Money Mondays: Common Money Mistakes by Women

Working Divas…take control over your money. Are you making the same money mistakes over and over — and are your mistakes the same as other women’s? Find out here…

“Women tend to be more concerned that they’re not putting enough money aside for the future, and fear they’ll outlive their assets,” says finance expert Lisa Caputo, of Women & Co. “Women tend to live longer, require long-term care services when they age, and take more time out of the work force to care for family members. These financial realities make it more important for women to start saving early, save more as they earn more and plan carefully for ‘time-out’ periods.”

This financial info is from Lisa Caputo, Founder, Chairman and CEO and Linda Descano, CFA, President and COO of Women & Co — a comprehensive financial website for women.
“Research shows that women are taking on a larger role in financial decision making, functioning as the chief financial officer of their households,” says Caputo. “Women are influencing not just day-to-day spending and budgeting, but everything from how their families save and invest for long-term goals like retirement to where they are donating their money.”

2 Common Money Mistakes Women Make

1. Not maintaining a financial plan. “The biggest money mistake that I see women make is investing a lot of time and energy into putting a financial plan in motion — only to never look at their plan again, thinking that they are done,” says Descano. “Financial fitness, like physical fitness, is a journey, not a destination. It requires ongoing maintenance to stay in shape.”

2. Investing a little too conservatively. “Compared to men, women, on average, tend to invest more conservatively and be more focused on preserving their money,” she says. “Being too conservative, though, could put women at higher risk of outliving their savings because their money isn’t keeping pace with inflation. Protecting the purchasing power of one’s money is important for all of us, but it’s particularly important for women because they live longer.”

Descano and Caputo offer these quick tips for setting a budget or spending plan:

Make your budget flexible
Align your budget with your life goals
Discuss finances with your kids and partner
Check in with your budget every day
Taking care of your finances takes alot of time and energy at first — but once you get into the habit of watching your income and spending habits, it gets easier to reach your goals!

To learn about investing your money — even if you only have $10 extra a week — read Overcoming Fears of Investing Money for Women.

Laurie Pawlik-Kienlen is a full-time writer and blogger who created and maintains a series of Quips and Tips blogs: Quips and Tips for Successful Writers, Quips and Tips for Achieving Your Goals, and Quips and Tips for Couples Coping With Infertility. She’s also the Feature Writer for Psychology Suite101.

Tags: money mondays, women and money

Category: Savvy Savers