Women of the world... material girls or money managers?

No matter where in this world you are from, the traditional way of managing family finances is: man as breadwinner, woman as homemaker. And all you independent ladies out there, before you get het up, note the word "traditional".

While tradition still guides many families, these days there are as many ways to manage money as there are households. Single parents; dual incomes; childfree; and large, multi-generation families... the modern family is much harder to define.

So what roles do women around the world play in their household finances? Do they feel in control of their own cash? How many women believe they are financially independent? Are women better with money than men? Synovate asked nearly 4,500 women (and a few men) across 12 countries what they thought.

Why women?
A woman meets a man, falls in love, moves in, gets married, has kids (not necessarily in that order) and it all falls apart. It's not until this moment that she realises just how dependent she is on her partner's money.

Synovate's Senior Vice President of Financial Services in the United States (US), Claire Braverman, explains that this is why Synovate takes a particular interest in women and finances in this survey.

"Some women have checks in place to guard against this happening to them; some don't. Some are financially savvy; and some are simply not interested.

"And even if a relationship break up is not a catalyst, women live longer than men and typically have less money upon retirement.

"All this adds up to an urgent need for financial services companies to understand women and cater to their specific needs and the situations in which they are likely to find themselves, planned or unplanned," she said.

Sisters doing it for themselves
It's not many decades since women started entering the workforce en masse and, to varying degrees, some aspects of gender equality remain unaddressed in every country of the world. Yet the survey found that nearly six in ten (58%) women across 12 diverse countries believe themselves to be financially independent.

Most emphatically independent were the French with 80% considering themselves financially autonomous, followed by British women (76%) and South African women (69%).

Thierry Pailleux, Synovate's Managing Director in France is not in the least surprised at French women coming in top.

"French women have been in charge of their own finances for many years, and in many cases take charge of the whole family's cash."

Least likely to consider themselves financially independent were the women of Bulgaria (where 37% said they were independent) and Indonesia (47%). Overall, the developed economies surveyed were significantly more likely to host women who consider themselves financially independent than the emerging economies (68% versus 51%).

Claire Braverman says that American women were particularly intriguing in terms of their perceived financial independence.

"While 64% of American women do feel financially independent, that leaves more than a third of us who do not. For a nation that prides itself on an independent spirit, this is surprising.

"It may be that American women have higher expectations of what financial independence actually means; in part, there are a lot of women in marriages and partnerships who willingly cede monetary control; and there are an alarming number of women (often single mothers) in risky financial situations."

Also, fascinating is the South African situation. The relatively new democracy is one of the six still-developing economies surveyed but is apparently filled with self-sufficient women. Seven in ten said they were financially independent, even more than in the majority of the developed markets that were surveyed.

Synovate South Africa's Client Services Director for Financial Services, Debbie Amm, said: "This is partly because the women we spoke with were largely urban, but there are greater cultural and historical explanations at hand too.

"Since South Africa became a democracy there has been a very strong and very public focus on gender equality, providing opportunities for women to advance careers or simply to start one.

"Equally, in both black and white histories, there has always been a need for women to be able to look after themselves and their families. South Africa can be a tough place, so this need for self-sufficiency has given rise to a highly entrepreneurial mindset among the women of the nation," she said.

Breadwinning broads or ladies who lunch?
Of course one woman's financial independence may be another's servitude. The survey also asked women to choose what the term 'financial independence' meant to them, with the top-ranked answer all about not relying on a husband or partner for money.

The feisty French were most likely to equate financial independence with not having to rely on a partner for money with 68% choosing that response, followed by Dutch and British women (both 51%).

The top three answers across all twelve markets surveyed were:
Ranked 1 at 41% – Financial independence is about not being dependent on my husband or partner for moneyRanked 2 at 30% – Financial independence is about living debt freeRanked 3 at 18% – Financial independence is about being able to afford the things I want without worrying about the cost

Doing without debt is key for 42% of Malaysian and 40% of Mexican women, the highest answers for that definition.

A standout 42% of Bulgarian women think financial independence is being able to afford what they want without worrying about the cost. This is more than double the number who chose that definition in the other markets (other than Malaysia, which was the second-highest response at 22%).

Stoyan Mihaylov, Synovate Bulgaria's Managing Director, explains why: "It may surprise some from other parts of the world, but the prevailing family model in Bulgaria is for both partners to be equal breadwinners. At the same time, women are responsible for running the household.

"There are two main reasons for this. First, during the socialist period both genders were practically equalised by income. After that time the differentiation of incomes in favour of men took place, although a decline in living standards pushed women into working and therefore preserved the model. Throughout all this, women remained the housekeepers.

"Thus women's spending is restricted by the dual responsibilities they have. The dream of independence is not one of freedom from a husband-as-provider but one of having the freedom to personally provide for the wellbeing of the family, able to afford needs and wants regardless of the cost," he said.

Man the head of the house?
The strong matriarch played by Lainie Kazan in 'My Big Fat Greek Wedding' voiced: "Let me tell you something, Toula. The man is the head, but the woman is the neck. And she can turn the head any way she wants." Out on a limb? (If you will forgive the pun.) Perhaps. But this is undoubtedly how some homes are run! The survey also explored men's and women's attitudes about male roles in household finance.

The very core of household finance is, well, the house, and the Synovate survey found that overall 43% of women agreed that 'a man should be responsible for the mortgage / house payments'. When we asked the same question of male respondents, 53% agreed, showing men are more likely to consider themselves responsible for this than their womenfolk are.

Naturally, there is a great deal of discrepancy in the findings across markets. Standouts are:
Indonesia where 83% of men and 82% of women agree with the statementThe Netherlands where only 15% of men and 7% of women agree with the statementThe UK with 48% of men versus 15% of women agreeingSimilarly, France where 47% of men believe they are responsible but only 18% of women agree with themAustralia at 34% of men and only 12% of women agreeing

The survey also asked whether providing for a family is a man's responsibility with similar results. Fifty-eight percent of men and 38% of women agreed. The two Asian countries surveyed were most likely to agree, with an overall 87% in Indonesia and 73% in Malaysia putting the onus on men.

Managing Director of Synovate in Malaysia, Steve Murphy, said: "This shows the traditional nature of Malaysia where the man is still very much seen as the main breadwinner for the family. The role of the male is established very early, firmly and consistently.

"Of course this does not mean that women have nothing to do with the money. In many cases, Malaysian women control the purse strings," he said.

Similarly, when asked whether 'a man should be responsible for looking after the financial needs of his wife or partner', the more traditional cultures were most in favour. Overall, 51% agreed, made up of 57% men and 45% women.

A near-universal 95% of both genders agreed in Indonesia and Robby Susatyo, Synovate's Managing Director for Indonesia explains why.

"This is 100 percent cultural. For centuries, women did not engage in paid work or earn a living. Until quite recently when urban Indonesians began widespread use of banking systems, husbands would surrender all their income to their wives for them to manage.

"Today, women's participation in the labour force in big cities is about 37% but the mindset remains. She does it to supplement the household income and her husband does the monetary 'heavy lifting'. In Islamic law, the husband is obliged to disclose all his personal wealth to his wife, but not the other way around," he said.

Women as the neck indeed!

Miss Responsible meet Lady Luck
Just over half of all respondents (both men and women) agreed that 'women are more responsible with money than men'. Perhaps not surprisingly there is a significant difference across gender - 61% of women think the fairer sex is more responsible but only 40% of men agree.

The highest level of agreement was found in Mexico with an overall 72%, comprised of 82% women and 62% men.

Evelyn Jabiles, Managing Director of Synovate in Mexico, was not overly surprised. "Mexican women commonly play the role of home administrators, handing out money for utilities, rent, credit cards, school and medical fees and so on. They know what's coming in, and what's going out.

"Women here tend to think of men as 'big spenders' and somewhat irresponsible."

Tony Smith, the head of Synovate UK's Financial & Business Services Research group, thought it was interesting that so many men agreed with the women who felt more responsible (in the UK's case 58% of women agreed with the statement and 42% of men).

"This sense that women have of being more responsible with money than their men is reflected in the results from another question - British women are significantly less likely to feel it is important to have a joint account with their partner (48% versus 62%). Perhaps these ladies like to keep their hands on the purse strings...?"

It appears many women like to be in control, but some take their chances as well. Thirteen percent of women across the markets surveyed buy lottery tickets or enter raffles and competitions in an effort to become financially independent or maintain that status.

Women who wager were most likely to be found in Australia, where 35% 'have a go', or the UK where 31% join them.

Synovate Australia's Managing Director, Julie Beeck, says: "The Australian market for lottery products is mature, with a high incidence of participation. The dream of winning big and changing your life overnight is very much alive... and even more so in such uncertain economic times."

Credit where it's due
How people feel about credit tends to evolve as credit card use matures in a country (or becomes more immature if they are used willy nilly!). Overall, 42% of our female respondents use part of their monthly income on credit cards.

The highest use was in Canada at 77%, France at 72% and the US and Australia, both at 71%. The lowest use was 2% in Indonesia, 12% in Bulgaria and 19% in Malaysia.

Claire Braverman says that credit cards have had a negative rap from the beginning, but convenience and rewards can make them a very attractive proposition.

"Some decades ago, when credit cards were first introduced, there was a dislike for debt and cash was king. Relying on credit meant you could not afford what you were buying.

"As people started using cards, that image switched to one of convenience. So in countries where the cards have become entrenched, they have been embraced for their ease of use and loyalty programmes.

"In countries where the use of cards is relatively new, there can still be a negative stigma associated with them. In nations with people who have low incomes, cards also pose control issues and people often shy away from them to ensure they do not go into debt."

The Synovate survey also asked people to agree or disagree with the statement 'Having more than one credit card can lead to financial debt'. Overall 70% of women agreed, led by 90% of Mexican women.

Braverman continues: "It's obviously not the card itself that causes anyone to use it. So the statement is really about control and temptation. The ability to spend more, that you don't have in the first place, can certainly lead to debt. It means people have to control themselves and their spouses. Not always easy!"

Evelyn Jabiles explains the danger in Mexico: "In Mexico, credit cards are perceived as 'extra money' rather than a line of credit, which is why they are considered dangerous by many. Interest rates on the cards are extremely high which only adds to the risk of debt."

About the Synovate Women's Financial Independence global survey
The In:fact survey on women's financial independence was conducted in December 2008 across 12 markets and nearly 4,500 female respondents. Some questions were also posed to around 4,500 men. Synovate asked respondents about their financial independence; what the term means to them; looked at which financial instruments they might use; explored ways women choose to further their financial independence; as well as attitudes to the roles of men and women when it comes to managing money.

The markets covered by the survey are Australia, Brazil, Bulgaria, Canada, France, Indonesia, Malaysia, Mexico, the Netherlands, South Africa, the United Kingdom (UK) and the United States of America (US).