As an advisor who focuses on empowering and growing women’s financial literacy, I find that change is often the catalyst for many conversations. Marriage, divorce, career shifts, a death in the family…life transitions can shake things up and highlight insecurities, especially when it comes to financial know-how.
It can be pretty demoralizing to find yourself in the middle of a financial situation and feel outmatched. The key here is to remember that the gaps in your financial literacy are not your fault. As women, we’re taught that being cautious is the same thing as being “good with money.” Financial reserve isn’t necessarily a bad trait. But when that’s the only thing that shapes how we interact with money, it reveals a philosophy rooted in fear.
Women rarely get the same permission as men do to take risks, assert our needs, and learn as we go. We’re trained to manage what we have, not how to ask for more. And that gap tends to show up especially when change hits. So let’s talk about some of the wealth management skills you might be missing, and how to add them to your arsenal.
Psst! Don’t miss our checklist at the bottom
1. How to Take Smart Risks
Risk and money. Two words that make us antsy when we see them together. It turns out that response isn’t just your brain’s natural warning system. However, all investing carries risk; it’s not a matter of avoiding it, but critically evaluating how much and what type of risk has the potential to be a good thing for your portfolio.
Here’s where women pay the pink tax. Society is not kind to women who take financial risks. A study revealed that women are judged 3 times more harshly for financial mistakes than men are. When men make a financial decision that backfires, it simply becomes a learning experience. When women do the same, it’s “reckless.” We’re held to a double standard, so it’s no wonder that 45% of women who sit out on financial opportunities do so because they’re afraid of making a mistake.
Smart risks are informed risks. And taking informed risks starts with understanding what your money is for. What do you want it to do for your life? Where do you want to end up? This is precisely why I start with the big-picture questions when I start working with a new client, and why my financial planning process is circular. We want to make every choice support your goals and purpose while helping you build financial confidence. Risk can be empowering when you replace fear with facts.
2. How to Be the Priority
If you were raised like most women, you were taught to be the glue, not the main event. We’re the empaths, caretakers, planners, and stabilizers, which shows up in where we spend. As bestselling author and podcaster, Suze Orman, points out, women are more likely than men to spend on supporting family members, covering emergencies, and helping parents or adult children.
Many women are raised to be the stabilizers. The planners. The ones who notice what’s missing before anyone else does.
It’s okay to care. It’s also okay to put at least that much care toward your own needs. You’re not the villain, you’re just exercising healthy boundaries (and maybe even leading others by example).
So, when conversations about money come up, take up space. Ask questions. Let your goals matter as much as everyone else’s.
As you navigate your career, advocate for raises, promotions, and benefits instead of feeling like you should be grateful for what you already have. Your earning power is a powerful financial tool, but only if you use it.
And when a caregiving need pops up, don’t let guilt be the decision-maker. It’s okay to protect your own future while offering support to your loved ones.
3. How to Plan for Retirement
For women, retirement planning comes with extra layers. We tend to live longer than men. We’re also more likely to take career breaks or earn less over time. That means retirement savings often have to stretch further, and sometimes on a smaller base.
Let’s look at a specific example: Social Security. How much you get in Social Security benefits is based on your 35 highest-earning years. For the average woman, that will be only 80% of what a man gets from Social Security. If you’re a mom and you took a career break to raise kids, it will be even less.
Then there’s a lovely little financial phenomenon called the “widow’s penalty.” When one spouse dies, household income drops, but taxes don’t always follow, thanks to withdrawal rules for inherited retirement accounts. This is why women need to think carefully about how retirement income will actually work.
- What happens if you live longer than you saved for?
- What if you become the surviving spouse?
- How might your taxes shift after retirement?
- How long does your money realistically need to last?
Filling the Gaps with Financial Confidence
Building wealth isn’t about having the right personality, disposition, or gender. It’s about having the knowledge and framework to step forward without fear.
And that’s exactly why we created a downloadable checklist to help you think through what could or should impact your financial choices. It’s a helpful practice to start the year with, but really, it can help you see the full picture or get things back in focus any time of year–especially when you’re navigating a season of change.
Download it, and check it out on your own time, or drop me a line. I’d love to help you head into what’s next with confidence.
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