Cinderella's Personal Finance Lessons
Although women now control 70% of consumer spending worldwide, when it comes to controlling their finances, the numbers are less encouraging. A recent study by Key Private Bank showed that even among high net worth women, household finances are still predominantly controlled by men.
Financial planner Kathleen Grace believes that this may be the result of growing up with the notion that a man is going to rescue us, and we’ll live happily ever after. And while every young girl loves a good story about a princess, that message is not useful in the real world where the dream romance ends in divorce about half the time.
In her book Prince Not-So Charming, Grace offers a different Cinderella story – one that shows us how she navigates romance, emotional upheaval, and near-financial-death experiences. Here are some financial lessons you could learn from this story:
- Always stay actively involved in financial decisions. Handing over control of your finances to Prince Charming puts you at risk should there ever be a financial crisis. Knowledge of and involvement with the daily financial decisions can prevent you becoming a victim.
- Be prepared. Prince Charming is human, just like the rest of us. He gets ill, has accidents, loses his job, or just turns out to be a jerk. Losing your prince is tough enough, but ending up broke as well really pours salt in the wound.
- Learn how to be financially independent. If you are not familiar with things like interest rates and how they affect your credit cards and your mortgage payment, how the stock market works and what makes a good investment, or how compound interest works, you should educate yourself. These are items most American women flunked on the basic Global Financial Literacy test.
The lesson here is that no matter what the state of your romance or marriage, it should not lead you to relinquish control of your finances. Statistically women are more likely to end up alone at some point in their lives, so make sure that you are ready in case that should happen to you. And being finically independent at every stage of your life will make it that much more enjoyable.
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.
To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
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
Connect With Us