When girlfriends gather, conversations tend to revolve around work, food, family and travel. But one topic still seems very much taboo – money and finances.
“We grew up in a culture where discussing money was considered impolite – something private or even taboo,” said Wendy Wong, associate director at Finexis Advisory, a financial advisory in Singapore. “So even successful women sometimes hesitate to talk about their salaries, investments and financial goals.”
This rings true for stay-at-home mother Lennette Koh, 41. “My parents aren’t the kind that are great with finances, so my sister and I were never really taught much about money matters, let alone had financial conversations when we were younger.”
There is also an emotional aspect associated with money. “For many women, money represents security, identity and even self-worth,” said Wong. Discussing their financial situation is akin to baring their souls and can make some women feel uncomfortable.
Feelings of guilt, shame or fear of being judged at spending too much can also lead to further discomfort or even complete avoidance of financial discussions, added Karen Tang, a certified financial planner and a finance coach who runs Karentang.sg.
Our cultural and social upbringing can result in low financial confidence, due to women not having enough exposure or guidance, said Wong.
This lack of confidence can lead to “perfection paralysis” – an obsession with achieving perfection that can lead to inaction, procrastination and missed opportunities, said Tang. “Women often feel that they must understand everything before starting, whereas men are more willing to learn on-the-job.”
Women tend to underestimate their financial knowledge and this can keep them from discussing finances openly. (Photo: iStock/Korrawin)
A 2023 report, Own Your Worth, by UBS Global Wealth Management found that women tend to underestimate their financial knowledge and this hesitation can keep many from initiating financial discussions, investing decisively and even in negotiating salary.
But confidence doesn’t come from knowing everything, it comes from just starting somewhere, even if it’s taking small, practical steps, such as learning how to set up an investment fund or reviewing your insurance coverage, said Wong.
“Financial literacy is a skill, not a talent. The moment women realise that, confidence follows quickly,” she added.
Money impacts every life decision, from where we live and how we care for our loved ones to when we can retire. Avoiding money conversations limits your options and independence, Tang told CNA Women.
Wong added: “Silence can also lead to unnecessary vulnerability during transitions like divorce, job loss or even widowhood.”
These life events can create tremendous financial stress and a lack of conversation means missed learning opportunities that could lead to resolutions that help alleviate the stress.
Being silent about money matters can make women more vulnerable during life transitions like job loss. (Photo: iStock/hxyume)
Abigail Wu, a financial advisor associate, knows this firsthand. The 33-year-old said her tendency to avoid financial conversations stemmed from unpleasant memories with her family where money was often a bone of contention.
She decided to work towards a healthier approach in managing her finances, becoming a financial advisor. The financial know-how she gleaned has helped her make decisions about how she now saves, spends and invests, for herself and her family.
Finance coach Tang added: “When women speak openly, they build financial literacy, find accountability buddies and foster a culture where money is a means (to an end) and not a taboo topic.” An accountability buddy could be a trusted friend or a partner where you support each other by doing regular check-ins to help each other stay on track to achieve financial goals.
It is also why both experts CNA Women spoke with advocated that money matters should be talked about openly, even with your children.
“Money habits form early, usually before the age of 10,” said Finexis Advisory’s Wong, who is a mother of three.
Using real-life scenarios such as involving your children in budgeting for family outings or weekly grocery runs, can be useful teaching moments, they said.
Supermarket runs are a great way to teach kids about money. (Photo: iStock/Edwin Tan)
Alternatively, age-appropriate apps like the OCBC MyOwn Account or Revolut Junior, as well as board games such as Monopoly, can also make financial literacy fun and engaging.
“When girls learn money management from a young age, they grow to become confident, capable women,” said finance coach Tang.
Koh credits her current wealth knowledge to her husband who is a proprietary trader (one who trades financial assets, such as stocks, bonds and derivatives).
“My husband and I are quite open and we’re pretty much on the same page. He has always been the one that’s more prudent and financially savvy, and plans safely for our family so I’ve learned a lot from him,” she added.
When it comes to financial wellness, both Wong and Tang advised that women at least acquaint themselves in the following areas:
1. Cash flow management: Knowing what comes in and what goes out in terms of earnings and spending.
2. Wealth protection: Safeguarding yourself and loved ones with insurance for income replacement in the event of a disability or critical illness, hospitalisation or surgery, as well as long-term care and death protection, especially if you have children.
3. Wealth accumulation: Learn how to make your money work for you through savings and investments for short-, medium- and long-term goals.
4. Retirement and legacy planning: Ensure that your future is well taken care of. This includes taking care of your family too, through CPF and insurance nominations, Lasting Power of Attorney, Advanced Care Planning to cover future health care needs, or even Advanced Medical Directive (a legal document that states the type of medical care you would prefer in the event of terminal illness).
Women tending to have longer lifespans also means higher healthcare needs later in life. Thus, taking charge of one’s financial needs is not optional and all these are important for peace of mind, said Tang.
Taking care of one’s financial needs and having open discussions about money are essential for peace of mind. (Photo: iStock/Hiraman)
Equipping yourself with financial knowledge or being confident with discussing money matters doesn’t need to be overwhelming. It can be as simple as successfully tracking your monthly expenses or even making your first investment.
“Each step builds competence, which in turn, fuels confidence,” said Tang.
To get started, try:
Instead of leaving your financial matters to someone else, even if that is your partner, both experts advised women to take control and stop being passengers in their financial journey.
“Financial independence equals freedom of choice. Women today make major life decisions, from buying homes to planning their children’s education yet often still feel unsure about money. That disconnect limits your potential,” said Wong.
Ultimately, when it comes to your financial wellbeing, talking about money isn’t being materialistic, it is being responsible.
CNA Women is a section on CNA Lifestyle that seeks to inform, empower and inspire the modern woman. If you have women-related news, issues and ideas to share with us, email CNAWomen [at] mediacorp.com.sg.
Continue reading...
“We grew up in a culture where discussing money was considered impolite – something private or even taboo,” said Wendy Wong, associate director at Finexis Advisory, a financial advisory in Singapore. “So even successful women sometimes hesitate to talk about their salaries, investments and financial goals.”
This rings true for stay-at-home mother Lennette Koh, 41. “My parents aren’t the kind that are great with finances, so my sister and I were never really taught much about money matters, let alone had financial conversations when we were younger.”
There is also an emotional aspect associated with money. “For many women, money represents security, identity and even self-worth,” said Wong. Discussing their financial situation is akin to baring their souls and can make some women feel uncomfortable.
Feelings of guilt, shame or fear of being judged at spending too much can also lead to further discomfort or even complete avoidance of financial discussions, added Karen Tang, a certified financial planner and a finance coach who runs Karentang.sg.
A LACK OF CONFIDENCE
Our cultural and social upbringing can result in low financial confidence, due to women not having enough exposure or guidance, said Wong.
This lack of confidence can lead to “perfection paralysis” – an obsession with achieving perfection that can lead to inaction, procrastination and missed opportunities, said Tang. “Women often feel that they must understand everything before starting, whereas men are more willing to learn on-the-job.”
Women tend to underestimate their financial knowledge and this can keep them from discussing finances openly. (Photo: iStock/Korrawin)
A 2023 report, Own Your Worth, by UBS Global Wealth Management found that women tend to underestimate their financial knowledge and this hesitation can keep many from initiating financial discussions, investing decisively and even in negotiating salary.
But confidence doesn’t come from knowing everything, it comes from just starting somewhere, even if it’s taking small, practical steps, such as learning how to set up an investment fund or reviewing your insurance coverage, said Wong.
“Financial literacy is a skill, not a talent. The moment women realise that, confidence follows quickly,” she added.
NORMALISING CONVERSATIONS ABOUT MONEY
Money impacts every life decision, from where we live and how we care for our loved ones to when we can retire. Avoiding money conversations limits your options and independence, Tang told CNA Women.
Wong added: “Silence can also lead to unnecessary vulnerability during transitions like divorce, job loss or even widowhood.”
These life events can create tremendous financial stress and a lack of conversation means missed learning opportunities that could lead to resolutions that help alleviate the stress.
Being silent about money matters can make women more vulnerable during life transitions like job loss. (Photo: iStock/hxyume)
Abigail Wu, a financial advisor associate, knows this firsthand. The 33-year-old said her tendency to avoid financial conversations stemmed from unpleasant memories with her family where money was often a bone of contention.
She decided to work towards a healthier approach in managing her finances, becoming a financial advisor. The financial know-how she gleaned has helped her make decisions about how she now saves, spends and invests, for herself and her family.
Finance coach Tang added: “When women speak openly, they build financial literacy, find accountability buddies and foster a culture where money is a means (to an end) and not a taboo topic.” An accountability buddy could be a trusted friend or a partner where you support each other by doing regular check-ins to help each other stay on track to achieve financial goals.
It is also why both experts CNA Women spoke with advocated that money matters should be talked about openly, even with your children.
“Money habits form early, usually before the age of 10,” said Finexis Advisory’s Wong, who is a mother of three.
Using real-life scenarios such as involving your children in budgeting for family outings or weekly grocery runs, can be useful teaching moments, they said.
Supermarket runs are a great way to teach kids about money. (Photo: iStock/Edwin Tan)
Alternatively, age-appropriate apps like the OCBC MyOwn Account or Revolut Junior, as well as board games such as Monopoly, can also make financial literacy fun and engaging.
“When girls learn money management from a young age, they grow to become confident, capable women,” said finance coach Tang.
EMPOWERING YOURSELF
Koh credits her current wealth knowledge to her husband who is a proprietary trader (one who trades financial assets, such as stocks, bonds and derivatives).
“My husband and I are quite open and we’re pretty much on the same page. He has always been the one that’s more prudent and financially savvy, and plans safely for our family so I’ve learned a lot from him,” she added.
When it comes to financial wellness, both Wong and Tang advised that women at least acquaint themselves in the following areas:
1. Cash flow management: Knowing what comes in and what goes out in terms of earnings and spending.
2. Wealth protection: Safeguarding yourself and loved ones with insurance for income replacement in the event of a disability or critical illness, hospitalisation or surgery, as well as long-term care and death protection, especially if you have children.
3. Wealth accumulation: Learn how to make your money work for you through savings and investments for short-, medium- and long-term goals.
4. Retirement and legacy planning: Ensure that your future is well taken care of. This includes taking care of your family too, through CPF and insurance nominations, Lasting Power of Attorney, Advanced Care Planning to cover future health care needs, or even Advanced Medical Directive (a legal document that states the type of medical care you would prefer in the event of terminal illness).
Women tending to have longer lifespans also means higher healthcare needs later in life. Thus, taking charge of one’s financial needs is not optional and all these are important for peace of mind, said Tang.
Taking care of one’s financial needs and having open discussions about money are essential for peace of mind. (Photo: iStock/Hiraman)
SIMPLE WAYS TO FINANCIAL EMPOWERMENT
Equipping yourself with financial knowledge or being confident with discussing money matters doesn’t need to be overwhelming. It can be as simple as successfully tracking your monthly expenses or even making your first investment.
“Each step builds competence, which in turn, fuels confidence,” said Tang.
To get started, try:
Tracking your spending and set one financial goal, such as achieving the desired emergency fund with an amount totalling at least three months’ worth of expenses.
Following trusted Singapore sources like CPF Board or MoneySense on their socials to learn tips on how to better manage your finances.
Listening to podcasts like CNA’s Money Talks where each episode dispenses quick and easy financial advice.
Instead of leaving your financial matters to someone else, even if that is your partner, both experts advised women to take control and stop being passengers in their financial journey.
“Financial independence equals freedom of choice. Women today make major life decisions, from buying homes to planning their children’s education yet often still feel unsure about money. That disconnect limits your potential,” said Wong.
Ultimately, when it comes to your financial wellbeing, talking about money isn’t being materialistic, it is being responsible.
CNA Women is a section on CNA Lifestyle that seeks to inform, empower and inspire the modern woman. If you have women-related news, issues and ideas to share with us, email CNAWomen [at] mediacorp.com.sg.
Continue reading...