Building Wealth for Women: 6 Steps to Empowerment

A Charles Schwab survey found 90% of female investors feel empowered and on track to meet financial goals. However, 85% wish they started investing sooner, citing uncertainty about where to begin and a lack of money or knowledge. To build financial knowledge and control, women can take six steps: learn about personal finance, identify trustworthy sources, seek professional advice, start small, take control of expenses, and stay informed. Building financial knowledge is key to achieving greater control over financial futures.

A recent Charles Schwab survey revealed that 90% of female investors who are primary or joint financial decision-makers in their households feel they are on track to meet their financial goals. This strong engagement is encouraging, yet the survey also highlighted clear opportunities for improvement. Nearly 85% of respondents wish they had started investing sooner, citing uncertainty about where to begin and a lack of money or knowledge [1].

To build financial knowledge and control, women can take six steps:

1. Build Financial Knowledge: The path to proficiency begins with learning. Nearly a quarter of the women surveyed said a lack of financial education is holding them back. Start by identifying topics you want to learn about, and find content that fits your learning style—whether that's podcasts, articles, videos, or conversations with trusted individuals. Be selective about your sources, and seek professionals who are licensed and regulated [1].

2. Create a Financial Plan: Without a clear plan, financial decisions can go awry. Set a budget, understand your income and expenses, and create an emergency fund of at least three to six months of essential expenses. Write down your short-, mid-, and long-term goals, and set a timeline and savings target for each [1].

3. Start Investing Early: The data show that each generation is getting started younger. Even a small investment today can grow significantly over time. Investing 10% to 15% of your salary can be a good start. For those age 50 or older, catch-up contributions to a 401(k) or IRA are a great way to max out your savings [1].

4. Make It Automatic: Automate your finances by setting up direct deposits into savings or investment accounts, contributing to your 401(k), and establishing recurring transfers towards your financial goals. Automating your finances removes the guesswork and keeps you accountable [1].

5. Build and Maintain Good Credit: Your credit history impacts your ability to get a loan, buy a home, or even land a job. Building and maintaining good credit habits are crucial. Stay informed, stay organized, and stay on top of your credit. Avoid charging more than you can pay off each month and have a plan to pay down any high-interest debt [1].

6. Share What You Know: Sharing ideas, lessons, or questions can accelerate your knowledge and help you feel more supported. The survey found that women value sharing information and learning from each other's experiences, so don't hesitate to reach out and build your own support system [1].

Building wealth is a lifelong journey. The earlier you start, the stronger your foundation can be. With discipline, curiosity, and support, you can own your financial future. You don't have to have it all figured out; you just have to begin.

References:
[1] https://www.kiplinger.com/personal-finance/financial-steps-women-can-take-to-become-empowered-and-get-on-track