How Women's Roles in Family Finances are Changing
Back in the 50’s, American women stayed at home and raised the children. In 1960, just over 10% of mothers were breadwinners, and 7% were single moms. By 2011, those numbers had jumped to 40% of mothers as the sole or primary provider, and 25% were single moms. In 2014, 34% were single mothers, and the trend is still on the rise.
As more women take on the role of sole provider, they are discovering that they are at a financial disadvantage in many areas:
- Women still lag behind men when it comes to salaries. Women today earn an average of 77 cents for every dollar earned by a man, reports the Census Bureau, resulting in an annual salary difference of more than $11,000. That’s a big difference when you are the sole breadwinner.
- Women pay a half-point higher interest rate on credit cards than men do, according to a FINRA study. Over a lifetime, this could add up to thousands of more dollars spent by women in interest charges.
One factor that can help even the playing field in some areas is financial literacy – understanding the basic concepts of money management and investing:
1. Know your spending patterns. A basic budget will show you what your income is, what your expenses are, and where the money you spend is actually going. It may also help you prioritize your spending, including contributing to a retirement savings plan like a 401(k) or Individual Retirement Account (IRA).
2. Keep your financial paperwork organized. Overstuffed file folders and shoeboxes filled with receipts are not the most effective recordkeeping system. Take the time to work on getting your finances in order. It saves time later and gives you more control of your financial situation.
3. Learn about investment. No single investment strategy is right for every woman, which makes it important to understand the basics of investing, so you can formulate the right strategies. Work with a personal investment counselor, who can make recommendations based on your specific goals, time frame, and risk tolerance.
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.
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David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC
Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Princeton, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 516-921-4200 Visit our website: www.davidlerner.com
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