The Money Challenges Women Face in 2021, With Claer Barrett
💪Claer Barrett is the Financial Times Consumer Editor, presenter of the FT’s Money Clinic podcast and a leading voice in demystifying money matters. She is committed to making financial literacy both accessible and engaging for her followers.
📺Claer also frequently appears as a commentator on radio and TV, and is a regular guest on Eddie Mair's Drive show on LBC Radio.
💥Today on The Wallet:
1️⃣We take a look at some of the most pressing financial challenges women are facing post-pandemic. Claer gives her top tips for organising your finances and budgeting and shares her experience being the main breadwinner in her family.
2️⃣We discuss the importance of financial literacy, how Claer has made personal finance accessible to her readers throughout her career, and how her own approach to money management has evolved.
3️⃣Claer shares her long and short term financial goals, how she plans for the future, and how to gain confidence in investing in the stock market.
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You can listen (60 min) and subscribe here:
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‘explain it to me in a sentence’
“It is absolutely scandalous that a significant proportion of women are spending more on childcare than on their mortgage.”
Personal finance can be a minefield. Claer says she was always interested in money — mostly because her family didn’t have much of it growing up. Being able to understand the ins and outs of things like ISAs and pensions was important to her, and, having mastered this, she went on to try and explain these products and concepts quickly and easily — ‘in one sentence’ — to her family and friends and later, to her readers.
Social media — Twitter, Instagram and LinkedIn, are highly effective for spreading awareness. They often help you to condense your tips/thoughts/advice into digestible, easy to understand sentences and phrases, and Claer makes sure to always read the messages she gets from her audience (even if it sometimes takes her a while to respond). Knowledge is power, and we need to share the knowledge.
The pandemic has exacerbated the issue of financial overwhelm that was always there. While some people were lucky enough to save more throughout lockdown, others ended up on furlough or not getting any compensation at all (eg. owners of limited companies). It has been a shocking time for many, presenting people with unprecedented financial challenges.
Despite the struggles, the online communities that exist really do help people get to grips with their money and help them understand what it is they should be doing.
At the end of the day, Claer says the most important thing is to just get started and make a decision. You can always come back to the decision later and optimise it, but it’s best to just get started today rather than tomorrow.
We’re buying so much online, and unfortunately, it is becoming increasingly more tempting to spend more. Buy Now, Pay Later schemes don’t help our impulse spending — they can only really work if these companies guarantee to offer top-notch customer service and live human beings to assist consumers when things go wrong.
2. it’s becoming very expensive for women to just exist
The fact that a recent report outlined that an increasing number of families spend more money on childcare than they do on their mortgage is scandalous. Not only are properties expensive in and of themselves, the increasing cost of childcare means that women simply can’t have the careers they want and deserve once they have children.
On the outside, a lot of people look like they’re doing quite well. But in reality, more and more families are relying on credit for basic things like house emergencies (eg. boiler breakdowns) simply because they’re spending so much on other expenses, like childcare.
Tax-free childcare works great on paper, but not so well in practice. This is the direct result of the government not listening enough to women. These systems need to involve both parents, and not push all the burden onto the women.
When it comes to being a female breadwinner (which Claer is in her family), she says that for her and her partner, it was always just a fact (much like having different coloured eyes). Being 100% open about finances with your partner is very important, because it can sometimes make or break a marriage.
Perfectionism is another big driver that will knock your confidence. When you aim for perfection, you’re setting ridiculously high standards for yourself — instead, learn to set realistic targets.
There are a lot of good admin practices that help save a lot of time and hassle should anything go wrong. Think about things like wills and whether your children or partner know what to do should the worst happen. Yes, its’s morbid, but it’s also vastly important.
Life insurance is something else everyone should consider — again, it might have a slightly morbid feel to it (no one wants to think about death), but it can be life-changing should the worst happen.
3. don’t neglect your pension and invest in stocks and shares
Join a pension scheme as soon as you’re able to do so. And remember that even if you leave your job, your pension doesn’t just disappear — you can always consolidate it!
For Claer, priority number two (after the pension) is a Stocks and Shares ISA. She has a regular investment plan set up, and embrace the beauty of diversity.
If you qualify, don’t forget about the Lifetime ISA — it can help you buy your first home or save for later life.
Trust your instincts with a certain percentage of your portfolio, but also make use of low-cost passive funds, join a forum or finance community and talk to like-minded people. We are, after all, all in the same boat.
RESOURCES:
You can follow and connect with Claer at:
Podcast: Money Clinic with Claer Barrett
Instagram: @ClaerB
Twitter: @ClaerB
We shared some resources in this episode, all the links are below:
FLIC Financial literacy inclusion campaign: https://ftflic.com/
NS&I Premium Bonds: https://www.nsandi.com/products/premium-bonds
Resolver: https://www.resolver.co.uk
Money Clinic podcast: Should I borrow to invest?
*** Our podcast partners PensionBee are also offering you a £25 pension contribution (£20, plus £5 in tax relief) when you sign up. To claim the offer, follow this link: https://www.pensionbee.com/vestpod. Capital at risk. ***