7 ways to prepare for the financial challenges women face

Women have become a true financial force, controlling more than $10 trillion in U.S. household financial assets. Analysts expect that figure to triple by 2030, thanks largely to the incoming wave of intergenerational wealth transfer from Baby Boomers to succeeding generations.¹

With that kind of economic power, women should be on top of their financial lives, but:

• As of late 2023 women had an average of $3,000 in emergency savings, compared to $7,000 saved by men.² 
• About a third of women surveyed in 2024 said they did not believe their savings or retirement income ³ would be enough to pay their monthly bills.⁴

These numbers are just a glimpse to the broad financial challenges women face, underscoring the need for women to actively prepare for their financial future. 

Women face unique challenges that often impact our current and long-term financial security. When making important financial decisions, consider:

• Caregiving: Women provide a disproportionate amount of caregiving in the U.S.⁷ For instance, women may put careers on hold or reduce working hours to care for children and/or aging parents. Much of this labor is not only unpaid but may also lead to a reduction in income.
• Career: Women tend to spend less time in the workforce⁸ and it can have far-reaching financial effects. In some cases it can prevent participation in company-sponsored retirement plans or a smooth career trajectory and the pay increases that come with it.
• Retirement: On average, women live about five years longer than men,⁹ meaning many of us may outlive our male partners. This combined with the career interruptions mentioned, may result in many women living longer on less income. It also emphasizes the importance of women being prepared to make financial decisions on their own.
• Investing: Finally, women may not be taking full advantage of the investment opportunities at their disposal, or the potential for their assets to grow, as they are less likely to participate in the stock market.¹⁰

Having open, candid conversations with partners and families about care giving expectations and sharing responsibilities is a start. Women can also become even more invested in their financial education, goal setting, and financial planning.

It helps to think about money as a critical factor in achieving personal goals. Thoughtful financial planning can help you pursue your dreams, bring stability to you and your loved ones, and ultimately, meet the obstacles life may throw in your path. It could also allow you to contribute to the causes close to your heart.

That all sounds great, but how do you get started? There are a few basic steps for developing your personal financial plan.

1. Define your goals. Some of the things you’ll want to consider are the personal and professional milestones you hope to achieve in the short and long term. You might ask yourself what being financially comfortable means to you. Is it owning a home or paying for college? Even if it seems far away, you should begin to think about what an ideal retirement will look like, whether it’s traveling the world or moving close to your grandchildren.
2. Come up with a saving and investment strategy. Keep in mind that it may very well change over time. One way to begin is by becoming educated. For example, take advantage of any financial benefits and education available to you in your workplace, such as 401k matches, financial coaching, or educational programming. Such benefits are on the rise, with more than 70% of employers now offering some financial wellness benefits in the form of education to workers.¹¹ And, if you take on caring for your children or a loved one, ensure that you still have a plan to save, contribute towards your retirement and reach your goals.
3. Consider working with a Financial Advisor. It’s a great way to get help and implement a financial plan that takes your specific goals and circumstances into account at each stage of your financial journey.
4. Get your family involved. If you have kids, talk to them about money, too. You might discuss values around money, what their definition of success looks like—understanding it may differ from yours—and how they may be able to use their resources to affect positive change. Also get them thinking about important concepts like credit, budgeting and starting 

   ⁷ Bureau of Labor Statistics. “Table 3. Time Spent in Primary Activities for the Civilian Population by age, sex, race, Hispanic or Latino ethnicity, marital status, and educational attainment, 2023 annual averages.” Available at: https://www.bls.gov/news.release/atus.t03.htm

   ⁸ Gender Differences in Needing and Taking Leave. November 2020. Available at: https://www.dol.gov/sites/dolgov/files/OASP/evaluation/pdf/WHD_FMLAGenderShortPaper_January2021.pdf

   ⁹ Centers for Disease Control and Prevention, “Mortality in the United States 2022.” Available at https://www.cdc.gov/nchs/products/databriefs/db492.htm#section_1.

   ¹⁰ Global Financial Literacy Excellence Center. “Fearless Women: Financial Literacy and Stock Market Participation.” Available at: https://gflec.org/wp-content/uploads/2021/03/Fearless-Woman-Research-March-2021.pdf?trk=article-ssr-frontend-pulse_little-text-block

   ¹¹ Cerulli Associates. “Only 24% of Active 401(k) Participants Feel Very confident in Maintaining Current Living Standard in Retirement.” Available at: https://www.cerulli.com/press-releases/only-24-of-active-401k-participants-feel-very-confident-in-maintaining-current-living-standard-in-retirement

   The source of this article, “Women and Wealth: Planning for Your Financial Future,” was originally published on October 9, 2023.

   CRC# 4165986 01/2025