Often presented as something that’s just too complicated, or risky for most to understand or want to deal with, women have long been excluded or under-served when it comes to financial education and wellness. These days though, demand to fill those gaps is rising, and more and more resources on money are being created just for women. It’s critical that we take control of our financial knowledge and power, whether we’re the primary provider in our lives or not, and this fact is more widely understood every day.
We’re at a disadvantage – but things are shifting!
Let’s start with a few basic facts. First: women, on average, live longer than men. Second, the average (white) woman makes 79 cents to the man’s dollar, and this number gets even lower for women of color (62 cents to the dollar for Black women, and 57 cents for Hispanic or Latina women). Third: one in five women falls into poverty due to divorce. We’re also much less likely to invest our money than our male counterparts are.
While many of us may feel out of our element in the world of finance, when we do choose to get involved, we do great! Women investors are found to outperform men by 1.8%. With new companies on the horizon like Ellevest and Factora Wealth (an ATX-based company!), and a constantly growing number of female experts writing financial books and blogs for us, gaining the confidence and expertise to create your own financial freedom is closer than ever.
“Being financially literate is a powerful thing, especially for women.” – Otegha Uwagba
YWA is committed to helping out in this area as well. This January, the ladies of Factora were good enough to hold a workshop for YWA members, and it was so well received! The focus of the event? Learning to “Think Like an Investor.”
Phases of financial freedom – start thinking like an investor
Depending on where you’re starting from, you may not get to the actual investing part immediately. That’s okay. Factora shared with us their 5 key factors to building wealth – and investing is one of your last steps. You’ll start by building a solid foundation.
To get started, the plan is this: get clear on your current financial situation. Then, start paying off high-interest debts and aligning your spending with your values. Once you’ve set your foundation, you can begin to save for future goals, invest, and work your way to financial freedom. The exact steps and tips to achieving each of the Factora Financial Framework 5 key factors can be learned in their courses and workbooks.
What seems to be the underlying factor, though, is weighing your risks, paying attention to interest rates, and making smart, calculated decisions that will get you the highest return at the end. In other words – thinking like an investor.
“If you don’t have a high-yield savings account, then you’re losing money.” – Allegra Moet Brantley, Factora Founder & CEO
Financial literacy is for everyone
The days of staying out of the complexities of finances or leaving the career growth and earning power to others are over. Now, these things are becoming more accessible to us all.
Improving your financial literacy can only do good, for both yourself and those around you. We all want to increase our earning potential; we all want the safety net of an emergency fund and a good credit score. Luckily, it’s possible – and is becoming easier to reach, thanks to those dedicating themselves to sharing the knowledge and the space that we need.
YWA is holding several more personal finance workshops this spring, so don’t miss out! Learn budgeting, investing, and more – check the member event calendar for dates and details.
