In this article, we look at a potentially costly mistake women make with money.
Women budget, men invest – but it doesn’t have to be that way.
I had a conversation the other day with another female advisor, where we discussed the need for our society need to do a better job educating women about investing and finances. She said, “Women budget, men invest.” As a female advisor with many female clients, I talk to women all the time about what they are doing with their money, and what they could be doing with their money – or rather, what their money could be doing for them!
A recent article in Investment News highlights this discrepancy between men and women. The article says, “falling short in the amount or percentage of income they invest could cost some women more in the long run than the gender pay gap”, according to Sallie Krawcheck, CEO and co-founder of Ellevest robo advisor.
She also says, “…women today invest less than men do…This gender investing gap costs women hundreds of thousands…over the course of their lifetimes – for some women more than the gender pay gap does.”
59% of women ages 20-34 defer investing and financial planning to spouses.
Also from the article: “According to a survey by UBS Group released earlier this year, 59% of women age 20 to 34 defer investing and financial planning to spouses.” While it’s perfectly logical, and frankly necessary, to divide up the myriad household responsibilities, at some point this can be a problem. Women typically live longer than men, so even women who remain married may become widowed and need to know more about their finances than they ever did before. Why not start learning about investing and financial planning now?
Read the full article here (link opens in new tab). And talk to your financial advisor about your specific situation.