Around 63% of females in the US have less than ten thousand dollars for their retirement. On the other hand, only 52% of men have less than $10,000 in their accounts for retirement. Women in the US are prone to vulnerabilities like job losses and medical emergencies.
Around two in five women in the US are highly paid and capable of raising a family. Some women also engage in unpaid work, which amounts to $40,000 annually. Therefore, it is necessary to educate women about financial planning. It helps women prioritize savings and ensure financial well-being.
Common problems faced by women
Women face more impediments compared to men when it comes to financial planning. Some of the issues faced by women include caring for parents and children, having less access to resources and financial education, and divorced women taking on more custodial responsibility.
More than 50% of women (in the age group of 30 and 40 years) in the US are taking on the dual responsibility of taking care of their elderly parents and children. They are also tasked with providing financial stability to parents and children. It also interrupts the working patterns of women in the US. Women who are looking to learn about financial planning to save for kids’ education, medical expenses for parents, etc. can seek the assistance of Joseph Stone Capital.
Several challenges lie before the women
Women face several challenges while managing all these chores. They need to take care of their financial wellbeing, such as credit card statements and maintaining a healthy bank balance. They also need to get acquainted with current economic events. Proper guidance from financial experts is necessary to plan for future savings, paying for college education, retirement, etc. They should know how to distribute funds after retirement.
Women who are divorced suffer financial damage. The divorce costs could be as high as $13,000. Compared to men, women face a lot of trouble regaining financial stability after divorce. Their household income usually declines by 40%.
Lack of financial literacy
Women lack decision-making skills because they lack financial knowledge. They need to learn how to properly budget and manage their finances. Some women engage in aggressive investments, while others keep too much debt on their credit cards. Proper education and guidance from Joseph Stone Capital will help such women plan their investments and pay their credit card dues on time.
Make a list of your household expenses
Women need to get a picture of their household expenses every month. You need to write down your monthly expenses, like homeowner’s insurance, mortgage payments, and property taxes. It is also necessary to know about short-term expenses like leisure spending, gasoline, and groceries. Now, you need to know the balance amount for savings. On the bright side, you need to earmark 20% of your earnings for savings.
Savings for the long term
Long-term financial planning includes insurance and investments. You need to diversify your investments to grow your fund and reduce risks. It is also necessary to know how much money will be required for a happy retirement. You can consider investing in balanced mutual funds to protect your funds and grow their value moderately. If you have several years left for retirement, you can consider keeping some of the funds in equities for growth with expert advice from financial experts.
