Even now, in 2024, the gender pay gap is still rife, and in fact has risen since 2022 by 7.7% for full-time employees, and 14.3% for all employees.
However, new research from Wealthify has found that the financial disparity between genders extend to even inter-familial relationships.
For example, despite the research finding that an equal proportion of male and female adult children say their parents still help them out with day-to-day finances, women in the UK are more likely to say they feel ‘bad’ about the money they take from their parents than men.
Similarly, the latest ONS statistics show that a third of men in the UK under the age of 35 still live at home with their parents, compared to less than a quarter of women in the same age group.
It’s not all bad news, though
There is some good news to be found in the realm of women and finances. Fidelity International’s annual Women and Money study reveals that more women feel financially independent than at any point in the past three years.
This means that while things are improving, not enough women feel financially independent.
According to Fidelity International, women are most likely to associate financial independence with their level of income, rather than savings. Almost two-thirds of women that they spoke with define financial independence as having a personal income which does not rely upon support from anyone else.
Claire Dwyer, Head of Investment Companies, Fidelity International said: “Financial independence is essential to creating the life you want to lead.
“It offers you both peace of mind that you’re prepared for life’s unexpected moments, while enabling you to seize opportunities and make decisions that matter to you - in your relationships, at home, and at work”
How to become financially independent
While there are many factors that come into play when it comes to women’s finances, Fidelity International recommend taking the following steps to become financially independent:
Take care of your debt
The experts recommend that if you can, make it a priority to pay off your full credit card balance each month.
If this isn’t viable right now, ensure you pay more than the minimum payment each month as this will allow you to clear your debt far quicker. It’s also worth keeping note of when your payments are due, as overdue payments can have a negative impact on your credit score.
Prepare for the unexpected
If life has taught us anything, it’s that you never know what’s around the corner — good or bad.
Fidelity International said: “One way to save for an emergency fund is to open an easy-access savings account, which you can add to through regular contributions or one-off payments.
“This way, you can withdraw the money with ease. A popular rule of thumb is to have about three to six months’ worth of your usual salary saved.”
Know your budget
Creating a budget can require time and energy, but overall it’s an excellent way to meet your financial goals. It also helps you to understand your spending habits.
To do this, look through bank statements to see where you’re regularly spending money. This will help you to keep an eye on regular expenditures, be conscious of any impulsive purchases and see how much you’re saving and investing.
This is also an ideal way to tackle those subscriptions you keep meaning to cancel.
If you’re looking to get started with budgeting but feel that you don’t know where to start, budgeting apps such as Emma can guide you through the vital first steps and help you to manage your money better.
Alternatively, your bank may have a budgeting option within their mobile app. Monzo provides a budgeting service which helps you keep track of monthly spending, as well as identifying where you could be cutting down outgoings.