Much of what you have been taught about women and money is wrong
You have likely heard media reports revealing that women are, as a whole, less financially stable and less prepared for retirement than men. Some frequently quoted statistics involve women saving less for retirement, delaying retirement savings, and not investing as aggressively as men. The articles then provide advice on what women should do: Invest in your company’s retirement plan, seek other means of tax deferred savings, improve your financial literacy, reduce your spending. The message is that just following these simple steps will lead to financial success.
As a woman, an experienced financial professional, and a CFP® Certificant these articles infuriate me. While the advice is not incorrect, it is incredibly tone deaf. Frequently these reports make the obligatory references to the gender inequalities in finance including lower salaries, childcare expense, and the longer life expectancy of women. This is all true and should be pointed out. What I take issue with is that these concessions of inequality are then followed up with the same tired advice to save more, spend less, use retirement accounts, invest more aggressively.
This is victim blaming.
The implication is that if women are not prepared for retirement it is their own fault. They are overspending and under-saving. They are not planning ahead. There is an underlying insinuation that women are frivolous creatures who fail to take their finances seriously and fritter away their money.
But, if the problem is that women do not make as much money, if they have more non-discretionary expenses, then where is this savings supposed to come from? If people (of any gender) have a huge entertainment, clothing, or travel budget but are not saving for retirement they may wish to examine their priorities. More frequently, however, the decisions come down to paying the rent, feeding the family, or putting gas in the car rather than saving for a rainy day. Suggesting that the lack of savings is a personal failure and not a result of circumstances is harmful to women who are already struggling.
Additionally, the financial services industry is very male oriented. Though the number of women advisors and clients is growing, most firms are still structured following the traditional data driven design that has greater appeal to men. I have heard from many women that they don’t want to work with an old white guy in a suit who tells them how they can make more money.
If my post has come off as negative so far, don’t despair. There is also a lot of good news on the personal finance front. Experts are predicting a great wealth transfer occurring in the next three to four decades as women inherit trillions of dollars. In response, the financial industry is beginning to revisit how they appeal to and serve clients. Women as a group are growing their money and power.
Finally, please know that none of the negative reports surrounding women and money have anything to do with women’s ability to understand and effectively manage their finances. In fact, in many ways, women may be the more capable money managers. Women have, decade by decade, been taking greater control of their financial lives even while navigating against the inherent patriarchal structure.
Through this blog I plan to dive into many important topics involved with uncovering the patriarchal structure of personal finance and educating my readers in a women friendly manner. Join me on this journey as I address the questions and obstacles encountered by women as they take control of their money and grow their power.
Maura Madden is a registered investment adviser in the State of Washington. The Adviser may not transact business in states where it is not appropriately registered, excluded or exempted from registration. Individualized responses to persons that involve either the effecting of transaction in securities, or the rendering of personalized investment advice for compensation, will not be made without registration or exemption.
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