Women are givers by nature – especially when it comes to money. They may delay getting dental work to buy school clothes. Or put careers on hold to raise children and care for aging parents. And they might help pay for their kids’ college tuition at the expense of their own retirement savings.
Such choices may be selfless, but they also put women in a precarious financial position. Break the cycle
Women often sacrifice their own financial well-being because that’s the behavior their own mothers modeled. But, remember that your financial decisions today are setting an example for your kids and future generations.
Don’t give your son money for a down payment on a home if it compromises your ability to retire on time or with the lifestyle you envisioned. And don’t bail your daughter out of credit card debt.
Instead, explain that you’re not in the position to provide financial resources, but lend your verbal and emotional support. It’s not a rejection. It’s a learning opportunity. Help them research loan options, develop a savings plan, and explore debt repayment options to empower your children to meet their financial goals and develop healthy spending habits.
Self-reliance is a gift While many parents worry about leaving a financial legacy for their kids, advisors say the best gift you can give them is to fortify your retirement nest egg so you can cover your own living expenses and future health care costs.
Otherwise, one or more of your kids (statistically more likely to be your daughter) might be forced to help finance your living expenses or quit their job to become your caregiver.
Less stress Money continues to be the leading cause of stress in America. Stress related to finances can impact both psychological and physical health. Indeed, those with high levels of stress about money often engage in unhealthy behaviors to manage that stress. And research shows the profound effects of stress on health status and longevity.
More emotionally available Making your money a priority yields another important benefit. Liberated from the weight of financial uncertainty, you may be more emotionally available to your spouse, kids, friends, and career.
While no one knows how long they’ll live or whether a layoff is imminent, you can plan for the most likely outcomes, prepare for the unexpected with an emergency fund, and protect your loved ones with adequate life and disability income insurance coverage.
You need more saved As a gender, women typically live longer, earn less, and have less banked than their male counterparts. That makes them more vulnerable in the event of a divorce or the premature death of a spouse.
And while they are generally better savers and more likely to participate in a 401(k) plan, their lower average income means they have far less socked away than most men.
By declaring their own financial security as a top priority, women can relieve a significant source of stress, and potentially strengthen their relationships with loved ones.
Provided by Rashad Bilal, a financial representative with The Bilal Group LLC, courtesy of Massachusetts Mutual Life Insurance Company
