This is a sponsored post for SheSpeaks/Prudential.
As a stay-at-home, blogging, homeschooling mom, my life revolves around calendars and plans. I’m managing schedules for four, planning days, planning meals and planning lessons. I’m always thinking about our plans for the coming weeks and months, but what I rarely consider planning for is my personal financial future.
Of course, my husband and I talk about saving, retirement, etc., but that usually has more to do with his work-related benefits or our family finances as a whole. We rarely discuss long-term finances as it relates to me, except of course to make certain I could afford to manage if he was taken from us. That’s definitely important since he’s winning the bread right now, but what would happen to his finances if I was taken from him first? It’s not something we typically think about, but it’s a conversation we’re certainly about to have.
What’s mom worth?
When it comes to money, my focus lately has been on getting ready to send my daughter to college and getting completely out of debt this year. I would have been content to keep moving in those directions if I hadn’t discovered “The Value of All You Do” tool on Prudential’s website. Based on my responses, my family would need roughly $120,000/year to pay others to do what I do. I knew there was real value in choosing to stay at home, but I’ve never given much thought to how that converts to dollars and cents. Clearly, we’re doing our family a disservice by not have a life insurance on dear ol’ mom. I’m guessing we’re not alone, so raise your virtual hand if you’re in the same boat.
Addressing the Challenges That Impact Women’s Finances
Beyond the financial challenges we face if we’re stay-at-home moms, women at large face some significant financial gaps.
- Wage & Income Gap
Women don’t earn as much as men. The average woman working full-time earns 79% of the income earned by her male counterpart.1
- Investment Gap
Women don’t invest to the same degree as men.2 Women’s discomfort with investing comes at a high cost for them: They are apt to delay investing, invest more in lower risk, lower return investments and are more likely to run out of money in retirement.
- Women are Living Longer and Living Alone
Women outlive men by approximately 5-6 years.3
- Time Gap
Women may feel they do not have enough time for financial planning. On average, women in the U.S. spend 28 hours per week on household chores – 65 percent more than the average for men.5
It’s incredibly important that we begin to shift our thinking and focus more on our financial futures. If we educate ourselves about these issues, we can better prepare and protect ourselves.
The Conversation Women Aren’t Having
I talk to my girlfriends about a lot of things, but planning for our financial futures rarely makes the list. Even here on the blog, I share quite a bit about managing your finances, but I rarely mention retirement or life insurance. That makes no sense at all, especially since most of us are managing our family budgets. We’re already lagging behind the guys in our lives. More conversations on the subject might help us better address these unsettling statistics:
- On average women’s have 30% lower retirement balances than men.6
- 44% of women have no life insurance. Even among the ones that do own life insurance, most are underinsured.7
So, let’s start talking—to our husbands, to each other and to industry professionals we can trust. Visit the Prudential site for more information and to find an advisor who can help you get started. Now, before you go, tell me how you plan to own your future. Let’s chat about it in the comments or on The MamaZone’s Facebook page!
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- Source: U.S. Census Bureau, Historical Income Tables Table P-40: Women’s Earnings as a Percentage of Men’s Earnings by Race and Hispanic Origin, 2016
- Source: http://fortune.com/2016/05/11/sallie-krawcheck-ellevest-launch;
- Source: Prudential Retirement analysis; National Center for Health Statistics, Health, United States, 2015: With Special Feature on Racial and Ethnic Health Disparities. Hyattsville, MD. 2016
- Source: US Census Bureau 2015;
- Source: Organisation for Economic Cooperation and Development, October 2016, http://stats.oecd.org/index.aspx?queryid=54757
- Source: Prudential Retirement analysis reflecting defined contribution plan balances of Prudential record-kept plans as of December 31, 2015
- Source: LIMRA study, Life Insurance Ownership in Focus, U.S. Person-Level Trends: 2016