Finance Tips For Women
Whether or not guys and gals are that different is a matter of continuing debate. Gender roles shift and switch- guys stay home and look after the kids, couples don’t have children, women become CEOs. But all that takes time, and what can no longer be discounted is that there is a significant difference in financial outcomes for men and women. So do we need to tailor our financial advice to our gender? Today and tomorrow, we’ll compare tips for men and women and how important gendered financial advice can be.
Different Needs
It cannot be said often enough that no rule serves all parties- there are a million variations across real life. Yet, wide generalisations can be pointed to; women live longer than men, often outliving their spouse. This has an effect on their retirement planning. Women also are statistically more likely to take time out of the workforce to raise children. With the increasing rates of divorce, sometimes this can also be undertaken alone which, again, has significant effects on financial stability.
Educate
Socialisation has, for a long time, directed male finances towards the earning and investment side of money, while women have maintained the household economy. An important part of financial stability is being competent across both areas. Investment would strike me as the area that a lot of women shy away from- the nature of Wall Street has always appeared to be quite male-dominant. Whether single, divorced, or in a relationship, it will always pay back several times over to involve yourself in all aspects of finance. A large part of financial stability comes from understanding and controlling your financial decisions, and the more you know, the better your decisions will be.
Invest
In yourself. Yes, there are bills, and family needs. Or you’re single, and figure you’ll work it all out when you become involved in a serious relationship. Why wait? Buy the house before you meet a partner, get educated and stay educated so no matter what, you’ll be able to keep your head above water in the workforce. Organise your super, taking into account the fact you might spend a while away from the workforce and will need to prepare for that now to ensure it doesn’t negatively affect your retirement.
Save More
Not every woman will have children or be a carer, but statistically, we’re more likely to spend time out of the workforce. Don’t just rage against inequity, do something to protect yourself against it. Make voluntary super contributions, save more out of your income, maybe even consider setting aside some of that saving into a personal bank account to offset the years you will spend out of the workforce. Especially when it comes to superannuation, the financial fallout of a divorce can be catastrophic if you were anticipating supplementary income from a partner. Expect the best, and make a couple of preparations if things go pear-shaped.
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