Makes Own Money Is Economically Savvy (MOMIES)

Posted in: Research Last updated: 18 Sep 2014

Engage Mutual reveals extent of the maternal breadwinner and decision-maker.

More than 40% of mothers in the UK are now the breadwinner for their household, contributing 50% or more to its total annual income, according to research out this week from Engage Mutual.

The independent research also shows MOMIES (Makes Own Money Is Economically Savvy) are responsible for key financial decisions ranging from what bank to use to how and when bills are paid (download here).

The mutual commissioned the independent research [1] questioning 2,000 mums across the UK to get a better understanding of their impact on household finances and what financial products they have.

They also quizzed them on knowledge of the UK economy and whilst MOMIES passed the politician’s test of knowing the cost of a pint of milk (64% did), more knew who the Chancellor of the Exchequer was (79%), and well over half (56%) knew the current Bank of England bank rate.

“Forget yummy mummies, what we have is a nation of savvy mummies or as we have dubbed them MOMIES (Makes Own Money Is Economically Savvy). They are not only breadwinners for their families but are also making key financial decisions for their households and it is time that financial service providers recognised that“, said Dianne Verity, Head of Customer Services.

Key findings from the Engage Mutual research into the ‘Rise of the MOMIES’ includes:

  • Mums contribute an average of 44% towards the total household’s annual income
  • Nearly 14 per cent are the total breadwinner for their entire household, contributing 100% of the income
  • Over 43% are ‘maternal breadwinners’ contributing half or more of the family’s income
  • Over 70% have their own bank account, 51% their own savings and 19%  their own investments
  • When it comes to protection, 20% have some form of life cover, eight per cent have a guaranteed over 50s plan, 15% other whole of life cover and 18% have life insurance but are not sure what type it is
  • Mums are the principle decision-makers, over and above joint decisions or those taken solely by their partner, when it comes to which bank to use (49%), how and when bills are paid (46%) and the method of bill payment (47%)
  • Joint decisions with a spouse or partner beat sole decisions when it comes to what energy supplier to use at 47% (although only just, as 45% of mums make the decision alone), which mortgage provider to use (43%) and car purchase (53%)
  • It’s virtually neck and neck for mobile phones, as 44% of MOMIES choose it themselves, while a further 45% consult their significant other
  • Northern Irish mums make the biggest average contribution to household income at 54%, whilst the South Eastern mums make the lowest average contribution with a still significant 39%
  • The average annual household income from the research was £34,859 and the average number of people in the household was 3.26
  • Six per cent of West Midlands’ mums thought George Clooney was Chancellor of the Exchequer (although this might be wishful thinking)

“Clearly, mums are making an invaluable financial contribution to their households both in terms of the amount of money they put in, but also in the decision-making process”, said Dianne.

“And as you would expect they are also protecting their families by taking out life cover in case they become sick or the worst happens. That’s why we strive to create relevant products for maternal breadwinners.”

Engage also canvassed its own women customers [2] to find out why they chose the mutual’s products.

Nearly 60 per cent said they chose the Engage’s over 50s policy because as a mother it offered an easy way to get a lump sum for their dependents should anything happen to them. Others (43%) also cited how as busy mums, it was the ease and quickness of Engage’s application process.

“We’re delighted that our products appeal to women and will continue to respond to their feedback with cover we know they want and suits them. It’s good to hear that our low payments and guaranteed lump sum are attractive to them and that our processes’ fit in with a mum's busy lifestyle,” said Dianne.

Copies of the Engage Mutual Report into the rise of the MOMIES (Makes Own Money Is Economically Savvy), are available to download from www.engagemutual.com

For further details on Over 50s Life Cover Plus, which has  Defaqto Five Star Rating,  contact Engage Mutual on 0808 100 50 75 or visit www.engagemutual.com

For further media information on Engage Mutual, spokespeople and case studies, please contact:

Kathryn McLaughlin, media relations manager, tel: 01423 855245
e: [email protected]

Emma Chadwick, pr consultant, tel: 01423 855256
e: [email protected]

Key product information: Over 50s Life Cover

  • No underwriting or health questions
  • Guaranteed acceptance without a medical for UK residents aged 50 - 80
  • Separate rates for smokers/non smokers
  • Lump sum payment on death
  • Flexibility to claim 20% of the life cover on diagnosis of a serious illness after two years. This would reduce the remaining cover by 20%
  • Flexibility to claim 100% of the life cover (less any serious illness benefit already paid) on diagnosis of a terminal illness after two years. This would end the policy and there would be no pay out on death
  • Depending on how long premiums are paid, what is paid in premiums may be more than is paid out
  • It is not a savings plan and has no cash value
  • Premiums from £8 per month
  • Guarantee premiums will never rise
  • Premiums cease at age 90, but cover continues
  • In the event of death in the first two years it pays out 50% more than has been paid in premiums; or 3x sum assured, subject to a maximum payout of £48,000, should death occur solely as a result of an accident. It pays out the full sum assured, less any serious illness benefit previously paid where death occurs after two years.

Notes to editors

Engage Mutual is one of the larger UK mutuals providing simple, value for money health, protection, savings and investment products to around 500,000 customers.

Engage Mutual Assurance is a trading style of Homeowners Friendly Society Limited (HFSL) which provides over 50s life cover plan, easy save, junior easy save; protected investment bond. HFSL is Registered and Incorporated under the Friendly Societies Act 1992, Registered Number 964F. HFSL is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA). HFSL’s Financial Services Register number is 110072.

You can check this on the Financial Services Register at www.fca.org.uk/firms/systems-reporting/register or by contacting the Financial Conduct Authority (FCA) on 0800 111 6768.