Women and men often face very different challenges and circumstances. One of them is financial planning; something we often take for granted. What should we consider when planning our financial future? In this article I will give you some reasons why it is important for women to plan our financial future more than men.
Leveling the playing field
Women live longer than men. On average, women have a life expectancy 5.5 years longer than men. Thus, our money should last longer. We must have a personalized financial plan and budget for the necessities that may arise during our retirement years.
Women earn less than men. Globally, there is a wage gap of almost 27% between men and women. Women must manage resources more carefully to meet our needs and achieve our financial goals.
We participate less in financial planning and more in daily financial tasks. Women have been less involved in financial activities than men, either because we hold fewer positions in the financial industry or because men are often seen as the "strong" financial decision-makers.
Women are more associated with caregiving tasks than men. Most commonly, we are the ones who take care of our elderly or special-needs family members. And we also face specific risks such as widowhood, divorce or health problems that can affect our finances.
All of this underscores the importance of taking control of our economy and planning intelligently and strategically for our present and our future’s financial wellbeing. It is challenging, but not impossible. Here are some examples of women who discovered the importance of taking control of their finances to inspire you, and who made the news.
Work and socialization: the perfect combination for a long life
Madeleine Paldo, a 100-year-old woman recently retired, worked from the age of 18 until she was 99. "It kept me busy and I like to work," she says. According to Harvard studies, positive relationships have a strong impact on our quality of life, and Madeleine is certain that working these 81 years has influenced her overall health and well-being. Just as Madeleine did, managing one's finances leads to financial health and a positive impact on our lives.
A family view of the business
When her husband died in a helicopter accident, Czech Renata Kellnerova found herself in charge of her billion-dollar business. While it was not easy to adapt to the challenges and take the reins of the company, Kellnerova has made strategic changes to the business, which spans 25 countries in Eastern Europe and part of Asia and employs 61,000 people. "I realized that PPF is personal to me and that my task is to prepare our children for the possibility of one day taking over the leadership of the group themselves," mentions the richest woman in Eastern Europe. Taking charge and prioritizing growth, Renata preserves her family's financial legacy.
Long-term purpose
Mackenzie Scott, Jeff Bezos' ex-wife, is the biggest charity donor. Last year alone, her donations exceeded $2 billion. Mackenzie donates heavily to nonprofits that address housing and legal aid issues and has pledged to donate more than half of her wealth. In that way, Scott sees her wealth as a wonderful opportunity to make important changes in the world. Whether it's a small or large amount, it's important that our finances also have a positive impact in our community.
Whatever your purpose is, you don't have to walk this path alone. Elaine King has helped hundreds of people achieve financial wellness - contact her now!
