It's no secret that
women on average make 20% less money than men, but
live longer. by five or six years. We
leave the workforce more often to care for our children or sick family members, we tend to work in lower paying industries (when
we do move into higher paying industries, the pay drops), and we make less in the same job as men (and
minority women have it the worst). That's a lot of pressure when it comes to our pocket books, which means women should be the most invested (sorry for the pun) in financial planning.
But when it comes to financial planning,
women are actually significantly less confident in their financial literacy than men even though studies show
women tend to be better investors than men because they choose less risky investments, trade less often, and are more focused on long-term growth than short-term gain. I see this in my every day life. In my investment club, I am the last remaining woman who is an active member. Four other women have dropped out and two more are silent partners. What happened? Why have the other women pulled out or decided to just trust the rest of us with all of the decisions? I truly can't figure out why so many women do not take any interest in their finances and choose to give up so much power and control over their lives. Is
imposter syndrome holding them back?
But wait, it gets even worse. Not only are we making less and having to make it last longer while simultaneously opting out of being involved in planning for our future, we have to spend more just for the privilege of being women. That's right. Women are
charged more for female versions of products ranging from clothes and shoes to hygiene products like lotion and shampoo. On top of that, we are conditioned by social norms to spend more on our appearance (make-up, manicures, etc.). If that wasn't bad enough, advertisers have woken up to the fact that women do most of the consumer shopping and we are now facing an onslaught of marketing trying to get us to buy more and more products. I have found this pressure to consume the most intense when in comes from our own friends in direct sales (LuLaRoe, Pampered Chef, Jamberry, DoTERRA . . .). I don't think a week goes by when I don't see an invitation come through on Facebook to attend someone's direct sales party. While I appreciate the schedule flexibility these jobs can offer, especially for stay at home moms, I resent the pressure to support my friends by buying products I don't need so
they can earn a meager amount of money (or actually lose money). It's simply consumerism at it's worst. There has to be better ways for women to support each other, but that is a topic for another post.
Every time I see a new article out talking about the differences between the way men and women handle money, I'm always shocked. I just can't relate. My mom was the financial wiz in my household growing up and now that I'm an adult, I have taken on the role of CFO of the household finances. This doesn't mean that my husband isn't highly involved in decision making, but I'm the one who pays the bills, researches what to do with our savings, and plans for the future. My husband is highly capable of filling the CFO role, but it landed on me more as a default because of my husband's travel schedule (yes, there were a few late bills before I took it over), and as I have found myself increasingly obsessed with financial planning as I age, I am happy to take on this particular responsibility.
All this inequality means that it is especially important that I raise both of my children, but especially my daughter, to be confidently financially literate. While I have plenty of time (my daughter is 3 and my son is still a baby), I have already been researching the best ways to teach them to handle their money responsibly. I am confident that I already model good financial habits, but as my daughter starts to learn math, it will soon be time to let her practice with her own money. I have already started to talk to her about money in simplistic terms when she asks me for impulse purchases at the store (no we are not going to spend twice as much money to have her ingest twice as much sugar just so she can have the yogurt with Ana and Elsa on it), but there are so many differing opinions on how to handle an allowance out there that I find myself a little at a loss. On the one hand, attaching chores to an allowance can
teach kids the value of hard work and also gives me the option of very specific consequences (no money) if those chores aren't completed to my satisfaction. On the other hand, keeping them separate and making chores just part of contributing to the family could make my kids
less entitled and better with money.
Currently, my daughter is more apt to be upset if we don't let her help fold laundry, make dinner, feed the dog, or whatever chore we might be doing. But that could fade as she figures out those tasks aren't really as fun as she thinks they are. My hope is that her "I can do it myself!" slogan will continue and I can easily keep chores unattached without issue. Even better if that independence is modeled for and then imitated by her brother as he gets older. But I am fully aware that he could go the opposite direction just as my own brother and I had very opposite reactions to chores and money.
What do you think? How do you handle chores and allowance in your household? Let me know if the comments!