Empowering Women with Smart Savings Strategies

Recent studies underscore a concerning trend: women, on average, lag behind their male counterparts in retirement savings. A 2023 study by The Transamerica Institute for Retirement Studies found that women have a lower retirement account balance, do not contribute the maximum amount to their retirement accounts, and are more likely to not have any retirement savings at all compared to male counterparts. New York Life’s 2023 Wealth Watch survey revealed that only 17% of women feel on track to meet their financial goals, compared to 26% of men.

Start Planning for Retirement

Given women's longer life expectancy, it's crucial to prioritize financial security and growth for the future. Regular contributions to retirement accounts are paramount, as is considering high-yield savings accounts with daily compounding interest to maximize growth.

Track Your Expenses and Pay Off Debt

Familiarize yourself with your monthly spending habits and create a budget that will help you stay within your boundaries for maximum savings. Focus on minimizing and paying off your high-interest debt, even if you can only contribute a small amount over the minimum payment.  

Create an Emergency Fund

Create an emergency fund and set a monthly contribution goal of your own to ensure you have savings in your back pocket in case of untimely situations or financial hardships.

Build Your Credit

If you do not already have one, open a secure credit card to begin establishing credit. You can also become an authorized user on your significant other or a relative’s credit card account, which will allow you to receive good credit actions without liability for any charges. If you share your bank accounts with your partner, check that you are establishing credit on your own.

Set Long-Term and Short-Term Goals

Short-term goals may include setting aside funds to pay your bills each month, buying groceries, and paying for monthly subscriptions, while long-term planning encompasses comprehensive estate management. Estate planning safeguards your intentions, particularly in unforeseen situations like incapacitation. If you have children, consider options like establishing a 529 college savings plan, integrating it into your estate plan for seamless financial management.

The trajectory of financial empowerment for women is on an upward trend, with women now overseeing more than a third of the world's wealth. To develop robust savings plans, seek guidance and mentorship from Oppenheimer financial professionals and stay up-to-date on financial developments to bolster self-reliance and assurance in steering your financial journey.

By embracing these tactics and maintaining a proactive stance, women can navigate towards financial stability and autonomy, securing a brighter future for themselves and their families.