It often surprises me how little some women know about the big picture of personal finance, and how little they care to think about it. Often, the domain of investments and long term financial planning is claimed by men, while women are happy to pass that off and instead focus on the immediate family budget of bill payments and household expenses. If this describes you, please read these common money myths every woman needs to know, and put more effort into taking care of yourself financially!
MYTH #1: If I get married, I won’t have to worry about money.
Reality: About 33% of marriages end in divorce. Almost half of women aged 65 or older are widows. The reality is that only one in five families now match the family model with mom at home full-time. 80% of two-parent families with children are headed financially by women. Women in relationships need to be involved in the family finances.
MYTH #2: I can make just as much money with a high school education as I can with a degree or diploma from a university or college.
Reality: The average salary of a woman with a post secondary school degree is almost double that of a woman with some high school education. The more education you have the higher your income will be. It does pay to stay in school.
MYTH #3: Money management is too complicated; I don’t have time to read a lot of those money books.
Reality: There are many easily accessible resources that can help you understand money management. The simple fact is, no one will take care of, or care for your money as much as you do.
MYTH #4: Working women and men earn roughly the same amount today.
Reality: Just 3.2% of women earn more than $60,000 a year, compared with 14.1% of men. Women working full-time still earn about 76 cents to every dollar that men earn.
MYTH #5: I can count on a good pension for my retirement.
Reality: Government assistance or company benefits may only replace about 1/8th of your employment income, maybe even less! It’s up to you to plan for a financially secure retirement.