Finances can be overwhelming, especially when you feel lost or uneducated on the “right” decisions to make. Over the last few years, we have found that women are contributing more and more to their family’s finances and are making strides towards further financial independence.
Despite women playing a larger role in their family finances, they still feel a lesser sense of confidence than they should as it relates to larger financial tasks. A 2022 Bank of America survey revealed that a “majority of women feel comfortable managing their day-to-day finances, but struggle with longer-term actions like paying down debt, saving for emergencies or retirement, and building wealth.” This data reinforces the importance for women to ask questions, seek advice and education surrounding their finances, and not take the back seat when making big financial decisions.
As financial literacy month comes to a close, we want to use this new data as an opportunity to encourage and motivate women to take control of their finances and better educate themselves to become financially independent. We know that a lack of financial education in schooling systems impacts the confidence level of financial literacy for both men and women and we are here to advocate for change. Start small and don’t be afraid to test new waters. Whether it’s re-visiting your insurance and estate planning items to ensure you are fully protected in case of an emergency or taking a look at your employer benefits guide to fully understand what’s available to you, checking in on your financial set-up is a great way to remain organized and on track.
As a financial advisor who works to empower women to become confident to make their own financial decisions, we have found that many women are often met with anxiety when it comes to having to make financial decisions on their own. For that reason, it is extremely important to start educating yourself about financial concepts from a young age, along with passing that on to the next generation, such as your children or grandchildren. Take it upon yourself to set up a budget, understand your cash flows, your short-and long-term goals, and your whole financial picture. Leaving the big decisions to another family member or spouse can impact your understanding and confidence level down the road. In the event your spouse or family member passes away, you want to ensure you are financially equipped to handle your finances on your own. As mentioned earlier, its normal to feel stressed or scared to tackle your finances all alone, but the sooner you get started, the simpler and easier it becomes.
