Finances for women

Women and money - an exciting topic on which we have invited a guest author. Whoever believes that equality already prevails in the financial sector will be amazed by the following article. This article also has a lot to offer men, so stay tuned!

Guest author: Isabel, founder of www.foodforsoul.ch

We would be especially interested in feedback from our female readers in the comments on the article "Finances for women"! But also from the men - how do you handle finances in the partnership?

Women manage their finances differently

Women manage their finances differently than men. And that's a good thing. But despite numerous financial blogs, information offers and events of financial service providers for women, it still shows: Women deal too little with their financial affairs. This is confirmed by various banks, pension providers and women's networks. Finances are thus a far too rarely addressed topic in the world of women.

This inevitably raises the question: Why is this so? According to a recent article in the Neue Zürcher Zeitung, this is mainly due to women's lack of financial knowledge. In a study conducted by UBS in 2018, 74% of the women surveyed rated their financial knowledge as not very good.

However, given the flood of information on the internet and the wide range of offers for women, a lack of knowledge cannot serve as a sufficient explanation. Moreover, thanks to innovative digital solutions, such as the Zak app from Bank Cler, dealing with personal finances is becoming increasingly easy. Consequently, for a deeper understanding, other factors must be included in the consideration.

Women and finance - a look into the past

The often cited classic distribution of roles does not provide a comprehensive argument for the restraint of women in financial matters. Even if popular sayings such as "Finances are a man's business" are well known, the self-confident woman of today can take a more differentiated view. Nevertheless, it is worth taking a look at the past to get a more accurate picture of how women deal with their finances.

The fact that women in Switzerland had no de facto power of disposal over assets within marriage until 1988 was certainly not conducive to women's financial self-confidence. Under the Civil Code introduced in 1912, the woman was subordinate to the man as the legal "head of the family". The husband determined the family's place of residence and also the wife's occupation. In addition, the husband had sole management and use of the marital property, while the wife was obliged to run the household. In the event of the dissolution of the marriage, the wife received one-third and the husband two-thirds of the assets saved during the marriage. It is only since 1988 and 2000, respectively, that men and women have been officially equal and equalized by law.

Finances for women: Here's what it looks like today

Despite the removal of legal restrictions, more than 60% of young women in Switzerland today leave investment activities to their husband or partner. This picture is also evident when it comes to retirement provision: almost 40% of women in dual-earner households without children do not make regular contributions to the third pillar. Among other things, this increases the risk of old-age poverty among women. And when additional factors such as baby breaks, part-time work and wage differentials are taken into account, it would be all the more important for women to invest the money available to them more effectively.

The conclusion is that many women are put off by the apparent complexity of the topic of finance and that it is therefore difficult for them to gain access to the subject. Many simply feel insecure - both in building up financial knowledge and in putting it into practice. Women's often greater need for security also contributes to the fact that they leave their money in savings accounts. However, this is dramatic in the face of low interest rates and inflation, as it reduces wealth. This raises the question of what it takes for women to take better care of their finances?

Female Finance Empowerment

Most financial service providers today recognize the potential of the female customer group. However, studies show that they find it difficult to properly understand the needs of women as a target customer and to advise and serve them accordingly.

Because the financial industry is still one of the least attractive industries for women. Thus, many women do not feel picked up by financial institutions and the impression remains that financial institutions focus predominantly on men as their target group. Consequently, care must be taken to remove the stigma that "finance is complicated" and make it easier for women to access this topic. In addition, women need financial knowledge that is relevant to them and they need female role models. Women appreciate it when knowledge is passed on from woman to woman and questions can be asked freely.

Managing finances as a couple

Female empowerment also means making women more aware of their responsibility for this issue. After all, it's not just about promoting women, it's also about all of us as a society, and therefore also men, benefiting from it. The potential can be seen, for example, in partnerships. Here it is definitely also in the interest of men that joint financial goals are achieved. If women take an active part in shaping assets and assume responsibility, this is consequently a benefit for the partnership.

Digital solutions such as the ZAK app are ideal for managing joint finances as partners. For example, the app offers the option of creating joint pots and working towards goals such as holidays, weddings, cars, etc. This is in line with the motto: "Coming together is a beginning. Keeping together is progress. Working together is success."

Zak bank account for women

In a survey of women on the subject of finances, 55% of the participants answered the question of what advice they would give other women by saying that women should pay attention to complete transparency in all accounts. A first step could therefore be to get an overview of all accounts.

The Zak app from Cler Bank, for example, is suitable for this purpose. In this clear app, it is possible to take the first step towards regulating one's own finances without any effort or prior knowledge. In addition to monthly expenses, separate savings pots can be created, making it easier to keep track of savings. Such innovative solutions create transparency in the financial sphere, as finances can be managed openly and fairly within a partnership or a family, for example.

Sources:

Transparency Note: This post was created in collaboration with Zak from Bank Cler. The content and presentation are nevertheless freely and independently created by Schwiizerfranke and Isabel from Food For Soul.

The information on Zak is intended exclusively for persons domiciled in Switzerland. A Zak account can only be opened with domicile in Switzerland.