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Why Women need to Save more than Men

So as the New Year has arrived, it’s a good time to reflect on our goals for 2012 – and remember the importance of saving.

Women tend to move in and out of the workforce more than men during their lifetime (due to child rearing, family needs, unemployment, care giving etc.), and additionally generally live longer than men.   Women born in the last couple of decades are expected to live until they are 100!   This means that there is a greater need to save, albeit still less overall opportunity when compared to men.

It’s important to start saving young.  No matter what you save, try and get in the habit of saving as soon as you are earning.  This will help build your habit, in addition to making saving a financial priority.   Saving in your 20’s and even early 30’s can have a significant impact on your retirement, versus those of us who start saving in our 40’s or 50’s.

Be careful to avoid risks.  Women (according to Dee Lee, a financial planner and author) are more likely to tap into their savings for big life purchases (e.g. buying a house), whereas men do not do this.  Lee also states that women are less likely to be committed to saving regularly — opting in and out of saving, depending on their personal situations.

Women & Money  is the ultimate book about women and money.  Dee Lee gives women “no-nonsense financial planning advice” that helps provide custom advise for each of us, in our different roles as women over our lifetimes. Her ability to tap into the key issues and challenges, by identifying what stops us saving helps build a plan for each of us that is attainable, by helping educate and understand money management.

So, here’s to 2012 and our new saving plan!  No matter how big or small!

 

 

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