This is a sponsored post for SheSpeaks/Prudential
When it comes to your family’s finances, who is in charge? Ever since I became a stay at home mom a few years ago, I gladly gave up the duty of handling the finances and let my husband handle it. It was one less thing for me to worry about at the time with a new baby and a new journey into homeschooling. Honestly, it was just easier to just let him handle everything since he was the main breadwinner in the family. After I read some startling statistics related to women and money, I knew it was time for me to get more involved in our family’s finances.
The real wake up call for me was talking with my mortgage advisor about moving. Over the past few months we’ve been struggling with the decision to move. While we love our house and neighborhood, we’ve simply outgrown our house. One day we want to stay and just add on an addition, the next I just want to buy a new house. It was so easy to give up control and let my husband handle everything but when it came time to answer questions for our loan advisor, I quickly realized I didn’t know the answers they needed off the top of my head like I used to.
It was time to change that. I didn’t want to not know the answers to these questions anymore. I wanted to be more involved in our finances on a day-to-day basis, aside from shopping and being the one who spends our money. In fact, I want to be an example, especially to my daughter as she gets older. I want both of my children to learn to be accountable for their own financial future and what better way than to lead by example.
Apparently I’m not the only one who needs to get better when it comes to finances. That’s why I’m thrilled to partner with Prudential because they believe that women should AND can take control of their finances. Prudential wants to help all women realize the four issues that are challenging their financial security and help them find ways to secure their financial future:
- Wage and Income Gap: The average woman working full-time earns 79% of the income earned by her male counterpart.1 This is because of many issues – lower likelihood to negotiate salaries, time out of the workforce, differences in pay. The wage gap not only impacts women’s 401K balances over their lifetime but it also impacts their social security payments. Predictably women’s social security benefits are 27% lower than that of their male counterparts.2
- Investment Gap: Women don’t invest to the same degree as men.3 Women’s discomfort with investing comes at a high cost for them: They are apt to delay investing, invest more in lower risk, lower return investments and are more likely to run out of money in retirement.
- Women Are Living Longer and Living Alone: Women outlive men by an average of 5-6 years.4 Are they prepared financially for these years?
- Time Gap: On average, women in the U.S. spend 28 hours per week on household chores – 65 percent more than the average for men.5 That is uncompensated work and it does not figure into women’s financial planning. Prudential has created a tool called the “Value of all you do” that lets you very quickly quantify the value of all the household chores you do on a daily basis. What you would need to pay someone to do those for you. It’s pretty eye-opening.
Not only did I realize it was time to get more involved but I realized I need to be more accountable for my spending. I’m quick to spend money on things I don’t always need and trying to save for a new house makes me re-evaluate all those things I *think* I need. It’s making me track my spending habits more and makes me think twice about spending when I could be investing. I’m taking small steps to re-evaluate my spending and putting things in place to hold me more accountable.
Now I’m keeping better tabs on my purchases and where my money goes. I keep a little wallet in my purse just to track my receipts and spending and I document it everyday. This way I’m more aware of where my money goes on a daily basis. It’s a little step but it’s a start to own my future.
Want to learn more and start the steps to take control of your financial future? Visit Prudential to learn more and connect with a financial advisor to help with your next steps.
- Source: U.S. Census Bureau, Historical Income Tables Table P-40: Women’s Earnings as a Percentage of Men’s Earnings by Race and Hispanic Origin, 2016
- Source: Social Security Administration, Fast Facts and Figures About Social Security, 2016
- Source: http://fortune.com/2016/05/11/sallie-krawcheck-ellevest-launch;
- Source: Prudential Retirement analysis; National Center for Health Statistics, Health, United States, 2015: With Special Feature on Racial and Ethnic Health Disparities. Hyattsville, MD. 2016
- Source: Organisation for Economic Cooperation and Development, October 2016, http://stats.oecd.org/index.aspx?queryid=54757