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Less than six decades ago, women could only finance or open an account under their name with a male as a co-signer. Just 40 years ago, women business owners could only apply for business loans with a male co-signer. Fast forward to the present day, and now,
women have full access to the financial system. In addition, women now have laws against gender discrimination. As the modern world continues to change, so do the ideologies of future generations. Still, for some women, their beliefs and earlier life experiences have shaped how they think or handle their finances, creating bigger challenges and making certain situations more difficult. However, women can create financial security by understanding financial concepts and becoming financially literate.
Unfortunately, only some women have had the opportunity of receiving the necessary financial knowledge to be able to make the right financial decisions. Many preconceived notions and social “norms” have limited the options for women to achieve financial independence. Financial literacy is essential, and although we can finance and apply for credit, many women continue to depend on their partners to manage their finances. If the spouse can no longer make decisions or they go through a divorce, this becomes an issue. So many life events could impact our financial destiny. A basic financial understanding could influence your decisions, improving your financial life. Here are some examples of life events that can affect your financial future.
Turning 18 – Many financial responsibilities fall on our plate when we become adults.
Once we get a job, we begin to file taxes. Learn how much taxes will be paid based on your income level.
We start driving. Having the appropriate insurance coverage is important.
We start building our credit. Obtaining credit cards can impact your credit score. Understand the different ways to maintain a healthy credit score.
Going to College – Understanding the different types of student loans and the terms of each loan can impact how much you pay for college.
Getting a job – Some things to think about:
Are you withholding the appropriate amount of taxes?
What to do with stock options? Ideally, you may want to work with an advisor and CPA on this.
Does your employer offer a retirement plan? Are you contributing? And a must: Assign beneficiaries!
Marriage – Combining your finances, owning joint or separate property.
Becoming Parents.
Some parents think about funding their children’s education. There are different ways to go about it.
Protect your family by having insurance and income replacement if needed.
Most importantly, teach your children about money, so they can make the best decisions for themselves when they become adults.
Retirement.
Plan for your income sources before you retire. Retirement planning can impact the amount of taxes you pay down the road.
Husband passes – It is more common for the husband to pass away first. Women have a higher life expectancy, and sometimes they are younger than men.
Both of you should have primary and contingent beneficiaries.
Have a list of all accounts along with copies of the statements. The last thing you want to deal with upon your husband’s passing is finances. Many women do not know what they own because they delegate the responsibility to their husbands.
These are some basic life events that could impact your financial well-being. Working with a CERTIFIED FINANCIAL PLANNER™ or a financial advisor can provide the proper guidance when facing these situations. Here at Corinthian Wealth Management, we believe in empowering women to take charge of their finances by providing the right education and tools to assist them with life-changing events at any stage of life.
Advisory services offered through Corinthian Wealth Management INC. an SEC Registered Investment Advisor.
SOURCES:
https://www.chase.com/personal/investments/learning-and-insights/article/a-financial-guide-for-women
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