Finance: Women & Wealth

Women & Wealth

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By Lauren Caggiano

This isn’t your grandmother’s or even mother’s world when it comes to finances. Today, women are more financially independent than ever, and therefore, they need to be intentional in planning their financial futures.

Kate Miller, a senior trust officer with STAR Bank, said it’s helpful to look at the mistakes made by previous generations objectively, learn from them and be proactive. “In past generations, the men in the family were the ones to work and manage the personal household,” she explained. “We’ve found in wealth management that, unfortunately, men also normally die before their spouses do. And so, you get in this situation where you’ve been helping the two of them together. Then when the husband passes away, the wife doesn’t understand anything about their financial picture, even what bills they have to pay.” These frustrations are only compounded by grief for the surviving partner. This painful truth is why Miller advises that couples talk about finances early and often in the relationship. Though these conversations can be uncomfortable at times, they’re important so that nothing is left to chance. But not all women marry in 2020 and if they do, it’s often later than their predecessors. Miller said these trends definitely inform a woman’s approach to money. For example, when entering marriage, it’s not uncommon for a woman to have a credit history established, including assets and liabilities. In previous generations, it wasn’t as common for a woman to own her money matters. But according to Miller, the earlier you can establish and maintain financial history and health, the better. “I think that high school is the time where all people should be learning the basics like how to balance a checkbook, monitor spending, etc.,” she said. “It’s so important for everyone to develop those types of skills early in life.” As Miller suggests, it’s a lifelong quest to maintain a healthy relationship with one’s finances. Her advice? Check in when you hit certain milestones and evaluate your progress and goals. “I always think of it in terms of life events,” she said. “So, you get your first job, you buy your first house, you get married, and you have a child. These all should trigger discussions that should be taking place with an investment advisor or a CPA.” Expert help can ensure you’re making the best decisions for your situation. In her words, “the more you know what you’re getting into at this stage of your life, the more prepared you can be for what lies inevitably down the road.” Also, keep in mind that financial independence isn’t just about how much money you have in the bank. It’s also about having the confidence to make your own decisions and plan for the future. Female or male, single or married, we all need to be in the driver’s seat in our financial journey. But women especially need to take the reins. By doing so, we can each be part of the push for equality and inclusion—for ourselves and for future generations. a

Resource: STAR Financial Bank, Fort Wayne, 260.467.5500, starfinancial.com