Are women "intimidated" by finance? Photo: Getty.
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Do women really need extra help managing their money?

A Financial Times columnist has written a book of financial advice for “independent women”.

A picture has been recently circulating online of a bearded, tattooed man wearing nothing but a white vest. With one hand he pulls the front of the vest down to expose his hairy cleavage, with the other he tugs a triangle of white cotton over his crotch. He is mouth hangs open, his expression is slightly vacant, and needless to say he looks ridiculous. The image is a parody by the Bondi Hipsters of a GQ shoot with the Australian model Miranda Kerr, and it provided a neat, internet-friendly comment on the way in which women are used to sell men’s glossies.

Sometimes an easy way to expose sexism is to flip the genders round. This, at least, is why the Bondi Hipsters image sprung to mind when a new book by the Financial Times columnist Mrs Moneypenny landed on my desk. It’s called Financial Advice for Independent Women. No one would write a book of Financial Advice for Independent Men – the assumption is that adult men are inherently independent. Apparently only some women are, and they should buy a special book on finance illustrated with an old fashioned old lady's purse and with chapter titles like “Your Financial Goals (or Money is Not Boring)”.

But ignoring the unfortunate title, is Mrs Moneypenny right, do women need different financial advice from men? She gives a few sensible reasons why they might. For a start, women live longer than men – the average woman in the UK will live 2.8 years longer than the average man. Women are also more likely to be caring for dependents, whether they are children or older relatives. And globally they earn less than men:  in the UK the gender pay gap is 18.2 per cent (check out this interactive on how the UK compares internationally.) 70 per cent of the world’s poor are women.

Considered as a general group, women are under more financial strain than men – they have to support more people with less money – which suggests perhaps they do need different advice from most men. At the same time, in the UK only 11 per cent of senior managers in banking are women – and a male-dominated banking sector is less likely to be sensitive to the specific needs of women customers, whether they are single mothers, caring for older relatives, or simply struggling along on four-fifths of the salary of their male colleague. 

Mrs Moneypenny then gives an entirely ludicrous reason for offering women separate financial advice: they “lack confidence” and so “in the areas of finance – so set about by jargon and idiosyncrasies – it’s all too easy to become intimidated” – a sentiment that sounds dangerously close to suggesting that women are scared by long words. (If this isn't patronising enough, check out Mrs Moneypenny's advice on how to read a newspaper.) 

It’s become quite fashionable recently to point out women’s lack of confidence – it’s a running theme in Facebook COO Sheryl Sandberg’s Lean In, and in a new book called The Confidence Code by Katty Kay and Claire Shipman.  It might be true that a (rational and socially enforced) lack of confidence can prevent woman from successfully negotiating pay rises and climbing the greasy corporate pole, but that doesn’t mean they are less financially astute than men.

There's plenty of evidence to suggest that – even if they lack "financial literacy" (another popular buzzword at the moment) - women are better than men at managing money, and are reliable customers for banks. Charities and microfinance institutions often find it’s more effective to give loans or cash grants to women, because they are more likely to pay back the money and less likely to squander it.

Despite this, in the US, women are consistently charged higher interest on their credit cards than men. And although a UK government review of women and banking concluded in 2013 that there was no evidence of banks discriminating against women when it comes to accessing credit (refuting an earlier IPPR report), it did suggest banks need to do more to engage women. A lack of discrimination doesn't mean that the UK banking sector is attuned to women's specific financial needs.

Yet perhaps the gender divide in finance reflects a bigger, and more important point: financial advice is usually least available to those who need it most, whatever their gender. It’s more expensive to access cash if you’re poor in the UK, because more than 300,000 of the UK’s poorest live more than 1km away from a free-to-use cash machine.

The UK’s wealthiest have access to private bankers who can give them personalised advice, but the poorest have to make do with mainstream banking services with a box-ticking attitude towards giving out loans and with little time to consider individual circumstanes. Campaigners like Faisel Rahman of the UK-based microfinance institution Fair Finance believe the least well-off need the same personal attention as the wealthiest. His organisation lends to those who have been excluded by mainstream banks, and by assessing each individual’s finances on a case-by-case basis he can make loans that are affordable and life-changing for his customers.

Given that women are disproportionately more likely to live in poverty, a banking sector that is more responsive to the needs of the least-well off will also disproportionately benefit women. Confidence and jargon has very little to do with it. 

Sophie McBain is a freelance writer based in Cairo. She was previously an assistant editor at the New Statesman.

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Commons Confidential: Fearing the Wigan warrior

An electoral clash, select committee elections as speed dating, and Ed Miliband’s political convalescence.

Members of Labour’s disconsolate majority, sitting in tight knots in the tearoom as the MP with the best maths skills calculates who will survive and who will die, based on the latest bad poll, observe that Jeremy Corbyn has never been so loyal to the party leadership. The past 13 months, one told me, have been the Islington rebel’s longest spell without voting against Labour. The MP was contradicted by a colleague who argued that, in voting against Trident renewal, Corbyn had defied party policy. There is Labour chatter that an early general election would be a mercy killing if it put the party out of its misery and removed Corbyn next year. In 2020, it is judged, defeat will be inevitable.

The next London mayoral contest is scheduled for the same date as a 2020 election: 7 May. Sadiq Khan’s people whisper that when they mentioned the clash to ministers, they were assured it won’t happen. They are uncertain whether this indicates that the mayoral contest will be moved, or that there will be an early general election. Intriguing.

An unguarded retort from the peer Jim O’Neill seems to confirm that a dispute over the so-called Northern Powerhouse triggered his walkout from the Treasury last month. O’Neill, a fanboy of George Osborne and a former Goldman Sachs chief economist, gave no reason when he quit Theresa May’s government and resigned the Tory whip in the Lords. He joined the dots publicly when the Resolution Foundation’s director, Torsten Bell, queried the northern project. “Are you related to the PM?” shot back the Mancunian O’Neill. It’s the way he tells ’em.

Talk has quietened in Westminster Labour ranks of a formal challenge to Corbyn since this year’s attempt backfired, but the Tories fear Lisa Nandy, should the leader fall under a solar-powered ecotruck selling recycled organic knitwear.

The Wigan warrior is enjoying favourable reviews for her forensic examination of the troubled inquiry into historic child sex abuse. After Nandy put May on the spot, the Tory three-piece suit Alec Shelbrooke was overheard muttering: “I hope she never runs for leader.” Anna Soubry and Nicky Morgan, the Thelma and Louise of Tory opposition to Mayhem, were observed nodding in agreement.

Select committee elections are like speed dating. “Who are you?” inquired Labour’s Kevan Jones (Granite Central)of a stranger seeking his vote. She explained that she was Victoria Borwick, the Tory MP for Kensington, but that didn’t help. “This is the first time you’ve spoken to me,” Jones continued, “so the answer’s no.” The aloof Borwick lost, by the way.

Ed Miliband is joining Labour’s relaunched Tribune Group of MPs to continue his political convalescence. Next stop: the shadow cabinet?

Kevin Maguire is Associate Editor (Politics) on the Daily Mirror and author of our Commons Confidential column on the high politics and low life in Westminster. An award-winning journalist, he is in frequent demand on television and radio and co-authored a book on great parliamentary scandals. He was formerly Chief Reporter on the Guardian and Labour Correspondent on the Daily Telegraph.

This article first appeared in the 27 October 2016 issue of the New Statesman, American Rage