James Kendall: So, you’ve recognised that women have a different relationship with money than men.
Simonne Gnessen: Professor Karen Pine and me did a survey on women’s emotional relationship with money, and about 80 percent of the 700 women we spoke to said that that they shopped to cheer themselves up, shop when they are happy – basically when they’re emotionally charged. Women generally worry more about money. They’re not necessarily in any further debt than men, but they are more anxious about it.
JK: So what’s the biggest block to women being on top of their financial situation?
SG: We talk about emotional management being key to financial management. So if you aren’t aware of some of the emotional triggers you have to spending then you are less inclined to do something about it. We’re encouraging more awareness about why you spend more than you can afford, or why you don’t put money away for the future. Understanding some of your history around money: are there any events in your life that have given you strong feelings around money.
JK: Looking at myself I’ve always had the same pattern with money. I’m a bit reckless in the same way that I was at the age of 18. I feel like I might never change.
SG: Of course it’s possible to change, but it’s not always easy. Sometimes you have an event in your life that makes it an absolute necessity. Say you’re in such debt that your house it at risk and then enough is enough. It’s very similar to people who need to lose weight. The most significant part is making the decision to do it. I think of it like an iceberg. The tip of the iceberg is the problem, so we concentrate on that, we notice that, but underneath we’ve got our behaviours and habits, and beyond that we’ve got all our perceptions, values and beliefs.
JK: There’s so much doom and gloom about the recession but surely it’s not going to bring misery to everyone.
SG: I think if we focus on it then, yes, it will. And we get what we focus on. My advice might be to not read the papers. A lot of what is going to get us out of the recession is about confidence – to buy house, buy products, keep the movement going. Everything you’re reading is doom and gloom but you can surround yourself with more positivity and get away from it.
How To Get On Top Of Your Money
TAKE EMOTIONAL CONTROL
“Women need to become more aware of how their emotions affect the way they behave with money.”
GO BEYOND BELIEFS
“This concerns understanding that financial beliefs can become reality, and that many of them (e.g. ‘I’m no good with money’) are self-limiting.”
SPEND WITH POWER
“The need to ensure that spending decisions are made for the right reasons and not as a reaction to other pressures.”
HAVE GOALS
“Spending and saving decisions need to take account of the bigger picture and to fit in with women’s life plans.”
LOOK DEBT IN THE FACE
“This is about women facing up to what they owe and deciding how to pay it back.”
SHARE FINANCIAL INTIMACIES
“Recognising that secrecy and deception are damaging and the importance of being able to talk openly and honestly about money.”
KNOW TOMORROW COMES
“Now, more than ever, women need to take action for a secure future and not delay those all-important decisions.”
Sheconomics is out now
