Financial expert Sarah Megginson on the cost of being a woman and how she’s working to fix it

Being born male has always had advantages. Now an astonishing report from financial expert Sarah Megginson has spelled out the full impact in dollars and cents.

Sarah Megginson is on a mission to raise rich kids.

While the mother of three has spent years ensuring the financial literacy of her own children, she’s now turning her attention to all young Australians … because she says there is cause for alarm.

The personal finance expert and journalist says the greatest gift for any mum this Mother’s Day is the safety, security and happiness of her children – and while money can’t necessarily buy it all, it certainly helps.

And she says securing that financial future starts at home.

Unfortunately, while every mother loves her children equally, that doesn’t mean she pays them equally, with the gender pay gap beginning in childhood.

The State of Women’s Wealth Report 2025, authored by Ms Megginson for Finder, showed that the average Australian daughter earns $7.50 per week in pocket money, while her brother collects $10.30.

It’s not that sons are loved or valued more, but that the work they typically do – such as mowing the lawn or washing the car – is physical and visible, rather than the quiet, everyday work of daughters, like washing dishes and doing laundry.

“We were all shocked by this research, but it was backed up by years of data so it’s not an outlier, it’s an ongoing trend,” said Ms Megginson.

“We also found that fathers talk to their sons more often about money and with more confidence than mothers talk to their daughters about money, so we need to really recognise these subconscious biases that we bring into our families that have a real effect on the financial future of our children.

“Money does not buy happiness, but it does give you options and the freedom of choice. We should want our daughters to be financially independent because there is a saying that if you rely on a man to feed you, then he has the potential to let you starve.”

Personal finance expert and mum of three Sarah Megginson. Picture: Michelle Swan.

Ms Megginson said young Australians also held the largest superannuation gap, with a staggering 57 per cent difference between young men and women.

Her report found that the average male adolescent held a super balance of $11,710, while the average female adolescent had a balance of $7455.

But she said financial inequality continued between the genders at every stage of life, although there were some signs for optimism.

“From childhood pocket money to retirement, there is a high cost to being a woman, with Australian women holding 40 per cent less net wealth than men on average,” she said.

“While the average undergraduate salary is only two per cent higher for men than women four to six months after graduation, within three years this gap widens to 10 per cent.

“In the workplace, men ask for more and they get more. Men are more likely to ask for a pay rise, at 24 per cent of men versus 14 per cent of women, and when they do get a pay rise, men get more – $4000 on average for men, and $2,424 on average for women.

“The average woman has to work 11 years more than the average man to retire with the same superannuation balance.

“Women retire with 46 per cent less in savings, and 35 per cent of women aged 65 and over have less than $1000 in savings, compared to 22 per cent of men. That’s why the current face of homelessness is older women.

“However, there are signs of change. One in four young women are extremely motivated to improve their finances, compared to less than one in five men, so we need to keep supporting them ”

Personal finance expert and mum of three Sarah Megginson. Picture: Michelle Swan.

Ms Megginson said these were not ‘women’s issues’, but problems that impacted every Australian.

As the mother of two daughters and a son, she said she was driven to author this report to find out how a better financial future could be built for both genders.

But already Ms Megginson is part of the face of change. She said she was currently the primary ‘breadwinner’ in her family, with husband and Hot Tomato host Christo’s job providing more flexibility.

“When he was doing breakfast he was the primary earner, but now he’s on afternoons he has great flexibility which has its own value – we’re both very supportive of each other’s jobs,” she said.

“I love that our kids have great role models, they see both parents really work and love their careers. They know we both contribute to the family financially and in terms of the unpaid work within the home.

“Unfortunately, there are still a lot of men who don’t see these figures about women’s wealth as a problem, but they should. Even if they’re only worried about their own bottom line, this affects them.

“Why wouldn’t you want your wife or your daughter to earn as much as she can? Or to be paid fairly?

“I know that at least twice in my career I have been paid less than a man in the same role with the same experience, and I don’t want that for my daughters – and neither does my husband.

“That’s why I really wanted to write this report, I wanted to highlight the areas where we need to do better so hopefully all of my children can be employed in a fair and equal workplace.

“But one of the most important steps we can take is to just start having conversations about money within the family.”

Personal finance expert and mum of three Sarah Megginson. Picture: Michelle Swan.

And when it comes to family, Ms Megginson’s definition is expansive.

In 2023, she was the surrogate for her best friend Lisa Messenger, who had undergone eight years, 18 rounds of IVF and spent more than half a million dollars in her fertility struggle.

Ms Megginson said that journey, which she described as “the most amazing, life-affirming experience”, confirmed once again that financial security allowed options for women in all avenues – including motherhood.

“There was no financial incentive for me to be the surrogate, that’s not allowed in Australia, it was purely altruistic. Being pregnant was always easy for me and I wanted to help my friend, but it was a major undertaking,” said Ms Megginson, who wrote a book with Ms Messenger about the experience called The Power of Two and is currently working on another book about children and money.

“We wanted to be really open about our surrogacy to let people know that this is an option. It won’t suit many but there also shouldn’t be any shame around it.

“But this is not an option at all if you don’t have the money to fund it, and it’s a very expensive process. It’s a privileged choice but one that really worked for Lisa … we’ll be celebrating her little boy Hugo’s second birthday this July.

“It’s just another reminder that money gives you options. And that’s what we all want for our own children.”

Originally published as Financial expert Sarah Megginson on the cost of being a woman and how she’s working to fix it