Women and men approach their finances very differently. Men are numbers oriented and women are goal oriented. A man might say he wants $3 million in retirement; women say that they want enough for retirement or to pay for college.
Many times, women aren’t able to discuss finances with their husbands. Despite all of the things women share with their women friends, they do not tend to discuss personal finance issues. Women are taught that discussing money is tacky, and it has become a taboo topic of polite conversation in our culture. Even high earning women do not discuss money with other women for this reason. Because they don’t have experience in personal finance, they lack confidence, and it tends to hinder women's financial decision-making. Unless women teach themselves, to whom can they turn?
Many women such as myself, have a checkered career history either working part-time or taking time off to raise children or to take care of elderly parents. As a result, women have less money saved up in retirement. Also, women live a lot longer so that their money has to last longer. Because in many marriages, the husband handles the finances, the women are bereft should they find themselves suddenly widowed or divorced.
Women tend to care for their aging husbands but have no one to care for them when they need a caregiver. That's why women have an added burden of planning to make sure that they have enough resources to see them through their retirement years. Not only should financial resources be in place, but women also should make sure legal documents such as powers of attorney for healthcare and finances are in order. As an attorney and a CRPC®, I know which documents you need and how to help you fill out beneficiary designations.
Women are actually better investors than men. Women are much more apt to do their research and take their time in making a financial decision. In terms of investing, women do better because they trade less often than men incurring fewer transaction costs which can make a huge difference in the amount you end up with in your portfolio.
Women attend financial lectures and pursue more formal financial educational training while men tend to be lone wolves. Women like to work in groups. That is why my workshops and "money talks" can be so helpful. You get to collaborate with other women who also wish to become more financial "fluent." Contact me today to attend a free workshop or have a free consult during my "office hours" at firstname.lastname@example.org.
Book recommendation: Kiplinger's Money Smart Women by Janet Bodnar, (2006). Here is a link to it on Amazon: