You’ve probably noticed that the world of work is changing fast. Women are not only breaking glass ceilings but also bringing home the bacon. In fact, about 70% of American mothers can expect to be the primary breadwinner in their household for at least one year.
That’s awesome, right? But it also means that you need to be smart about your money. You need a financial plan that reflects your reality and helps you achieve your dreams. That’s why we created this blog: to give you the best financial advice for women breadwinners like you. We will cover topics such as budgeting, investing, saving for retirement, and more. So buckle up and get ready to take control of your finances!
The Hidden Tolls on Women's Wallets
Ladies, let's talk straight. We live in a world where the playing field isn't always level, especially when it comes to our hard-earned cash. It's time to shine a spotlight on the unique financial considerations that women face and uncover the secrets to conquering them.
Earning Disparities
One undeniable truth we must address is the issue of earnings disparities. It's frustrating to
acknowledge that women often find themselves facing unequal pay compared to their male counterparts.
On average, women working full time, year-round are paid only 83.7% of what men are paid. This disparity becomes even more pronounced for Black and Hispanic women. By understanding the impact of this gender pay gap, we can equip ourselves with the knowledge needed to take charge of our long-term financial planning and retirement savings.
Career Disruptions
Life has a way of throwing unexpected curveballs, and career interruptions are one such challenge that many women face. Whether it's taking a break to care for our loved ones or balancing family commitments, these detours can significantly impact our income stability and long-term financial goals.
In fact, statistics show that more women than men leave the workforce at some point, primarily to focus on caregiving responsibilities. A staggering 58% of women who took time away did so to prioritize caregiving, compared to just 34% of men. By recognizing the potential consequences of these interruptions, we can develop savvy strategies to minimize the financial challenges they present.
Tip One — Focus on Retirement
You work hard to earn your money and support your family. But what about your future? Retirement may seem far away, but it’s never too early to start planning for it. As a woman breadwinner, you have a unique opportunity to build a nest egg that can sustain you for years to come.
Whether you have a 401(k) through your employer or an IRA that you manage yourself, make sure you contribute regularly and take advantage of any matching funds. Your future self will thank you for it.
Tip Two — Pay off Debts
Debt can be a drag on your finances and your happiness. As a breadwinner, you don’t need that kind of negativity in your life. You deserve to enjoy the fruits of your labor and invest in your future.
That’s why it’s time to ditch the debt for good. Start by making a budget that shows you where your money is going and where you can save more. Then, tackle the most expensive debts first and look for ways to consolidate them into one lower-interest payment. You’ll be amazed at how much lighter you’ll feel when you’re debt-free.
Tip Three — Create an Estate Plan
You’ve worked hard to build your wealth and provide for your family. But what happens when you’re gone? Who will inherit your assets and how will they be managed? These are questions you don’t want to leave unanswered. That’s why you need an estate plan.
An estate plan is more than just a will. It’s a set of legal documents that spell out your wishes for your money, property, and health care. It also protects your loved ones from unnecessary taxes, fees, and disputes. To create an estate plan that suits your needs, talk to an estate planning attorney who can guide you through the process. You’ll feel more confident and prepared for whatever the future holds.
Tip Four — Save for Education
Education is one of the best gifts you can give to yourself or your children. But it can also be expensive. That’s why you should consider a 529 plan. These plans are designed to help you save for education costs, from kindergarten to college and beyond.
With a 529 plan, you can invest your money in a tax-advantaged account and use it for any qualified education expense. You can also change the beneficiary or take the money out if you need to. And the best part? You can reduce your estate taxes by contributing to a 529 plan. It’s a win-win situation for you and your family.
You Don’t Have To Do It Alone
Being a breadwinning woman is awesome, but it can also be stressful. You have to balance your work and family responsibilities, while also taking care of your financial future. That’s a lot to handle on your own. But don’t worry — you’re not alone. At City & County Credit Union, we get you. We know what it takes to be a successful woman in today’s world.
That’s why we’re here to help you with your money matters. Whether you need advice on budgeting, investing, saving, or planning, we have the expertise and tools to help you achieve your financial goals. We’re more than just a credit union — we’re your partner in personal finance.
