Women in Financial Services
“It Pays for Women to be Financially Independent” says E2W member Olga Stepien
Mark.Freed / 25 Sep 2018
E2W are delighted to share the thoughts of our members and help them increase their profile in the industry. If you have something to say we would be delighted to publish it - your thoughts, ideas or story. Contact Mark for more details.
Why It Pays for Women to be Financially Independent
By E2W Member Olga Stepien
We live, as the ancient saying goes, in "interesting times". In many ways, there's never been a better era to be a woman. Glass ceilings are finally starting to shatter, female entrepreneurship is at an all-time high, and the #MeToo movement gathers steam daily. According to a 2016 study by Bank of America and USA Today, younger women are actually more financially independent today than their male counterparts. And yet, despite taking their place at the boardroom table, many women are still playing catch-up when it comes to financial independence in middle age and retirement. The question is: are we still investing ourselves so completely in our families that we set ourselves up to fail?
Family roles have shifted
There's no doubt that women have been socialised for generations to accept that personal finance is a man's game. Not so long ago, it was standard for a woman's role in the family to be solely that of caregiver, making sure dinner was on the table while her partner returned with (and managed) the paycheque. But while family roles have shifted, many women continue to prioritise their families, without taking care of their own financial stability. The most direct way they do this, of course, is through stalling their careers to focus on raising children, ensuring that their earnings (and savings) progress at a slower rate in future. While studies show that women are generally better at day-to-day financial maintenance, they also tend to use their salary for household and childcare expenses, while their partners' earnings are funneled into investments that consequently do not bear both their names.
Divorce is particularly costly for women
The belief for women who do this, of course, is that they are operating as part of a unit, and their personal investment will be rewarded in love, care, and financial security from their partners and families. Unfortunately, with around half of marriages ending in divorce, and a large proportion of widows struggling in poverty, the reality can be quite different. Divorce is particularly costly for women, who tend to absorb the risk, and struggle to increase their pension funds in subsequent years.
Make family finances a joint endeavour
The fact is that the same women who are seizing power in business need to take a leadership role in their own financial lives, in order to create economic security for themselves and their children. Nobody enters a romantic partnership hoping to divorce, but taking a pragmatic approach can protect you from disaster should the worst happen. Start thinking about savings, property, financial management and life cover sooner rather than later. Make family finances a joint endeavour. Ensure joint investment accounts are in both spouses' names. Most importantly, never give up your financial independence - as well as having a stake in joint assets, be sure to keep some of your own alongside.
The only investment you'll never regret is the one you make in yourself
It may sound unromantic, but this approach is not about selfishness or cutting off the family you love. It's rather about managing your finances with the savvy you use to manage people or funds in your business life. With the right partner, you'll continue to increase the value of your assets, while creating something completely new together, and hopefully enjoy the fruits of both your labours for many years to come. If not, you'll be in a better position to weather the storm. After all, the only investment you'll never regret is the one you make in yourself.
About me
I am an Anti-Money Laundering Senior Reviewer, specialising in emerging markets (with a primary focus on Russia), having gained experience working for international organisations in Gdynia, Moscow, and London. I am a member of the Member of International Compliance Association. I am also a fully qualified personal trainer, and – the role I treasure most – a mum.
I joined E2W Membership in January 2017 and have really enjoyed the networking events I have attended – I have met some great people and made some new friends. I have also benefited from the advice, support and direction provided by the E2W team.
My linkedin profile: https://www.linkedin.com/in/olgastepien/ or contact me via E2W.
Do you have something to share:
E2W would welcome contributions from members on relevant topics. We can also help you write them if need be. Share your thoughts and ideas with Mark Freed mark.freed@e2w.co
Back to blog