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Women lack the same confidence men have when it comes to money. And they are doing one thing in particular that is killing their ability to build a nest egg.
According to a recent study from Financial Finesse, just 43 percent of women — compared with 56 percent of men — report being confident in their financial investments.
CNN Money says that’s an especially worrisome statistic when you consider that the 67,000 people included in the survey “have reason to be confident with their money” because they have jobs and access to employer-provided financial coaching.
Even so, “women lagged behind men in almost every measure,” says CNN Money, including the following:
- Spending: While 19 percent of men admit to spending more than they earn each month, a whopping 30 percent of women said the same.
- Retirement savings: Just one-quarter of women report being on track with their retirement savings, compared with one-third of men.
The fact that women are not saving enough, are spending so much and are failing to build a bigger nest egg can have devastating long-term consequences, says Cynthia Meyer, a certified financial planner at Financial Finesse. She told CNN:
“This is a big problem. Women need to save more because they live longer.”
Pia Leon, a director of client advisory services at AM Global Investment Office in West Palm Beach, Florida, tells MarketWatch that women need to do their financial homework and learn how to effectively manage money on their own. It’s even more important when you consider that women tend to outlive their partners in retirement.
How women can build savings
Of course, many women do a great job with their money. As we have noted:
There are plenty of women who are actively involved in charting their financial future. A 2012 survey by Allianz Life Insurance Company found half of women surveyed say they have a great deal of responsibility for major financial decisions, and 62 percent expressed a strong interest in learning more about finances and retirement planning.
To find out more, check out “5 Myths About Women and Money.”
If you’re behind on your retirement savings, we can help you get back on track, no matter your gender. For example, one of the first things you can do is radically reduce your spending.
“Spending less than you earn is the magic sauce that enables people to save, live debt-free and rescue shaky retirements,” writes Money Talks News’ Marilyn Lewis. For more tips, check out “Ready to Rescue Your Retirement in 2017? Here’s How.”
Do you have tips for women struggling with their finances? Share your thoughts below or on Facebook.