Why Women Need to Take Control of Their Finances

We've come a long way, baby. When I started my career, there weren't a lot of women financial advisors. And very few women were engaged in conversations about money. I can't tell you how many times a woman would walk into my office and start by saying "If only I'd known…

…how risky our investments were, I wouldn't have allowed them."

…that I'd be single, I'd have started to save earlier."

…that my parents' healthcare would cost so much, I'd have prepared for it."

When an "if only" happens to you? If you haven't prepared, you could be left with fewer choices. That's why it's so important for women to plan and take charge of their finances.

No matter if you're single, married, divorced, or widowed, there are many reasons women need to be involved in their finances.

• Women generally make less money than men. Median weekly earnings for full-time salaried women are still just 83.6% percent of what men earn, according to a 2023 Bureau of Labor Statistics report¹.
• When we take time off from our careers to raise kids, we can be hit by the "motherhood penalty," which could hold women's earning down by as much as 15% per child under five².
• Caring for elderly parents can also affect our careers.
• Women outlive men by an average of five years, according to the CDC³.

Women can't afford not to be involved in their finances.

The good news is that today women are taking action—investing, saving for retirement, and managing their wealth. Nine in ten women said they're on track to reach their financial goals, according to the 2025 Schwab Women Investors Survey. And 91% said they feel empowered by the experience of managing their investments.

To me, stats like these aren't only encouraging, they can be a real motivation for women to step up and take control. But how? It starts by putting yourself first and making your own financial wellbeing a priority. Here's what I suggest.

1. Decide what you want. This takes some soul-searching. What are your needs, wants, and wishes? What goals are you trying to achieve, and when do you want to achieve them? How long will it take to reach your goals? And how will you measure your progress? Answering these questions and creating a realistic timeline can help you come up with a plan of action.

2. Think about your relationship to money. There can be a lot of emotion around money. Do you control it, or does it control you? A concrete way to find out is to track your spending. What comes in every month? What goes out? 

   Create a monthly spending plan you can stick with, separating essential from nonessential expenses. Most importantly, decide how much you can save after covering those expenses. To me, saving is the key to achieving your goals. In the Schwab Women Investors Survey, 65% said they delayed saving and building wealth because they didn't have enough extra earnings to set aside. However, 85% of women said they wished they had started investing sooner. Don't delay. Give up a little today for the benefit of tomorrow.

3. Make your financial goals—especially retirement—a top priority. Retirement can be long, especially for women, so you need to save as much as you can as soon as you can. Take full advantage of a company retirement plan. Contribute at least up to the company match, and much more if possible. No company plan? Consider opening an IRA.

   Ideally, you'll start saving for retirement in your twenties and put away about 10-15 percent of your annual salary (including any contributions from your employer). If you start later, that percentage goes up fast. For example, if you wait until age 40, you'd have to save 20-30 percent of your annual salary. Many financial planners recommend that you anticipate living until 90-plus in your retirement planning calculations. If you're young, start now. If you're older, start now.

4. Don't just save—invest. Here is another motivating finding from the Schwab Women Investors Study: The top reason for women starting to invest was to grow their money and save for retirement.

   Participating in the stock market could be one of the best ways to grow your money. Of course you have to accept a certain amount of risk, but there's also a risk in being too cautious. Not investing in the stock market could mean missing out on gains that can help you achieve your goals.

   For a goal like retirement with a long-term time horizon, consider a diversified portfolio with the potential for growth. Plus, it helps for investors to be patient—and avoid the noise. That can mean keeping your money invested for the long term and riding out market swings. And the sooner you start to invest, the better, especially for retirement. Time in the market can be your most valuable asset.

5. Get some guidance. You don't have go it alone. You can find financial guidance from reliable sources online like at SchwabMoneywise.com. Talk to people you trust who are knowledgeable. Especially as your assets grow, consider working with a financial advisor.

   I think of a financial advisor sort of like a personal coach—someone to educate and guide you and keep you going when you might feel overwhelmed or tempted to call it quits. Don't be afraid to ask questions. A financial advisor can be there to help you look at the big picture, build a portfolio to match your goals and risk tolerance levels, and create a comprehensive financial plan.

   Working with a financial advisor who understands you can be a confidence builder and a source of peace of mind. How often you want to interact with an advisor is up to you—a one-time consultation or periodic check-ins.

We've come a long way, now keep it going! These ideas could help you to create a solid financial foundation, but think of it as a marathon, not a sprint. Staying on top of your finances is about striking a balance between your short-term desires and your long-term goals. The key is to put yourself first. As my mom used to say, the only person responsible for you is you.