Women and Financial Strategies

Women who share money management duties with their partner tend to take on a lion’s share of the responsibility for the household finances. Yet only 18% of women feel very confident in their ability to fully retire with a comfortable lifestyle.

The reason behind this disparity doesn't seem to be a lack of education or independence. Today, women are more likely to attend college and to graduate than men. So what keeps them from taking charge of their long-term financial picture?

Financial Experience

One reason may be a lack of confidence. One study found that only 55% of women feel confident in their ability to manage their finances. Women may shy away from discussing money because they don’t want to appear uneducated or naive, and they may hesitate to ask questions as a result.

In addition, Wall Street traditionally has been a male-dominated field. Women who often have expertise in other areas may feel uneasy amidst complex calculations and long-term financial projections. Just the jargon of personal finance can be intimidating: 401(k), 403(b), fixed, variable. To someone inexperienced in the field of personal finance, it may seem like an entirely different language.

Initiate a Plan and Implement It

Regardless of the reason for financial uncertainty, it's important that women continue to gain confidence with their finances, to both feel empowered to make their own decisions and to control their own financial future. Women on average live longer than men, and potentially face higher healthcare expenses. Leaving your retirement to chance is never a good plan.