Money is power and freedom: Women need to take control of their finances

It's never too late to exercise your financial muscle

Despite the fact that women are more educated, accomplished, and empowered than ever before, we haven't “come a long way” as the old adage goes. Research shows that most women still do not have complete control over their finances.

In some ways, we seem to be stuck in the 1950s. According to a recent survey conducted by a major financial institution, when it comes to married women investing and managing their money, more than half delegate investment and financial planning decisions to their spouses.

What's the reason? Most people believe their spouses know more than they do. It is not always true. In my experience, this is due to the wife's misplaced lack of confidence than the fact that they are married to financial geniuses.

The persistence of men managing financial decisions does not appear to be changing anytime soon. Eight out of ten women polled were satisfied with the present distribution of financial duties in their relationships.

Let me share a client experience to demonstrate why this is not a sensible idea. A woman came to me for advice after her husband of 40 years informed her that he wanted a divorce. She worked for the first half of the marriage, but when she retired 20 years ago, she delegated all financial decisions to her husband, from paying the bills to handling assets. She had no idea what they owned, what their monthly bills were, or how much they owed. She was scared.

How can women continue to expose themselves in this way? When your life is in disarray, starting from scratch to learn about money is not ideal.

It's not just the ladies of the baby boomer generation. According to research, millennial women, more than any other generation, defer financial choices to their husbands.

According to the research, 69% of fathers and 52% of mothers with children under the age of 21 indicated they were happy with their daughters' prospective spouses handling long-term financial planning. Even more disheartening, 43% of female breadwinners stated they also delegate financial choices to their husbands.

I understand how difficult it is to break free from gender roles. I also understand that one can only do so much, and it isn't easy when working women spend two or more hours cleaning, cooking, and caring for children every day.

But let’s examine the facts. Women outlive men, and 80 percent of them will end up alone, whether due to longer life expectancies or divorce. My experience with widows and recent divorcees has shown that almost all of the women who did not take an active role in their money regretted it once they were on their own.

It's never too late to flex your financial biceps. Money represents both power and freedom.

Not sure where to begin? Seek someone you know who is already in command. It might be a family member or a close friend. Seek their advice—request to be introduced to a financial professional if they are working with one. Indeed, meet with them more than once because you need to feel at ease and confident in anybody you choose to deal with.

And if I can help in any way please reach out to me at brenault@liahona.ca or 705.427.2006