Certainly, it is not far-fetched to think of a reason why multinational companies would spend billions of dollars each year to market their products geared towards women. One should only know the fact that women have the more important say in terms of purchasing power and decision-making authority. In the US alone, a study shows that working women between the ages 24 and 54 are the most influential buyers. Companies set aside huge amounts of money to woo women customers, adopting product designs and positioning to make their products appealing to women.
So how do we reconcile such findings with other studies showing that generally speaking, women earn less than men, that they only earn 78 cents for every dollar that a man does? Even if such is the case, women are always in the position that allows them to possess more decision-making power when it comes to buying. Women are more cautious in making shopping choices than men because the former tend to be less induced by advertisements and will always study their options more extensively. It is common knowledge that budgeting and managing household finances come naturally for women. But their influence is not merely limited within the confines of groceries and department stores, but also in family travel plans, medical expenditures, and car and insurance purchases.
Problems in Finances
While more women are becoming more financially independent than they were before, this very same situation makes them more vulnerable to problems associated with money.
For example, in 2005 the Women’s Health magazine published reports that some 57% of women own up to having lack of discipline in dealing with money, and that 49% lose sleep over their own financial problems.
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While they love to spend, women are less enthusiastic when it comes to financial planning and investing. This is largely attributed to the fact that most women tend to be complacent in financial planning in general. Most of them are confident that some other person other than themselves would take care of their own financial necessities, be it their husband, their career, parents, until they find themselves in a situation that leads them to financial dead-ends such as loss of job, death of husband, divorce, or other similar situations.
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For the past decades, women have caught up with men in terms of employment as more women have joined, if not outnumbered men in the workforce. This resulted in women increasing their median income from 63% in 1979 to 80% of men’s average weekly earnings in 2005. But this did not necessarily translate to women having more earnings than men, as women are more vulnerable to having money behavior that influences the way they handle their financial security. According to Liz Perle, author of the new book "Money: A Memoir”, women have the tendency to be non-transparent about their financial issues. For example, women’s fear to negotiate their worth keeps them from seeking first salary negotiations, and eventually end up working for low salary. Women also tend to turn into denial mode when it comes to their spending, meaning they are more likely to cover up expensive purchases to hide what they regard as an “embarrassing” spending habit.
Should Women Be Blamed?
One could not say that women have the monopoly of financial problems. Both men and women can always fall victim to money issues due to irrational behavior. But considering that women generally hold the purse, the issue of self-discipline over the way money is handled should be a big consideration. Women are regarded to be inherently thrifty but it is quite astonishing to know that many of them have little or no savings at all. This is true among married women who might have brought their own personal savings into the marriage, but saw it diminishing over time to help in the family expenses. Some may have set aside their own savings, but such might not be substantial enough for important investment.
Starting With Your Financial Plans
Considering these financial burdens that women face, what should be done to alleviate the situation? There are so many ways on how we should be responsible in handling our finances, but the bottom line is planning, implementing, and envisioning our own strategies to ensure financial security.
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Too much of everything would not do you any good. Avoid spending more than you can earn. Live according to your means, otherwise, you will end up with nothing for your basic necessities. If you pass by a boutique and come across a to-die-for dress, think twice before digging into your purse for cash or for your almost-maxed out credit card.
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Keep track of your daily expenses. Try keeping a daily listing of expenses and go over the list at the end of the week. Find out how much you have spent for the week as against your budget. If you don’t go beyond your budget good, if you have saved some amount, that’s even better! On the other hand, if the expenses are way higher than your budget, and things have just become more costly for you, then it’s time to review your shopping list and spending priorities.
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Do not use money as a measure of your happiness. Buying that YSL bag might give you the extra morale boost, but one thing is for certain: such good feeling is only momentary. Immerse yourself in other creative self-improvement activities without digging into your pocket for cash. Avoid the urge the splurge just to feel good.
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For those who are contemplating marriage, try putting it off if you or your spouse-to-be has standing loans or debts. If you can’t wait, then protect yourself with a pre-nuptial agreement. Otherwise, you should psyche yourself up for the possibility of giving up your own personal savings or property to help pay off if your partner’s debt catches up with him or her.
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Do not keep your spouse in the dark over your family’s finances. Let your spouse participate in making the budget, or talk about it with him or her.
The ways on how to handle your personal finances are innumerable. Different situations would call for different solutions. But the most important but basic rule to live by is not to spend more than what you actually earn.