Your mind, your money. SmartPurse white paper on women’s financial mindset.

• Context
• The study
• Key findings
• Points to consider

Context

SmartPurse are a financial wellness platform, designed by women, for women. Their mission is to close the gender education gap and to inspire women to build financial independence through online courses, coaching and events. Over the last ten years, they have built one of the largest global communities focused on gender equality, and transformed various financial services organisations along the way.

SmartPurse’s mission is perfectly summed up by their signature Money Rally events, which provide a safe space for women to unite around the subject of money, and to gain expert help across a day of panels, talks and workshops. In April 2021, they joined forces with Stylist Magazine for Money Rally: Money Mindset – which began a conversation about how the way women think about money can define their financial literacy.

This report captures key learnings and insights from the speakers and attendees at this event.

The study

SmartPurse surveyed and polled 255 women from the UK and Switzerland at their Money Rally event in April 2021 and captured the key findings and recommendations from speakers at the event.

The findings are complemented with experience from their proprietary data and hands-on practical experience as an independent financial educator as well as data from secondary research from proven sources on the topics of gender equality and financial health.

A full list of references is provided the end of the report.

Key findings

Money remains a difficult subject.

• Only 13% of respondents chose a positive descriptor for their money relationship (‘easy’, ‘happy’), while 85% chose negatives (‘complicated’, ‘shameful’). This shows the continued impact of the long-standing taboo around ‘talking money’ among women.

Financial health is tied to mental health.

• Over half (52%) of respondents said financial control would bring ‘confidence’, while 13% chose ‘increased happiness’, and 35% ‘greater peace of mind’. The authors note that all three of these benefits play a huge role in mental health, an especially important aspect of women’s finances after the increased stress and financial difficulties caused by Covid-19.

The majority undervalue their money mindset.

• The research shows a strong indication that the majority undervalue (and therefore underuse) their money mindset. A positive mindset can bring huge financial benefits, not to mention the positive impact on mental health, all at no monetary cost. For this reason, thoughtful financial education should be a priority for all.

Financial education must continue at any age.

• When asked at what age attendees made the conscious decision to control their money, none of them did so before turning 18, and the majority (55%) only made the decision after age 33. The findings make it clear employers must play a part in providing financial education to those who need it most.

Financial literacy will lead to global change.

• Considering that 76% of women are interested in sustainable investing (compared to 62% of men), it is significant that 37% of respondents defined success as ‘the ability to make a difference’. This suggests that, with greater financial literacy, women may use their wealth to bring about positive global change.

Points to consider

• Methodological strengths/weaknesses: In addition to a poll conducted at the Money Matters event, findings were supported by previous SmartPurse research, data from secondary research and proven sources on the topics of gender equality and financial health, allowing for triangulation of data.
  • Little methodological information is provided on how or whether a sample was drawn for the poll and the breakdown of this sample.
• Generalisability/ transferability: The research population polled in this study were attendees at the Money Matters event in the UK and Switzerland, hosted by SmartPurse, and not representative of the female population as a whole. Therefore, findings should be treated with caution in isolation.
• Relevance: The research is relevant for the UK and Swiss female population engaging with financial education platforms.
  • The white paper would be of use to anyone with an interest in the money mindset of women and how this influences their financial decision making.