I’ve noticed that ‘responsible’ payments, such as bills, are often assumed to be paid by the man.

Decades series: twenties.

Hi and welcome to The Ladybird Purse, my weekly newsletter about women and money.

This is the second post in my series looking at money experiences and attitudes through life, decade by decade.

You can read the first post here:

What would I ask older women about money? How to make sure you don’t have to rely on anyone else.

Twenties

Lily, 25

My name is Lily and I’m 25 years old. I graduated from University almost two years ago with a Master’s degree in English and American Literature where I specialized in exploring gendered presentations of disability in US comic books.

I’m now working as a Student Experience Officer at a University where I plan events, newsletters and student voice activities for students. 

How were financial decisions made within your family when you were growing up?

When I was growing up, my dad paid for the mortgage and household bills while my mum paid for all the groceries and anything extra like birthday presents or holidays. However, discussions about money almost always ended in late night arguments between my parents. 

What did your parents teach you about money? Intentionally or otherwise.

My parents taught me about the importance of hard work and sacrifice in relation to money and rewards from an early age.

My parents worked long 14 hour shifts, and it was very rare for them both to have a day off at the same time. The only times I really got to spend time with my whole family were the nice summer holidays they would take me and my brother on.

Although as a child I didn’t fully understand, I knew that they worked really hard and made sacrifices so that they could save money to afford to take us on these amazing holidays and give us experiences we’d remember forever. 

Did you experience any financial challenges when you started your career?

When I started my full-time career post-University, I struggled with my finances as I was deep in my overdraft with no clear plan on how to effectively save money.

My first full-time job paid minimum wage and I had to seek part-time work in addition to this to ensure I could keep afloat.

After paying my rent and bills, I have very little money left for the month and would live paycheck to paycheck until I received a promotion at my job six months later. 

Has your perspective on money changed over time?

When I worked part-time at a restaurant during my undergraduate degree I got paid weekly and saw this as my weekly allowance for my spending (that I hit the limit of every single week!).

Now I’m a couple years into my professional career, I’ve grown to appreciate money more. I’ve learnt the benefits of saving my money more effectively and putting money into experiences rather than material possessions for instant gratification. 

Are there any financial goals or milestones you would still like to achieve?

I have multiple savings accounts that I put money into every month as soon as I receive my paycheck so I can save for my first car and a house deposit.

I’m trying to be as frugal as I can be in my everyday life to achieve these. I’m almost at my milestone to buy my first car, I passed my driving test two years ago but after spending over £3,000 on driving lessons I couldn’t even afford a secondhand car in this economy until now!

What are the biggest lessons you've learned about managing money?

I’ve learnt to put money into my savings account at the start of the month as soon as I’ve been paid. Even if I end up having to dip back into my savings account towards the end of the month, I ultimately will have more money in my savings than if I waited to put money in at the end of the month.

I’ve also learnt that no matter how scary it is, you need to make sure you’re aware of your current finances! When I had a student bank account with a generous overdraft, I didn’t even look at my spending until I got the text from my bank to tell me I was at my overdraft limit.

It’s much better to be fully aware and understand the financial situation you’re in so that you are properly equipped and prepared to deal with any unexpected expenditures and avoid any worry or stress. 

Have you encountered any gender-specific financial challenges or biases?

I’ve found that when paying for household bills, such as rent, water, electricity etc., it has often been assumed that my partner is the one who pays.

When signing our tenancy agreement for the flat we shared, the letting agency requested that our rent payment came in one payment in full from my partner, despite my name being listed as the ‘Lead Tenant’ on the tenancy agreement and all other communications.

From this I’ve noticed that ‘responsible’ payments, such as bills, are often assumed to be paid by the male figure in the household, as they are also automatically assumed to have the higher paid salary. 

How did you approach saving for retirement or planning for the future?

Even despite my promotions at work, my essential living costs are too great to start thinking about contributing to my pension.

I understand the importance of a pension, but with the contribution rate being so high at my company, paying into my pension would mean either having to cut down on basic groceries or having no savings each month!

What advice would you give to younger generations of women when it comes to finances?

Don’t rely on your overdraft, it’s not free money! It can come in handy when you have some unexpected costs, but you shouldn’t use it as an extension of your bank account.

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