Financial Empowerment for Women: 7 Essential Steps to Take Control of Your Money

Did you know more than 90% of women believe they’ll be solely responsible for their finances at some point in their lives? Yet less than half feel confident about how they’ll manage their money, and even fewer feel empowered to get started. ¹

The financial landscape for women is changing rapidly. About 20% of women today are single or the only adult in their household, and among those who aren’t, nearly 40% lead their household’s financial decisions. ²

These numbers highlight a growing need for women to boost their financial literacy so they’re ready to take control of their money with confidence.

If you’re looking to strengthen your financial foundation, the California Commission on the Status of Women and Girls recommends focusing on these seven key areas:

1. Set achievable financial goals

While long-term planning is important, starting with short-term objectives makes the process less overwhelming. Try committing to putting a specific amount into savings from your next paycheck or cutting back on an expense like dining out to build your savings. Small steps today create big results tomorrow!

2. Tackle your debt strategically

Always aim to pay off credit card balances each month to avoid interest charges. If that’s not possible right now, pay more than the minimum payment to reduce your debt faster.

Struggling to keep up with payments? Don’t hesitate to contact your creditors. Many offer options like fee waivers, reduced interest rates or modified payment schedules that could provide much-needed relief.

3. Take an active role in money management

If your partner currently handles the finances, sit down together to learn the process. Get familiar with account access, passwords and financial procedures. This knowledge isn’t just empowering. It’s essential protection in case of unexpected life changes like separation, divorce or death.

4. Start planning for retirement now

It’s never too early to prepare for your future, especially since women typically outlive men. If your employer offers a retirement plan, start contributing immediately. Even small amounts add up over time thanks to compounding interest.

Look for educational resources in your community or online to learn more about retirement savings strategies, Social Security benefits, and Medicare coverage.

5. Protect yourself from financial fraud

Before investing, do thorough research. Be wary of investments promising quick returns or those creating urgency to “act now.”  These are classic warning signs of potential scams.

When working with financial advisors, choose a licensed fiduciary who’s legally obligated to act in your best interest. Review all written agreements carefully and never sign anything you don’t fully understand.

6. Safeguard your personal information

Regularly review your bills and financial statements for accuracy and unexplained charges. Check your credit report annually at annualcreditreport.com to spot potential identity theft early.

Create strong, unique passwords for financial accounts and shred documents containing personal information before disposing of them.

7. Take action today

As more women find themselves needing to take control of their finances, being prepared to manage your money effectively ensures you stay on track to live comfortably and achieve your financial goals.

Don’t wait for a crisis. Take the first step today toward financial independence and security. Your future self will thank you!

Sources:

¹“Bank of America Study Finds 94% of Women Believe They’ll be Personally Responsible for Their Finances at Some Point in Their Lives,”

²“It’s a Woman’s World: Survey Finds That Women Control Household Finances,”

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