My Four Pieces of Advice for Women Anxious About Handling Money

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Recently I was stopped in my tracks by a newspaper column headlined “I Was Terrible at Money. My Daughter Should Learn From My Mistakes.”

The young woman columnist went on to say her own mother had taught her that it was “vulgar to talk or even really think about money.” As a result, she laments, “I am somehow terrified of anything to do with finances.” And she “sometimes worries about passing along these extraordinarily unhelpful attitudes to my own children.”

As someone who has been writing about women and money for more than two decades, I find that both disheartening and frustrating. So is the flurry of press releases I’ve received telling me that women are poised to be major heirs of a massive generational transfer of wealth and wondering whether they will be up to handling it.

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Yes, they will.

My first book, published in 2003, was called Think Single! The title had nothing to do with a woman’s state of marriage and everything to do with a state of mind in which you’re confident of your ability to manage money regardless of marital status or stage of life — what one of my good friends referred to as being captain of your own ship.

Far from treating women as financial neophytes, my goal has always been to give women specific financial advice tailored to their needs and the unique challenges they will face in their lives.

Some examples: spending strategies for single women; spousal IRAs for married women who stay at home to raise children; catch-up retirement contributions for older women who may be reentering the workforce after a long absence or a divorce; and retirement and long-term-care planning for all women.

Over the years, it has been rewarding to hear from money-smart women like Chris Williams, who writes, “I have always managed the money in my marriage, and based on my management, our retirement will be a comfortable one.”

And I have learned a lot from research on how women think about money and make financial decisions. So I offer the following advice for women who still suffer from the same financial anxiety as that newspaper columnist.

Talk, talk, talk about money. Talk to your parents, your spouse, your children (especially your daughters), the women in your book club. Men tend to have more conversations about money than women, which puts them at an advantage. Research shows that talking to young girls about money can lead to better financial outcomes later in life.

Read this magazine and tap other sources of information. Women consistently score lower than men in tests of financial literacy, but much of that gap is a result of a lack of self-confidence. Their instincts are sound, and they’re perfect candidates for adult education classes or workplace seminars.

Tackle one task at a time to avoid being overwhelmed. For example, you could focus on paying off credit card debt and then move on to opening college savings accounts for your kids.

Don’t delay investing. In one survey, 85% of women investors said they wish they had started earlier. And women are ideal investors because they take time to make decisions, they stick with them, and they trade stocks less often, all of which result in lower costs and higher returns. Your workplace retirement account is a convenient place to start investing (see “Money Smart Women,” Dec. 2024).

Bottom line: When you start your adult life, take control of your finances and never give up your independence. Even if you share financial tasks when you marry, know where the money is. Think single!

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

Janet Bodnar is editor-at-large of Kiplinger's Personal Finance, a position she assumed after retiring as editor of the magazine after eight years at the helm. She is a nationally recognized expert on the subjects of women and money, children's and family finances, and financial literacy. She is the author of two books, Money Smart Women and Raising Money Smart Kids. As editor-at-large, she writes two popular columns for Kiplinger, "Money Smart Women" and "Living in Retirement." Bodnar is a graduate of St. Bonaventure University and is a member of its Board of Trustees. She received her master's degree from Columbia University, where she was also a Knight-Bagehot Fellow in Business and Economics Journalism.