Last week, I did a media interview on how our young millennial women are already behind when it comes to money.
Research is showing that, right out of the gate, young women are making less than male colleagues.
Fewer women than men are saving for the future.
Those that are saving, are saving a lower percentage of their salary than men.
According to the calculations I ran, a millennial woman will have $2,000,000 less saved than her male counterpart by the time they’re both 65, due to her lower salary and savings rate.
Less than 10% of young women are likely to have enough saved to support themselves in retirement.
My interviewer asked me why millennial women can’t keep up, and I had to admit I just don’t know. Even women who outearn their male counterparts seem to save and accumulate less.
But I told him my best guess is that too many girls are missing out on those important dinner table conversations where parents talk about money, investing, budgeting, supporting yourself, and how to make good financial decisions. They’re not learning about the choice between spending now or saving for the future. Or how saving for retirement today is totally on your shoulders, and why participating in your 401(k) plan is a good idea. Or how a 1% return on a savings account just won’t cut it. Or how much you need to save to pay for a much longer lifespan.
So if you have daughters or granddaughters, please take a moment to read the excellent MintFamily article by Beth Kobliner on “5 Money Lessons to Teach Our Daughters.”
Daughters learn from parents, and your involvement can help make your daughter money strong, savvy and self-sufficient.