Author: Lizbeth Hedge

Why savings for women aren't adding up.

Recent research reveals the average savings amount for Australian women is well below par. Our Morisset Branch Supervisor Lizbeth Hedge offers some easy ways women can increase their savings power.

We are all taught as children to save, whether by our parents, by our bank or at school in commerce class. And we all try our best with the information we’ve been lucky enough to absorb.

As we get older though, we begin to really understand just how our savings are, especially as we take on adult responsibilities such as home ownership or a family, or as we near retirement. Our savings become our lifeline, our safety blanket against the many unexpected events life can throw at us.

New research has shown however that women’s savings in Australia are on average alarmingly lower than those of men. RFi research published in November, 2013 showed that the proportion of men who had $50,000 or more in savings was significantly larger than the proportion of women with the same amount – 37% of men compared to 28% of women nationwide.

Why does this disparity exist – is it as simple as a larger number of women than men delegating their financial security to a spouse or significant other based on more traditional gender roles? Or is it due to a glass ceiling that women are still unfortunately struggling with across all levels of employment in 2014?

Whatever the reason, there are some simple ways that women can improve their savings outlook and better prepare for their future, whatever it may hold:

  1. Avoid becoming completely reliant on a spouse for financial security. Maintaining some level of financial independence will allow you to make your own choices with your money and properly prepare for your future.
  2. Spend less money than you earn - it sounds simple, but it’s the tried and true way to building wealth. This can be easier said than done at any stage of life, particularly if you have a family, but you can be sure your savings will grow.
  3. Set aside money for emergencies. This may seem like a waste of time now, but if you were to lose your job or encounter unforseen expenses, you will be patting yourself on the back. A term investment account is a great option for emergency funds, as you lock your money away for the length of the term, all the while earning interest on your money so your savings grow.
  4. Invest with confidence - if you are in the position to invest money, don’t let the fear of losing it stop you from making a smart decision. If you research and get the right advice and are confident of making a decent return, invest with confidence and reap the rewards. See how The Greater can help you with your investments.
  5. Set savings goals. It might be as simple as wanting to save $1,000 to begin with, but every time you reach your next goal, your sense of achievement will spur you on to even bigger savings. Setting goals really works – why not try using our Savings Goal Calculator and plot your savings plan today?
  6. Try to avoid taking on a partner’s debt when you marry. By waiting until you are both debt free to tie the knot, you can enjoy a clean financial slate when you begin your life together.
  7. Educate yourself. We could all use some more advice, no matter what our Financial IQ. Don’t be embarrassed to ask questions – pride cometh before the fall, and the more you know, the more you will be able to build your savings and ensure you maintain your financial security. The Greater has teamed up with Bridges – one of Australia’s most trusted names in Financial Services. Why not arrange an initial, obligation-free complimentary appointment to meet with a Bridges Financial Planner at a time that suits you?
  8. Learn from your financial mistakes, and avoid repeating them.

If you are looking to build your savings, why not speak to The Greater today? We offer an award-winning range of great value products and services designed to Make Life Greater, and our friendly customer service has ensured we are Australia’s most loved banking organisation.

To see how we can help:

  • Make an enquiry online
  • Give us a call on 1300 651 400
  • Drop into your nearest branch

If you think you have a sure-fire way to maximise your saving potential that we have missed, why not leave it in the comments below?