7 Top Reasons Why Women Have to Learn to Manage Money
Today, more and more women are becoming savvy investors. Our education institutions still do a terrible job of developing financial awareness but there are other ways of learning. Women are doing this on their own.
TD Bank recently reported that a third of their online brokerage clients are women and this seems to be true across the industry. If there are opportunities trust the women to be there.
Women are also becoming financial literacy advocates for women. Beyond the histrionics of the Suze Ormans, there is a growing number of women who are proving every day, as small investors and competent "large purchase" managers, that they can be very useful coaches to others. More women are opening businesses everyday than men
Here are the top 5 reasons why as a woman you need to learn how to manage your money:
1. Women live longer than men as shown in several studies so they need more resources than men to maintain a decent lifestyle and pay for care which often is more costly at old age.
Most women, one in 4, go bankrupt two years after their husbands die. Around 75% of women get widowed at an average age of 56.
2. Women, on average, earn less than men so they need to manage their resources better and learn how to make their money earn more.
3. Women often take time off to raise children so they have less money for retirement than men. As such, they need to learn how to make this money grow.
4. Majority of women because they have not learned how to invest often put their money in low earning securities so these do not earn enough to make them sustain their lifestyle at retirement. 75% of the elderly who live at poverty level are women.
5. Because women earn less and work less number of years, their benefits such as pension and others are less that that of men.
The more, therefore, is there a need for women to learn how to manage this money better. Around 53% of women compared to 22% of men are not covered by pensions.
6. Because women are more effective money managers.
Recent studies have now confirmed that women are often more effective money managers and smart men are backing to the bench as many talented women take charge.
What's new? Women have managed household finances for centuries and when food on the table has almost always been the issue, risk management is second nature.
7. Women are more protective of the home and family so plan finances more efficiently. Women are finally being recognized as effective financial planners using data rather than warped instinct. They tend to gather information before making investment decisions. They tend to be testosterone proof, retreating quickly from bad decisions rather than doing a Davy Crocket at the Alamo.
Women as Money Managers
27% of the money worldwide is in the hands of women. Why just a quarter? Well let's celebrate what is and pursue equity another time! That is $20 trillion! That is a lot of money.
Many women are not happy with their investment advisers and have a sense of being patronized and treated like amateurs.
Some smart firms are reorganizing and rethinking and sorting out how to provide women better information as they start to recognize the growing involvement of women in the management of money.
What I do know from my own experience is that women are still considered to be second or third class investors by many bankers and finance advisers. That was years ago. Today, our financial advisor in the bank is a woman and she is superb.
There seems to be a very conscious position that somehow banks and other investment brokers have to look for the man of the house to ensure a reasonable discussion of money affairs. Sorry, but for many households, that "man" of the house is a woman.
Many of the small investor horror stories are told by men who did no homework, bet the farm and got the shaft. Investment is not football. Rocky only lives in movies.
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