Financial well-being is an ongoing journey of managing your financial resources to promote stability, peace of mind, and security. Building healthy financial habits involves discipline and patience, which can be a challenge for any person. However, there are hurdles that women specifically may experience which can make the road a bit bumpier. In this article, let's explore some of these challenges and provide strategies to overcome them and help women pave the way for a more secure and fulfilling future.
Challenges Women May Face
Gender Pay Gap
One of the persistent challenges women face is the gender pay gap. In 2021 females earned on average 83 percent of their male counterparts’ salary for similar work. While the wage gap has steadily improved over time, the disparity that still exists not only affects a woman's current income but also has long-term consequences, such as lower retirement savings and Social Security benefits.
Career Interruptions
Women are more likely to experience career interruptions due to caregiving responsibilities for children and/or aging parents. Balancing work and family responsibilities is a complex juggling act that may result in reduced working hours or temporary exits from the workforce, impacting income and career progression.
Longer Life Expectancy
Women tend to live longer than men on average. Current statistics show that a male who reaches age 65 today can expect to live another 17 years, while a female can expect to live almost 20 additional years. For that reason, women likely need to save more during their working years than men for continued financial security in their later years.
Strategies to Boost Financial Wellbeing
Negotiate Salary
Women should actively engage in salary negotiations to ensure fair compensation when there is an opportunity. Equip yourself with market research and confidently communicate your value to the organization. Negotiating salaries is a critical skill that can significantly impact long-term financial well-being.
Invest in Financial Education
Women can assist themselves by investing time in financial education. Attend workshops, and webinars, or seek advice from financial professionals to help enhance your understanding of investment opportunities and strategies. Empower yourself with the knowledge needed to create healthy financial habits and make informed financial decisions.
Create a Financial Plan
Developing a comprehensive financial plan is essential for women to set clear goals and allocate resources efficiently. Include short-term and long-term objectives, such as saving for emergencies, retirement, and education. A well-thought-out financial plan provides a roadmap for achieving financial security.
Prioritize Retirement Planning
Retirement planning is a critical aspect of financial wellness, and women need to plan for the potential of a longer retirement. Contributing regularly to an individual retirement account, taking advantage of an employer-sponsored plan, and considering other savings options are key steps in helping to secure a comfortable and stress-free retirement.
Build a Support System
Networking and mentorship can play an important role in overcoming career challenges. Connect with other women in your industry, join professional organizations, and seek mentorship from individuals who have successfully navigated similar paths. A supportive network can provide guidance, encouragement, and valuable insights.
Adapted from: cbiz
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