Attention Ladies!
Today I want to talk to the ladies out there. I heard an interview today on a network news/talk show with a financial expert who claimed that women have a hard time talking about money and an even harder time asking for help with their finances. The expert claimed that women talk about all kinds of other topics but for some reason are not very chatty about their money. Why is that the case? What impact does that have and why does that matter?
First of all, let’s verify the claim that women simply aren’t willing to talk about money. In an effort to do so I “Googled” the subject and found some confirming and concerning data.
According to a group think tank of sorts called “Quartz”, 59% of women between the ages of 20 and 50 were recently surveyed and disclosed they are not comfortable talking about finances and simply defer the knowledge, discussion and decision making to male partners, spouses or professionals. That’s an astounding percentage of the population who in effect have no idea where they stand financially, be it short term or long term.
Another source, Marketwatch, published an article July 3, 2018 which highlighted an added concern noting that 90% of women will at some point in their lives be responsible for their finances either by staying single, divorce or simply by living longer than male spouses. That lack of knowledge could translate to some horrific circumstances for a large portion of our female population.
In this post COVID era it is even more crucial that women take charge of their personal finances. It has been said that this past year could be labeled a “Shedemic” because of the large number of women who were negatively affected by COVID19. So many women work in the service industry and were victims of job losses or lost wages. Also, women tend to stay in the role of primary care giver for their children so when schools closed many women voluntarily exited the workforce to care for their kiddos. The impact will take years to bounce back from.
So, what do we do about it? Well, Ladies, I want to encourage you to get educated, get involved, and get a support network.
Getting educated does not mean you need to be a CPA or Financial Planner. It does mean you should understand some basic concepts related to financial matters. Know what Wall Street is and what a stock is. Know what a Mutual Fund or 401K are and how they work. How do you do that? You find books, articles, talk shows, anything that starts getting you familiar with the terms and concepts. There are a litany of books on the subject that range from “Investing for Dummies”, or some such concept to more serious books and authors including Suze Orzman, Robert Kiyosaki and Rachel Cruz. I spent about 15 minutes this week in a local bookstore and found many options to choose from. If you are not the book type, consider blogs, news articles or websites that provide basic information. The key here is to understand basic terms so that you can ask the right questions when discussing your finances with any professional and so that you get a general sense of what to pay attention to in the news. Another great source of information is National Financial Educators Council or organizations such as Women’s Foundation of Colorado (if you are local to Colorado).
Getting involved means beginning to take an active role in making your money work for you. Your money is your greatest asset. Whether you have a lot or a little, it is still the tool for you to use in all circumstances. According to the statistics I mentioned, it appears women are far too passive when it comes to understanding how to use their money. Ladies, I encourage you to be as actively involved in your money management decisions and planning as our male counterparts. Robert Kiyosaki, in his book Rich Dad Poor Dad asserts that most people treat money with a scarcity mentality, chasing dollars out of fear they won’t have enough; enough to pay the bills, enough to do fun things, enough to impress others, etc. Instead, we need to look at our money as a means by which to live a rich and engaged life. We can only do so by being involved in where our money is coming from, how we spend it and how we save it.
Finally, I suggest getting yourself a support network. Everyone, woman or man, should have a friend or family member they trust whom they can talk to about their finances. This should be someone who can keep you accountable to your goals, desires and dreams. I’ve come across groups of ladies who meet regularly to talk about finances over coffee or wine. What a great community activity to engage yourself in. Don’t know of one around? Create one yourself! Now that we are coming out of the pandemic restrictions, libraries and recreation centers are great places to meet and talk about any number of topics. Of course, a solid financial coach is also a good support role. Even if you meet with a coach once a month or quarterly, that coach can help you uncover issues you may not have even identified and help you steady the course, whatever course you’ve chosen. Also, a good financial planner is a must. You may find yourself with limited funds for investing right now, but a good planner can help you develop a path once you have the room to invest. A great pairing includes a good Financial Coach to help you set yourself up to invest, and a good Financial Planner to help you invest when ready.
We’ve all felt the impacts of the pandemic over the past year or more. As we emerge, information is coming at us fast and furiously. Some of it incites panic. Some of it creates stress or depression. I believe it is as important to navigate times like this as it was when we were in the midst of the COVID19 world. At a time like this, the “covers” are pulled back and it’s easy to determine who is prepared and who is not. Ladies, if we don’t take steps today to be educated, involved and supported in our personal finances, turbulent times like this past year will only turn out more discouraging than they need to be. It is up to each one of us to make sure we have as much knowledge as we can in times of calm and abundance as well as times of fear and uncertainty. Make your personal finances a topic that you are excited to talk about, seek guidance on and support each other through the journey. Let’s work together to change the statistics and mindset about personal finances.
