In the past, it was typical for men to take control of the household finances. Perhaps at the time, this made some sense because the number of women in the workforce was relatively low; however, today this has changed dramatically. According to the U.S. Department of Labor, 59.9% of women participate in the labor force, compared to 69.1% of men.
Surprisingly today’s research finds that women are still leaving critical investment and money decisions to their spouses or significant others. Whether it is due to a lack of interest, feeling competent, or wanting to be taken care of, but be forewarned, there may be dire consequences when both partners are not working together planning their financial future.
Let’s explore why women taking an active role in financial decisions will help both of your futures.
Helps Increase Your Confidence
Being more involved and vocal about finances helps boost confidence and allows for greater involvement regarding long-term planning for the future. It’s important to educate yourself about your finances. The more you know, the more comfortable you’ll become discussing your finances.
Helps Keep Your Relationship Healthy
You are partners in life, so you need to be partners in finances. Discussing what’s best for your future and creating a plan that you both agree upon will put you both in control of the finances. It also helps you avoid conflict over money, which is a very high-stress factor in a partnership.
Women live longer
This is a high-stress factor to consider when funding a retirement account. According to the CDC, on average, women live five years longer than men. Chances are you will have to manage the finances on your own one day. Beginning to acquire financial knowledge now is essential for your future.
According to the American Psychological Association between 40 and 50 percent of couples divorce. It would be a huge burden trying to figure out how to navigate finances for the first time while going through a divorce. Nearly half of all divorcees said they wish they were involved in the financial planning decisions, especially after finding hidden debt, lack of savings or poor investment choices that will have an impact on their retirement goals.
The good news is, it doesn’t take much to become a financially savvy woman. In today’s digital world, you can obtain access to all of your finances; all you need is a login and passcode. Make it a priority, get involved, join the conversation, and start taking care of your money and financial future.