Book Review > Women Talking Money

Couldn't put it down! Had the Christmas decorations to put up, the bags to pack for holidays, but what an informative, affirming, revealing read!

I guess it's not really 'light holiday reading', but probably most AIA members with their heightened interest in matters financial, would consider it as such.

Ms Falkiner-Rose's research confirms many things about women and things financial that most of us probably already know or suspect.

For example, that most women (and possibly men, but we're not dealing with them here!) like to be seen as 'nice' when it comes to most things, including money.

We don't like to be seen as calculating, greedy, money-grubbing, mean, but hey, that's partly why many of us are still not in a healthy financial position.

We have a nice house, a nice car and well-dressed kids but our bank balances and 'nest eggs' are not generally anywhere near as nice as all of the aforementioned.

Falkiner-Rose talks to a lot of women, 115 women, many well educated, savvy, 'nice', of all ages, similar in profile I imagine to many female AIA members, so their stories will probably be of interest to most of us.

It was surprising to me how many of what I would consider my 'peers' still believe in the Cinderella syndrome, that we 'should' take care of our own financial future, but we can't help thinking deep down that we'll somehow marry money, come into money, inherit money, or our futures will be somehow taken care of, by a bloke.

It was surprising to me how many of the women interviewed leave the money matters to the man of the house, where there is one, even those who were 'independent' before marriage seem to drop the bundle and concentrate on home and hearth and leave the financial juggling to the brawny half.

The good news about this in all the bad news is that despite all the doom and gloom, 60 per cent of marriages last…now that's not to make light of the 40 per cent that don't, but it offers some comfort that we are not total dolts, those of us working with our partners to secure a financial future as a couple, rather than keeping our worldly goods 'separate' as it sometimes feels we 'should' be doing in these unfaithful times.

An English study picked up by Falkiner-Rose reveals about half of the women surveyed have a joint account with their partner and separate accounts, a quarter have separate accounts only, and the other quarter have joint accounts only.

But what is different to men is women's common habit of squirreling money away for a rainy day - 70 per cent of women had a secret stash, compared with 53 per cent of men. Researcher Christine Webber says those stashes may be a form of relationship insurance.

There were a couple of 'light bulb moments' for me in the Falkiner-Rose book - one of them, a story about a woman who reported she couldn't 'save' to save herself, but if she owed someone money, she would pay it off with the strictest discipline, so she has to 'trick herself' into saving…

Social commentator Naomi Wolf describes the 'financially bulimic' woman:

"They spend compulsively, orgasmically, then hate themselves, and welcome the discipline required by the debt they've incurred.

As far as women and share trading go, psychologist Dr Harry Stanton is reported as saying that cautiousness is one of the biggest advantages women have in share trading. But 'anticipatory anxiety' holds them back from greatness - they worry about things that may never happen. He says women are fearful about investing their money and see dangers that don't exist.

How can we improve?

Despite all our training, Ms Falkiner-Rose's research shows many women still fail to make concrete goals. They make vague plans and wonder why they can't follow them.

They make expressions of purpose - to be 'financially secure', not 'I want to have half a million dollars in investment assets, own my own house outright and earn a salary of $50,000/yr by 2006.'

They also don't want to give up the 'new essentials' of middle class life to save. For example, 68 per cent of women say they could cut back by eating out less, but only 18 per cent will actually do it.

On the bright side, another study showed qualities of assertiveness, openness to change and an optimistic outlook are all qualities that are leading women to smarter financial choices.

I think Ms Falkiner-Rose has done a great job in this book. She's reported her own research and the research of others in the field. She gives lots of references for literature and websites to enable readers to take the next step up the ladder to financial savvy, should they recognise themselves in some of her chapters.

It's very easy to read but it's not too easy for AIA members. Enjoy!

Naomi Cescotto is a member of the AIA.