Balance in financial decision making tips towards women

Women in younger households are increasingly taking control of major financial decisions, according to a report from Lloyds TSB.

A new generation of 'money mummies' in couples aged 45 and under are helping to tip the traditional balance of financial decision making, as women are now more likely to make decisions on choosing a bank (52 per cent), long term planning activity (52 per cent), and everyday financial management such as paying bills (54 per cent).

Despite younger couples splitting financial research equally, in older couples - those aged over 45 - men still hold the sway in financial matters - although this too is gradually shifting.

The Family Savings Report predicts that equality in financial decision making is around a decade away.

Greg Coughlan, head of savings at Lloyds TSB, said: "Younger women have definitely taken a firm grip on the purse strings, moving from the traditional role of managing the day-to-day spending, to planning and selecting where money is kept."

According to the research, there is also an association between female control of financial planning and higher rates of saving. It found that nine out of ten households where women dictated financial planning had money saved away, compared to only four in five households where men took control of financial decisions.

"This rise of a money matriarchy marks not just a shift in the balance of power in families but may have more positive impacts for the future economy," said Coughlan.

Elsewhere, the report suggested that families have become more prudent towards financial planning as a result of squeezed spending power, with the number of adults saying that they carefully budget their personal finances rising from 56 per cent before recession to 70 per cent in 2012.

"Female control of the family purse strings is likely to give rise to an increase in households' savings, as women tend to be more cautious savers in terms of the vehicles they save in, and have a longer-term orientation to saving," Coughlan added.

"This in turn means that mortgage repayments and consumer spending could become less vulnerable to turmoil in employment or financial markets in future."

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