Money Lessons for Women
Gender roles in today’s society have shifted dramatically from a time when little girls grew up hoping to find a good man who could take care of them financially.
Women now comprise 47% of the total U.S. labor force and are projected to account for 51% of the increase in total labor force growth between 2008 and 2018.
But despite the growing number of women who are economically independent, the gap between men and women is still evident - partly due to the fact that a large proportion of women work shorter hours or stop working altogether once they become mothers.
Here are some lessons that women can learn to become even more financially independent and stable:
Talk about money. Especially with your financial professional. Don't be shy. He or she needs to understand your budget (income, expenses, and debt), money-related goals (buying a house, paying off debt), and current investments. Be honest, so they can provide an accurate plan.
More importantly, you and your spouse need to communicate about money whether it's the joint checking account, paying off debt, monthly spending, or planning for the future. No financial plan is going to work if you're not communicating.
Putting together an estate plan is not just something that rich people do. An estate plan includes directives for your care should you become incapacitated and where money and other assets are to be dispersed in the event of your death. It also gives your loved ones peace of mind about your wishes.
Working hand to mouth until your final breath doesn’t sound very appealing does it? But one in three Americans have no retirement savings. Having a retirement plan that will fund the lifestyle that you desire is vital. So many women do not have the savings they need in order to maintain their lifestyles through their retirement years.
The old paradigm of raising a child and supporting them until they’re 18, doesn’t always apply nowadays. A lot of adult children are relying on their parents financially. In fact, 36% of the nation’s young adults ages 18 to 31—the so-called Millennial generation—are still living in their parents’ homes. If you consider the cost of this in terms of your own retirement, it starts to become less and less of a charitable activity, and more of a costly one. Raising kids who are financially savvy and independent will save you massively as the years tick by.
Women are often told that a financial plan includes a rich husband, but some women have created their own businesses, raised their children, and created an independent lifestyle.
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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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