Why Women Should Talk About Finances #OwnMyFuture - Blog By Donna (2024)

FAQs

Why is it important for women to have their own money? ›

When women have financial independence, they have the power to make their own decisions about their lives. They don't have to rely on anyone else to provide for them or make decisions for them. This empowerment can lead to increased confidence and a sense of self-worth.

Unique financial challenges women face

However, women often face unique financial challenges men do not, including the gender pay gap. They may also need to take time off work for caregiving duties, which can impact their retirement savings and the size of their Social Security benefit.

According to Robert Kiyosaki, the only people who aren't talking about money are the ones who do not have enough of it. By talking about money we can encourage one another to safely manage our savings, invest in our future, and increase our earning potential.

Stay in control and talk money

But when you let go of the fear, a good money conversation can put you in a position to help improve your financial future. Not only can you share your knowledge and learn from others, but showing your vulnerability could help deepen your relationships.

"Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver," — Ayn Rand, novelist and philosopher. “A woman's best protection is a little money of her own,” — Clare Booth Luce, American author and US ambassador.

“There's a huge wealth gap between men and women, caused by such things as the pay gap and the fact that women tend to spend more time out of the workforce caring for family. Our saving and investing are impacted by these things, which makes it all the more important for us to take control of our finances early on.”

The TIAA Institute survey also found that women with low financial literacy are five times more likely to have difficulty making ends meet, three times more likely to be debt constrained, and three times more likely to be unable to handle a $2,000 financial shock.

If you're young, self-employed, or have a high income or net worth, it could be a good time to sit down with a CFP. Talking with a financial planner could also be a good idea if you're looking for impartial advice or simply have no interest in being a hands-on investor.

“To live comfortably, it's natural for a woman to prefer a man with money because, together, they can afford to live a better life. And this does not mean she's materialistic,” blogger Chris Lai said on HuffPost. Since the beginning of civilization, women have gravitated toward wealthier men.

Is money important to a woman in a relationship? ›

Financial stability is a crucial factor in a healthy relationship and having a stable source of income can provide peace of mind and security. Being employed can also indicate a strong work ethic and responsibility, which are important qualities in a partner.

A new study by Swansea University reveals that women are more attracted to wealthy men than they are men with average incomes. Researchers studied 1.8 million dating profiles and found men with high incomes and good jobs are 3.5 times more likely to attract women.

Both of you should disclose all the details about your savings, assets, or debt–even if it's stressful or embarrassing to do so.

Privacy, not wanting others to know how much or how little they have and feeling judged were top reasons people cited holding them back from talking about their money.

A lack of transparency surrounding money can lead to conflicts in a relationship and can impact future plans with your partner, like buying a house or getting a loan. Talking about money can be nerve-racking, but it's crucial for a healthy relationship.

The importance of saving money is simple: It allows you to enjoy greater security in your life. If you have cash set aside for emergencies, you have a fallback should something unexpected happen. And, if you have savings set aside for discretionary expenses, you may be able to take risks or try new things.

If you're managing your own money, you never have to worry about being taken advantage of by an advisor or money manager -- even inadvertently -- since you're in full control of what happens to your funds.

Gender equality, besides being a fundamental human right, is essential to achieve peaceful societies, with full human potential and sustainable development. Moreover, it has been shown that empowering women spurs productivity and economic growth.

It wasn't until 1974, when the Equal Credit Opportunity Act passed, that women in the U.S. were granted the right to open a bank account on their own. Technically, women won the right to open a bank account in the 1960s, but many banks still refused to let women do so without a signature from their husbands.