Tag Archive | Women Need to Know

Women and the Financial Gender Gap

It is no secret that there is a financial gender gap that has been around for decades. While in some areas that gap is closing, others are not seeing much of a change at all, and it seems that the change it is seeing is going in the wrong way. The financial gender gap will hopefully be gone someday, but until then women need to work at closing it for themselves.

Financial Finesse has put out a survey that shows that women seem to be falling behind men when it comes to financial literacy. It shows that women need to take charge and become financially literate. Financial literacy is not the only place that women seem to be falling behind in.

In most areas of financial planning in general women seem to be falling behind. The gaps are growing in the areas of paying off debt; having basic stock, bond, and mutual fund knowledge, and even in building emergency funds. It is not hopeless for women though, they can still become financially educated.

There is one area where women are not falling behind men in. When it comes to planning for long term care women are keeping up with men. This is the one area that women seem to understand and are not falling behind.

Women want to have peace of mind; they do not want to have to worry about what is going on with their money. If it is in a safe place then they feel better. One reason that the survey shows that women are behind is that they like to gather information from a large variety of sources before they make any decisions whereas a man will make that same decision much faster and with less research.

When it comes to a financial planner women do not want someone who comes across as a bossy know it all. They want someone who is going to be an ally for them in the financial world and who will look out for their best interests. The financial planner must make it comfortable for the women to ask any questions that she has and they cannot be an overly harsh person. Men are less likely to go see a financial advisor and when they do, they do not mind those financial planners that some women seem to have problems with.

Women you need to take responsibility for your own financial education. It does not matter if you get your information from an online source, a financial advisor, or even from a financial class. The important part is that you become educated in some way so that you can make better financial decisions.

There is still a financial gender gap out there. It is up to women to work at closing that gap. We have the ability to make sure that we are in charge of our own finances. So ladies, get out there and get educated, make the financial gender gap disappear for good.

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    Women Use Payday Loans More than Men

    Payday loans are used all over the country every day. A study shows that women seem to be more likely to use a payday loan more than a man is. The Pew Charitable Trust report is the study that put forth the statement that women use payday loans more than men.

    It is estimated that $7.2 billion dollars are lent as payday loans every year. New information suggests that women are out pacing men when it comes to getting a payday lender. The Pew Charitable Trust links the increase in women using payday lending to the hit women took financially due to the recession.

    Another report from the Colorado state government estimates that 52.4 percent of the people who obtain payday loans in their state are women. This is consistent with the report put out by the Pew Charitable Trust. It seems as though it does not matter where in the country you are more women are getting payday loans than men are.

    Why is this? There are so many different reasons that can be given it would be hard to give one answer for that question. Some say that it is because during the economic decline women were hit harder than men were, leaving more women in need of help. Some may say that there are more single mothers than there are single fathers and that could be one reason.

    Another potential reason could be that more women are having financial emergencies than men do. This is hard to say for sure as there are many different scenarios that could qualify for an emergency, and because most payday loans are not used for emergencies. This could be one part of the reason more women are using payday loans than men, but not the whole reason.

    Single mothers may have a part to play in this statistic as well. There are always unexpected expenses popping up with children. If you live in a one income household it may be difficult to take on these expenses when they get sprung on you, and let’s face it not all children are good about letting you know something right away. They could come to you one day and say that they need money in two days for a field trip, if it is just simply not in the budget, the mother does not have that kind of money left what should she do? A payday loan is one option. Single mothers may also be another part of the statistic but definitely not the whole reason for it.

    The Pew Charitable Trust report that has been released is showing that with the statistics that they have gathered that women are more likely to use payday loans than men are. This statistic is supported by reports coming out from others such as state governments. As with many other payday loan trends this may not change any time soon. The economy may play a part in it, but only time will tell what will happen.

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      What Women Need to Know to Invest Their Money Wisely

      It is a reality that no one wants to face: women do not want to be responsible for their family’s finances. This is a bigger problem than most women realize. If you do not know what you are doing with your family’s finances, how do you expect to invest your money wisely?

      Women need to be financially educated. This is something that they simply cannot afford to skip doing. You must be familiar with your family finances. This is the only way to stay on top of your money. Being financially educated and prepared can save you down the road.

      Get professional advice if you need it. Do not be one of those people who insist that they can figure it out on their own, but then are unable to. Financial advisors can help you make the decisions that you need to make, they can answer any questions that you have, and they can even point you in the right direction in various areas of your personal finance. They even have the knowledge to help you invest your money in the best possible way for you.

      Whatever you do ladies, do not use your 401(k) account as an in and out account. It is not your checking account; you cannot just take money out and put it back. If you take money out you will lose out on the interest that you would otherwise be earning. Even if you replace that money you will still have lost out on the interest you would have earned. This is pretty much losing out on free money.

      Retirement planning seems to be more difficult for women than it is for men. There are various reasons for this but a lot of it has to do with the fact that women earn less than men. Women must remember that retirement planning is a journey and sometimes it can take a while to get to your destination. Again if you talk to a financial planner they can help you invest your money so that you can use the returns for your retirement.

      More than anything women need to step up and take control of their finances. It is not the 1950’s anymore. Women are working and making their own money now and it is not unreasonable to expect you to take control of your finances and your financial future. Do not depend on someone else to do this for you. You do not know what the future holds and therefore you do not know if you will end up having to take care of the finances on your own. If that happens, you need to be prepared by knowing how to handle your family’s finances. So ladies, go out and get financially educated and take control of your finances so you can be in control of your financial future.

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