Your Weekly Dose of Financial Wisdom 9/18/24

In many households, it’s not unusual for women to handle day-to-day budgeting, ensuring bills are paid and balancing the family’s financial needs. Yet, when it comes to long-term financial decisions, particularly investment management, many women tend to take a back seat. This isn’t just a casual observation—it’s a trend that can have lasting impacts on financial security, especially since many women will, at some point, find themselves managing finances alone due to divorce or the loss of a spouse.

It’s critical to get ahead of this challenge before it’s thrust upon you during a time of grief or transition. Here’s how you can begin building your financial confidence today:

1) Invest in Your Financial Literacy

The world of finance can seem intimidating, but the first step to overcoming this is understanding the language. Attending financial literacy classes is a great way to familiarize yourself with the basic concepts and terms that financial planners use. These classes can break down complex topics and build your confidence, so when you're in meetings or making decisions, you won’t feel lost.

If you're unsure where to begin, check out my YouTube channel, where I host a budding financial literacy series designed to help you grasp these key concepts at your own pace.

2) Consult Trusted Resources

When you're curious about specific terms or financial strategies, it helps to have a go-to source for answers. Websites like Investopedia are invaluable tools for quenching your curiosity. Their clear, concise explanations can demystify even the most complex financial concepts, helping you understand everything from stocks and bonds to estate planning.

3) Be an Active Participant in Financial Meetings

Even if you’re not the one leading the financial planning in your household, it's crucial to attend those meetings. Whether it’s with your family’s financial advisor or a planner, ensure you are part of the conversation. Don’t be afraid to ask questions until you understand what’s being said and planned. Building a relationship with your advisor allows you to gain confidence, and more importantly, it positions you as a decision-maker.

4) Prepare for ‘What-If’ Scenarios

Sit down with your partner and openly discuss worst-case financial scenarios. Where are important documents located? Do you know all the passwords to your joint accounts? Are you aware of every marital asset and how it is titled? Understanding the practicalities of your financial situation in advance will empower you to handle unexpected situations smoothly and with minimal stress.

5) Don’t Delay—Get Started Today

We all lead busy lives, and it’s easy to push financial planning to the back burner. But time moves quickly, and you don’t want to find yourself in a position where you have to learn everything in a hurry while managing loss or major life changes. By taking the time now to get involved, you’re investing in your future financial security.

Women are more than capable of managing their own financial futures. By embracing financial literacy and becoming an active participant in long-term financial decisions, you’ll ensure that you’re prepared for whatever comes your way. Now is the time to take charge, because your financial future matters.