Women are often credited with running the household, taking on the hard work required to keep things running smoothly, much like a CEO runs a company. A big piece of running the household is managing finances, but historical studies indicate there is room for improvement in how women approach saving.
In what CNN is calling the ‘Year of financial feminism,” women are taking a hard look at overcoming this vicious cycle of savings regret. According to CNN’s Heather Long, women tend to be great savers, but are often fearful of the stock market, even though they have proven to succeed in trading. When you add in the factors that women outlive men by about 5 years on average, half of working women take leave to care for family, and moms are more likely to downshift in their careers to prioritize their families, it starts to paint a picture of the challenges women face in the financial realm.
America Saves, a national campaign that promotes savings, is making a point to empower women to pursue long-term savings success. They encourage women to simplify their pursuit to three categories.
Identify Your Goals
While originally aimed at women, this advice truly applies to both genders alike. With upcoming generations lacking focus on retirement years, it is essential to emphasize the importance of long-term savings. According to America Saves, savers with a plan are twice as likely to save successfully. The proverbial carrot in front of the horse, however psychological it may be, makes a huge impact in the success factor of savers.
Prioritize Retirement Savings
Take opportunities to make retirement a priority. Take advantage of employer matches, max out your retirement contributions if you can, and if your employer doesn’t offer it, open your own individual retirement account (IRA) and contribute consistently. Retirement approaches quickly, and if not prioritized, can end up being a disappointment later in life. According to Terrance Odean, professor at Berkeley’s Haas School of Business, “Women have long-term goals, and they stick with the plan.” Even with a fear of the stock market, savings can be mastered.
Ask for Help
In an era of the aforementioned financial feminism, it may seem counterintuitive to suggest this. However, asking for help is no sign of weakness. Whether asking for help in a financial situation or educating yourself in financial literacy, this is another point that applies to either gender.
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