Let’s Talk About Women & Money
Q: Dear Ruchi, I am a woman business owner and I find that me and my colleagues all have a lot of the same “issues” when it comes to money. We work so hard but still have moments where we are unsure of ourselves and end up making less than our male friends (even when we feel like we’re doing well). Is it just me or is there just a genuine difference in how we handle money compared to men? It feels like we don’t have the same stressors.
A: I am so glad you asked this question! In short, the answer is yes. There is a genuine difference in the way we women handle our money compared to men. In honor of Women’s History Month, this is the perfect topic to unpack together! At Watch Her Prosper, this is our specialty. We’re well aware of the challenges women business owners in particular face.
Besides obvious societal challenges that we will continue to change, we have to work together to break through the stereotypes and fears that have statistically held women back. We understand that money can be a complex topic. For many it ties into how we provide for ourselves, shape our futures, and care for our loved ones. The emotions attached to it run deep and can sometimes get confused with our "worth", making us hesitant to talk openly, often due to fear of judgment.
Would it surprise you to know that women-owned businesses are booming like never before yet we still face challenges in profitability? When it comes to getting to the bottom of this, taking a look at some real-life numbers definitely helps. So we did a deep dive on a recent study done by Bank of America that really put things into perspective.
Let’s break down a few of the stand-outs from the study…
40% of women over the age of 40 use their intuition to make financial decisions instead of working with an expert or doing their own research.
Reading this one was an “OMG moment” for me. You all know I am big on tapping into our intuition, though, we have to remember that alone is not enough. It’s a package deal! We MUST look at our numbers to see the whole picture. This data helps us create our intentions and goals, and at the end of the day will be the deciding factor in what drives us to take action.
Your Action: Don't be afraid to take charge. Ask Questions. Seek answers. Carve out a seat at the table. Knowledge is power and KNOWING our numbers allows us to plan for a prosperous future. Now that you’ve read this…who needs to take another look at their numbers this month?
Only 28% of women feel empowered to take action around their finances.
According to BofA “94% of women believe they will be personally responsible for their finances at some point in their adult life. Despite this, about half of women (48%) feel confident about their finances”. That points back to only 28% feeling empowered to take action. A big part of this is feeling internal setbacks which may be rooted in fear or doubts in our self-worth.
Your Action: It’s time to take a look inside. What's stopping you from feeling more empowered when it comes to your finances? How can we help you remove these blocks and feel equipped to take action? Write down your thoughts and see how you can reframe them.
61% of women would rather discuss their own death than talk about money*.
This says it all. For many of us, being worried about how we are perceived has been a survival tactic of women for generations. But this mindset has certainly prevented us from having a voice in money conversations and left us in the dark when it comes to feeling confident about our money. Whether it's worry, shame, judgment, guilt, etc. it's important to remember that often these fears are wired into us, especially if money was a taboo topic in your family growing up. Recognizing that we feel this way is the first step towards feeling safe.
Your Action: First, remember that your financial status does not define you. Next, prioritize communicating openly and honestly and approach conversations with a positive mindset. Embrace curiosity and the habit of discussing money will naturally flow with more ease over time. For more tips on money conversations check out this previous Ask Ruchi.
*According to a Merrill Lynch study
As always, remember that It's okay if numbers aren't your thing – we all have our unique set of skills. Reach out for help, partner up, and begin reframing these emotions. At Watch Her Prosper, we're here to help you!
Here’s to your prosperity!
-Ruchi
P.S. For more conversation about the relationship between women and money check out my latest interview with Liz Svatek on the Conversations With Warrior Women Podcast!