Did you know that only 48% of women in Australia demonstrate an understanding of at least three basic financial concepts¹? Wealth Adviser, Head of Advice and FPA Winner, Kathryn Creasy, is helping to change this statistic by assisting women to improve their financial literacy and move from crisis to confidence.
There are many different situations and events that can occur that will change the course of a woman’s life. Kathryn has become the undisputed expert in supporting women through these transitions, helping to build their new level of confidence.
Motivated to raise the financial literacy bar, Kathryn works with her clients to simplify the complicated. Kathryn is far more than an adviser, she is an advocate for women taking back their power.
We recently sat down with Kathryn to uncover her biggest take-aways and advice for women facing these challenges.
Why should women in crisis talk to a financial adviser?
Kathryn explains that women who have been through life challenges and changes can find it overwhelming to make decisions. Engaging the support and direction of financial advisers can help illustrate a path forward. We can show the predicted outcomes of your decisions and provide the information necessary to achieve your individual goals. We create holistic approaches and strategies that include tactics like where to invest, how much to spend, whether you should consider selling a property, or if you have the flexibility to purchase that new car.
In addition, Kathryn highlights that the relationship between a financial adviser and a client should be a partnership. A financial adviser is there to provide support, and, crucially, financial education. We are there to help our clients understand their financial journey and be comfortable and confident in the approach being taken.
What is the role of a financial adviser during a crisis?
During major life changes and times of crisis, women will often ask, “Do I have enough? Do I need to work? How much do I need to earn?”.
Kathryn explains a financial adviser will support, guide, educate, and ultimately help clients make informed decisions that will result in positive outcomes. There is a tremendous amount of white noise and distraction that can be happening at these crisis points, and having someone who can illustrate the alternatives and provide support through the decision making process, is key.
Kathryn’s support, the support of a committed adviser, is invaluable. Especially when it is estimated that at least one in three marriages will end in divorce².
A financial adviser will have the resources to contact the appropriate people to assist. Think lawyers, mortgage brokers or insurance specialists. These are integral contacts to know when navigating a crisis for the first time.
What can women do to ensure they’re prepared?
According to Kathryn, it’s about being informed. It’s not saying women should be on top of money management because they might get divorced. It’s about keeping yourself informed about where the assets and the bank accounts are and understanding how much the household is spending. This is important as it is crucial to know what you’re entitled to when a crisis occurs.
We know that, on average, women outlive men by five years³, meaning that there is almost always a time where women will need to take the reigns. If you have an adviser, make sure you attend meetings instead of leaving it to your partner. One of Kathryn’s key suggestions for clients, and women generally, is to take the time once a month to go through the finances with their spouse. This helps you become part of the conversation, empowering you to know more and be part of the process.
While pay gaps are still prevalent, if you earn less than your spouse and rely more heavily on their income, look into insurance cover to protect yourself, and the both of you if they cannot work for a period, or ever again. This protection will mean that you will still have money coming in in the event of a crisis.
At Capital Partners, we understand that life is filled with ups and downs. It’s complex. How do you rate your own financial literacy? If you’re concerned or want reassurance, do not hesitate to contact us for a complimentary Wealth Map session to discuss the situation and your goals.
https://www.financialcapability.gov.au/sites/default/files/2022-01/financial-literacy-in-australia-insights-from-hilda-data.pdf
https://www.abs.gov.au/statistics/people/people-and-communities/marriages-and-divorces-australia/latest-release
https://www.health.qld.gov.au/news-events/news/why-do-men-die-younger-than women
