They have the same ability to be good with money as men do, but for some reason, many struggle to save. The reasons behind this are often complex, but there are a few things women can do to take charge of their finances and save their money. One of those things is to open a high interest savings account in Canada if they live in the country. Below is a list of the five most common reasons women struggle to save money and ways to overcome those challenges. (Disclaimer: This article contains collaborative content, meaning we may receive compensation from the products or services mentioned.)
1. The Pay Gap: Unequal Earnings Hold Back Savings
One of the biggest financial challenges women face is the pay gap. Women, on average, earn less than men, which means they have less money to save. This is particularly true for women of colour, whose pay disparities are even more pronounced. As a result, the gap between what men save and what women save is quite large. Fixing the pay gap is a long-term societal problem that needs to be solved.
However, there are a few things women can do now to help in the long run. This can include having a plan on how to advance in a career. It can be through advocating for yourself and seeking promotions, raises, and other ways to advance oneself. Learn the skill of pay negotiation, look for professional development, and find new opportunities. In addition, consider looking for alternative sources of income beyond a regular 9-5 job.
2. Life Expectancy: More Years to Save for
Research has shown that women live longer than men on average. This is great news, but it can also lead to some unique financial challenges. With long life comes the need to save even more to ensure proper care in later years. This message is often not shared with young women, which means they don’t save enough and eventually go into retirement without enough savings to support themselves. The result is financial despair.
To overcome this, start saving for retirement now. When a woman is young and already in the workforce, it’s hard to think about retirement. However, setting yourself up with a high-interest savings account is a great way to start preparing for your future. Having an emergency fund or a high-interest savings account for retirement is a great way to grow your wealth over time. Start doing this, and you’ll be set for life.
3. The Mental Load: Women Take on More Financial Responsibilities
Another reason women struggle to save money is that they often have to wear a ton of hats. They work in their professional life as well as their personal life. This means they carry the mental burden of balancing the family budget, paying the bills, and making sure everyone has what they need to be financially good. This can be stressful and difficult on a woman, leading them to be reactive rather than proactive in how they save their money.
One way to fix this is to delegate tasks and seek help from a partner or financial advisor. Automating savings, such as with a direct deposit to a high-interest savings account, will ensure money is saved without needing to make regular choices. Decision fatigue can bog women down, but with something like this in place, they can focus on other matters.
4. Social Pressures: Expectations to Spend on Appearances
Many women live in communities that say appearance is everything, and to keep up with the Joneses, they have to maintain that appearance. Whether that’s buying clothes that are currently in style, updating their makeup, or needing to have a wardrobe full of accessories, the temptation to do what society demands can lead to overspending.
It can feel daunting, but cutting this cycle is essential. To counteract it, women can focus on mindful spending. They can train themselves to view certain products through a needs-and-wants perspective. To stick to this but also let themselves have something they don’t necessarily need, they can budget that item as a small indulgence and put the rest of the money in savings.
5. Lack of Financial Education: A Barrier to Confidence
Not every woman has a financial advisor at their disposal, and many don’t realize the barriers they’re facing have to do with a lack of financial knowledge. This can lead to a belief that saving is difficult.
That’s an easy fix; it’s merely a matter of taking the time to educate oneself. The more a woman knows about personal finance, the more informed her decisions will be. The more informed her choices, the more attainable her goals will feel.
Empowering Women Through Financial Freedom
Women undoubtedly face a different set of financial problems, but they can still learn to navigate through this complex system. The strategies are there: know what’s wrong and work to make it right. Say goodbye to financial roadblocks and learn to save money. Open a high-interest savings account for starters, and the rest will come to you.
