Girls Just Want to be Financially Empowered

By Angela Grannan on August 28, 2023

The summer of 2023 has been the season of girl/woman power. If you have any doubts, I have 3 words for you: Taylor, Beyoncé and Barbie. Consider some of these stats—it is estimated that the economic impact on the US of Taylor Swift and Beyoncé is $4.5 to $5 billion (each)! The Barbie movie has already brought in over $1B in box office sales.[1]

These astounding numbers inspired me to look into the financial power of women. Did you know that women control more than $10 trillion in US household financial assets? By 2030, analysts expect that number to triple as a result of intergenerational wealth transfer from Baby Boomers to their heirs.[2]

On the employment front, there is impressive news too. In the US, there has been a rebound in the labor participation rate of women. In June, the rate for women age 25-54 (prime working age) hit an all time high of 77.8%. More women than ever of prime working age are earning, spending and investing.[3]

This is all good news for women and their finances. There is no doubt that we are an economic powerhouse. But what should you do to ensure that you continue to prosper and enjoy the fruits of your labor for years to come?

Think ahead and have a plan—specifically, a financial plan!  Creating a financial plan can help to overcome some of life’s challenges. A plan can give you the financial freedom to pursue your dreams in retirement (travel, a second home), bring stability to your finances and allow you to handle obstacles along the way.

Think about your goals. What would you like to accomplish career-wise? What does your ideal retirement look like and what does financial comfort mean to you?[4]  

Consider your retirement budget. Think about your income and spending habits. Consider where you will live. Get an estimate of your Social Security benefits and tax rate. And be sure to consider some unexpected challenges and a longer life expectancy.

Review your investment opportunities. Once you have thought about your goals and budget, you will dig into your investments—assets, liabilities and sources of income. Take a look at how much you are saving for retirement.  Are you contributing to a workplace retirement plan—taking advantage of a corporate match or catch-up contributions if you are over 50?[5]  Consider how your money is invested.  Do your investments reflect your risk tolerance and short- or long-term goals? 

Revisit on a regular basis. Creating a financial plan is not a set-it-and-forget exercise.  This is something that you should review with your financial advisor every year.  We all know that life changes and markets change.  Reviewing your plan will help to keep you and your advisor accountable and up to date.

Finally, if you have a partner, work on this as a team and be honest with each other.  Really dig into your finances, goals and fears as a couple.  This is an opportunity to get more involved in household financial decisions if you have not been in the past.  Creating a financial plan will help to prepare you for retirement, but it’s also a great opportunity to learn along the way and stay empowered.

[1] https://www.cnn.com/2023/08/09/economy/barbie-taylor-swift-beyonce-economic-impact/index.html  As of 8/9/2023

[2] https://www.morganstanley.com/articles/financial-future  as of 2/23/2023

[3] https://www.cnn.com/2023/08/09/economy/barbie-taylor-swift-beyonce-economic-impact/index.html As of 8/9/2023

[4] https://www.morganstanley.com/articles/financial-future As of 2/23/2023

[5] https://www.usbank.com/wealth-management/financial-perspectives/women-and-money/women-wealth-retirement-financial-planning.html