Women face unique barriers to saving money and achieving financial security, but there are steps they can take to overcome these challenges. According to a recent survey, women saved an average of $3,146 in 2022, while men saved more than double that amount at $7,007. One major factor contributing to this disparity is the gender pay gap.
In 2024, women earned an average of 85% of what men earned. Suppose a woman is earning 85 cents for every dollar a man earns. In that case, they have 15% less to allocate toward their financial goals,” said Bobbi Rebell, a certified financial planner and personal finance expert. Women are also more likely to adjust their careers for caregiving responsibilities, impacting their long-term earning potential and ability to save.
Close to 70% of caregivers experience work-related difficulties due to these responsibilities, risking significant financial loss.
Financial barriers and women’s future
Another challenge women face is their longer life expectancies.
Women in the U.S. outlive men by more than five years on average, requiring them to save more for retirement. Women often pay a premium for products and services targeted specifically at them, known as the “pink tax.”
Student loan debt is another barrier, with women holding 63.6% of all student loan debt, making it challenging to save and invest for the future. To overcome these obstacles, women can advocate for themselves during job interviews and promotions by negotiating higher salaries based on market research.
They should also start saving as early as possible and make the most of employer-provided retirement plans, especially if employers offer matching contributions. Opting for generic or unisex versions of products instead of those explicitly marketed to women can help combat the “pink tax.” For those with large student loan balances, exploring income-driven repayment plans and considering forgiveness programs like Public Service Loan Forgiveness (PSLF) can be beneficial. Understanding and addressing these barriers can help women take more control of their financial futures.
Consulting a financial professional can also provide valuable information and accountability, making the path to financial security more manageable.
Image Credits: Photo by S O C I A L . C U T on Unsplash
