The ability to save money is an essential skill for good financial health, and we all know we need to save money to live comfortably. But did you know women in particular need to save more? We’ll explain why women’s savings needs are different and why they need to save more, along with savings tips for women.
Women have to manage unique challenges when it comes to their personal finances. We’ll review some of these obstacles and why women need to save more.
One of the financial challenges working women face is the gender pay gap. According to Pew Research Center, women earned 84% of what men earned in 2020. That means women have to work an extra 42 days to earn what men make. While the gap has narrowed, it still remains, and when you consider race, the gap skews even higher.
American women have an average life expectancy of 81 years. Not only is that five years longer than men, but women’s life expectancy rates have been trending upwards over time. This means that women will have longer retirements, putting them at greater risk of outliving their savings.
When it comes to raising children and caring for aging parents, women tend to be the ones to leave the workforce to take on these responsibilities. Career breaks can make sense financially on the surface, especially with the rising costs of childcare and eldercare. But these pauses in employment can mean a loss in income, changes to insurance and your ability to invest, which contribute to a drop in savings. Preparing your finances can help you overcome these challenges.
Women can save more money and live comfortably with greater financial independence using these savings tips.
Creating a financial plan provides a comprehensive overview of your current financial situation and empowers you to set and reach savings goals. When you make your financial plan, you’ll take stock of assets and liabilities to understand your financial health and identify opportunities for better money management.
Whether building an emergency fund, purchasing real estate, planning for career breaks, or saving for retirement, a financial plan can help you prepare for life’s milestones, stay on track with savings goals and achieve financial independence. Learn more about organizing your finances for financial planning.
Given some of the earnings disadvantages facing women, a traditional savings account alone isn’t enough to reach long-term savings goals. Diversify where you put your money to work to maximize your earnings potential.
Investing your money can help you accumulate wealth faster. Some women wait to invest, but the sooner you begin, the more time your money has to grow. Start small with what you can and increase your contributions over time. You can get started easily by enrolling in a 401(k) or opening an Individual Retirement Account (IRA).
For predictable returns on your non-retirement dollars, consider a High-Yield CD. These insured accounts lock your money in for a set period of time with a fixed interest rate—providing you guaranteed earnings at a rate that’s generally higher than traditional savings accounts. Learn more about CDs.
Reviewing your finances, creating a financial plan, and identifying savings opportunities can feel like a big undertaking. But thanks to financial planning tools, it doesn’t have to be, and these digital tools can do the hard work for you.
BrioDirect’s mobile banking app makes it easy to visualize your cash flow and understand your spending patterns. You can even link accounts from other financial institutions to the BrioDirect app to view them all in one place. The app’s personalized financial insights tool automatically identifies savings opportunities—helping you take control of where your money’s going so you can save more of it.
The BrioDirect mobile banking app is free for all clients. Ready to get started? Download it today in the App Store or Google Play, or learn more about the BrioDirect mobile app and its features.
Want to learn more about savings? Read these tips to set and reach financial goals.
*The opinions and views in this blog post are for informational purposes only and are not intended to provide specific advice or recommendations for any individual. Please consult professional advisors with regard to your individual situation.
All deposit products are provided by Webster Bank, N.A. ("Webster Bank"), an insured FDIC institution. BrioDirect is a sub-brand of Webster Bank. Webster Bank operates under the trade name BrioDirect. This trade name is used by, and refers to, Webster Bank, a single FDIC-insured bank.
Accounts that are opened via www.briodirectbanking.com and marketed by BrioDirect are Webster Bank accounts. Deposits in these accounts are made with Webster Bank. For purposes of determining how much FDIC insurance is applicable to your accounts, you need to consider not only the BrioDirect online savings, CD, or checking accounts that you maintain, but also all other accounts you maintain at Webster Bank.