Research from Nutmeg, the UK’s largest digital wealth manager, reveals that a gender balance of financial role models could be the crucial factor in closing the gender savings and investment gap.

The research found that UK adults who had an equal gender balance of financial role models were more likely to save and invest (71%), correctly identify the purpose of an ISA (75%), and engage in the use of ISAs (45%), compared to those with predominantly male or female role models.

Across the UK, fathers (30%) were most likely to have been the primary role models that taught people about money, with mothers just behind (26%). Women were, however, most likely to primarily credit mothers for passing on financial knowledge (31%), suggesting mums may be the quiet money mentors in our lives.

Despite this, just 10% of women consider themselves to be ‘very savvy’ with their money, compared to 16% of men who report the highest level of financial confidence. While women report lower confidence overall, those who manage household finances show a significant increase in both ISA knowledge (72% versus 40%) as well as saving and investing activity (70% versus 57%), compared to households where their partner manages household finances.

This lower confidence extends to investments, with women nearly twice as likely to report they would be uncomfortable taking any risk with their money (29% versus 16%). However, Nutmeg's own data shows a more optimistic outlook: women now account for 41% of its clients and 51% of its socially responsible investors, at a time when industry analysis from Boring Money finds the gender investment gap is widening. Among Nutmeg clients, the gap between risk appetite for new male and female clients is also narrowing – although men are still comfortable taking slightly more risk with their investments, the difference between the genders is just 0.25 points compared to 0.59 points in 2017.  

Claire Exley, head of advice and guidance at Nutmeg, said: “For decades stereotypes around money management being a more male activity have persisted, but our research highlights the importance of having a diverse and balanced range of financial role models in developing good money habits. While there is slightly lower money and investing confidence among women, there are signs that women are actually the quiet money mentors in our lives and a healthy mix of influences is key to boosting our saving prowess.

"Investing can feel like a money minefield and more must be done to breakdown the UK's gender investing divide. It's encouraging to see a larger number of women putting their money to work by investing in their futures with Nutmeg as we chip away at gender stereotypes.”