Overcoming Retirement Savings Barriers
Ever feel like the financial world is totally rigged against women? After this week’s episode, we do too.
On this week's How to Be a Grown-Up, we're pulling back the curtain on the not-so-pretty truth about women's financial challenges. We're talking about why women save less than men, and it's not just because we like shoes more (though, that might be part of CK’s problem…). We're diving into the gender pay gap, that ridiculous "pink tax," and all the other ways the system is designed to keep us down.
But knowledge is power, people—especially money power. So, we're not just complaining; we're offering solutions. We'll talk about why we need transparent pay policies and how to start padding that retirement account, one step at a time. Because closing the financial divide is a marathon, not a sprint.
We're also tackling the tough stuff: student loan debt (because college is expensive!), caregiving responsibilities (because who runs the world? Moms!), and the part-time work trap (because sometimes that's all we can get). All of these things disproportionately affect women's financial stability.
Even though more women are graduating college (go us!), we still face bigger financial hurdles. So, we're sharing actionable advice on how to overcome these obstacles. From finding a good financial advisor (who doesn't mansplain) to opening a high-yield savings account (because your money deserves to work as hard as you do), we've got you covered. It's time to ditch the "broke bestie" narrative and take control of your finances. We're talking personal finance, investing, savings—the whole shebang. Let's turn those systemic barriers into stepping stones toward financial empowerment. Because we deserve it.
What You Get From This Episode
The cold, hard truth about women's savings: We're talking stats, the gender pay gap (ugh), how education (and student loans, double ugh), and the lack of paid parental leave all play a role.
Why community matters: We'll discuss the power of talking about money with other women (no judgment here!).
Real solutions to help women build financial security like how to get paid what you deserve and how to make your money work for you: Quick tips on negotiating salary and benefits and high-yield savings accounts and other smart money moves (because you're worth it!).
Listen Here
DISCLAIMER: This episode and blog post are not financial advice; listeners and readers should consult a qualified professional for personalized guidance.
Money Matters: Overcoming the Savings Gap
Financial literacy and savings are a big deal, especially for women. Frankly, the deck is stacked against us. We're talking about how societal stuff, economic realities, and even our own choices can make it harder for women to save for the future. Keep reading to join us as we dive headfirst into this mess, figuring out why it's so tough for women to save and what we can actually do about it.
The Current State of Women and Money: the Pay Gap, Student Loans, and the Patriarchy
It turns out, women are way less likely to be saving for retirement than men. Like, way less. A Bankrate survey found that a crazy 26% of working women didn't put a dime into retirement savings last year. For guys? Only 16%.
And it's not just about if we're saving, it's about how much. Women are averaging a measly $3,100 in savings, while men are sitting pretty with around $7,000. Ouch. That's not just a "discrepancy," it's a gaping hole. And it's mostly because of that lovely gender pay gap. We earn, on average, 82 cents for every dollar a dude makes. And if you're a woman of color? That number plummets to 65 to 70 cents. Seriously?!
This pay gap garbage has a domino effect. It doesn't just affect our current savings; it messes with our future savings too, like Social Security. Those payments are calculated based on your 35 highest earning years. So, if we're constantly earning less, our Social Security checks are going to be smaller, too. We're talking about women getting around 80% of what men get. It's a vicious cycle.
Here's another fun fact: women haven't always had the same financial opportunities as men. It wasn't until 1974 that women could even get a credit card in their own name! Think about that! The result is that a lot of women from older generations didn't learn how to manage credit and debt, which means many of us today don't have those role models to guide us. Thanks, patriarchy.
And then there's the whole education thing. Sure, more women are going to college (yay!), but that also means more student loan debt (boo!). Plus, women are still more likely to be the primary caregivers, which can make it harder to work full-time and save. And let's not forget the lack of paid parental leave. Only about a third of U.S. companies offer it. So, women are often forced to choose between their careers and their families. It's a no-win situation.
3 Steps to Financial Empowerment
Okay, enough doom and gloom. Let's talk solutions.
First, get educated! Find financial literacy resources—podcasts (ahem!), workshops, financial advisors, whatever works for you. There are lots of websites you can visit, too (and some I’ve used are linked in this blog post).
Next, learn the lingo! Y’all know I will die on this hill. Vocabulary is powerful, so pay attention to those key terms—savings, investments, compound interest (it's your friend!)—and use those words in context. Look into high-yield savings accounts to make your money work harder.
And, of course, negotiate your salary and benefits. Don't be afraid to ask for what you're worth. If you’re a woman in the industry, be transparent about your pay. And if you’re a man in the industry? Be transparent about your pay (that’s how you can actually be an ally, gents). Check out TealHQ for free résumé and cover letter support, and this article from Forbes has great pointers for salary negotiation.
The bottom line? We need to empower ourselves by advocating for ourselves. Let's share our knowledge and experiences so we can close this savings gap once and for all. We ALL deserve a secure and prosperous future.
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Make good choices,
Caitlin
Sources for this episode
26% of working women are leaving free money on the table that could set back their retirement by Alex Gailey
What holds women back from saving — and what they can do about it by Jasmin Suknanan
Why Don’t Women Save As Much as Men by Liliana Hall
Who We Are
We're two moms just trying to reframe our money mindset, keep our families afloat, and take down the patriarchy. Learn more about us in our weekly podcast, How to Be a Grownup.
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