British women aged 40-plus are more in control of their finances than ever before, a new study has revealed.
They perceive themselves as more judicious than their partners when it comes to money, have secret savings accounts and use credit cards but only on the condition that they pay them off every month.
The Woman & Home Icesave survey of over 2,170 women gives an insight into the rapidly evolving lives of the UK’s modern 40-something woman and found their attitudes to money, saving and spending are a world apart from their mothers, or even women the same age a decade ago. Many of these women are also living completely independent financial lives from their partners and families.
The survey, commissioned jointly by online savings provider Icesave and Woman & Home magazine, looked at the way 40-plus women spend, save and invest their money and found the most drastic change is in earning power – with a third (37%) the chief income earner in the household. These women, over half – have always made a point of having a savings account, however small. They also have a traditional pension (70%), an Isa (60%), life assurance (34%) and stocks and shares (29%).
One in four of these more youthful 40+ women make the major spending decisions as opposed to their partner (2%). These women also save an average 200 per month, with 10% saving between 300 and 700 each month.
One in four women said that they secretly save money, mainly for emergencies, although other reasons cited were for personal treats and because their partner is unreliable with money. 40% pay the bills and run the finances with slightly less saying they do this jointly and 12% leaving it to their husband. A third said that they have a separate current account from their partner with only 20% admitting to having only a shared account.
Nearly 40% said that they have a separate savings account from their partner and 29% admitted to separate and shared ones. When asked why they chose to have a separate account from their partner they admitted to enjoying being “financially independent from each other” as the number one reason.
They make financial sacrifices to afford exotic holidays or make home improvements and if they have a spare 500 to spend on fun would choose a shopping trip with their daughter or friends and a weekend away with their partner. 11% admitted to spending 1000 on a treat purely for themselves.
The fact that they are quite secretive means a third lie to their partner about money. However, nearly half of the women felt that they are the most sensible when it comes to the finances.
With just under half having paid off their mortgage, a third of women save regularly into a high interest account and 11% expect to receive a legacy. 60% also said that they have adequate pension provision or are making extra plans. However, worryingly for some of these 40+ women nearly one in five do not have any pension or long-term investments yet. 32% said that they are worried that they don’t have enough provision.
When it comes to credit cards 16% of women said that they never use them, 21% have a rolling credit card debt and over 50% use them but pay them off each month. A third also have accounts with more than one bank. They turn to money advice websites for financial advice (40%) and the money pages of the press (30%).
Finally, when asked about their children, nearly 70% thought it was crucial that their children knew more about how to manage their finances.