Money and finances remain crucial aspects of one’s life. But it looks like us women still got some lessons to learn. For more than half of our lives, we hear the world discussing women empowerment make attempts for ‘equality’. However, most of them seem to have missed out on financial awareness.
This National Financial Awareness Day, Penny Calling Penny decided to let women tell women what’s standing in between them and their true financial freedom.
We heard you murmur “the same decade old crap”. Well even if it seems like it, it’s not!
Why Should You Read Further?
Undoubtedly, women are now more active within the economy. They are actively making efforts to earn and manage their own expenses but when it comes to growing their money many are still clueless.
Let’s cut it down and come straight to the point.
- While women are comfortable managing day-to-day finances, they are less confident when it comes to long term financial decisions. Take a look at the statistics below:
Source: New York Life
- A significant portion of the women population lacks knowledge on various financial topics. 8-in-10 women (82%) said they wish they knew better about building wealth, saving for retirement, buying a home, paying off debt, etc.
- More women are interested in exploring details regarding various financial topics.
True financial independence for women requires complete awareness. This blog is all about trying to figure out the hurdles in eliminating the gaps and how to overcome them.
When asked, most personal finance enthusiasts and money coaches (who are also women) said financial education and confidence are key aspects that need focus if women want to experience true financial freedom. We’ll share their thoughts in the section that follows.
What’s Delaying Financial Independence For Women and How They Can Get Better?
As said earlier, we let women tell women how to improve on the financial front. We asked six women (personal finance authors, money coaches, and enthusiasts) to tell us their opinion on “What’s the major roadblock between women and financial independence and one piece of advice to overcome them?” We loved their answers and you will benefit from them too.
1. Michelle Schroeder-Gardner
Personal Finance Expert | Founder – Making Sense of Cents
Instagram: @michelleschro
Better financial knowledge to advocate for yourself against gender pay gap
Michelle is a personal finance expert and a full-time traveler who continues to share her own journey to financial stability and freedom on her blog since 2011. She says, “One major roadblock women face in achieving financial empowerment is the gender pay gap, which results in women earning less than men for the same work.”
To deal with this, she adds, “my most effective piece of advice is to advocate for yourself: research your market value, confidently negotiate your salary, and seek out opportunities for advancement. Empower yourself with financial knowledge and don’t be afraid to invest in your future.”
2. Kara Stevens
Financial Educator, Author, Speaker | Founder: The Frugal Feminista
Instagram: @frugalfeminista
Paving your way out of societal conditioning
Kara Stevens shares her actionable money management tips and personal finance knowledge via her blog, her book: Heal your relationship with money, and various comprehensive courses.
According to Kara, “The most challenging aspect for women in achieving financial empowerment often comes from societal conditioning and a lack of financial education.
It’s a result of how society has raised us and the traditional roles we have been assigned. Add to that the gender wage gap and the ‘pink tax’, and the challenge grows. But there is a way forward.”
“Start with education”, Kara advises. “Learn as much as you can about managing finances. Read books, attend financial workshops, find a mentor — whatever works best for you.
Remember, no question is too small or silly. We aren’t born with financial knowledge, we acquire it. The more you know, the more confident you become in making financial decisions. And that’s the key!
It’s about gaining knowledge, which in turn, gives you the power to overcome these challenges and achieve financial independence.”
3. Samantha Gregory
Single Mom Success Coach | Founder: Rich Single Momma
Instagram: @richsinglemomma
Self-reflect and heal traumas to take control of your financial destiny
Samantha helps single moms get their lives back on the right track financially and emotionally since 2008. Her blog, courses, and the podcast are absolute resources to take control of one’s life and finances (especially single moms).
She says, “It is important to recognize that unhealed trauma can significantly sabotage one’s financial life and erode financial confidence. These unresolved issues often manifest as self-doubt and financial mismanagement.
To overcome this barrier, it is essential to engage in self-reflection and seek professional help to address and heal past traumas. By doing so, women can rebuild their financial confidence and take control of their financial destiny”.
4. Jennifer Leach
Blogger | Founder: Millennial Nextdoor
Instagram: @millennialnextdoorblog
Educating yourself to become confident and financially empowered
Jenn is on her journey towards creating a laptop lifestyle and living her dream life. She shares her experiences, personal finance tips and how to create multiple income streams for yourself on her blog.
When asked about financial independence for women, Jennifer said, “I think a big roadblock women face in achieving financial empowerment is the lack of confidence to go after this goal, which can stem from a lack of knowledge.
Not having financial education behind you is a major stop. Women may want to be financially free but lack the knowledge and confidence to truly get to that goal”.
She added, “Having financial education resources readily available to women is a key ingredient that can contribute to the success of more women achieving financial empowerment.
Access to blogs, podcasts, literature online and other resources and tools is an excellent way for women to become more knowledgeable about finance and from there, begin to develop the confidence to create a financial plan for themselves and start working toward their financial goals”.
5. Taylor Price
Gen Z Money Expert | Founder: Priceless Tay
Instagram: @pricelesstay
Take a stand for the pay you deserve
Taylor started a Gen Z financial literacy movement after undergoing a life changing medical crisis. This is when she realized the need for growing her money for a secure future and the fact that people need to be taught finances a little differently.
For our National Financial Awareness Day initiative Taylor answered us about the hurdles in women’s financial freedom. She said, “Women often earn less than men for the same work, which limits their ability to save, invest, and build wealth for future generations”.
She advises to “Stand up for yourself and negotiate your salary and benefits. It’s not just about the salary; you can also negotiate for longer PTO, extended maternity leave, more work-from-home days, and fewer in-office days. Know your worth and assert it with confidence in the workplace. Additionally, having support can make a significant difference”.
“My mom, a strong advocate for women’s empowerment, has given me the courage and advice to understand my worth and confidently ask for what I deserve”, Taylor shared.
6. Lidiya Kesarovska
Mentor & Entrepreneur | Let’s Reach Success
Instagram: @letsreachsuccess
Let go off the guilt to create an abundance mindset
Lidiya is a business mentor helping people become financially free by starting their own online businesses. When asked about financial independence for women, Lidiya said,
“Women are often made to feel guilty by society if they want to have it all (the freedom, the business, the big income, the family, the home, etc.) and that can turn into a big barrier to actually unleashing their full potential and increasing their revenue, especially if we’re talking about entrepreneurship”.
“That’s where the money mindset comes in. You can work on healing financial traumas, letting go of the guilt and of other people’s opinions, and go from a lack mentality to an abundance mindset”, Lidiya advises.
Time To Spread Your Wings and Take A Flight
Flying highest is never supposed to be easy and women like us have a few extra challenges to deal with. But there are ways you can prepare for it. Your financial freedom is not limited to paying regular bills and weekly budgeting.
There’s more to it – growing, investing, saving for retirement, etc. To call yourself financially empowered you need to take complete control of your finances.
How To Do That?
(i) Build a strong foundation with financial education. No this isn’t just about the lessons you find in books. It’s more about the practical use of financial tools and resources to handle your money in the best way possible.
(ii) Take control. Knowledge is only good enough when used for the right things at the right time. Build an emergency fund, invest to grow your money, buy a house, prepare for your retirement. Do something to improve your finances.
(iii) Become your confident self. Instead of depending on others to take your financial decisions, make informed decisions for yourself. Trust what you have learned and take a step forward. Remember it’s better to make mistakes than being stuck with average or below average money management.
Start today! You don’t have to wait for the National Financial Awareness Day every year to improve your financial knowledge. Grow and help other women grow too. We’re all in this together.
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FAQs
How can women deal with the gender pay gap?
It’s crucial to take a stand and negotiate salaries based on industry norms. Further to improve your financial state consider taking up a side hustle and invest your money to help it grow over time.
How can women start saving money effectively?
To start saving effectively, first analyze your income and expenses to set a budget. Set achievable financial goals. Save accordingly. You can automate your savings to make sure you get to your goals. If you are completely new to this, you can start with our money saving challenge.
How can I start planning my retirement?
You can start with opening IRAs and 401(k) accounts to save for a financially secure retirement. Introduce a few extra income sources within your cash flow and try investing in several different asset classes.
