• Women face a critical gender pay gap that makes saving for their future more challenging.
• Unequal home responsibilities and student debt add to the financial burden.
• Taking advantage of the right benefits can make a huge difference in women’s savings.
• Women can take steps towards a brighter financial future by being aware of the disparities and making more intelligent decisions about their money.
In 2019, the gender pay gap in the United States was estimated at 19.3%, meaning women earned an average of 81 cents for every dollar men earned. This statistic is even more pronounced for women of color; Hispanic and Latinx women were paid 54 cents on the dollar, and Black women earned 62 cents on the dollar compared to white men. This discrepancy in salary makes it difficult for women to save money and plan for their financial future.
Why Women Struggle to Save
Women are struggling to save for their future. Here are some reasons why.
The Pay Gap
A significant factor contributing to the difficulty of saving money as a woman is simply not having enough money due to the pay gap between men and women.
Women are typically hired into lower-paying jobs than their male counterparts, often overlooked for promotions or higher-paying roles. In addition, even when faced with opportunities, many women lack access to mentors or resources that would help them advance their careers, reducing their earning potential.
Unequal Home Responsibilities
Women are still primarily responsible for home maintenance and childcare, which can strain both time and finances. Even if both partners bring in an equal amount of income, men are more likely to be able to invest more time into professional development opportunities because they don’t face as many societal pressures when it comes to taking care of home life responsibilities like cooking meals, cleaning, laundry, etc.
These tasks require time (and sometimes money) that could otherwise be spent looking for better job opportunities or investing in other financial endeavors such as stocks or mutual funds.
Student Loan Debt
In 2018, 70% of college graduates left school with some form of student loan debt; however, only 42% of those borrowers were male while 58% were female—a statistic which speaks volumes about how much more likely it is that women will have some form of student loan debt after graduating college than men will.
Student loan debt can be particularly burdensome because often interest rates are relatively high compared to other forms of debt, such as credit cards or mortgages; this means that borrowers end up paying much more over time than they initially borrowed—which cuts into any savings they may have had planned out already.
Long-Term Care Costs
Women tend to live longer than men—which isn’t necessarily bad! However, it does mean that retirement savings need to stretch further than they might have otherwise during retirement years since there is a greater chance that long-term care expenses (such as assisted living costs) will need to be taken into account later down the line compared with what a man might face due his shorter life expectancy. Planning by investing in long-term care insurance policies can help ease the burden later down the road, so you won’t have to worry about running out of funds during your golden years!
Extra Tips to Help Save Money
If you want to start saving for the future, here are some tips to help get you started:
Invest in an EV
Fuel is one of the most significant expenses people have, so investing in an electric vehicle (EV) is a great way to start saving money. EVs are more efficient and don’t require regular fuel fill-ups—you can save hundreds of dollars each year on gas costs! Additionally, there are EV credits you can take advantage of, which can help you offset the purchase price. It’s great if you want to save money on your purchase.
Increase Your Savings
Set aside a certain amount of money every month specifically for savings; this will help you build up a financial cushion in case of unexpected expenses. Start small, then gradually increase the amount you are saving each month; this is called increasing your savings rate, and it can add up over time!
Use Automatic Transfers
Setting up automatic transfers is an easy way to ensure you are saving regularly. This can be done weekly, bi-weekly, or monthly, whichever schedule works best for your budget and lifestyle!
Women looking to save for their financial future need to be aware of the gender pay gap and all other factors that can make saving more difficult. However, with a few smart moves, women can start taking steps toward a brighter financial future!