Women Need To Take Charge of Their Money!
I have devoted most of my financial planning career to helping empower women when it comes to managing their finances. So, I was very disappointed to see a recent study that showed women were still not as involved in making financial decisions as men. The common perception is that the younger generation of women will be more involved than previous generations since women now have more control over their careers and money.
The facts are not supporting this though. A recent study by UBS Global Wealth Management showed that only 23% of women were taking charge of their long-term finances, while 85% took charge of the short-term financial needs of the family.
A whopping 88% of women in the study felt their spouse knew more about money than she did. I am here to tell you sister; this is not true. Men may THINK they know more than you do but they don’t. I have a great poster in my office- A MAN IS NOT A FINANCIAL PLAN.
I was shocked to learn that millennial women were even more likely to let men lead than the older generations. My image of young women being in charge and empowered is shattered. This lack of engagement can put women at financial risk during critical life moments. Lack of participation can lead to poor decisions during negative financial surprises like divorce or death of a spouse.
The benefits are clear for couples who engage together on long term finances. 94% of women report higher confidence about their financial future and 93% report fewer mistakes made when both were involved. And most men want their spouses to be involved as they realize that statistically, women outlive men.
Many times, one spouse takes charge of long-term planning because they enjoy it or are more organized than the other spouse. And this is okay, except you should try to at least meet once or twice a year together to review where you are at. Using financial planning tools like Mint.com or Quicken to track your progress can make it easier to share information with each other.
Another great peeve of mine is when women say, “I am not good with math”. Stop saying this. If you can add 2+2, you can handle most of the decisions that need to be made in financial planning. Subscribe to the introductory Wall Street Journal deal which currently is only a $1 a week for 12 weeks. Read it! You will learn a lot in 12 weeks and then cancel the subscription.
I challenge you this summer to get more involved in your long-term planning. Learn where your investments are, how much you are saving for retirement, and what types of insurance policies you have. As a little incentive, if you call my office at 248-453-5252, we will send you a copy of my book, “Owning your financial success: a savvy women’s guide to financial empowerment” FREE OF CHARGE!