Written by Catherine Scrivano, President, CASCO Financial Group
Women have several very important reasons to think about money [i]
- We have longer lifespans than our male counterparts
- We tend to earn less money (average 80% of what men earn)
- Women are more likely than men to take breaks in their career to care for family members (children, parents etc.), which affects future earnings, retirement savings, social security benefits, etc.
These and other realities mean that, in general, women must make fewer dollars last a longer time. At some point, a woman is very likely to be wholly responsible for her financial circumstances.
A recent poll[ii] of over 3,600 women found that 54% of women in the United States defer long term financial decisions to their partners. That means that in case of death or divorce, they are going to have to try to understand their finances during a time of great stress and chaos. The challenge of catching up on family finances during a traumatic life transition is daunting.
“You are the most important person here.”
Rosa and her husband Tom were clients for several years. She attended meetings reluctantly, often checking her phone or shifting in her seat, obviously not engaged in the conversation. She was polite and respectful but dismissed the conversations about money and financial strategies as “not my thing”.
Tom was very involved, usually wanting to discuss the latest “hot” stock or bragging how he had once again taken advantage of a zero percent interest offer from a credit card company or refinanced the house, brushing aside my caution to consider the costs, and my recommendations to reduce spending rather than trying to outrun and outsmart the debt.
Tom died suddenly and unexpectedly of a heart attack just days after his 54th birthday, leaving Rosa and their 17-year-old son Peter behind.
I attended Tom’s funeral and was moved by the number of people there: family, friends, Peter’s teachers and teammates. As I approached her to express my condolences Rosa, surrounded by loved ones, looked at me and began to sob. “You are the most important person here!” she said. This haunted me; her fear of her financial future was more intense than the other things she was facing.
I felt honored to be able to help, because we had documentation and information on her circumstances and were able to assist in creating her new life. It took several years to establish stability and she was fully engaged throughout, berating herself for having been so uninvolved and unaware when Tom was alive.
It is never too soon to begin gathering information and documents, learning reasons for financial decisions made in the past, and taking an active role in decision-making going forward. A financial professional can help you identify your goals and devise strategies to help you achieve them.
Catherine Scrivano CEP, ADPA, AIF, Financial Advisor, is president of CASCO Financial Group, LLC. 2525 W. Carefree Hwy Bldg 2, Ste # 112, Phoenix, AZ 85085. Securities and advisory services are offered through Cetera Advisor Networks, LLC, member FINRA, SIPC. Cetera Advisor Networks and CASCO Financial Group are not affiliated.
[i] Sources: NCHS Data Brief, Number 328, November 2018; U.S. Bureau of Labor Statistics, Women in the Labor Force: A Databook, November 2017; U.S. Department of Labor Blog, Women and Retirement Savings, March 2017.
[ii] UBS Global Wealth Management embarked on research to gauge women’s level of and satisfaction with their financial involvement. From September 2017 to January 2019, UBS surveyed 3,652 women.
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