Last week, I ran my Female Breadwinners Leadership Success programme and an important part of the day was a session on financial management.
You may ask, why I felt the need to include this. Well it’s because women breadwinners need to manage their money effectively and earn more. Shockingly, even in 2013 on average women earn 80% of what a man would earn doing the same role.
In addition, women often work in the less lucrative professions, which means that they can have a lower earning potential. Younger women in training should be thinking about Science, Technology, Engineering and Mathematics (STEM) for their financial future.
According to Aviva’s recent research
UK families with female breadwinners have household incomes on average 28% lower than homes where the primary earner is male.
Female breadwinner households are more than twice as likely to have taken out a payday loan in the last year (5% of homes where women are the main earner compared to 2% where the breadwinner is male).
Women breadwinner’s needs are diverse and range from that of single mother making ends meet to being main breadwinner with stay at home partner and considering your investment portfolio.
Combining data for women in debt and those who are well off is unhelpful in revealing the real support needed by working women. A more in depth study of women’s financial situation is necessary.
Here are just some of the potential challenges women breadwinners face around money:
- The uncertainty of earning, with short term contracts or looming redundancy
- Those women who have taken the leap into entrepreneurship have foregone sick pay, pension and other perks that may have come with working life
- Not knowing where the next job or client will come from
- The costs of childcare
- A partner that spends more than they can earn
- Having no financial cushion
- A mindset that tells them they are not good with money, money is evil and wanting money is not a good thing
- Being paid what they are worth
- Needing to work part-time due to caring responsibilities
- Seeking investors
- Not knowing who to go to for financial advice.
If you’re a woman who wants to take control of your finances, here’s my advice:
1. Uncover your attitude and beliefs around money – work on changing them if necessary
2. Face Facts – get a clear and honest picture of your financial situation
3. Seek Expert Advice – try the citizens advice bureau, your bank or a financial planner
4. Be Smart – find ways to reduce your current outgoings
5. Save & Invest – if you can
6. Seek Business Investors – rather than investing your own money in your business
7. Give when you can – charitable donations really help good causes
and some further resources for you:
Feel free to share your experience and let me know any tips you have for taking control of your finances in your role as breadwinner.
The next Female Breadwinners Leadership Programme will take place Friday 28th February, 2014. Book your place to take back control and recognise your choices, or get in contact to discuss a one to one coaching package, wherever you are in the world.
I am Jenny Garrett, Executive Coach, founder of Reflexion Associates, a leadership and coaching consultancy and author or Rocking Your Role – I help professional working women move from struggling and juggling to rocking their many roles in life. Check out RockingYourRole.com