7 financial tips about money in a relationship

The pandemic has changed the way we think about money, prompting millions of individuals throughout the world to consider their financial safety net, review their spending, and begin investing to fund long-term financial aspirations.

Despite this, as we approach International Women’s Day on March 8, the storey of women and money remains bleak.

The gender pay gap has widened; our pensions tend to be puny; we live for longer, spend more of our lives caring for others and all of this negatively affects our finances.

Now the cost of living crisis is adding to our woes, with inflation eating away at cash savings while volatility returns to global stock markets.

As someone who has been writing about finance for more than 20 years, I worry that focusing on the negatives is a further barrier to engagement. If the financial odds are so stacked against women, should we even bother?

In the spirit of the 2022 theme “Break the bias”, I want to present some inspirational ideas about money that could shift your mindset. In the seven areas below, hopefully there’s a practical takeaway that women everywhere can act on.

1. What financial independence feels like

For all the negativity surrounding women’s finances, I wish we could bottle the biggest positive — the feeling that financial independence gives you.

I would define this as moving from feeling overwhelmed by money to feeling more in control; making your own decisions, setting financial priorities; and developing effective habits like budgeting to help you achieve your goals.

“The problem is, traditional goals set by older generations [like buying a home] are not affordable for us,” say Margot and Alexia de Broglie, the 20-something co-founders of Your Juno, a new financial education app for Gen-Z women.
“having freedom over your time”

The topics younger women most want to learn about are investing, negotiating a pay rise, becoming a freelancer and starting a business — and they want to learn from each other’s experiences.

“The element of community is so incredibly empowering,”

“So often, money is a source of shame and stress, when it should be a source of freedom, empowerment and security.”

During the pandemic, many more of us shared our financial fears and experiences online.

Social media “finfluencers”, women can recognise themselves, finding role models that the traditional financial world fails to offer.

While these personal interactions cannot replace regulated financial advice, real-life stories remind us that nobody is perfect. Knowing that others are experiencing the same challenges can be a source of strength and inspiration, as the huge growth of the online debt-free community has shown. It is also a reminder that we shouldn’t confuse financial independence with financial privilege.

2. More women are investing — and so can you

During the pandemic, investment platforms and trading apps reported a new wave of female customers. Getting started is the easy part. As markets turn choppy, thinking about your investment strategy and understanding how tax breaks can boost your investments can help newer investors hang on for the ride.

“We spend so much time working hard earning the money, but not enough nurturing our wealth,”

“For me, the challenge is all about getting people closer to their money.”

“Women tend to have much higher cash holdings [than men], so rising inflation is going to hit them harder,” she says.

3. What does your partner earn — and where is the money?

Every woman should know the answer to this question, but a surprising number do not. But before having a conversation with your partner, try having one with your peers.

“Without a conscious effort to maintain and level up finances to recognise non-financial contributions like caring for children, these gaps start to build,” she says. “All too often, people don’t realise this until they split up.”

4. The financial impact of having a baby

Much of the damage to women’s earnings potential occurs after they become a parent, but financial planning can help lessen the impact.

5. Flexible working is not just for women

In the City of London, high-profile female bosses have been encouraging women to stop working from home and come back to the office.

If flexible working is something that only women are asking for, they fear this could unduly damage women’s pay and career prospects. Sadly, they stopped short of suggesting that more men should ask to work flexibly to better share childcare.

“Both men and women can benefit from the fact that the stigma around the flexible working conversation has been pushed aside,”. “Before the pandemic, many men wouldn’t approach their boss about this through fear of looking weak. That’s now eliminated, so these conversations need to be had at home.”

6. How to hustle

The need for greater flexibility has long been a driver for women to go freelance or start a business. However, statistics show that female-owned enterprises often struggle to scale up, attracting a minute proportion of money raised from outside investors.

Just 1.1 per cent of funding went to female-led technology companies in 2021. which notes that diversity is lacking on both sides of the deal. In 2021, it estimated that only 12 per cent of European venture capital general partners and managing directors were female.

7. How to maximise your earnings potential

A “side hustle” can provide a valuable extra income, and potentially an avenue to develop your next career — but are you being paid fairly in your main hustle?

“Closing the gender pay gap requires you to be proactive and ask for a pay rise,” accepting that part of the problem is that women are less likely to ask for an increase than men.

Advising women to develop a greater awareness of their earnings potential, she says if negotiations do not go your way, “sometimes, the best way to increase your salary is to move jobs”.

Women are much more likely to work part-time. After having children, switching to a four-day week is common, yet plenty of women are squeezing in five days’ worth of work in return for a 20 per cent pay cut.

“Another common problem is women staying in the same job for a long time after they’ve had children,” noting how women sacrifice flexibility for pay and career progression.

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