More millennial women are interested in an active role in their finances, but they may still be waiting too long to get started. When we’re talking money, the stats are not on most women’s side– from earning less on average to waiting longer to invest, but some changes can help make sure you have a more solid financial future than the women before you.
Traditionally, some women might expect to depend on their male spouse for financial decisions, but Tori Dunlap, founder of Her First 100k, says that is a mistake. Personal finance affects women differently because there is a pay gap for women on average and women also tend to wait longer to invest their money or don’t invest at all.
“Women on average also live 7 years longer than men, so we are expected to take less money, have it grow at a slower rate, and live longer using that money,” says Dunlap.
Dunlap says that right now is the right time to jump in. If you want to educate yourself before you start, you can use free or inexpensive tools like podcasts and books. It’s ok to start small, but do it as soon as you can. You can also try your hand at robo advisors– a more inexpensive way to try investing first hand with help.
If you have a retirement account, guess what? You are already investing.
“A lot of people think, “oh I have my 401k but I am not investing,’ you are, you are investing. The key with a 401(K) is that it is provided by your employer, and it’s a huge benefit. It is an even bigger benefit if your employer is going to match a portion,” says Dunlap.
That means you should do everything you can to contribute up to the match, so you don’t leave any money on the table.