In this article, we’ll discuss how important it is to grow our financial confidence while understanding the six monumental financial moments in life.
In this lesson, you'll learn:
- The six key moments in a woman's life, and
- How money affects them.
🎧 Listen to this article
Life moments & the role of money.
We talk a lot about preparing for the future financially, but what does the future look like?
The Chartered Insurance Institute has identified six key moments in women's lives where financial planning matters the most to secure your future. These are:
- Studying and education.
- Entering and re-entering the workplace.
- Getting married or divorced.
- Becoming a mother or a carer.
- Ill health and death.
Think about these monumental life events.
Which ones may come up in your short and long-term future? Are you starting your own business? Buying a house? Beginning a new job? Or preparing to start (or grow!) your family?
We'll all face similar financial planning decisions and have to ask ourselves some critical questions.
Financial wellbeing is for everyone.
The Insuring Women's Futures Financial Wellbeing Guide says: "Women and girls are increasingly successful at school, at university, in the arts and in business. But there remain inequalities, imbalances and inconsistencies that undermine our financial security. We encourage everyone – woman or man, young or old – to consider how financial risks, could affect you, your friends, colleagues or family."
Should a partner die or the couple separate, each should understand the other's financial situation. Just look at the divorce rate as an example.
Did you know?
A non-earning partner's maximum pension investment amount is £2,880 per annum, reclaiming a tax of £720?
And only 21% of millennial women have discussed their pension saving in detail with their partner.
Similarly . . .
It is helpful for partners to think seriously about if and how they will take time out of their career to care for children or older family members. Perhaps this means sharing the burden or switching to a more flexible work schedule.
No matter the solution, such a move should involve plenty of open conversations with partners, other family members and maybe even a supervisor at work. Knowing the reality of the cost of a career break may lead to different budgeting and saving plans in advance.
Awareness is the greatest agent for change.
Go through the life stages and study the financial wellbeing guide, which provides impressive statistics and valuable recommendations.
As frightening as the statistics might be, the good news is that you can avoid the significant financial risks with a little bit of planning. And you are doing precisely that already by reading this.
Think about how you (and your partner) want to approach the ley moments in your life and plan ahead. Help other women to increase their financial resilience by talking about your choices too!
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