6 steps women can take to boost their financial confidence

Women contribute to the financial well-being of their family in many important ways. Between 1979 and 2018, women accounted for 91% of the total income gain for their families.¹ In addition, the amount of work a stay-at-home mom does — from taking care of the household to acting as the primary caregiver for children and aging parents — equates to an average annual salary of $184,820.² However, all these financial contributions are often left unprotected.

The gender gap of protection

Women still lag behind men when it comes to protecting their loved ones with life insurance. Less than half (49%) of American women own life insurance, which is six points below the ownership level of men (55%).³ This is surprising, given the fact that women have overtaken men and now account for more than half of the college-educated labor force in the US.⁴

At the same time, 44% of US women (54 million) say they need (or need more) life insurance. Moreover, 4 in 10 women say their families would face financial hardship within six months after the death of a primary wage earner, and nearly a quarter (24%) expect their family to struggle financially within one month.⁵

A gender confidence gap also seems to exist, as our research shows that women identify as less financially confident than men.⁶ Much of this is due to the lack of financial literacy — only 22% of women say they are “very knowledgeable” about life insurance.⁷ Women are also more likely to act as caregivers for children or family members, in addition to balancing their work responsibilities, which affects their ability to earn income and achieve financial wellness. In fact, women are 40% less likely to report positive financial wellness than men.⁸

Actions women can take to help build financial confidence

Improving financial confidence is a journey that involves learning, planning, and taking proactive steps toward financial empowerment. Here are a few things women can do to boost their financial confidence and improve their financial well-being.

1. Educate yourself about finances. Ultimately, knowledge is power. Explore books, articles, and online research about topics such as budgeting, life insurance, annuities, and retirement planning. Attend financial literacy workshops, seminars, or courses tailored specifically for women to enhance your financial knowledge base.

2. Set clear financial goals. Outline achievable short- and long-term goals, whether it’s building an emergency fund, saving for a major purchase, or planning for retirement. Prioritize building an emergency fund and aim to cover at least three to six months’ worth of living expenses.

3. Build and manage your budget. List all sources of income and expenses. Use apps or spreadsheets to track spending and identify areas where you can save money. The money saved can be allocated towards other financial goals.

4. Protect your financial future. Ensure you have adequate life and disability insurance coverage to help protect against unexpected expenses from unforeseen events.

5. Invest in your future. Begin investing and saving for retirement, even if it’s a small amount, to benefit from compound interest over time. Consider various investment options like stocks, bonds, mutual funds, annuities, or retirement accounts to diversify risk.

6. Seek professional advice. Consider consulting with a financial professional who can help you create a personalized financial strategy aligned with your specific goals. They can provide valuable insights and advice on a variety of financial topics.