of women.

Their simple proposition is that while government budgets are framed on the assumption that they are gender neutral, public spending has different consequences for women and for men.
The Lobby points out, for example, that: • government budgeting, and much financial analysis, usually takes the ‘household’ as the basic unit, but this neglects the extent to which there is an unequal distribution in household internal incomes and resources, especially where the primary earner is male (see also Schmitz 005) • given the pay gap between women and men, women’s segregation into a narrow range of occupations, and their concentration into lower paid jobs, women do not benefit from a reduction in the higher levels of taxation.
They do, however, benefit from increases in the minimum wage • given women’s disproportional participation in part-time employment, breaks in paid employment, and lower earnings, government policies which use the taxation system to reward savings in superannuation penalise women because they simply cannot afford to increase their private provision W O M E N ’ 51 Economic security for women in retirementSubmission 48 - Attachment 2 In Australia, there have been a number of studies and campaigns that have drawn attention to the lack of pay equity between men and women.
As recently as 005, the Victorian Government sponsored an inquiry into pay equity, the report of which not only documented some of the continuing structural factors which drive the pay gap, but also pointed to possible solutions.

More generally, Todd and Eveline (005) provide an analysis of pay inequity in Western Australia.
This study draws attention to regional disparities, but overall, a very clear picture emerges about Australian circumstances: in 004, women’s full-time adult total earnings were 18.79% less than those of men.

Across the total labour force, bearing in mind that women are much greater in part-time employment, the gap was 4.1% (Todd and Eveline 005, 6).
When linked with other issues affecting women’s participation in the labour market (see Campbell and Charlesworth 004), this raises important questions about the capacity of most women, especially those outside professional occupations, to exercise control over their financial affairs.

As the proportion of older women in the population increases, so does concern about their financial preparedness for retirement.

Moen et al (001) discuss gender as a key source of variation in retirement pathways.
They also examine the ways in which women’s different labour market trajectories influence their retirement patterns, especially when they are in a couple relationship where there will typically be two retirement pathways occurring more or less simultaneously.

Much of the research on ageing, retirement, financial security and gender adopts a life course approach, which emphasises the inter-linkages among different phases of a person’s life, rather than looking at each phase as a separate domain.
Foster (004), for example, uses this approach in Britain to examine the gendered life course patterns of men and women, and the implications for retirement incomes.

He concludes that the typical life course pattern experienced by women means that they are vulnerable in their retirement incomes, and points out that, as long as retirement incomes are based in one way or another on earnings during paid employment, this situation will remain unchanged.
There remains a serious need for women themselves to understand better how their paid employment earnings can influence their retirement incomes.

A survey by S4W in 005 demonstrated that many women have little understanding of how the Australian superannuation system works, or how they can make decisions which will increase their prospects for later life (S4W 005).
FInancIal knoWledge Braunstein and Welch (00) provide from a North American perspective, a comprehensive review of issues leading to and arising from poor financial knowledge.
They note that, while there have been both legislative and other initiatives, often from the financial services industry itself aimed at increasing the level of information available to consumers, there is a lack of knowledge about how to interpret this information and to act on it appropriately, often leading to significant financial stress.
They emphasise the importance of financial literacy, not only in response to deceptive and predatory lending practices, but also in understanding the sheer complexity and accessibility of financial products now available (00, 447).

Interestingly, they also argue that increasing the degree of financial literacy amongst consumers contributes also to the development of a more competitive, efficient market (00, 445).
However, they point out that the success of financial literacy training depends on more than just passing on information.

The focus, timing, format and location of training can all influence actual outcomes, quite apart from practical characteristics.

In 000, the British Secretary of State for Education and Employment called for action to better understand and to address a lack of adult financial literacy.
This was a reaction to evidence that 1.5 million households lack access to financial services, and that  million people are without any bank account (see AdFLAG 000, 8).

A key focus of this report was the difference between supply of services (including information about finances), and demand for services, which enables people to gain greater understanding of resources and financial management issues.
5 W O M E N ’ S I N F O R M A T I O N W O M E N ’ Economic security for women in retirementSubmission 48 - Attachment 2 august 2007 One of the important insights of the project was the importance of matching education with practical experience.

For those people without much prior contact with the financial system, the provision of basic access accounts was helpful so that they could apply new knowledge about how to manage their affairs.
Braunstein and Welch (00) investigated the range of providers of financial literacy: banks, employers, community services and government, which all contribute either directly or indirectly, through programs or individual counselling, to increasing financial literacy.

While bank initiatives give greater priority to managing credit, community and government programs focus on encouraging people, especially those on low incomes, to increase their level of savings and assets.
Employers tend to give priority to assisting employees to plan for retirement.

Braunstein and Welch comment on the effectiveness of financial literacy initiatives, referring to the importance of a connection to personal experience, but noted also that linking literacy with stronger forms of intervention, such as compulsory savings (superannuation, for example) was significant.
Hogarth comments on the range of delivery strategies being used by different providers, and notes the difficulty in finding meaningful learning experiences, especially for people on low incomes who have expressed a preference for learning from friends and peers successful in managing money.
As people’s time becomes more pressed, the need for more diverse methods, including web-based programs and DVDs, will increase, although the effectiveness of these kinds of methods is yet to be demonstrated (Hogarth 00, -4).

NEFE® (000) have emphasised that effective delivery of information is a challenge, and have cautioned against a single ‘women and money’ message; there is no one ‘woman’ to whom these messages should be directed.
Similarly, they draw attention to the limitations of evaluations focused on ascertaining responses to the programs themselves.

What really matters is what happens five years later.

Women go through many transitions, and their financial literacy needs to adapt to changing circumstances.

More recently, the ACTU has taken an interest in financial education as financial markets become more complex and households assume more responsibility and risk in relation to financial decisions.
They have undertaken a major review of financial education programs, with a view to highlighting implications for policy making (see OECD 005).

Structural dIScrIMInatIon Much of the research discussed in other parts of this review reflects structural dimensions of women’s economic and social circumstances.

A cogent overall framework for making sense of structural discrimination has been provided by de Ruyter van Steveninck and de Groot, drawing on the work of Diane Elson.
They suggest picturing the economy as a gendered structure, in which a ‘commodity’ economy (financial transactions, dominated by males, is distinguished from a ‘care’ economy (non-financial, dominated by women).

This has the following consequences: • At the micro-level, men and women as well as boys and girls have different roles and responsibilities in households.

(Ruyter van Steveninck and de Groot 1998, 4).


• at the macro-level, although men and women work in both economies, the commodity economy is relatively male intensive and the care economy is relatively female-intensive • At the meso-level, laws, norms and rules which govern public services and markets are gendered.

Men and women have differing rights in many respects.
As a result, men and women have different access to opportunities offered by public services and markets W O M E N ’ 5 Economic security for women in retirementSubmission 48 - Attachment 2 This framework provides a helpful starting point for recognising the structural constraints which influence both the direct causes of men’s and women’s financial circumstances, but also the attitudes and priorities which women articulate in making decisions about financial management, including managing for retirement.
This framework is articulated at a relatively abstract level.

One specific and practical way of making sense of its implications, pointing towards possible areas for further research, is the importance of having a bank account.

Both American and British research (Braunstein and Welch 00, AdFLAG 000) note that this is linked with greater inclination to save, and more financial literacy.

needS oF SPecIFIc grouPS Gender is important when considering financial literacy.
Hira and Mugenda (000) found differences in the ways in which men and women view money matters, and that women were more likely than men to be dissatisfied with their current circumstances and spending habits.

However, not all of the news is bad: Barber and Odean (001) also indicated gender differences, in that men were more confident than women in making investment decisions, but this manifested as overconfidence, leading them to trade more often than women, reducing their overall returns.
Goldsmith and Goldsmith (006) found that male students both felt that they knew, (and did know), more about finances than women students, but that financial education improved both the knowledge base and the gap between actual knowledge and perceived knowledge in both genders.

There are a number of dimensions to the issues of need.

Partly this is a question of social division; partly it is a question of the status of relationships.
With respect to the latter, there is an important difference in approaching retirement from paid employment, depending on whether women are in continuing relationships or not.

However, as Moen et al (001) point out, the transition to retirement can itself be a very stressful time, in which an apparently stable relationship might well be disrupted.
These relationship patterns can vary considerably depending on whether the partners retire at the same time, or whether one continues in paid employment while the other retires.

Also, they note that for many people, retirement really means a transition to alternative employment.

One aspect of increasing economic polarisation is the increasing levels of household debt.
Worthington (006) describes the scale of this problem across OECD countries, noting that Australia historically had a relatively low level of household debt, at 56% debt to income.

In recent years, this has risen to 15%, a high level when compared with other countries.

Not surprisingly, housing costs (mortgages), including housing investment, and credit cards have been key drivers.

Recently the risk associated with this kind of borrowing has increased, accompanied by a growth in financial stress.
Worthington demonstrates that the likelihood of experiencing household stress is linked with basic demographic characteristics, such as the presence of children, the number of dependents, the age of the household head, and whether the householder was born in or a recent immigrant from northern Africa, the Middle East, or Asia (006, p. 1).

Poor financial literacy and management is likely to contribute to this stress.

Also, stress is greater when the household is dependent on government benefits.
Campbell notes that, while many American households make effective investment decisions, a minority, typically poorer and less well-educated, tend to make significant mistakes.

This is especially important given that some financial products involve a cross-subsidy from naïve to sophisticated consumers (Campbell 006).
Measures to address the circumstances of specific groups affect not only practical financial issues, but also aspects of their identity which are central to being able to take up the rights of citizenship: the sense of inclusion, dignity, trust and respect (see Scutella and Sheehan 006).
54 W O M E N ’ S I N F O R M A T I O N W O M E N ’ Economic security for women in retirementSubmission 48 - Attachment 2 august 2007 deVeloPIng an agenda For WoMen’S FInancIal lIteracy reSearcH and educatIon A number of themes emerge from this review of the research literature.

These can be expressed in a matrix which links women with different aspects of financial knowledge.
This matrix links different groups of women and their individual life phases with the financial products and services relevant for them from phase to phase.

Put simply, the matrix would serve as a framework for exploring the kinds of financial knowledge and capabilities needed by women in different phases of their lives.

It would also generate appropriate programs and possible delivery modes, taking account of differences among women.
Some financial products are geared to supporting women in enhancing their economic resources and independence, while others add considerably to developing a framework for decision-making and exercising greater economic power.

Some of the specific recommendations of the AdFLAG report might be useful in this regard.
learnIng StyleS Research suggests that there is an appreciable difference in the way that women and men both learn and apply their learning (Derichs-Kunstmann 006, Philbin, Meier, Huffman and Boverie 1995).

In delivering material to women, particularly material that might be confronting, difficult to hear or may require a significant change to behavioural patterns developed over many years, it is important to bear in mind these differences.
While some find the argument that women and men learn differently contentious, their concerns tend to lie in the underlying assumptions and in trying to understand the implications rather than the phenomena itself (Roberts 1997).

Studies in learning for girls and learning for women show consistent results.
For example, a study conducted on both girls and boys learning mathematics, in particular, Phi and Fibonacci numbers, indicates that girls and boys respond better to different teaching and learning processes.

In fact, males and females have almost opposite conceptual preferences in learning.

The study found that girls respond much better to the ‘real’.
Girls were asked to bring to class sunflowers, artichokes, black-eyed Susan and field daisies not because of the femininity attached to flowers, but because they are perfect examples of these numbers that are tangible and relate to experience.

This study further found that girls learn well in groups and respond as well to what the writer refers to as ‘story problems’ as they do in undertaking role plays (Derichs-Kunstmann 006).

For women, Derichs-Kunstmann (006) found that the same holds true.
In her work with adults and learning learner participation was the primary determinant in successful learning for women and men.

Participants must be able to bring to the learning process their unique life experiences and competencies and must get involved in the learning.

How they do this differs according to gender.


Studies using Kolb’s Learning Styles Inventory (LSI)1 indicate that women learn in a more applied way than men and that they need to understand the usefulness of the knowledge they are learning (p).

Significantly, in another study once again based on Kolb’s work, Philbin and her team (006) assert that there is a significant difference in learning styles between women and men across all ages and cultural backgrounds.
Traditional types of learning and imparting knowledge are developed around a learning style that suits men rather than women and that women tend to be ‘concerned with others’ in the learning compared with man who were more likely to be ‘compared with self’ (p5).

1 Kolb’s LSI was published in 1976 and is still the framework used to measure learning styles.
While illustrated in terms of axis, essentially there are four learning styles; Accommodator (learn by doing), Divergers (learn through imagination, concrete experience and reflective observation) Convergers (learn by doing and thinking) and Assimilators (building and testing theories-abstract conceptualisation).
W O M E N ’ 55 Economic security for women in retirementSubmission 48 - Attachment 2 In relation to the details of the findings women tended to score much higher on the concrete experience orientation where men tended towards abstract conceptualisation.
The evidence indicates that women learn well together, when their experiences and individuality are recognised, when they can feel part of rather than apart from, when there is a chance to listen to others, and in being an active participant.

One key issue in all adult learning is the timeliness of the learning which affects the capacity of any participant to transfer the learning.
The issues related to gender, learning and its applicability in terms of concrete actions needs to be thoughtfully considered in this project.

audIt oF PrograMS A range of programs has been implemented over the past 0 years as financial literacy has become an increasing priority for most OECD countries.
These programs are intended to create more prosperous communities, to counteract scams and fraud, and to acknowledge the growing complexity of the market and the shift in responsibility from government to individuals to support themselves in retirement.

The United Kingdom and the United States in particular have well developed programs and systems, with about twenty years of experience in developing and delivering financial literacy policy and programs.
In Australia, the Federal Government established the Consumer and Financial Literacy Taskforce in 004 to establish a national strategy for financial literacy, launching the Consumer and Financial Literacy Foundation in 005.

The Foundation’s current research priority is to set a benchmark of financial literacy and examine the most effective ways to deliver financial literacy information to consumers.

The Foundation is developing a web-based catalogue of financial literacy programs and resources.
Through the Understanding Money website, they also provide access to education support materials.

In June 004, the Taskforce discussion paper identified 711 programs and initiatives, only seven of which, or less than 1%, had been designed for women.

WIRE’s own stock take revealed 15 women-specific initiatives including fact sheets, brochures, websites, and seminars and training courses.

A representative sample of the kinds of products/programs available is set out below.
tyPeS oF PrograMS non-gender SPecIFIc, general audIence Understanding Money is an initiative of the Consumer and Financial Literacy Foundation funded by the Federal Government.

It comprises a media campaign to raise awareness of financial literacy and its benefits, and to encourage people to find out more about ways to make the most of their money.

Campaign resources include the Understanding Money website and handbook, and a supporting program of community seminars delivered by partners.
The Understanding Money website offers a wide range of financial literacy information and tools such as a budget planner, topics on money related issues and comprehensive links to other useful websites.

The Foundation is working with employers and the vocational and technical education sector to increase access to financial literacy education in workplaces.

They are also working in partnership with employers to implement pilot programs that include financial literacy in cadet and apprentice training.
The Foundation has worked with State and Territory education authorities to have financial literacy included in the curriculum for Years , 5, 7 and 9 from the beginning of 008.

56 W O M E N ’ S I N F O R M A T I O N W O M E N ’ Economic security for women in retirementSubmission 48 - Attachment 2 august 2007 non-gender SPecIFIc, loW IncoMe MoneyMinded is an adult education program developed by the ANZ bank that targets low income earners.
The program is delivered by community educators and financial advisors and covers six core topics.

It is flexible and enables advisors and participants to select workshops that are relevant to the participants’ needs.

Core topics include: planning and saving; easy payments; understanding paperwork; living with debt; everyday banking and financial products; and rights and responsibilities.

The program has a modular format adaptable to suit the individual needs of a range of clients.
non-gender SPecIFIc, IndIgenouS MoneyBusiness in partnership with ANZ provides information and support with money management to six Indigenous pilot communities around Australia.

Local Indigenous people are employed and trained to build management skills within their communities.
WoMen-SPecIFIc, lIFe eVentS aPProacH 360 Degrees is a website run by The American Institute of Certified Public Accountants that presents financial information to audiences in different life stages and events: Getting Started, Building Your Career, Planning For Your Future, Growing Your Household, Transitions & Life Changing Events and Owning a Business.

The site has articles, FAQs, and tools.


The site also has online polls and an online resource, “Ask The Money Doctor”, where volunteer CPAs and CPA Personal Financial Specialists (PFS) answer questions from consumers regarding their financial planning issues and questions.

www.60financialliteracy.org/women WoMen-SPecIFIc, rural Economy Wise + Budget Smart is a course designed especially to help women take control of their finances through every stage of life.
It was initiated by the Queensland Office for Women and is presented by Learning Network Queensland (LNQ).

The free 0-hour course is designed to appeal to women.

It is presented in small group situations with no hard sell and focuses on useful information and explanations of money matters, from savings and budgeting through to investments.
It covers spending patterns, debt management, credit cards, financial planning, tax, property, shares, superannuation and the changes in life that affect your finances.

Women from a variety of income groups and backgrounds participate.

Participants say that taking part in the program has given them confidence to manage their money better and most of them plan to make some changes in the way they handle their money.
Students of the course have responded very positively, speaking of new confidence, new knowledge and of now putting in place good money management practices.

This program is not running at the moment, but depending on funding arrangements, it may run again in the near future.
W O M E N ’ 57 Economic security for women in retirementSubmission 48 - Attachment 2 WoMen-SPecIFIc, cald Enterprising Women provides financial literacy sessions to women from culturally and linguistically diverse backgrounds.

It will be delivered by Women’s Health in the North (WHIN) working in partnership with the Northern Migrant Resource Centre over the next three years.
Enterprising Women draws on the very successful micro-credit pilot project implemented by WHIN in 004 in partnership with Kildonan Child and Family Services.

It will also provide support and training in setting up small (micro) business, with no interest loans available to women completing this training.

Priority will be given to women otherwise excluded from economic and financial participation for a range of reasons.
These include socio-economic status, employment status, ethnic or cultural background, English language barriers, or a combination of all these factors.

Enterprising Women is funded through the Victorian Government Community Support Fund.

WoMen-SPecIFIc, teenage Girl$avvy is a one day workshop for young women, which encourages them to think about the benefits of being financially independent.
The workshop is set in a conference style environment and consists of presentations and activities aimed to inspire and motivate the participants.

The great strength of the workshop is the use of local professional women who act as mentors for the day.

Girl$avvy provides a great opportunity for girls to meet women in their area who have succeeded in various professions and who are aware of what opportunities exist in that community.
Girl$avvy was developed in 00 and has run over 70 workshops throughout New South Wales.

Two thirds of those workshops have been conducted in rural and regional areas.

It is licensed by the NSW Office for Women from Independent Means Inc., and is delivered in partnership with the YWCA Sydney, Australian Federation of Business & Professional Women (NSW) and Guides NSW.

WoMen-SPecIFIc, generatIon X Wi$e Up is a financial education demonstration project targeted to Generation X Women ages  to 5.
It was developed by the U.S. Department of Labor Women’s Bureau in support of the Department of Labor’s Strengthening the Family Initiative.

The Wi$e Up curriculum was developed by Texas Cooperative Extension under contract with the Women’s Bureau.

Wi$e Up is offered online, as well as in classroom settings in educational institutions.

The site has online courses, expert answers by Wi$e Up mentors, worksheets, a glossary and teleconference calls.
Topics include money for life, money math, money basics, credit in a money world, savings basics, insurance and risk management, becoming an investor and achieving financial security.

http://wiseupwomen.tamu.edu WoMen-SPecIFIc, SuPerannuatIon Women and Super is a mini-website provided by Qsuper in conjunction with the Queensland Office for Women that has a ten-step check-list.
www.qsuper.qld.gov.au/women/ Making Superannuation work for you: A woman’s guide is a brochure produced by the Victorian Office of Women’s Policy.

It has a three step process: think about the future you want, work out how much money you will need and put a plan in place.

Super Woman: Women and Superannuation is a brochure produced by the West Australian Office of Women’s Policy.
It also has a three step process: think about the retirement lifestyle, work out how much money you will need and put a plan in place.

Women’s Financial Literacy Project delivered by Women’s Financial Network in partnership with the Council on the Ageing (COTA) with support from Department of Victorian Communities between October 005 and April 006.

Two workshops were delivered in ten locations in metro and regional Victoria.
58 W O M E N ’ S I N F O R M A T I O N W O M E N ’ Economic security for women in retirementSubmission 48 - Attachment 2 august 2007 The aim was to address women’s lack of financial planning for their retirement through awareness, knowledge, skills, motivation, and behaviour change; to enable women to navigate the maze of financial products and information available in the market place; to deconstruct myths women have about retirement; and to develop knowledge and practical skills in financial planning.
The first workshop targeted women 40–55 years of age, covering planning for retirement, superannuation and financial planning, while the second targeted women 55 and over who have recently retired or were planning to do so, and covered practical aspects of retirement.

It was promoted through local media, email and hard copy to local stakeholders (government agencies, businesses, community organisations).

Single and partnered participants were equally represented.
Twice as many attended workshop 1 (75 compared to 16).

Given the extent of promotion and that the workshop only cost $15.00 attendance of Workshop  was disappointingly low.

The evaluation report speculates that women over 55 would perhaps be more uncomfortable discussing their finances in a public setting, or that they are less motivated to learn, having devolved responsibility for their finances to male partners or other surviving family members.
eValuatIon oF FInancIal lIteracy PrograMS (For WoMen) The Consumer and Financial Literacy Taskforce (the CLFT) found that ‘the history of consumer information provision in Australia is characterized by well-intentioned initiatives that begin with a big bang and peter out over time’ (CLFT 004: xv).

It also found that while there was plenty of good quality information available, a good proportion is either not known, not properly targeted, or not used by Australian consumers (CLFT 004: xii).
It does not necessarily follow that an increase in skills and knowledge will lead to better decisions.

For example, 8% of Australians under the age of 40 are aware that they can contribute a greater percentage of their salary to superannuation, however only % actually do (WAM 006: 8).

Researchers have found that consumers decisions are also influenced by personal attitudes, social background and life events (CLFT 004: xii).
There has been a thorough evaluation of the COTA/WFN project (see Bentley 006).

A selection of participants were surveyed at  month intervals.

They were asked their reason for attending, satisfaction and short to medium term effects – measuring knowledge recall, attitude and action, identifying any barriers to take up, and asking for recommendations for improvement.
Some of the key findings have been: • overwhelming satisfaction, a positive and • women-centred approach provided a non- motivational experience - content, presentation and work book rated as good or excellent • program was successful in motivating women to act - 77% (most often by restructuring super and consulting a financial planner) • women commented they were happy with the ‘jargon free’ easy to understand approach • on the whole, the older group (55+) felt more positive about their financial futures threatening environment.
Many had had bad experiences with male financial planners (a typical comment - ‘great to have a female presenter who wasn’t condescending and full of jargon like many male financial planners are.
I really felt like the presenter had empathy for women’s situation.’) • empowering - especially felt empowered to ask right questions of a financial planner • value for money • impartial - no kickbacks W O M E N ’ 59 Economic security for women in retirementSubmission 48 - Attachment 2 The participants identified a number of barriers which needed to be addressed: • uncertainty of employment status • lack of capital • low income versus high cost of living • lacking control over finances • lack of knowledge Some identified no obstacles (7.1%).
Participants recommended: • health worries, relationship issues, attitude (fear, lack of motivation etc) • feeling too old, left it too late • procrastination • lacking confidence • lack of time or motivation More Workshops ‘Some women considered a series of regular, ongoing seminars or workshops might offer them the support and feedback they needed to slowly gain confidence and control over their financial affairs.’ (p) They considered two hours a good start but more would lead to making ‘financial buddies’ with other participants, and provide more ongoing support.
content Some women suggested more work was needed around the emotional and mental preparation for retirement.

target younger Women Many wished they had got this information earlier - more time to implement and avoid problems later target Diverse Groups More attention to cultural and socio-economic differences, as well as levels of financial knowledge.

Rural women wanted information specific to their needs - e.g.

because they had been farming they had no super.


shift Marketing strategy Use of word ‘retirement’ was off-putting for the younger group - thought it was ‘pensioner related’.

Also need to highlight the impartiality of the information and that there are no kick backs.

promote Financial Buddy system Women said they’d like a ‘money buddy’ - would help motivate and inspire them to develop and implement their plans.
60 W O M E N ’ S I N F O R M A T I O N W O M E N ’ Economic security for women in retirementSubmission 48 - Attachment 2 august 2007 ISSueS In deSIgnIng FInancIal lIteracy PrograMS For WoMen An analysis of various financial literacy programs for women suggests a number of key issues which need to be considered.

These are discussed in turn.

targetIng – WHo?


A first principle of marketing, communication and adult education theory is that any product/program must always be tailored for your audience.

Once you have clarified for whom it is intended, you can then tailor the why, where, when, what and how.

To aid information providers in targeting programs, the Taskforce designed a ‘Consumer Behaviour Model’.
This considers the external environment, background and socio-economic status, personal characteristics, needs and aspirations and key events in people’s lives, and also resources that can help (obtaining skills, getting information), all of which feed into behaviour.

Depending on whether people have good or bad experiences, their preferences change.
Following are examples of criteria that are often used to target consumers: • education level • pre-existing knowledge/skills/behaviour • age • cultural background • location • health status/ disability • income/wealth • family/marital status • life stage • life event • lifestyle/attitudes/beliefs Different combinations of these criteria will lead you to more and more specific target groups, for example, low income, indigenous low income and indigenous single mothers on a low income living in remote Australia.
Different groups will have different needs and will prefer to receive information in different ways.

There will also be different logistical or attitudinal barriers to overcome.

Deciding how to divide your audiences into target groups is not always an easy or clear-cut decision and must take a range of factors into account.

MotIVatIon Considering the level of motivation of your target group is very important.
An evaluation of a major financial literacy program in the U.S. has found that motivated people are more likely to attend to and act on financial literacy messages: ‘a best practice of financial education is to discover and exploit moments of motivation, as it is often easier to attract students to programs set up around a particular goal or problem…In fact, studies show that individuals with personal motivation were more likely than less motivated peers to engage in positive, recommended behaviours.
Research also suggests that low-income individuals in particular tend to be most receptive to financial education when facing an immediate incentive.’ (Hogarth, Beverly and Hilgert 004: ).

W O M E N ’ 61 Economic security for women in retirementSubmission 48 - Attachment 2 For example, research and surveys might suggest that older women are particularly in need of literacy programs.
However if they are not motivated because they feel too old, they will not access those programs.

Low-income women need to know about investment strategies, but if they believe they have inadequate funds to meet their current expenses they are unlikely to attend.

In order to reach these groups with these topics, underlying beliefs would first need to be changed by demonstrating, for example, that it’s not too late, that they do have enough money, or to change the content.
An example of using this ‘particular goal’ method to create a target group might be: how to budget for low-income single mothers; buying a house for single generation Xers; or using an ATM machine for new migrants.

WoMen’S attItudeS to Money A survey by the Women’s Information Services (WIS) found that 46.9% felt anxious about exploring their financial options due to a lack of information - especially single, widowed, divorced, separated women (006, 16).
Nearly 40% (mostly widowed, divorced or separated) were anxious due to a lack of understanding of financial information (006, 17).

It appears, however, that women are thirsty for information, if only because they seem more worried about “making a mistake” than men.

The WIS survey indicated that 60%, spread evenly across age groups, would be interested in exploring their financial options further if they had a group or others to talk to, although this result was skewed because of a highly educated sample.
There is other evidence suggesting insights to women’s attitudes.

These surveys reflect the experience of childhood, and indicate less confidence in their financial future and greater aversion to risk.

The WIS survey revealed high levels of anxiety, lack of knowledge and confidence in financial products, and experience of barriers to financial understanding, especially amongst 0–9 year olds, especially single, widowed, divorced or separated women (006,16).
Interestingly, those over 60 years of age were more confident, knowledgeable and less anxious.

PerSonal belIeFS Personal beliefs encompass a range of attitudes and values, including confidence with mathematics and orientation to the future.

What methods of communication do women want?

There are some general principles about the ways women prefer to receive information and learn.

Barletta (00) identifies some general strategies for marketing products to women.
These include: • A people-first approach - women like to hear • User focus - talk about what the product means real stories from real people who have benefited from the product, or ways it can benefit them.

For example, a vignette about how someone in similar circumstances to themselves used or benefited from a product.

to the person.

Women tend not to focus on the technical detail of the product, but instead what it can do for them and their families.
For example, encouraging improved financial literacy among mothers in order for them to pass this knowledge on to their children or help their elderly parents.

6 W O M E N ’ S I N F O R M A T I O N W O M E N ’ Economic security for women in retirementSubmission 48 - Attachment 2 • No losers!

- women tend to respond more negatively to strategies that show a winner and the resultant loser.
Messages that promote a sense of belonging or helping someone else can engage women.

Also, messages should emphasise likeness rather than status.

• New usage/product - highlight an aspect of the product that is of more relevance to women than has previously been shown.

For example, that the life insurance component of superannuation means that if something happens to a mother, her children are provided for.
august 2007 • Highlight the need - women may be discouraged from seeking additional information about how the product can benefit them because superannuation has traditionally been explained in a highly technical and user- unfriendly way.

• Intercept marketing - put the product in women’s daily lives.

For example, hosting an event which will attract women and using that as the opportunity to highlight the advantages of holding superannuation savings.
The limited research available also shows that women prefer to learn in small groups, face to face, allowing interaction and sharing based on the education principle of learning from each other.

Adult learning principles (discussed earlier in this report) indicate that women learn better if they can see an immediate application to their learning.

They also prefer to be actively engaged and participate in the learning process, learning both from and with each other.
W O M E N ’ 6 Economic security for women in retirementSubmission 48 - Attachment 2 Appendix B: Focus Group Participation List NO.
DATE/LOCATION GROUP NO OF PARTICIPANTS Muslim Women – Shepparton 15 sheppaRtoN 1/0/07 /0/07 /0/07 /0/07 /0/07 MeLBoURNe 1/0/07 15/0/07 0/0/07 05/04/07 05/04/07 16/04/07 17/04/07 0/04/07 4/04/07 7/04/07 17/05/07 /05/07 1   1 1 Interviews with Financial Planners – Shepparton Women from Goulburn Ovens Institute – Shepparton Aboriginal Women’s Group – Shepparton Country Women’s Association – Shepparton Telephone interview with Susan Jackson WIRE Volunteers VECCI Financial Planners RMIT Women Koori Women Interviews Yappera Children’s Centre Department of Ed & Training Interviews with Indigenous women Muslim Women Young women German women  5 8 7 1 1 4 5 6  4 9  7 6 8 10 8 /05/07 evening ‘Middle’ Australia 06/06/07 evening Russian women 64 W O M E N ’ S I N F O R M A T I O N W O M E N ’ Economic security for women in retirementSubmission 48 - Attachment 2 Appendix C: Focus Group Questions FInancIal lIteracy Project WIre FocuS grouP QueStIonS: august 2007 1.
When you were little/younger who talked to you about your finances?

Do you follow their patterns in relation to money?

.

What is it about money, finances budgets that makes your eyes glaze over?

.

When you think about your finances and the future, do you think of your own financial independence?

or … are you hoping for … a knight in shining armour?

or … no I don’t have to worry eventually (not too soon) …an inheritance 4.

Have there been key motivation points in your life regarding money?

e.g.
e.g.

; starting work, pay rise, divorce What helped you to do something?

What stopped you?

5.

If you received an extra $1000 what might you do with it?

What about $5000?

What about $50,000?

6.

How would you like to receive information about finances?

W O M E N ’ 65 Economic security for women in retirementSubmission 48 - Attachment 2 Appendix D: Gender Lens Bibliography 1.
ING Australia Limited, ‘Investor Education Materials 2005/06’, ING.

.

Colonial First State, (006) ‘FirstChoice Investments: Offering you more value, service and choice: Combined Financial Services Guide and Product Disclosure Statement’, Colonial First State, Sydney.

.

ING Australia Ltd, (005) ‘OneCare Product Disclosure Statements – Protection for Life’, ING, Sydney.

4.

ING Australia Ltd, (006), ‘Optimix: The optimal mix of investment managers, Manage the Managers Investing’, ING.

5.
5.

ING Australia Ltd, (005), ‘Living in Retirement: A guide on your income options’, ING, Sydney.

6.

ING Australia Ltd, (005), ‘Choice of Super – A quick guide to the new legislation.

What choice have you got?’, ING, Sydney.

7.

Financial Planning Association of Australia Limited, Advice worth taking, FPA, Melbourne.

8.

Mercer Human Resource Consulting, Money matters for women 9.
ING Australia Ltd, (006), ‘Optimix, The optimal mix of investment managers, Optimix Trusts, Product Disclosure Statement’, ING, Sydney.

10.

Australian Securities & Investments Commission, (005) ‘Getting Advice – A practical guide to personal financial advice.

Finding the right financial adviser and advice that works for you’, ASIC.

11.

Tandem Financial Advice Ltd, ‘Helping you rebuild your financial security – after marriage breakdown’, Tandem, Sydney.

1.
1.

Westpac, (006) ‘Financial Planning – Easy access to proven financial strategies’, Westpac.

1.

AMP Capital Investors Limited, (006) ‘Your Guide to Investing’, AMP, Sydney.

14.

AMP Capital Investors Limited, (006) ‘AMP Capital Global Property Securities Fund’, AMP.

Items 1, 4, 5, 6, 7, 8, 10, 11, 1, 1 are aimed at investors - whether it be general information or product-based information.
In addition, items 7 & 10 are aimed at assisting the public to determine how best to find the right adviser for them.

Items ,  and 9 are Product Disclosure Statements (PDSs).

PDSs are compulsory documents for financial products.

The legislation behind these documents is prescriptive in terms of the requirements and as such tends to be difficult to read.

The Federal opposition leader has said that he would make alterations to the requirements if elected.
66 W O M E N ’ S I N F O R M A T I O N W O M E N ’ Economic security for women in retirementSubmission 48 - Attachment 2 Appendix E: On Line Survey Questionnaire august 2007 1.

When you were growing up, who talked to you about finances and money?

.

How would you describe your current financial situation?

• Struggling to make ends meet • Making ends meet • Able to cover my expenses and save • Able to cover my expenses and invest .
When it comes to your interest in managing money and financial matters how would you rate yourself on a scale of one to 5?

Extremely interested Extremely disinterested 1   4 5 4.

When it comes to your knowledge about managing your money and financial matters how would you rate yourself on a scale of one to 5?

Very well informed Not at all informed 1   4 5 5.

When you think about your financial security into the future do you feel Extremely confident Anxious OR Unsure 1   4 5 6.
Do you find information about financial products provided to you by banks, superannuation funds and the like Easy to read and understand Difficult to read and understand 1   4 5 OR I wouldn’t know because I never read them 7.

How often do you actively seek out financial information and advice?

Regularly Never 1   4 5 W O M E N ’ 67 Economic security for women in retirementSubmission 48 - Attachment 2 8.
What is your opinion of financial advisors?

9.

Would you take financial advice from others?

a) Yes b) No If yes, who?

10.

If you have or have had a partner would you say?

• We share responsibility for financial matters equally • I take care of all the financial matters • I run the household budget but my partner takes care of everything else • My partner takes care of all the financial matters 11.
If your partner takes care of the financial matters, how well informed do you feel about what is going on?

Very well informed Not at all informed 1   4 5 1.

Have there been key motivation points/events in your life that have prompted you to act on your finances?

Yes No 1b.

If yes, what were they?

1.

Do you feel there is anything holding you back from taking the action necessary to manage your money and financial future?

Yes No 1b.

If yes, what do you think is holding you back?

14.
14.

What type of information or support do you think would be most helpful for you to take the necessary steps to manage your money and financial future?

15.

If you received an extra $1,000 what would you do with it?

16.

If you received an extra $50,000 what would you do with it?
68 W O M E N ’ S I N F O R M A T I O N W O M E N ’ Economic security for women in retirementSubmission 48 - Attachment 2 august 2007 • 55-64 years • 65-74 years • 75-years and over about you age • 15-4 years • 5-4 years • 5-44 years • 45-54 years IncoMe • Negative/Nil income • $1-$49 • $50-$599 ($1,000-$1,148 per year) • $600-$999 ($1,00–$51,948 per year) • $1,000-$1,999 ($5,000-$10,948 per year) • $,000 or more (over $104,000 per year) • Year 1 or equivalent • Year 10 or below • Did not go to school • Divorced/Separated • Widowed HIgHeSt leVel oF educatIon coMPleted • Postgraduate Degree • Bachelor Degree • Diploma or Certificate relatIonSHIP StatuS • Single • Partnered In what country were your parents born?
Do you speak another language at home?

Are you an Indigenous Australian?
Home postcode W O M E N ’ 69 Economic security for women in retirementSubmission 48 - Attachment 2 Notes 70 W O M E N ’ S I N F O R M A T I O N W O M E N ’ Economic security for women in retirementSubmission 48 - Attachment 2 august 2007 W O M E N ’ 71 Economic security for women in retirementSubmission 48 - Attachment 2 Contact WIRE For information, support and referrals: 1300 134 130 13 36 77 (TTY National Relay Service for hearing impaired women) Drop in to the Women’s Information Centre at: 210 Lonsdale Street, Melbourne Email: inforequests@wire.org.au Website: www.wire.org.au Economic security for women in retirementSubmission 48 - Attachment 2