Financial Freedom for Women: Mastering Smart Savings Strategies

Recent studies reveal a troubling reality: women are falling behind men in retirement savings. A 2024 report from The Transamerica Institute for Retirement Studies highlights that women, on average, have lower retirement account balances, contribute less to their retirement funds, and are more likely to lack retirement savings compared to male counterparts. Furthermore, New York Life’s Wealth Watch 2024 Outlook survey found that only 57% of women feel on track to meet their financial goals, compared to 75% of men.

Despite this, women are increasingly taking on leadership roles in household finances, driven by factors like inheritance, divorce, and career success. In fact, a report by McKinsey & Co. predicts that by 2030, women will control about 38% of investable assets in the US, nearly double their share in 2023. With this growing financial influence, it’s more important than ever for women to adopt smart savings strategies. Below are some tips to help women take control of their financial future and close the savings gap.

Given women's longer life expectancy, it's crucial to prioritize financial security and growth for the future. Regular contributions to retirement accounts are paramount, as is considering high-yield savings accounts with daily compounding interest to maximize growth.

Familiarize yourself with your monthly spending habits and create a budget that will help you stay within your boundaries for maximum savings. Focus on minimizing and paying off your high-interest debt, even if you can only contribute a small amount over the minimum payment. 

The New York Life’s Wealth Watch 2024 Outlook survey also reported that 55% of men are have funds or savings set aside, compared to only 41% of women. Create an emergency fund and set a monthly contribution goal of your own to ensure you have savings in your back pocket in case of untimely situations or financial hardships.

If you do not already have one, open a secure credit card to begin establishing credit. You can also become an authorized user on your significant other or a relative’s credit card account, which will allow you to receive good credit actions without liability for any charges. If you share your bank accounts with your partner, check that you are establishing credit on your own.

Short-term goals may include setting aside funds to pay your bills each month, buying groceries, and paying for monthly subscriptions, while long-term planning encompasses comprehensive estate management. Estate planning safeguards your intentions, particularly in unforeseen situations like incapacitation. If you have children, consider options like establishing a 529 college savings plan, integrating it into your estate plan for seamless financial management.

The trajectory of financial empowerment for women is on an upward trend, with women now overseeing 32% of the world's wealth, totaling over $72 trillion. To develop robust savings plans, seek guidance and mentorship from Oppenheimer financial professionals and stay up-to-date on financial developments to bolster self-reliance and assurance in steering your financial journey.

By embracing these tactics and maintaining a proactive stance, women can navigate towards financial stability and autonomy, securing a brighter future for themselves and their families.