More women are money savvy but wealth worried – 5 ways to boost financial confidence

Fifty years on from first being able to open their own bank account, women across the UK are taking a more active role in managing their money, according to new research. But many still feel anxious making long term financial plans.

Nearly three-quarters (72%) of women polled by Canaccord Wealth said they are taking steps to manage their finances, from getting on the housing ladder to saving and investing.

This is a significant shift for many women in just two generations. Before 1975 the gender gap meant single women would need a signature from their father if they wanted to apply for a loan, credit card or even a mortgage for their own home.

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However, beneath this progress lies a confidence gap. In the poll of 2,345 adults across the UK – including a sample of 500 high-net-worth individuals – just 18% of women said they feel calm and in control of their finances.

The data also points to the emotional toll this anxiety over financial planning can take. Among women who feel uneasy discussing money, one in 10 (11%) feel anxious because they’ve never done it before, and 7% say they lose sleep over financial concerns.

One in seven (14%) admit they worry they won’t know what to say or ask about money.

By contrast, two in five men (40%) report having regular meetings with a financial adviser to discuss building their wealth, compared with just one in five (20%) women.

Women face a wide gender wealth gap in Britain that could also be holding them back. Women’s wealth gap stands at 21% – men have a fifth more in assets than women – according to analysis of the government’s latest Wealth and Assets Survey (2020-2022) by the Women’s Budget Group. This is even larger than the 13% gender pay gap.

There is also a significant gender pensions gap, with women on average having private pensions worth £113,000 less than men, with career breaks pushing one in three women into pension poverty.

Despite their typically lower wealth and anxieties around money, however, for most women, the fear of financial admin is far greater than the reality, the research suggested.

Four in five (80%) women said they finished a financial task faster than expected with 44% finishing within an hour, 18% taking just 10-30 minutes, and 21% assuming tasks will take more than two hours, when in practice only 10% spend that long.

Alice Wright, investment director at Canaccord Wealth, said: “It is really important for people to feel that they can grow their wealth with confidence and we’re not seeing enough of that.

“By reframing financial planning as a powerful form of self-care and control, we can help turn anxiety into action. The choice to spend 10 to 30 minutes on a financial task is a smart decision to invest in one’s future.

“Everyone can benefit from greater confidence and access to planning support. It’s time to celebrate this efficiency – and encourage women to turn thought into action.”

We look at practical ways to bridge the confidence gap.

Five easy ways to manage your money

Becoming more financially confident is often a case of breaking down big tasks – like making a financial plan – into smaller, more manageable problems to solve, and then repeating the process.

To help you manage your wealth with confidence, Canaccord Wealth shares its top tips:

1. Map out your income and expenditure

Gaining an overview of your day-to-day financial situation is a great place to begin to become more financially secure. Start by creating a record of your income and expenditure or update the one you already have.

• Does your income match your outgoings?
• Do you have any extra income you could put to better use in an investment portfolio?
• Do you have any monthly subscriptions, memberships, or other expenses that you’re not enjoying or using enough and could the money be put to better use elsewhere?

2. Review any existing investments

If you have any existing investments, make sure you know exactly what you’ve got. Make a list of them, where they are invested and how much they’re worth.

• How much are you paying in investment fees?
• Could you make the holdings more tax efficient by maximising your annual investment allowance for your ISA?

Familiarising yourself better with your investments enables you to make them work better for you and to make the most of the advantages they offer. You may also wish to consider how your lifestyle, life stage, or attitude to risk may have changed since you originally made your investments.

3. Consider your family situation

If you’re married or in a civil partnership, you and your partner will want to ensure that you’re making the most of your income and capital. Shifting assets between one another could lead to significant advantages in terms of both tax planning and ISA allowances.

It’s also important to consider any specific financial circumstances between you and your partner. For example, ensuring long-term financial stability for the younger partner if there is an age gap between you. If you have separated from a partner, it’s equally important to make sure that your finances are disentangled and that you are fully aware of your new financial situation.

4. Review your insurance

Nobody likes to think of the unforeseen, but it can happen. Insurance is a key part of your financial plan.

• What if you were no longer able to work and provide an income for yourself and your family? Would you be able to meet the costs to live comfortably?
• It’s important to review your insurance policies – both those held personally and with your employer. Are they still valid and up to date? Could you be over or under-insured?
• Perhaps you have moved employment and a plan previously available is no longer there and needs replacing. It’s good to have contingency plans in place – just in case.

5. Do a once-a-year financial health check

Whether it’s tidying up your pension plans, ensuring your savings are as tax-efficient as possible, or considering what sorts of new investments would be suitable, a once yearly check-up of your finances can really help keep you on track to grow your wealth.

Allowances are often available annually – like for ISAs and pensions – so it can be a good idea to review your investments and finances every year. And it could be worth a quick chat with a financial adviser – the first conversation is usually free.