Understanding Your Finances
I am extremely passionate about ensuring all Women grow their financial understanding and thereby achieve a level of financial independence.
What is financial understanding and why is it important?
A definition I like is from the US Presidents Advisory Council on Financial Literacy – ”the ability to use knowledge and skills to manage financial resources for a lifetime of financial wellbeing”. This creates financial freedom and empowerment.
It is distressing to me that the fastest growing sector experiencing poverty in Western societies is elderly women. Why? Because we live longer, have less financial understanding, less access to financial resources and earn less over our lifetime. We need to reverse this trend.
If you aren’t convinced yet that this does matter and isn’t just a boring topic – here are some additional facts and questions you must ask:
- Financial decisions are integral to everyday life – financial security or stress has a real impact on a family – it impacts physical, mental and emotional health. What is your family’s level of financial health? Do you know your family’s income, expenses, assets and liabilities?
- All financial decisions involve risk – Men typically are comfortable with a higher level of risk than Women . You need to discuss and agree with your partner the level of risk you are prepared to take for your family. What level of risk is involved in the financial decisions your family have taken today? are you comfortable with that level of risk?
- You never know when your situation may change and financial responsibility will fall to you – sadly death, divorce and disability occur everyday. Life never goes as we expect – how would you cope if your world changed tomorrow? Could you weather the storm if you were in the drivers seat?
- You will most likely be the one to pass on knowledge to your children – good habits learnt and adopted early make a huge difference over a lifetime – could you give your children these skills ?
Over the coming months, I will give you some tips and hints from my experience – I would love to hear from you with any questions you would like me to write about – until next time. Julie