5 Financial Issues Only Women Face
5 Financial Issues Only Women Face
By Gabrielle Olya Mar 15, 2022
Women have to deal with additional hurdles in many areas. When it comes to finances, women often have to deal with extra hurdles their male counterparts don’t — and most men and women openly acknowledge that this is the case. A recent survey conducted by Hartford Funds found that more than half of investors (52%) agree that men and women have different financial needs, specifically in the areas of career considerations (60%), long-term care planning (56%) and budgeting (55%).
Here’s a closer look at some of the financial issues that are unique to women.
The Gender Pay Gap
“One of the biggest financial issues unique to women is the gender pay gap,” said Senofer Mendoza, co-founder and general partner of Mendoza Ventures, a VC firm with a focus on supporting female businesses and founders. “This is a formal way of saying women historically and currently get paid less than men.”
According to the latest Bureau of Labor Statistics data, women earn 82 cents for every dollar a man earns.
“You can imagine how that adds up over a lifetime,” Mendoza said. “It can cut into their retirement savings, investing and many other ways [to build wealth].”
Important: 20% of Women Have Faced Lack of Fair Pay Due To Their Gender — How Can We Change the Status Quo?
Lack of Financial Confidence
“[Women] tend to be more conservative and less confident about their financial experience and expertise,” said Clari Nolet, CFP, CDFA, senior financial advisor at Team Hewins.
This lack of confidence can cause them to be too risk-averse when it comes to their investing decisions.
“Investing too conservatively could mean that when they get older, they need to take on more risk to meet their financial goals,” Nolet said.
Nolet believes that a lack of financial literacy is a factor that contributes to why so many women lack confidence when it comes to money.
“There isn’t a good personal finance curriculum at the high school and college levels, where it would be a huge benefit,” she said.
Longer Life Spans
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