April is National Financial Literacy Month in the United States. And all month long I have been sharing via social highlights the importance of financial literacy, along with how to establish and maintain healthy financial habits. I wanted to be able to share all of these key nuggets at one time!
Did you know, one of the 7 Pitfalls of Women Leaders is negotiating for more when it comes to securing a seat at the table!
If you are ready to expand your financial knowledge continue in reading 7 Reasons Why Women Should Pay Attention to Their Money!
- To Close the Wage Gap.
Figures from 2017 show that women are paid about 82 cents for each dollar a man makes. That translates into a woman having to work about four more months per year to make the same annual salary as a man (The history behind Equal Pay Day). It’s actually worse for women of color!
Some good news here is that, among millennials, women are significantly closer to pay equality. That’s progress for the generation behind them as well!
2. Security For the Unknown.
Unfortunately, life is uncertain, and being unprepared leaves women affected by — instead of being in control of — their circumstances. It’s also common for women to be fearful about their future, especially when they’re unclear about their financial reality.
As you may know, with both a Master’s and Doctorate’s Degree in leadership, I am always curious about what the research says…
According to the U.S. Census Bureau, the average age of a widow is 59 years old, and three out of four married women are widowed by the age of 75. As an additional thought, according to Pew Research, the divorce rate for couples over 50 has doubled since the 1990s.
I don’t share this to elicit fear, but instead to encourage readers to be more engaged in their financial discussions.
3. It Enables Us to Care for Loved Ones.
Women are often the primary caregivers for their extended family. In fact, the average caregiver is a 49-year-old woman providing 24-hours-per-week of care for four years to a 69-year-old female relative.
Providing such care often leads to women leaving the workforce sooner than men. That means their retirement savings and other potential wealth-building options are more likely to be cut short by someone’s unexpected need for care.
What are you doing to build your nest egg?
4. To Fund Our Charitable Causes.
In short– Women have different goals for their investment portfolios. While statistics show men tend to be focused on investment performance, women are more goal-oriented. In other words, women focus more on how their money can be used to meet their life goals, including supporting their loved ones or giving back to charity.
Giving is something I am very passionate about. Yet, being smart about how we give to others enables women to give in a tax-efficient manner, meaning you can stretch your charitable-giving dollars.
What are some charities you give to?
5. It’s Our Money!
Women currently control $14 trillion of personal wealth in the U.S., according to the Bank of Montreal’s Wealth Institute, and that number is growing. Over the next two generations, women stand to inherit 70 percent of future wealth. According to the Family Wealth Advisors Council, by 2030, women will hold two-thirds of our nation’s wealth.
As women, can we afford to be disengaged in our finances as we amass higher levels of wealth?
6. We Set An Example.
According to the Census Bureau, millennials are slower to get married than any previous generation. In 2013, only 26 percent of young adults ages 18 to 32 were married, compared with 36 percent of same-age adults in 1997 and 48 percent in 1980. Additionally, the current generation has higher debt levels due to higher relative educational and housing costs. Their financial security is even more at risk than their parents.
By educating ourselves about money management, we model financial responsibility to our sons and daughters, thereby improving their financial well-being.
7. It’s empowering!
Embracing our economic power is one way for women to strengthen their position in their family and in the world at large.
If a woman isn’t completely dependent on someone else to secure her financial future, she’s free to lead a fully independent life with an abundance of choices and the power to choose leads to more happiness!
Every woman should have enough fundamental financial literacy skills to secure her economic independence and long-term security. If you are ready to expand your personal knowledge of worth and the financial power you possess, join me in Raleigh for the Make More Money Masterclass on Saturday, April 27th! Click the link to learn more.