{"id":8668,"date":"2021-02-15T07:44:10","date_gmt":"2021-02-15T11:44:10","guid":{"rendered":"https:\/\/kerryhannon.com\/?p=8668"},"modified":"2021-02-15T07:44:24","modified_gmt":"2021-02-15T11:44:24","slug":"how-women-can-take-control-of-their-financial-life","status":"publish","type":"post","link":"https:\/\/kerryhannon.com\/?p=8668","title":{"rendered":"How Women Can Take Control of Their Financial Life"},"content":{"rendered":"
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\"\"<\/a>There are so many things in life that are out of our control. They shatter us. We feel powerless.<\/p>\n<\/div>\n<\/div>\n

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There\u2019s the heart-wrench and loss when someone you love\u2013or your beloved dog\u2013dies (as my nearly 13-year old Labrador retriever Zena did unexpectedly this week,) or when your health is crushed by an illness, or you lost your job during the pandemic.<\/p>\n

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But there are myriad things in life that we can control. Financial literacy and educating ourselves about money and ways we can build a secure financial future for ourselves is one of those things.<\/p>\n

That\u2019s why the recent jobs report from the Bureau of Labor Statistics and the latest\u00a0Women\u2019s Retirement Literacy Report from The American College of Financial Services<\/a>\u00a0have me flustered. I will get to these shortly.<\/p>\n

The pandemic impact on women\u2019s financial security<\/strong><\/p>\n

For women, being knowledgeable about money is imperative in order to navigate our lives with confidence and ride out the shocks we can\u2019t control.<\/p>\n

Read on MarketWatch<\/a><\/strong><\/p>\n

The pandemic has proven the stark reality of this as women have left or lost jobs and promotions. A big factor in this workplace exodus: It\u2019s often their responsibility to shoulder caregiving responsibilities in a household, whether it be for children who are in virtual school rooms at the kitchen table, or aging parents whisked from assisted care living homes when the shut-down, no-visitor isolation orders landed last spring.<\/p>\n

Being knowledgeable about money and how to save and invest and spend wisely has never been more important for women. It is our lifeline.<\/p>\n

I am an activist for women and money, as you know from my MarketWatch columns over the past year. These include:\u00a0Why is it still so hard for women to save for retirement?<\/a>,\u00a0How can women do a better job preparing for retirement? a<\/a>nd This is why so many women face poverty in their old age<\/a>.<\/p>\n

I regularly dole out advice on what you can and should do, and I will dutifully tack a few of these on to the takeaway section at the end of this column.\u00a0But here\u2019s the truth: There is little I can say, or shout, or cajole, or show just gee how easy this is to do, if you make it a daily habit and so on.<\/p>\n

Because you know what? It\u2019s not easy. And no one can do this for you, not even the best financial adviser.<\/p>\n

You have to suck it up and devote the time to your money life. That will give you some control when the world goes topsy-turvy as it has this past year.\u00a0No amount of words from a columnist or an adviser will do this for you. The motivation has to come from within to take lasting actions.<\/p>\n

So many women I know shift into the \u201cI\u2019ll think about it tomorrow when I have time to focus on it\u201d mentality. I\u2019ve been guilty of this myself at times. We kick it down the road. We\u2019re trying to deal with today \u2014 right now.<\/p>\n

That\u2019s going to bite back one day. And it will be harsh. Only you can find the inner compass and energy to do this\u00a0for you,<\/em>\u00a0for your life, for your future.<\/p>\n

So here\u2019s what\u2019s got me swirling today. Use it or lose it, as the expression goes, to make a difference in your life. No one cares about you as much as you do. Fact.<\/p>\n

The\u00a0 Bureau of Labor Statistics (BLS) monthly jobs report shows that the economy lost 140,000 net jobs in December, marking the first month of job loss since the economy started adding back jobs in May 2020, according to the National Women\u2019s Law Center<\/a>, a nonprofit focused on achieving gender justice in courts and public policy. \u201cAll of the jobs lost were women\u2019s jobs, with women losing 156,000 jobs and men gaining 16,000. And the overall unemployment rate masks even higher rates for Black women and Latinas.<\/p>\n

Update:<\/strong> In January 2021, 275,000 women dropped out of the labor force, amounting to roughly 80% of all workers over the age 20 who exited the workforce last month. The total number of women who have exited the labor force since February 2020 comes to more than 2.3 million. By comparison, nearly 1.8 million men have left the labor force during this same time frame.<\/p>\n

Women have been cutting hours, switching to less demanding jobs, or exiting the workforce altogether because they feel it is their only choice. According to the Census Bureau<\/a>, women are three times more likely than men to have left their job because of child care during the pandemic.<\/p>\n

And that loss of income today has enormous financial repercussions not just for now, but for future retirement.<\/p>\n

\u00a0Lagging financial literacy<\/strong><\/p>\n

Now set that scenario against these findings that landed in my in-box this week \u2014 the\u00a0Women\u2019s Retirement Literacy Report from\u00a0The American College of Financial Services<\/a>\u00a0\u2014 the nation\u2019s largest non-profit, accredited educational institution devoted to financial services.<\/p>\n

The research\u00a0report<\/a>\u00a0shows that neither men nor women score exceptionally well on this retirement literacy quiz. A whopping 89% of women received a failing grade on the 38-question retirement literacy quiz, compared with 72% of men.<\/p>\n

On average, for example, women scored 42% on quiz questions related to retirement savings plans while men achieve an average score of 55%. Women are less likely to have conducted a calculation or estimate of their retirement savings needs and demonstrate a lower understanding of retirement savings plans, including 401(k)s and IRAs, compared with men.<\/p>\n

That said, it comes at a time when the state of women\u2019s financial planning efforts are under mounting strain as they face unequal financial consequences from the COVID-19 pandemic, according to the researchers.<\/p>\n

And they\u2019re right. More than ever, these times require that women have a grasp of their financial picture and all that entails.<\/p>\n

Additional survey findings<\/strong>:<\/p>\n