In online articles and discussions there’s no shortage of data related to the Female Financial Paradox that states that although women are earning more income, they still tend to have old-school concepts of money that dictate budgeting and penny pinching rather than using money to grow money.
One notable survey asked 10,000 women about their financial lives. The data returned showed that 90% of women say they are the family breadwinners, yet only 76% are the chief financial planner for the family. In fact, 60% feel they have below average understanding about investing and financial planning skills, and due to discomfort less than 50% seek financial advice.
Statistics don’t have to define your life.
Even though the female financial paradox is very real in the lives of most American women, it does not have to be that way. Currently, there is a surge of women who are earning higher degrees. Women lead in degrees earned: 62% earned AAS, 58% earned a Bachelors, 60% have earned a Masters, and 52% earned a Doctorate.
There is no lack of education among women, so why are they struggling with finance? For the most part, even though they are earning higher incomes, they are still earning less than their male peers at a rate of 81% less or .66 per dollar earned. This unfair imbalance in wages makes it more challenging for women to move away from day to day budgeting and move toward longer term financial planning.
Take small steps to avoid being a part of the statistic.
Naturally, the first step is realizing that financial planning is a good thing rather than a necessary evil. Many women who feel they need to tightly manage their income are unwilling to pay to learn how to manage money because they may not be able to see the potential for a return on the cost of learning.
Planning your future is work that is well worth the effort.
It is not as hard to learn about savings and financial planning to make money grow as it would seem. Yes, there is a lot of foreign sounding terminology and the math may be challenging at first, but over a relatively short time you can learn how to manage your money to grow and be there for you when you are ready to make a large purchase, such as a home or car, and it will be there for you when you are ready to enjoy your sunset years.
