Women are great money managers, but their confidence regarding financial decisions is a bit lacking.
Researchers say that while many women are terrific budgeters, savers and entrepreneurs, they are less likely to be prepared for retirement even though they live longer than men. They also say women should be more engaged, more aware, and more confident when it comes to finances.
Financial experts advise women (and everyone really) to do everything now to know where all your collective money is, but also, make sure you will be financially self-sufficient independently of a partner.
Eve Kaplan with Kaplan Financial Advisors reported this in a blog post, “A financial literacy gender gap study by Financial Finesse shows women are more likely than men to leave credit card balances unpaid. Women also have fewer emergency savings funds set up and have a poorer understanding of stocks, bonds and mutual funds than men.”
In another post Kaplan wrote “When I taught at a university it was clear that men generally were much more confident in the classroom than women. This difference in self-confidence has an enormous impact on the financial planning industry.”
For years, the issue of financial healthy females has interested Sue Smith, President of Ravalli County Federal Credit Union in Hamilton. She said, “The majority of women still unfortunately earn less than men during their working years. The statistics support the fact that most women live longer than men, and will likely end up alone. We must encourage and teach women how to confidently manager their finances.”
Jami Kirksey, program manager at Montana’s Credit Unions for Community Development, said for many women financial planning is about peace of mind.
“It’s about protecting and providing for the people they love,” she said. “While thinking of your loved ones is first admirable, it’s important to do the research and work to protect yourself first.”
Smith said money is emotional for women.
“The peace of mind when we have savings, the joy when we spend money on ourselves, our family and loved ones,” she said. “And, the paralyzing fear that we will screw up our future if we do something wrong, so we may delay taking action.”
The Woman’s Institute for Financial Education says that unfortunately all marriages end, whether through death or otherwise. It offers a wealth of information under the slogan “A Man is Not a Financial Plan” at www.wife.org.
The three top simple goals for financial well-being include making a plan, paying off your bills and planning for the future no matter what your gender. Women should live confidently when it comes to money know-how because being strong savers, future planners and organizers comes pretty easily to the female being, experts say. So be strong, be confident, and be financially sound because you are informed, involved and intelligent.
“When we talk about retirement the saying, ‘time is money’ is so true,” Smith added.
Visit www.montanacreditunions.coops for more information about this topic and many more. The consumer resource section of the site is updated often and intended to be an information library, a one stop-shop for programs through Montana’s Credit Unions for Community Development.
Alana Listoe
Montana Credit Union Network