Financial fears can paralyze anyone from making a decision about money, but for many women, money matters are particularly terrifying. In fact, one recent survey found that 59% of women stress about finances at least once a week.
So, why all the fear? What’s holding females back? Here are five of the most common fears women have when it comes to money and ways to overcome them.
1. The Fear of Running Out of Money
Both men and women are afraid of outliving retirement savings, but women find it a much more pressing concern for one simple reason: women tend to outlive men by as much as five years. This means that women, on average, will require almost a fifth more in their nest eggs than their spouses. Women who think that they don’t have a significant retirement fund may want to work longer and wait until they are entitled to receive their maximum Social Security benefits before retiring.
2. The Fear They Won’t Be Taken Seriously
Women have come a long way in terms of independence and earning power over the last 50 years, but many women still see investing and money management services as an industry geared toward men. This view can leave women feeling intimidated and concerned about how financial professionals will treat them. The good news is that their fears are often unfounded, but women may feel more confident simply by learning more about finances or by working with a female financial advisor.
3. The Fear of Losing a Spouse
No one looks forward to a spouse passing away, but the death of a husband can have severe financial repercussions for many women. This is particularly true for women whose husbands were the primary earner in the family. A wife can ease her economic apprehension by getting more involved in money matters as soon as possible. The first step is finding out about all the family’s accounts and investments to make sure she’ll have full access in the event of her husband’s death.
4. The Fear of Losing a Home
It’s hard for anyone to imagine losing their home after a lifetime of living as middle class, but it can happen. That is why it may be a smart idea to aggressively pay down any outstanding money owed on a home to become mortgage-free. But it’s important to be aware that while a home is an investment, the upkeep of the home is a financial drain. Older homeowners may want to think about downsizing to a home that will require less expensive maintenance before it becomes an absolute necessity.
5. The Fear of Having to Pay For Your Kids Forever
There is no getting around the fact that having children is expensive but being a great mom shouldn’t mean paying the kids’ bills forever. Parents need to know that setting boundaries when it comes to providing financial support for adult children is healthy and, in the long run, the right choice for everyone.
Ladies, we want to see you stop stressing and conquer your financial fears!
At Heritage we strongly encourage both partners to be part of financial conversations from the beginning. With a sound financial plan and our knowledgeable team of financial experts by your side, you’ll be more confident about the future you are creating for yourself – and your loved ones!
Access our HER Heritage page for answers to FAQs, links to podcasts, books, articles, worksheets, and calculators all curated by our team of female financial experts to help educate, encourage, and empower women with their finances.
