Guest Post: Why Women Need To Save More Than Men
Trisha Wagner is a freelance writer for DepositAccounts.com, where you can compare rates of checking accounts from dozens of banks in one place. Trisha writes regularly on the topics of personal finance and savings accounts.
Regardless of our quest for equality in the world, the fact remains that life is very different for people of different social and economic backgrounds. The same is true for gender, men and women may be created equal, but we are certainly very different. When it comes to saving money whether it be for a rainy day, emergency fund or retirement women should approach the subject from a different angle than men. Here are the reasons why:
- Women are mothers: Not all women are mothers, but all mothers are women. As mothers we have a tendency to put the needs of our children and family before our own needs. How does this affect our savings strategies? If you have children or a significant other in your life, it is possible to put your savings on hold to care for and provide for those you care for the most. In fact for many women it seems there is little money left over after taking care of others to put toward savings. This is a major problem for women and one that must be addressed to ensure not only our own financial security but that of those in our care. For example, a mother who fails to save money for her own retirement risks becoming a financial liability to her grown children when the time comes to pay for care in her golden years. If you fail to save money as your family grows, you will undoubtedly face times when you need “emergency” money and by not having access to savings might turn toward credit to pay for unexpected expenses. Credit often leads to debt which can be devastating to the financial stability of a family.
- Women work fewer years: It may seem hard to believe (since we are always working) but the truth of the matter is this: compared to men, women have fewer years on the workforce in which to participate in company matched retirement plans thus saving money for retirement. In most cases the difference in years is due to raising children or caring for family members but the end result is less income earning time to save aggressively for retirement.
- Women live longer: Not only do we have fewer years to build our retirement, statistically we will live longer than men. This means we enter our retirement years with less money and a longer period of time for it to last.
- Women get paid less: While it is unfortunate, dollar for dollar, women tend to earn less money than men. This does not mean all women make less than all men because obviously there are many women who make more than some men in this world. Nevertheless, there is huge part of the population that earns less than their male counterparts.
What do all these factors mean to women? Women must make it a priority to not only save, but to save aggressively for various financial goals in our lives. We must save money for today, tomorrow and twenty years from now. We must make it a point to secure our own financial future regardless of our marital status or the wealth of our partner. Saving money today is the only way to guarantee your needs are taken care of tomorrow.