Women and money - Thrivent
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Women
and money
Women face unique challenges when it comes
to managing their personal finances. Here’s how
to overcome them and find financial clarity.
By Kathleen Childers
T
hrivent clients Breanna what’s holding you back. Then you differences in pay scales. But it’s also
Wallace, Monique Moniz can take the necessary steps that will because women often spend more
and Sarah Cheesman enable you to make informed money time out of the workforce caring for
don’t know each other, decisions and gain what Wallace, others, whether it’s their children,
but they share something in common: Moniz and Cheesman have achieved: aging parents or a spouse.
Each is knowledgeable about and financial clarity. After starting a family, Moniz,
takes an active role with her finances. 63, from Davis, California, and her
Their interest and involvement with Identify your challenges husband, Rick, wanted to have
their finances isn’t the norm. A recent Ricky Jackson, a regional develop- one parent at home with their
Kiplinger study shows that women’s ment director for Thrivent in kids. Because her husband had
confidence around financial security Lexington, South Carolina, has the greater income and the best
was only 62%.1 helped many women with their benefits at the time, they agreed
Why isn’t it higher? Women tend to finances over the years, including that she would stay home. But it
face unique challenges that can keep Cheesman. has cost her financially. “I don't Photo by Westend61/Getty Images
them from learning about and being “I’ve seen the challenges women have any credit for those years with
involved in money matters. And that face and they tend to fall into three Social Security,” she says, “and no
can have serious consequences, areas: an income gap, a confidence credit for it in a pension.”
including not having enough money gap and an age gap,” Jackson says.
to sustain them in retirement. Confidence gap. Whether intentional
Whether you’re married or single, if Income gap. Women typically or not, historically when it comes
your financial confidence could use earn less money than men during to the delineation of household
a boost, you first need to understand their lifetime, which is partly due to responsibilties, women often aren’t
18 | Thrivent Magazine | Spring 2021 thrivent.com | 19
What’s the best
financial advice 6 things you can do right now
you’ve ever received?
Ricky Jackson, regional development director for Thrivent in
Several women working at Thrivent Lexington, South Carolina, suggests six tasks to help get your
share their best financial advice. finances on track.
“I was a recently divorced 1. Create a budget and stick to it to ensure that you have a purpose
single mom just starting out for every dollar.
in my career when a financial 2. Open an account and save three to six months of expenses for
advisor told me to consider buying life the unexpected.
insurance. I only had a small amount 3. Contribute to your employer-sponsored retirement account. If
through my employer. I always knew your employer doesn’t offer this, look into options where you can
my big, loving, Italian family would automate monthly contributions.
take care of my young daughter if 4. Review all of your insurance contracts to make sure you have the
something happened to me, but I correct coverage at an appropriate cost to protect you and your
hadn’t considered whether they would family. Also, make sure your beneficiaries are up-to-date.
have enough resources to give her the Breanna Wallace is
5. Write down your goals and put strategies into place to reach them.
life I dreamed about for her.” committed to learning
about managing her 6. Review your status regularly, at least once each year, and make
—Mary Jane Fortin money. She often plans any necessary adjustments.
Chief Commercial Officer from her backyard.
“My best financial advice
came from observing my
dad. He never talked about
money publicly. And as a dairy farmer, the ones managing a family’s refers to that difference as an Crunched for time. It’s no secret that often don’t have personal finance as
there wasn’t much wealth. We had as finances, says Jackson. age gap and believes a woman’s women often feel pressed for time. “I part of their required curriculum. And
many cows as could feed a family with Moniz saw this with her mother. financial strategy should reflect think women typically have a bit more it’s still considered a bit of a taboo
five kids. My dad also taught me that When Moniz was 10 years old, her that gap. But often that’s not to juggle when it comes to their daily subject in many families.”
I couldn’t take it with me. So it wasn’t mother left an abusive marriage and taken into account, he says. As a lives,” says Cantrell. “Not only do Wallace, 36, from Vacaville,
about accumulation, but rather it was became a single parent to Moniz and result, women can find themselves many women work outside the home, California, grew up not really being
about using money and what I was
blessed with to do good for others.”
her younger sister. “My mother was
a homemaker until that point and
without enough funds to cover their
full lives.
but we also help run our households.
We’re natural caregivers. And we try
aware of her family’s financial
situation. She always felt like she had “If you go years
—Lisa Flanary
Chief Growth Officer
took care of the family,” says Moniz,
“but she was really dependent on my
Cheesman, 70, from Leesville,
South Carolina, is grateful her
to maintain a social life with friends or
as an active member of our church
what she needed, and her parents
didn’t talk about money with her. She
without saving,
father for anything financial.” husband, Jim, encouraged her or community.” assumed they were financially secure. you may not have
“My mom told me when I got
my first job as a teenager to
Her mother took a job but
struggled with budgeting and
partnership in their finances.
“He’d say, ‘I want you to sit down
As a result, saving money, budget-
ing and retirement become a lower
So when her parents divorced when
Wallace was a teenager, she was enough money set
‘always pay yourself first,’
then proceeded to discuss having a
paying bills. So she asked Moniz
to help her with it. She was only 10,
here to see how this works,’” says
Cheesman. He died two years ago,
priority. “That can be pretty detrimen-
tal for meeting long-term goals,” says
surprised to discover they hadn’t
planned at all for the future. That was
aside when you
savings plan in detail with me. Years but Moniz wrote checks and learned when he was 76. His death was Cantrell. “If you go years without a defining moment for Wallace. need it.”
later I understood she was talking to cook so the family could live on a shock, but she knew she’d be saving, you may not have enough “I had no idea that my parents
about savings and investments for my a very small budget. The experi- OK because the two of them had money set aside when you need it.” actually had substantial debt and —Erica Cantrell, Thrivent financial
Photo by Saroyan Humphrey
future, and that simple advice directed ence taught her the importance of worked together on their finances. almost no savings,” she says. “After professional
me financially throughout my life.” understanding finances. Thrivent financial professional Kids have fewer learning they divorced, my mother took on
—Lynn Crump-Caine Erica Cantrell, from Vacaville, opportunities. “There’s definitely a sending my brother and me to college
Member, Thrivent Board of Directors Age gap. Statistically, women live California, who serves both Moniz lack of financial education out there with no savings or plan of how to pay
longer than men so they need to fund and Wallace, has observed a few to teach children about finances,” for it. Seeing that really motivated me
(Continued on page 22) more years in retirement. Jackson additional challenges: says Cantrell. “Our school systems to be knowledgeable and think about
20 | Thrivent Magazine | Spring 2021 thrivent.com | 21
“Pick up a book on finances or listen to a
podcast in order to start familiarizing yourself
with basic financial terms.”
—Erica Cantrell, Thrivent financial professional
going to replace all that they had you. Then take action and seek change course, if needed, as life
(Continued from page 20) finances, and not just brush it under
the rug.” “Setting goals is lost. Their goals suddenly shifted
as they had to focus on rebuild-
financial guidance in order to
develop a strategy specific to you,
circumstances shift.
“My mother always said:
Make decisions that lead Steps to empowerment
important, but it’s ing their home. “It set us back
financially,” said Moniz, “and took
Cantrell adds.
Wallace is always in learning
Becoming an active participant in your
finances doesn’t happen overnight.
to financial independence The challenges may seem daunting, equally important us about 12 years to get back on mode when it comes to finances. You have to start with the basics and
so you can live your life on your
own terms.”
but they also should inspire action.
These are some steps you can take to be willing to track financially, but we did.” She reads books about managing
money as well as blogs and
go from there. But as you’re building
your knowledge and comfort level,
—Sarah Jansen
Chief Information Officer
to put you on the path to financial
clarity and empowerment.
make adjustments Educate yourself. Information on
finances is widely available, and
articles. The knowledge she’s
accumulated doesn’t just help her
you’re also building toward financial
empowerment so you can make the
when necessary.” it can be overwhelming. “Start by family. Her friends now often seek most of all you’ve been given. n
“Don’t spend more than 30% Take an interest. The only way getting some basic information,” out her advice.
of your income on housing. to start getting comfortable with —Ricky Jackson, regional says Cantrell. “Pick up a book on Kathleen Childers is a writer in
Watch out for the trap of too financial matters is to get involved. development director for Thrivent finances or listen to a podcast in Make a commitment to Minnesota.
much house, too much car. Habitat If you have a partner, commit order to start familiarizing yourself communicate. When it comes
for Humanity’s approach to getting to learning and working on your with basic financial terms.” to finances, give yourself the
1
homeowners ready to own a home finances together. If you’re single, If you prefer a more structured same advice a teacher might https://www.kiplinger.com/article/
confirmed this lesson for me.” pull all of your financial information setting, take a class or a workshop give a child: No question is a retirement/t037-c032-s014-the-
complicated-relationship-of-women-and-
—Nikki Sorum together so you can get a full picture on budgeting, saving for college bad question. Ask your partner
finances.html.
Senior Vice President, of where things stand. or another subject that interests or a financial professional
Thrivent Advisors college for our two kids,” she says. for clarification when there’s
Set goals. Do you want to start “Setting goals is important, but something you don’t understand. The clients’ experiences may not be
“Advice from my dad on my investing? Have you been dreaming it’s equally important to be willing to If you and your partner are the same as other clients and does not
indicate future performance or success.
wedding day: It’s not about about taking an extended vacation make adjustments when necessary. working together on finances,
how much you make. It’s next year? Are you wanting to It’s really about managing life How Thrivent discuss your goals individually Thrivent is the marketing name for Thrivent
about how much you give and save.” contribute more money to your events around the plans you have can help and as a couple. And make a Financial for Lutherans. Insurance
—Sheri Cooper church? No matter the size of the in place,” says Jackson. “Then commitment to each other that products issued by Thrivent. Not available
Vice President, goal or how much time you have to when changes occur, like you want Your Thrivent financial you’ll be good listeners and will in all states. Securities and investment
advisory services offered through Thrivent
Thrivent Career Network meet it, the best way to achieve it to work longer or retire early, you professional can help you keep the conversation going.
Investment Management Inc., a registered
create a financial strategy that
Photo by Sean Locke/Stocksy
is to plan for it. Figure out what you can adjust your strategy.” investment adviser, member FINRA
“From my mother: When want and set some deadlines for Moniz and her husband lost puts your goals and priorities Ask for help. This is not something and SIPC, and a subsidiary of Thrivent.
you have no debt, you working toward it. everything when their home was at the center. To find your you have to do alone. A financial Licensed agent/producer of Thrivent.
have freedom.” Wallace and her husband set goals destroyed by fire 15 years ago. financial professional’s contact professional can help you priori- Registered representative of Thrivent
information, visit thrivent.com Investment Management Inc. Advisory
—Karen Himle with deadlines. And they’ve stuck That was devastating enough, tize and strategize as you go, so
services available through investment
Senior Vice President, to them. “We’ve already paid off our but then they discovered their and click on Connect with us. that you can set goals that reflect adviser representatives only. Thrivent.
Corporate and Government Affairs house and have saved enough for homeowner’s insurance wasn’t what matters most to you but also com/disclosures.
22 | Thrivent Magazine | Spring 2021 thrivent.com | 23You can also read
