My Mum was Scammed as a Teen by a “Financial Advisor” — I’ll Never Stop Fighting for Financial Education + Confidence among Women
I’ve been writing to you all for a little over 2yrs now. From investing to personal finance and all sorts of things in between!
But you’ve probably been wondering why the heck I care about this stuff as much as I do and why I am still here 2.5 years later.
The reason?
I want more women to feel confident enough to take control of their finances — and ultimately their future.
I never want to hear another story of how a woman was conned by a guy in a suit or missed out on decades of growth because they had no clue what they were invested in.
Let alone what “investing” actually is.
Of course, there is a personal element to this.
I bet you’ve all had instances where you felt like you were talked down to because you’re a woman. Yes, in 2024 this is still a thing.
And guess what? Even though I studied finance at uni and now work in asset management I’ve felt like that on many occasions!
A while back a distant relative was visiting from overseas.
We all got chatting and I told him what I was up to (at uni: studying finance) and later on in the convo he asked my brother (who was in high school at the time) what he thought of a particular stock and the general economy!
I was like, helloooo I study this. I live and breathe this.
But no. He clearly wanted a guy’s opinion.
I don’t know why but that incident just stuck with me. Actually, I do know. Because I felt like a moron. I might as well have been invisible.
And while the majority of people are clearly not as chauvinistic as my unfortunate relative I’ve seen women being misjudged talked down to or dismissed when it comes to money and finances.
I’ve seen this in relationships too. The guy takes care of all the money stuff and the woman has no clue about any of it.
And leaving it up to your husband it not a good idea. You should have a clue about what’s going on and have a say in how your financial household is run.
Knowledge = power + peace of mind
My friend’s dad passed away when she was just 16. Luckily he’d been super open with his wife and daughter about their finances and they made decisions together. As a unit.
He wasn’t holed up in a room calling all the shots. They did it together since financial decisions affect the entire family. Not only the decision-maker.
So when he passed away they knew he had insurance in place and knew what to do regarding their mortgage and other household expenses.
They always had a backup plan and knew enough about their own finances to row their boat when they lost their husband/dad.
It was an awful, tragic time for them both but knowing they didn’t need to worry about their finances took a lot of stress away. Stress they needed to do without.
But not all families are like this. In most cases, the dad is the one who makes all the financial decisions, and not only that — but he’s usually the only one who understands them.
And this isn’t only a really bad thing in times of death but in life, too. Not feeling like you can drive financial decisions makes you feel powerless. And some are totally fine with it and that is fine!
Every relationship is different and some people really hate finance stuff (but you still gotta know the basics!) though I’m guessing more women out there would love to know a bit more about the numbers. To get a say in the money aspect.
Money can be a really divisive subject. But the best marriages are partnerships. You should be in it together. Psst: here’s exactly why you must talk money before marriage.
Watch out for controlling FAs!
And speaking of partnerships, more of us are actually on the hunt for a financial advisor — as many as 30% of Gen Zers are looking for one! But here’s what you must know before you pick your money manager.
You and your FA (financial advisor) should have some form of partnership.
You should never ever feel like you’re giving up your throne
You should be made to feel empowered to make money decisions and understand what is going on beneath all those figures.
The very best FAs are the ones who make their clients feel like they can take on anything! They should never make you feel clueless.
Like you’re signing a dotted line with no idea of what it is you’re signing up for.
So be careful with advisors. They really can make or break your finances. They should be more of a helping hand than a walking stick.
My mum’s story: a guy in a suit took advantage of her lack of knowledge
This brings me to my mum’s story. Mum came from a household where money wasn’t really talked about — what can I say, a classic British phenomenon!
We get so squeamish talking about the M-word that it’s plain weird. Though it’s changing now. Thank heavens.
Anyway, back in the 80s she was straight out of school and started working.
Her dad was approached by a “financial advisor” (aka scammer) who sold this thing called ‘contract-out’ where you pay less National Insurance and the difference is put into some fund (god knows what that was) and the result?
Less state pension. That’s what.
Why? NI goes toward things like healthcare, public services, and also — your pension! So less NI = less pension. So you’re basically giving up all that money later for money now.
You need 35 years of NI contributions to get the full state pension so when my mum did this she would a) have received a lower state pension which is bad news or b) she would have had to top up NI from all those missed years which btw she did!
When my mum married my dad he was horrified to find out she had missed out on all those years of NI contributions and that her fund had not only not gone up, it had lost her money.
Don’t sign anything you aren’t sure of
Mum signed along the dotted lines because it sounded great to a teen. You get a bigger paycheck each month. But this FA failed to explain to her the effects later on.
This is just one example of many. Where an FA took advantage of a client who knew a lot less than he did and failed to do his duty by explaining it to her. In plain English. Not gobbledygook. But no. Her lack of knowledge became his advantage.
And I bet you all know someone who fell prey to FAs. Whether a big or small scale it’s terrible. They take advantage (not just of women) but of people who know less than they do. There’s a total asymmetry in info.
You hire an FA because you want a helping hand with your money. They should never dare to exploit that but guess what they see those $$$ signs and I guess they can’t help themselves.
The more you know the more confident you’ll become
And that’s why you should start learning about finance to have that confidence and knowledge when making decisions, and sometimes life-altering ones.
Not having the knowledge puts you at a huge disadvantage because you end up relying on people (often the wrong ones) disproportionately. Psst: here are the ultra-basics of personal finance laid bare for anyone looking to get started.
Having a clue about your finances is the biggest gift you can give yourself. Investing early into your pension, forex will give you the best shot at a comfy retirement. Knowing what investing is will help you so much.
It’s daunting and intimidating but you’re smart and you can do anything you put your mind to.
Don’t listen to anyone who tells you you can’t invest. Investing is a brilliant thing: markets don’t care whether you’re rich/poor, clever/dumb. They’ll let you build wealth regardless. All it asks is for your time.
Next time you’re put in a situation about finances that you do not understand — don’t make a decision. Give it time.
Turn to Google (or chatGPT!) or even phone someone you respect.
Have all the facts at hand before you make a move.
Never feel rushed, pressured, or intimidated to do anything.
Disclaimer: This blog is not investment or financial advice. It is my opinion only. This blog is not a personal recommendation to buy/sell any security or to adopt any such investment strategy. Always do your own research before you commit to any investment.
This article has also been published on my personal website: https://kneadyourdough.uk/