Purse Strings Approved Professional
Blog Series
Financial Planning for Women: Myths, Truths, and Taking Control
When I hear the phrase “financial planning,” there seems to be a sense of staidness, seriousness, no fun, furrowed brow. When at Purse Strings, we see it as the exact opposite. It’s about choices, creating a beautiful life of your own choosing, options, freedom, and having control over what you want to do.
As women, we can reframe the possibilities financial planning holds for us.
We see and hear stories of women who find themselves at a disadvantage, not because they lack ability or ambition, but because they’ve been left out of the conversation.
While the act of financial planning is still largely marketed toward men, the outdated assumption that women “don’t need to worry about it” has left many in precarious positions later in life. So, let’s unpack the truths, myths, and essential steps women can take to secure their financial futures.
Financial Truths: What We Were Never Taught
Let’s face it: Many of us (men and women) were never taught the basics of budgeting, investing, or saving while in school. Then, we find that much of the financial advice out there is still geared toward men.
But the truth is, money is power—and the more you know about managing your money, the more control you have over your life. Whether it’s securing your future, escaping a bad situation, or creating opportunities for growth, learning about money is essential for women.
Money messages are covert and come to us from all directions. While we hear messages towards men to invest, manage their finances, and work with a financial planner, the messages towards women are to save, clip coupons, and stop drinking expensive coffees. And these messages have caused a lot of damage.
Women live longer, take more time out of the workforce for childcare, and will face higher healthcare and oversight costs in retirement, resulting in the real need for financial planning.
Understanding money isn’t just a “nice-to-have” for women—it’s critical for independence and security.
The Myths About Money and Women
Let’s debunk the myths that have held women back from taking control of their finances:
Myth 1: I Can’t Afford Financial Planning
Many women believe financial planning is only for the wealthy, but nothing could be further from the truth. Financial advisors often work with a variety of income levels and pricing models. Here’s the real truth – the cost of not planning is what gets people in trouble. It’s not about having a lot of money; it’s about creating a plan for what you have.
Myth 2: I Have Time; I Can Start Later
One of the biggest mistakes women admit is that they put off financial planning and lose out on years of investment earnings and more. Whether it’s saving for retirement or investing, the earlier you start, the more your money can grow. Compound interest is a powerful force. For example, if you invest $500 per month starting at age 30, you’ll have nearly double the amount at retirement compared to starting at 40. Imagine that! Yet, many women delay, thinking they’ll figure it out later.
Myth 3: Financial Planning is Complicated and Confusing
It’s true that financial jargon can be intimidating, but the basics are simpler than they seem. The right financial professional can explain financial concepts into manageable steps, guiding you toward smart decisions without overwhelming you with details. A great financial planner will make it easier, not harder, for you to manage your money.
Why Financial Planning is So Important for Women
Financial planning is not one-size-fits-all, and for women, there are a lot of unique factors to consider:
- Women Live Longer: On average, women outlive men by five years, which means they’ll need more savings to cover those extra years.
- Time Out of the Workforce: Whether it’s to care for children or elderly parents, women are 5 to 8 times more likely than men to have their empowerment affected by caregiver responsibilities, impacting their lifetime earnings and retirement savings.
- Higher Healthcare Costs: Living longer often means more medical bills, especially later in life. Per capita lifetime expenses are a third higher for females than males, and two-fifths of these differences are owed to women’s longer life expectancy. Without a solid financial plan, those costs can erode your savings quickly.
These realities make financial planning critical for women. A good plan will take into account the need for emergency savings, retirement, and healthcare costs, ensuring you have the resources to live comfortably and independently throughout your life.
The Biggest Financial Regret Women Have: Not Starting Sooner
In surveys of women about their biggest financial regret, the most common response is, “I wish I had started sooner.” Whether it’s saving, investing, or seeking advice, the earlier you take action, the more control you’ll have over your financial future.
Real-life Story: Sarah’s Regret
Sarah, 55, always thought she had time to start planning for retirement. She had a good job and assumed everything would work out. But after her divorce at 48, she realized that she hadn’t saved nearly enough and was now facing the prospect of working well into her 70s to cover her costs. “I didn’t think it would be this hard. I wish I’d started saving earlier or at least met with a financial advisor to figure out what I needed,” she says.
Sarah’s story is common, but it doesn’t have to be yours.
The Unseen Struggle: When Financial Professionals Ignore Women
Another startling fact that many women report is that when they do seek financial advice, they’re often overlooked. When Purse Strings was being created, and still to this day, the most common thing we hear is, “ My financial professional doesn’t even look at me.” This can lead to missed opportunities and uninformed decisions.
But this is your money—and your future. You deserve to be heard, to have your questions answered, and to take part in the decision-making process. A good financial advisor will ensure you’re not just a participant but the leader of your financial journey.
Financial Freedom is Possible: Here’s How
Financial freedom isn’t just about having wealth; it’s about having options. Whether you want to retire early, travel, start a business, or just feel secure in your daily life, planning and investing are key.
For women, investing is often seen as a daunting task, but it’s one of the best ways to build long-term wealth. Consider this: historically, the stock market has returned an average of 7% annually. If you invest regularly and give your money time to grow, those returns can accumulate, providing financial stability.
Taking control of your finances through smart investing and planning is how you build financial independence. It’s your power, your freedom, and your security.
Conclusion: Take Control, Take Action
Money gives you freedom, options, and power. It’s time to take charge of your financial future. Start by understanding your financial situation, investing early, and partnering with a financial advisor who sees and hears you.
Don’t wait. The earlier you start, the more options you’ll have. At Purse Strings, we empower women like you to make smart financial decisions that ensure a bright, independent future.
