A gender balance of financial role models could be the “crucial factor” in closing the gender savings and investment gap, research from Nutmeg has revealed.
The research, which surveyed over 2,000 respondents, found UK adults who had an equal balance of financial role models were more likely to save and invest, correctly identify the purpose of an Isa, and engage in the use of Isas.
This was compared to those with predominantly either male or female role models.
Nutmeg head of advice and guidance, Claire Exley, said the research “highlights the importance of having a diverse and balanced range of financial role models in developing good money habits”.
She added: “While there is slightly lower money and investing confidence among women, there are signs that women are actually the quiet money mentors in our lives and a healthy mix of influences is the key to boosting our saving prowess.”
Parenting
The research discovered 30 per cent of respondents said their fathers were the primary role model that taught them about money, slightly ahead of the 26 per cent who said their mother filled this role.
Women were, however, most likely to primarily credit mothers for passing on financial knowledge, with 31 per cent stating so.
Nutmeg stated this suggests mums are the “quiet money mentors in our lives”.
Despite this, just 10 per cent of women consider themselves to be “very savvy” with their money, compared to 16 per cent of men who report the highest level of financial confidence.
While women report lower confidence overall, those who manage household finances showed a significant increase in both Isa knowledge as well as saving activity compared to households where their partner manages household finances.
This lower confidence was found to extend to investments, with women nearly twice as likely to report they would be uncomfortable taking any risk with their money (29 per cent versus 16 per cent).
However, Nutmeg’s data showed a more optimistic outlook as women now account for 41 per cent of its clients and 51 per cent of its socially responsible investors.
“Investing can feel like a money minefield and more must be done to break down the UK’s gender investing divide,” Exley said.
“It’s encouraging to see a larger number of women putting their money to work by investing in their futures with Nutmeg as we chip away at gender stereotypes.”
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