The Royal Commission into Victoria’s Mental Health System provides an opportunity to consider the social and economic factors that contribute to poor mental health using a gender lens. This piece by Sarah Squire (@SquireSarah) and Policy Whisperer Susan Maury (@SusanMaury) of Good Shepherd Australia New Zealand (@GoodAdvocacy) explores how financial hardship and stress contribute to poor mental health, drawing on case studies and reflections from practitioners in Good Shepherd services. This is the third in a 4-part series based on Good Shepherd’s submission; Part 1 provides an overview of the gendered nature of mental health, while Part 2 discusses the related issue of economic inequality.Read More
This blog is the second in a four-part series on women’s mental health. As the Royal Commission into Victoria’s Mental Health System continues its public hearings there is an opportunity to consider the social and economic factors that contribute to poor mental health using a gender lens. This piece by Sarah Squire (@SquireSarah) and Susan Maury (@SusanMaury) of @GoodAdvocacy explores how economic inequality contributes to poor mental health among women, drawing on reflections from practitioners in Good Shepherd services. You can read the first in this series here.Read More
Problems with making financial decisions are often presented as individual issues, but Dr Jeremiah Brown (@JeremiahTBrown) of the Brotherhood of St Laurence argues they are often better understood as instance of structural failure. He illustrates with an example of an aged pensioner trying to change energy providers.Read More
The Victorian Government's new policy aims to distribute more government money to social enterprises and marginalised groups, explains Stephen Easton. Repost from The MandarinRead More
The Cashless Debit Card Symposium was held at both the University of Melbourne and the Alfred Deakin Institute on Thursday, the 1st of February 2018. The Power to Persuade is running a series of blogs drawn from the presentations made on the day. In this piece, David Tennant of FamilyCare Shepparton and Policy Whisperer Susan Maury (@SusanMaury) of Good Shepherd Australia New Zealand assess the Cashless Debit Card (CDC) as a tool for promoting financial inclusion, and find it comes up well short. Read More
The Financial Inclusion Action Plan (FIAP) is an innovative collaboration that sees organisations across industry, government, not-for-profits and education coming together to improve financial inclusion and resilience across Australia. Here Vinita Godinho and Abigail Powell explain the importance of a program such as this and reveal findings from the evaluation of phase one of the FIAP program.Read More
In another insightful post, Juanita McLaren (@defrostedlady) of Good Shepherd Australia New Zealand examines the patterns of welfare dependency by women and suggests that the Welfare to Work policy could be more effective if, rather than punishing single mothers, it supported them based on normal arcs of parenting and employment. You can hear Juanita speak on her experiences at our upcoming Women’s Policy Forum, held in Melbourne on 22 September 2017.Read More
Continuing our series of posts about women's financial security, here James Arvanitakis, Lauren Stanley (both Western Sydney University) and Trina Jorre de St Jorre (Deakin University) report on their survey research with young women. Worryingly, over half of their participants reported feeling discouraged from learning about finance because they were women.
Our investigation into the financial literacy of young women finds they are confident in implementing budgeting and savings strategies, but lack the knowledge and confidence required to implement long-term financial strategies.
This is surprising given that financial literacy usually refers to not only an understanding of how money actually works and how to make and manage money for day-to-day affairs but also how to use this in preparation for the future.
While our results are preliminary, based on social media users and require more detailed research, our results begin to draw links between social, institutional and personal attitudes towards financial knowledge.
A survey we distributed across social media found that 91% of 175 respondents had confidence in their ability to implement savings strategies (varying from simple to complex), and 89% were confident in their ability to budget. Strategies included everything from planning for a holiday to managing credit cards. Participants also considered budgeting and saving to be the most important aspects of their finances.
However, our survey participants expressed a distinct lack of appreciation for longer-term financial goals. While 72% of respondents felt that savings were extremely relevant to them, only 38% said the same about superannuation, and they showed even less interest in other long-term investment (23%).
Knowledge and confidence in implementing long-term investment strategies were even more concerning. Only 17% of respondents said they had a “medium” knowledge of superannuation and only 1% (or two of 175 respondents) felt that they had an in-depth understanding. In contrast, 55% indicated having little or no knowledge whatsoever.
The numbers look even bleaker for responses about investments. A low 12% of survey participants had medium levels of knowledge in this area, while again only 1% felt their knowledge was in-depth.
When asked about why they lacked financial knowledge, the barrier most commonly acknowledged by participants was lack of financial information taught at school (91%). Also 55% of participants reported feeling discouraged from learning about finance because they were women. This is consistent with reports of female students being discouraged from studying subjects such as science, technology, engineering and mathematics (STEM).
Why financial literacy matters for women
While the pay gap is considerable, the “super gap” is even greater. On average women will accumulate 46.6% less in superannuation than men, and one in three women retire with no super at all. Superannuation is the second largest asset for most Australian households, (second only to housing) and contributes significantly to economic security and savings at retirement.
Insufficient superannuation and savings at retirement have also been linked to high rates of homelessness experience by older women – a point that has been emphasised by Homelessness Australia. While there are many factors that contribute to homelessness, from drug and alcohol abuse, lack of affordable housing and domestic violence, a 2013 study by Adam Steen and David MacKenzie suggests that the little research done is this area indicates poor financial literacy is also a contributing factor.
Difference in superannuation savings between women and men are driven by interrelated factors including: the gender pay gap, more frequent participation of women in lower paid industries and jobs, disproportionate participation of women in part-time and casual positions. Also influencing this trend are the fragmented work patterns as a result of time taken off for unpaid care and pregnancy related workplace discrimination. Women also typically retire earlier and live longer than men - up to 4.4 years longer for a female born today.
In addition to these structural and social factors, our data suggests that women are ill-equipped to manage long-term financial investments.
Reduced financial literacy amongst women in comparison to men was acknowledged by the Australian government in 2008 and again by the NSW Council of Social Services in 2016. Likewise it has been acknowledged in the United States and further afield. Our data suggests little has changed.