In the complex mix of emotions women experience on returning to the workplace – anxiety, overwhelm, guilt, underconfidence, excitement – financial concerns may not always get enough time or attention.
Whilst returning to earning will likely bring a sense of financial relief, it may also uncover a host of knowledge gaps, self-doubt and competence concerns. And there are systemic reasons for this. If, however, the financial element of returning can be viewed with fresh eyes and a willingness to research and learn, then perhaps confidence can be rebuilt, and more women will feel increasingly financially capable.
Knowing what to ask, managing what you need, and planning for the future are all crucial.
Returning to Earning – Financial Literacy
Consider first the systemic barriers,
From the Financial Times Financial Inclusion and Literacy Campaign,
‘Recent research shows that 23 million adults in the UK have poor financial literacy.’
These statistics certainly expose and explain the gaps. We are simply not taught enough about finance in schools or at home to prepare for adult life. Whilst financial education is on the school curriculum, in practice it is taught with varying degrees of success in Maths and as part of the Citizenship curriculum. Multiple initiatives exist to address the gaps, from Martin Lewis of MoneySavingExpert fame producing a textbook for schools to government reports highlighting issues and a plethora of webinars, podcasts, and free online resources. There is a wealth of free information on all things money – from budgeting, monitoring spending, savings, borrowing, tax, benefits, pensions, investments, insurance, and debt, to online fraud. The list goes on. Accessing it, however, takes research and motivation, and our own time is a barrier in itself.
‘Too many young people are starting their careers unprepared for important financial choices. Financial literacy is as crucial as literacy, numeracy, and digital skills, and all four overlap significantly. Together, they equip individuals for modern life.’
Returning to Earning – Financial Wellbeing
This brings us to the concept of financial well-being and the principles of spending, saving and security. If we feel we have control over our day-to-day spending, we are more likely to be prepared for unexpected costs and to save. Saving, in turn, brings a sense of security and freedom to make choices in life. Creating this positive cycle will help to make the future seem on track. The think tank ‘Centre for Social Justice’ called for an ‘urgent rethink’ of financial education, citing evidence that,
Couple this with the fact that in society today, our digital and financial lives are completely enmeshed. As such, greater care than ever is needed to protect our money and financial well-being,
‘The risks extend beyond poor budgeting: loan sharks, online fraudsters, and other ‘dodgy’ practices exploit financial ignorance, trapping young people in cycles of debt.’
These factors are all threats to our relationship with money and overall financial well-being. A sense of control and planning will bring confidence and security, whilst poor budgeting and an inability to manage spending or recover from unexpected costs will bring stress that affects all aspects of life, both professional and personal.
Getting educated and feeling empowered in financial literacy must be the goal in achieving financial well-being, as it has the power to affect, adversely or favourably, so much of adult life.
Returning to Earning – Financial Fitness and Resilience
In the same way, health and medical fitness are not fixed points, so it is important to recognise that financial needs and priorities will shift over our lifetime. Employment & income levels change as do personal circumstances – childcare costs, mortgage rates, pensions, caring responsibilities, medical needs, lifestyle choices, inheritance and so on.
It is vital to take time to set clear financial goals and to consider how your job supports them. Does the role have enough potential to meet your lifestyle goals? If not, can you upskill to improve your employability?
Similarly, it is likely that your own answer to the question – What counts as success to you? – has and will continue to shift over time.
Tapping into women’s networking opportunities such as the WIBN (Women in Business Network) can provide crucial peer support and guidance on many areas of working life. These forums are passionate about helping women succeed and feel confident in the workplace and provide a safe, open space to share experiences.
Returning to Earning – Financial Confidence
Returning to earning can be seen as a pivot point and an opportunity to gain knowledge that will affect more than just our role in the workplace. We can be mindful of the following factors:
Knowing that you can access free, confidential money advice
Knowing that you can start with something as simple as learning how to read your own payslip.
Knowing to look beyond your base salary – at the full value of other benefits – pension contributions, paid leave, flexi time, private healthcare
Knowing how to access employer benefits
Knowing how to use consumer comparison websites
Knowing that you can negotiate – keep up to date with UK salary data (via ONS, Hays UK, Reed, etc.)
Knowing your own value and being able to back it up with evidence of your market value, skills and accomplishments.
Knowing that just as a business will face financial challenges, so too will employees, and finding opportunities for open dialogue on this
Knowing that one day, perhaps you can be the employee to champion this financial confidence within a business and help signpost others.
Returning to Earning – Here are the Hacks:
- Plan return to work like a project (make small goals to refresh financial skills & knowledge)
- Assess current spending inventory fully (income, costs, debt)
- Research rights and entitlements (flexible working, childcare benefits, etc.)
- Look into pensions and savings (small contributions count & consider tax efficiency, e.g. ISAs)
- Build a network (reaching out may offer leads & crucially guidance)
- Factor in returning costs (commute, work clothes, training, extra childcare)
- Make a contingency fund (to ease stress if unexpected costs occur)
- Nurture peer support (this will help you to see small wins and boost confidence)
- Take a walk (even gentle physical activity is proven to boost overall well-being)