Why women and the topic of money don’t mix

Why women and the topic of money don’t mix

I consider it an honor to work with women who earnestly want to make changes for the better in their financial life. It’s an area of life where women have not received a great deal of support.

One issue is that in our society, talking about money is considered taboo.

It’s okay to talk about your sex life, but not your money.

But you see, not having conversations about money does not serve the financial empowerment of women. Women need to talk about their money. They need to explore the various areas of personal finance. They need to have exposure to options, resources and strategies to support them in securing a safe financial future. If they don’t, retirement might be a rude awakening.

Studies show that women lag behind men in confidence around finances. I believe women are not to blame. It’s the way we were socialized.

Studies show that women have been vastly underserved by the financial services industry. One reason is because the financial services industry is still vastly a male-dominated industry which means it caters to men, not women.

Behind closed doors in any given financial planning meeting a woman will sit and listen to the conversation between her husband and the advisor. Yet, she will never feel confidently “in charge of her finances” even though she was right there when decisions and plans were being made. This scenario is all too common.

It’s even worse for single women. Many times they feel too intimated to even sit in a meeting with an advisor. And when they do, they often times leave the meeting feeling like the advisor was either disrespectful or spoke over their head.

Now I’m not saying this is true in all cases. Because we’re starting to see signs that the tide is turning in our favor. However, it’s a common complaint I’ve heard from many new female clients.

This dilemma of women being underserved in financial services is actually becoming an issue of concern for the big financial institutions and insurance companies due to the mega sums of money women stand to inherit over the next decade or so. Which means that finally there are more male advisors who are becoming more aware of the unique financial needs of women.

Another promising trend we’re seeing is how the financial services industry is focusing their recruiting efforts on attracting more female advisors. Financial institution executives have come to value the natural connection when female advisors understand the needs of female clients. Even so, the industry is still largely a good-ole-boys-club.

The bottom line is despite the lack of support women have received in the past, we still need to take responsibility for our own financial literacy.

Women need to make a decision to stop ignoring their money and take a stand for their financial security, which will not only benefit them now, but in retirement as well.

 

Please note: I reserve the right to delete comments that are offensive or off-topic.

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