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When it comes to offering financial advice for women, especially as a guy, it can be an extremely delicate subject.
We’re taught these days that we’re all equal in terms of all things:
•    Business
•    Employment
•    Education
•    Advancement
•    Etc…
For the most part it’s something that is easy enough to do. We’re somewhat past the threshold where the man and woman are viewed as being less competent of one another. That’s not to say there aren’t still gaps though, if we said that there isn’t we’d just be fooling ourselves.
Now though, when it comes to giving advice on finances, there are some big differences between men and women that must be taken into account. These differences account for some of the gaps we were talking about. The differences have nothing to do with brain power or financial aptitude. It’s simply about lifestyle. With lifestyle also comes the fact that women statistically outlive men.
Different Lifestyles, Different Incomes
Even though there are some women that are entering into higher level jobs and making the money that men are the truth of the matter is that women will and consistently do make less money than their male counterparts.
There is varied reasoning for this:
•    “Glass ceiling” issues
•    Later start to a career
•    More prominence when it comes to family before work
•    Other
Whether it is right or wrong the fact of the matter is that it is true, women do in fact make less money than men.
When it comes to leaving the workforce to care for small child women are much more likely to do so, or to care for an aging parent(s), or follow their husband to another city for work, etc… This is going to end with a reduced retirement plan earnings and more. When it comes to earning time women will have 10-20 years less than men.
Living Harder, Living Longer
The unfortunate reality is that death and divorce are also big things that impact women financially. When it comes to a divorce the settlement that comes with it is usually just to take care of the children and it’s unlikely that there is any set for a retirement fund in almost all instances.
When this happens it means that women often find themselves in the lurch without any type of retirement plan and sometimes don’t even have the stability of a savings account. Put into that moving costs and sometimes changing jobs, emotional stress and your long-term and short-term financial results do not look good at all.
The other thing is that women are statistically more likely to live longer than men as 90% of women will outlive their husband. As women age other costs go up as well and this is going to translate into thousands needed to remain viable after their husbands are gone. The same is if they never married, it is even less likely that they are going to have the money that they need.
The Good News
With all of the bad news there is a little bit of good news as women do have a small advantage over men when it comes to their finances. For the most part women are much better at modest, low-risk investing. Women will take more careful considerations before they take a risk and are much more hands-on when it comes to controlling investments than men. This is going to give an advantage when it comes to investing for the long-term.
The importance is starting early enough to make it count. The time to think about and start financial planning is now. No matter what age you are you can still get something out of it.