How women can help boost financial confidence

Women are often an economic force to be reckoned with. Working women contribute to the financial wellness of their family as they help power the economy. And their financial contributions keep growing. The number of women who earn as much as, or more than, their husband has tripled over the past 50 years.¹ Much the same can be said for stay-at-home moms. The work they do — from taking care of the household to acting as the primary caregiver for children and aging parents — equates to an average annual salary of $184,820.² However, all these financial contributions are often left unprotected.

The gender gap of protection

Women still lag behind men when it comes to helping protect their loved ones with life insurance. Less than half (49%) of American women own life insurance, which is six points below the ownership level of men (55%).³ And even though more women have begun to recognize the importance of life insurance — 4 in 10 say their families would face financial hardship within six months after the death of a primary wage earner, and nearly a quarter (24%) expect their family to struggle financially within one month — the lack of this critical protection persists.⁴ About 44% of US women say they need (or need more) life insurance.⁵

A gender knowledge gap also seems to exist, as research shows that only 22% of women say they are “very knowledgeable” about life insurance.⁶ This lack of knowledge is particularly troubling when you consider that women are more likely to act as caregivers for children or family members in addition to balancing their work responsibilities. Remaining uninformed about financial products like life insurance can negatively affect their ability to earn income and achieve financial wellness. In fact, women are 40% less likely to report positive financial wellness than men.⁷ They rate both their overall financial health and how well they feel they manage their finances significantly lower than men.⁸

How women can work to build their financial confidence

Improving financial confidence is a journey that involves learning, planning, and taking proactive steps toward financial empowerment. Here are a few things women can do to help boost their financial confidence and improve their overall well-being.

1. Educate yourself about finances. Ultimately, knowledge is power. Explore books, articles, and online research about topics such as budgeting, life insurance, annuities, and retirement planning. Attend financial literacy workshops, seminars, or courses tailored specifically for women to help enhance your financial knowledge base.
2. Set clear financial goals. Outline achievable short- and long-term goals, whether it’s building an emergency fund, saving for a major purchase, or planning for retirement. Prioritize building an emergency fund and aim to cover at least three to six months’ worth of living expenses.
3. Build and manage your budget. List all sources of income and expenses. Use apps or spreadsheets to track spending and identify areas where you can save money. The money saved can be allocated towards other financial goals.
4. Protect your financial future. Ensure you have adequate life and disability insurance coverage to help protect against unexpected expenses from unforeseen events.
5. Invest in your future. Begin investing and saving for retirement, even if it’s a small amount, to benefit from compound interest over time. Consider various investment options like stocks, bonds, mutual funds, annuities, or retirement accounts to diversify risk.
6. Seek professional advice. I can help you create a personalized financial strategy aligned with your specific goals. You can reach out to me anytime for valuable insights and advice on a variety of financial topics.

Disclaimer: 

1 Husbands and Wives Earn Similar Wages in a Growing Share of Marriages | Pew Research Center, 2023, https://www.pewresearch.org/wp-content/uploads/sites/20/2023/04/Breadwinner-wives-full-report-FINAL.pdf  

2 How much is mom really worth? The amount may surprise you, Salary.com, May 2022, https://www.salary.com/articles/how-much-is-a-mom-really-worth-the-amount-may-surprise-you/ 

3 2023 Insurance Barometer Study, LIMRA, Oct. 10, 2023, https://www.limra.com/en/research/research-abstracts-public/2023/2023-insurance-barometer-study/ 

4 Helping Women Prioritize Life Insurance, LIMRA, March 9, 2023, https://www.limra.com/en/newsroom/industry-trends/2023/helping-women-prioritize-life-insurance/ 

5 2023 Insurance Barometer Study, LIMRA, Oct. 10, 2023, https://www.limra.com/en/research/research-abstracts-public/2023/2023-insurance-barometer-study/ 

6 Ibid 

7 Mind, Body, and Wallet™ 2023: Economic challenges and uncertainty take a toll on well-being, Guardian, 2023, https://www.guardianlife.com/reports/mind-body-wallet 

8 Facing Financial Fragility: How changes to the economic landscape are impacting Americans’ wallets and habits, Guardian’s 12th Annual Workplace Benefits Study, 2024, https://www.guardianlife.com/reports/financial-wellness/facing-financial-fragility

This material is intended for general public use. By providing this content, The Guardian Life Insurance Company of America, and their affiliates and subsidiaries are not undertaking to provide advice or recommendations for any specific individual or situation, or to otherwise act in a fiduciary capacity. Please contact a financial professional for guidance and information that is specific to your individual situation. Material discussed is meant for general informational purposes only and is not to be construed as tax, legal, medical, or financial advice. Guardian, its subsidiaries, agents and employees do not provide tax, legal, medical or finance advice. Consult your tax, legal, medical or finance professional regarding your individual situation. 

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