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Financial Literacy for Women: How to Raise a Fearless Woman

A Merrill financial advisor will be in contact with you in the coming days. Encourage her to maintain focus and help her track her progress. After all, she could spend her piggy bank change on candy now, but then she wouldn’t be any closer to getting the more expensive item she has been saving up for. Simply put, financial literacy is the ability to understand the value of money and how to make money work for you. The opinions expressed in this article are not intended to replace any professional or expert accounting and/or tax advice whatsoever. Today, women are taking initiatives, breaking the myths, and gaining financial independence. They are aware that managing their finances does not require special skills, but it’s all about developing the right mindset and knowledge.

Not surprisingly, retirement savings are a concern as women are more likely than men to say they are concerned about outliving their assets and having enough savings for retirement. If you have a longer time frame, you can invest in vehicles that offer less liquidity but the potential for higher returns.

Therefore, this is by far the most efficient financial advice for women. Incorporating real-life examples and stories can significantly enhance the communication experience. Sharing relatable anecdotes and case studies helps women visualize how financial decisions and strategies can impact their lives positively. By illustrating practical applications and outcomes, a financial advisor can bridge the gap between abstract financial concepts and the tangible benefits they bring. To pursue the lifestyle you desire, put a financial support system in place that’s grounded in reality. After creating a realistic budget and paying down your debts, begin saving and investing in your future NOW.

Reputation and expertise play a significant role, but if a woman does not feel a connection with an adviser, the relationship will likely not be fruitful. In comparison, men tend to choose an adviser based on specific assets and services offered. Statistically, women are not more likely to choose female advisers over male advisers, but rather individuals who satisfy the key “know, like and trust” factors. The bottom line is that women face several unique challenges when it comes to retirement planning.

By retirement age, a woman taking the average time out of the workforce will accumulate $1.05 million less than a typical man, Age Wave reports. Being out of the job market means women don’t have access to the benefits that help build investing opportunities, such as 401(k) and 529 plans, health savings accounts, and other savings opportunities. This material is not intended as a recommendation, offer or solicitation for the purchase or sale of any security or investment strategy. Additional information is available in our Client Relationship Summary. A financial advisor is a broad term that covers many types of professionals. They may help you manage your investments by facilitating the buying and selling of securities. These individuals include bankers, accountants, stockbrokers, insurance agents, and estate planners.

Read more about best robo-advisors for women here.

But there are other ways to compensate for the financial impact of taking a time-out for family. “Familiarize yourself with resources, such as 401(k)s and health savings accounts, that can offer tax advantages as you work toward building a more secure future.

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