Why women need to take control of their finances
They live longer & earn less than men, so they need to invest wisely for themsleves.
Note: A man is not a financial plan. 
While women are generally “good savers”, they do not take the initiative to do financial planning & do not do as much for themselves as they should.
Most women are intimidated by financial jargon, & they get so busy with their families & children.
Financial experts agree that while the steps of building an effective money management plan are the same for men & women, the latter must be even more diligent than men because their risks of financial insecurity are greater.
“Women not just in Asia but also around the world live longer than men & almost invariably have fewer resources than men,” said Insead’s Professor Sarah Mavrinac.
Here are some interesting facts:
- Women have a longer life expectancy than men. According to research, Singapore women are expected to live to 80.4 years old, half a decade longer than Singapore men.
- Women have shorter careers. A woman’s average working period with the same company is 20.6 years, almost a decade shorter than the average man’s of 29.5 years. Women are more likely to have worked part-time because they take time off to attend to family needs.
- Women earn less than men. The average female in Singapore earns 25 per cent less than their male counterparts. Just before retirement, males have, on average, 1.69 times more money in their Central Provident Fund (CPF) balances than females.
- The divorce rate gets higher each year. After a divorce, the average man’s standard of living goes up 23 per cent while that of the average woman goes down 10 per cent.
OCBC’s vice-president of Wealth Management, Ms Anne Tay, emphasised that women should have their own insurance policies, including those that cover medical needs. They should build their own nest egg over & above any joint savings or investment they may have with their husband. This is also prudent in the event that their husband is declared bankrupt or owes huge debts.
Prof Mavrinac added that besides being more diligent than men in their basic money management, women must also be careful in managing risk, e.g. a woman with children who relies primarily on the husband as the breadwinner must be adamant that an insurance policy covers him.
Too often, older women find themselves in poverty because the family’s savings have been spent on medical care for the husband in his last years. They are then forced to learn how to manage the family’s financial affairs & to make tough decisions on running the household on their own.
To aggravate it further, women are also generally less willing to take risks with their money.
It is not surprising that endowment insurance plans - which come with guaranteed amounts at maturity - are commonly bought by women for wealth accumulation as opposed to equity type investments. As such, a large proportion of women also tend to place their money in fixed deposits & savings accounts.
However, the returns on such instruments are low & may not necessarily help them to achieve their financial objectives.
More women should think about growing their money more efficiently, take more calculated risks & take a longer-term view for their investment.
In short, women should make an effort to be financially savvy. We should strive to be in the know on the latest trend on how to invest & manage money rather than take a back seat & be concerned about cooking or looking after the family, because we think money management is a man’s job.
