There is increased attention on women’s wealth accumulation potential. Such wealth accumulation could positively add to our economy significantly if women take greater control over their finances.
The gender wage gap is an age-old issue that persists obstinately. In 2017, the ratio of women’s to men’s median annual earnings was 80.5% for full time year round workers, up from 63.9% in 1955. But at that rate, it may take until 2059 for women to reach parity with men.
The gap is more significant when part-time workers are included as women are more likely than men to work reduced schedules to care for children and are also often caregivers for other members of the family.
Start a budget, spend less in areas you can target and get easy results. Whether you are married or single, you should have your own money, goals, targets and achievements.
Education is always important and a great equalizer in our society. Women should target higher paying undergraduate majors such as in finance, technology, nursing, and medicine.
Financial literacy workshops are important especially if they are devoted to women. They are increasingly available in our communities, in our colleges, and in our workplace. Learning how to reduce debt and spending, learning how to save, and using your savings for both investing and retirement accounts.
Invest your savings for workplace retirements accounts
Invest your savings for workplace retirements accounts but set up investing accounts once you have an adequate emergency fund. Your cash and bank accounts provide liquidity but leaving all your savings in zero or low interest-bearing accounts will not keep pace with inflation longer term.
Women tend to be better investors than men. According to a 2017 Fidelity study, women are better investors than men but don’t realize they are. Only 9% of women believe they could outperform men with respect to investor returns, in reality women performed 0.4 percent better in investment returns than men.