Ladies, we can make more money and save more for our future. Being a mom often leads to women putting savings off, or worse — letting their spouse deal with it. The reality is, nobody cares more about your financial future then you, and it's time to take control. Here’s what every women needs to know about their money:
Equal pay for equal work is a right women are still fighting for. According to a data gathered by Statistics Canada for The Globe and Mail, full time working women make 73.5 cents for every dollar a man makes, in the same job. This is discouraging. On top of this, women often face a more interrupted career path as they take time off to raise kids or to care for elderly parents. It can be intimidating in this situation to ask for more money from your employer. But woman can ask for more and should. Women can also make requests when taking a job for more vacation days than what is being offered and seek out opportunities to work from home. All of this will put more money back in your pocket.
Women are more likely to make the financial decisions in their home. From groceries, to vacations to home décor, it's usually the women who has final say on how the money is spent. Retailers know this and target women with savvy marketing anything from ads on TV at 4pm pushing takeout, to cleaning products that claim to save hours of time. Be aware of how aggressively you’re being targeted and make decisions based on your needs not the wants imposed by companies.
By definition, being a mom, is not a job, because you don’t get paid to do it. Stay-at-home mothers are at the biggest risk of not having adequate savings and access to their own money. In this situation women need to have an arrangement with their spouse for a savings and retirement plan, just for them. According to Salary.com, a stay at home mom with two preschool aged children and one in school would earn a salary of $118,899 if she was paid for the work she does. Women should discuss this from that point of view with their spouse. Check out your mom salary here.
Compared to men, women take fewer risks and are more organized in their investments. Women are also more detail-oriented and more likely to watch their investments closely . This is a good habit, but over analyzing your portfolio can lead to emotional decisions and in the long term a loss on profits. Women need to take a buy and hold approach to investing so they can see their investments grow. Rather than trying to control the results every step of the way, it’s better to make sound financial decisions in the beginning that will pay off in the end.
Statistics show women are likely to be a single senior. When it comes to retirement planning the best approach is to hope for the best and plan for the worst. The reality is more than 40 per cent of Canadian marriages end in divorce. Also women live longer than men and are usually younger than their spouses. Most women will spend part of their retirement on their own, and that is how women should plan. Talk to the women in your life who are retired and single. It will help you prepare for your own retirement.
Mothers always put their kids first. But when it comes to long term savings, you should be the priority, even if that means sacrificing putting money into a child’s education fund. Save you in your RRSP before you child’s RESP. Your kids will have plenty of financial options when they enter university to pay for their tuition. But you won’t when you turn 65. Remember, you can’t borrow to fund your retirement. Even worse — by not saving, you may simply be increasing the likelihood that your children will have to support you later in life.
When it comes to money, women need to take a bolder stand. Understanding how to manage money and make better personal finance decisions will help secure a financially successful future.
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