Women & Finance: You Have to Have Your Own Money Skills

I was speaking to a woman about money and monitoring expenses when she admitted that she “just let’s her husband handle everything.” When she said everything she meant everything. She had no idea what accounts they had or at which institutions they had them. She of course didn’t have the passwords to any accounts. She didn’t pay the bills and trusted and expected him to alert her if there was anything she really needed to know. I was shocked. Was this really happening in this day and age?
Apparently the number of women who handle the household finances went to 24 percent in 2013 according to Fidelity Investments. Wow only 24 percent. It’s better than it was but is still so low. Women were not as confident about their ability to handle the finances especially not investing and long-term financial planning.  This is especially troublesome since women are still outliving men. Between the 40-50 percent divorce rate and the fact that the life expectancy for women is longer than for men, at some point women will have to be fully in charge of the finances.
Even if you allow your spouse to have full control of the finances at least be well versed in what the household financial situation is. Both spouses should have a vested interest in the financial security of the household. Here are some ways and rules to come together over the finances:

1) The information for any shared household accounts should be known to both parties. Information such as the institution, account number, and account password.  Notice I shared accounts. If you subscribe to the ideology of a separate account for each and a joint account … hey that’s fine. As long as both parties agree and are honest.

2) Design the budget together. This way it’s clear to both parties where the money is going and why. Miscommunication here can lead to differing expectations on spending. If one person is unclear on the actual budget for a specific category then it will be much easier to overspend. Overspending in one category causes you to have to make up for it somehow, usually at the expense of your financial goals.

3) Have monthly finance meetings. Schedule the time on your calendars to sit down and check in on the financial plan and with each other. How well did you stay within the spending plan aka your budget? What needs to be tweaked for next month? How much progress did you make towards your goals? Make sure everyone is on the same page. It doesn’t have to be long, it’s a check in.
Guys, don’t think you’re saving her the trouble or the worry. Include her in the conversation and updates on the money. Women take an interest and do what you need to do to be more confident about financial decisions.

Grow your financial confidence:

1) Read (well continue reading since you’re here) financial blogs and books. There’s a lot of great information out there. Start reading and gathering the knowledge necessary to be an engaged participant in building your financial security.

2) Exercise your growing financial muscle. Go beyond the budgeting and household expenses. Have discussions about the long-term financial planning. Make sure you understand what the plan is for your financial security. Know how you will be able to survive and run your household during retirement. Talk about the retirement goal. Know the nest egg number and how close you are to it. Know the plan of how you will reach that number. Talk about the investment vehicles being used.

3) Attend the meetings or conversations with the financial advisor. Both spouses should be comfortable with this person. If either don’t feel comfortable talking to the financial advisor then it may be time to make a switch. This person is handling your money and investments, you should be comfortable asking any question about your money. No matter how silly you may think the question is! You should be able to ask “hey does money grow on trees?” and get a thought answer that doesn’t make you uncomfortable. You can then say you were just joking.
Both spouses should be involved in the financial security of the household. However, each person should have money management skills of their own.


Photo credit: The Urban Scot







About Dr. Maria James



Dr. James, The Money Scientist, has expertise with designing income management, debt management, and wealth strategies to help you live your best life. She is the founder of Pocket of Money, LLC and the creator of The Wealth Protocol™. Dr. James has also been a guest financial expert on ESSENCE, WEAA, Madame Noire and more.

3 Habits of Millionaires You Should Adopt

We’ve all seen the lists that come out every year naming the wealthiest people in the world and the country. The billionaires and millionaires, individuals whose net worth are in the millions and billions not the people who simply make millions (yes there is a big difference). People who build wealth tend to be focused. They keep their eyes on the prize and most think big and outside the box. These traits combined with some other key habits are exhibited by millionaires and are the reasons they have and keep their millions.  Here are some concrete habits you should adopt.

Habit #1: Millionaires are frugal.

When people think of the word frugal most go straight to the concept of being miserly, instead of careful with money or not wasteful.  Usually a frugal person is considered to be a cheap person who tries to skimp on everything. However, let’s turn that on its head. Millionaires are some of the most frugal people. You may immediately think, yeah sure they are…that $500,000 car and multi-million dollar home is really frugal. But it’s true, millionaires are frugal. For example, I watched an interview where Warren Buffet, the second wealthiest person in America at a net worth of $58.5 billion, said he’s had the same wallet for twenty years! Twenty years! If anyone can afford a new wallet then Warren Buffet can right. However, it’s not just about the fact that he could afford it. He spends on what he truly enjoys and is frugal about everything else. That’s the true luxury in frugal living (the motto you see blasted on this site). Spend as extravagantly as you want on the things that you love and be frugal with the things that are not as important to you. Sure, millionaires have very expensive items and toys but they made sure to have the income or assets to pay for those toys before they purchased them. No credit used. No debt incurred.

Habit #2: Millionaires keep it slow and steady.

You don’t see millionaires trying “get rich quick schemes.” There are proven methods to build wealth and increase your net worth and they aren’t quick or overnight, with the exclusion of inheritance or winning the lottery. The term is “build wealth” for a reason, you must build it. You will need to use long-term money solutions such as a 401(k) and investments outside of retirement accounts to build wealth. Continuously contribute to retirement accounts to reach your nest egg goal; yes you should know how much you will need, the exact dollar amount. You have to know what the prize is to keep your eyes on it. Investing takes time to see steady gains. The average return on investment in today’s market hovers between 9-10%. I would need to write several articles to explain details about investing, but basically you need to leave the money in the market for years to see such returns. 

Habit #3: Millionaires buy assets not liabilities.

When you get your paycheck and you make a list of the things that you’re going to buy, what is on that list? Is every item a liability, something that you will spend money on that doesn’t make you any money? If yes, then you’re falling into the cycle that many of us do. We use all of our income to purchase liabilities and don’t spend any money on purchasing assets. Assets are things that bring in money without you putting additional money, time and energy. Millionaires work on continually acquiring assets or investments that can bring in money. Create a plan on how and when you’ll purchase more income generating assets.

Pair your determination, focus, and knowledge with these habits so you too can start building wealth and raising your net worth. You can do it. 

About the author: Maria James has a compassion for people that makes her involvement in Heal a Woman to Heal a Nation a sure fit. She is a biomedical scientist who is public health conscience and has always worked for the betterment of others. Maria is the founder of Pocket of Money, LLC which provides tools and tips to help you take control of your money and live your best life.