TEMPE, AZ — As Women’s History Month kicks off and International Women’s Day approaches this weekend, financial experts say women in the United States still face unique financial realities when it comes to money and long-term planning.
Despite progress, women in the U.S. still earn about 80 to 85 cents for every dollar men make, according to the Pew Research Center. Add in longer life expectancy and career breaks for caregiving, and experts say planning ahead becomes even more important.
For many women, the goal is simple: financial freedom.
“My whole life, my one goal in life was to be able to be financially free,” Kate Morin, of Tempe, Arizona, said.
Experts say reaching that goal starts with understanding how financial strategies should change throughout life.
“Women do face different financial challenges than men,” Kimberly Palmer, a personal finance expert with NerdWallet, said.
Palmer says women are more likely to step away from the workforce for caregiving, whether that’s raising children or helping aging parents. Combined with the gender pay gap and longer life expectancy, she says it’s critical to plan carefully.
“So that means we need to think about how we’re saving, investing, and protecting our financial security,” Palmer said.
She recommends women start building financial habits early, starting in their 20s:
- Build credit intentionally and understand borrowing power
- Start investing early (even in small amounts) to harness compounding growth
- Create a budget to grow savings, emergency funds, and manage student debt
Some young women say they’re already thinking about those steps.
“I’m still in college, so I don’t have that crazy of an income yet,” Jada Cross, of Tempe, said. “So just saving and investing.”
Morin, who recently graduated from college, says she also tries to prioritize saving.
“Every paycheck, I try to take at least 10 to 15% and put it in a money market or a high-yield savings account,” Morin said. “And then moving home saves some money.”
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In the 30s and 40s, Palmer says the focus shifts:
- Protect your income with the right personal insurance coverage
- Prioritize retirement contributions during peak earning years
- Have transparent financial conversations with loved ones
“It’s all about protecting what you have,” Palmer said.
For many women, financial planning later in life can become more complicated.
Mesa resident Jeannette Bagshaw stepped away from her career as a chef for several years to raise her four children. Now 57, she says retirement planning feels uncertain.
“If I didn’t feel like I was going to live so long, which I do feel like I’m going to live a long time, it might be different,” Bagshaw said. “It’s a little scary to think about retiring unless you’re absolutely sure that you can make up for that.”
Her strategy now is simple.
“I am going to have to work a long time. I’m 57. I probably won’t retire until I’m well over 65,” Bagshaw said. “Save, save, save. That’s really where I’m at.”
Palmer says women in their 50s and beyond should:
- Maximize retirement contributions
- Reassess risk tolerance and long-term care planning
- Create or update estate documents
“So when you are retired, you can make sure that money lasts,” Palmer said.
Gilbert resident Gloria McCarthy says planning ahead is key, no matter your age.
“You do have to plan ahead,” McCarthy said. “We don’t know how long we’re going to be around for, but we plan as if we’re going to be around for a while.”
Experts say the most important step toward financial security is simply getting started.
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