Women and a money have lived in a chronic disconnect. For reasons we all know, we have been trained to be more comfortable talking about recipes and children skills rather than bank accounts and retirements. Part of being a Feminine Boss however is learning to get comfortable and familiar with the subject of money, which is something I call Financial Literacy.
Financial Literacy is when we gain the knowledge and skill set to make good money decisions by knowing how money works. In this issue I want to increase your Financial Literacy by breaking down the challenges women uniquely face with money, the reasons women need to become Financially Literate and the first steps as a Feminine Boss of becoming the Boss of Your Bank Account.
The Unique Financial Challenges Women Face
Women have unique financial challenges that men don’t. In turn these challenges cause a bigger need for us to ensure our financial security as we grow older. So what are these challenges?
Challenge #1: As much progress as we have made, globally, women still earn less than men. This means that women make a lot less money for the same number of years of work.
Challenge #2: As most women become mothers, women are more likely than men to take career breaks. This can greatly affect our daily incomes and savings.
Challenge #3: Research shows that women are living longer than our male counterparts. In fact, we are expected to live___ longer; and with____ women not having children, this means an elderly life on our own.
Challenge #4: Add to aging the medical expenses that come with having older bodies and less income support, and all signs point to the importance of why becoming the Boss of Your Bank Account is so important: which is this: Women need bigger financial savings to ensure a good quality lifestyle even when we grow old.
Why Women Should Take Charge of Their Money
I know taking control of money can feel overwhelming for many women. The thought of managing balances, investments, and returns seems daunting, especially if it comes on top of Board Meetings and Teachers Conferences.
How Can Women Become Financially Empowered?
Here is a simple formula on becoming Financially Literate. It is the SIR Method and it breaks down like this:
S-SAVE: Saving money means to put money in the bank. Though the formula I recommend is to have a savings rate equal to your age, I also say “Start from where you are.” Learning to save money is like a muscle. The more you use it, the easier it will get. So every month get in the habit of putting something away for your future.
I-INVEST: Investing means to make your money work for you, and grow with you. To do that, it is best to start investing as soon as possible. The Rule of Thumb in investing is to diversify; or in more familiar terms, “Don’t put your eggs in one basket”. Of course investing requires knowledge, so if you are new to Financial Literacy, seek advice from a professional Money Manager who can guide you on our risk profile.
R-RETIREMENT: When we are old and past our working days, it is important to know how you financially support yourself. Though pensions and Social Security may assist you, other retirement programs need to be investigated. Remember, becoming Financially Literate is to create a stream of income or monies that last you a lifetime.
As a Feminine Boss, it is imperative to take the reins on your financial independence because, as females, we have a lot of value to give to the world. But often, we get too busy giving that value and forget our worth. Taking care of your money and saving for the future means you consider yourself worthwhile. It is part of taking care of yourself. And Queen, one thing I know one Feminine Boss to another — You deserve it.
Women need bigger financial savings to ensure a good quality lifestyle even when we grow old.
Giovana Vega
Author, Blogger, Trader and Crypto investor
Founder of Trading for Women
Director GWC Amsterdam
