5 Simple Steps to Financial Power for Every Woman, From a Financial Planner
Despite our growing economic power, women still face a confidence and savings gap. We can fix that by taking actionable steps that secure our financial independence and prepare us for a historic transfer of wealth.
March is one of my favorite months, as it's filled with several key dates that celebrate women:
- March is Women's History Month
- March 8 is International Women's Day
- March 26 is the symbolic Equal Pay Day for 2026
These aren't just symbolic dates. They're markers of progress — and a call to action.
It's hard to believe that until 1974, a woman in the United States couldn't obtain a credit card in her own name without a male co-signer. Married women needed their husbands' approval. Unmarried women still needed a man to sign.
Article continues belowFrom just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
That wasn't generations ago. That was during my lifetime.
We've come a long way. But when it comes to financial confidence, retirement savings and long-term security, there's still meaningful work to do.
Women's economic power is undeniable
Women already hold enormous economic influence, whether we recognize it or not. We influence or control roughly 85% of consumer spending in the U.S., play a central role in about 91% of home-buying decisions and make nearly 80% of health care spending decisions for our families.
This is only the beginning. By 2030, women are projected to control or inherit an estimated $34 trillion — close to two-thirds of U.S. wealth.
The shift is significant. The real question is whether we're prepared to manage it with confidence.
This unprecedented transfer of wealth will largely occur as women inherit assets from Baby Boomer parents and/or their spouse/partner, as they statistically outlive their spouses.
In addition, more women today are actively involved in financial decisions within their relationships. That shift is significant.
The question is not whether women will control wealth; it's whether they feel fully prepared to steward it.
The confidence gap is real
While women increasingly participate in investing, research continues to show a confidence gap, as well as a gap in retirement savings.
Only 28% of women say they feel very comfortable making investment decisions, compared with 39% of men, and more than half say investing feels intimidating.
Interestingly, studies repeatedly show that women often earn better returns than men. Women are generally less likely to attempt to time the market, more likely to stay focused on long-term goals and more likely to work with a financial adviser. That patience and consistency can be a powerful advantage.
The other significant factor that negatively impacts women is that they're not able to save as much as men. In 2023, the average 401(k) balance for men was about $89,000, compared with $59,000 for women — a gap of roughly 50%.
The gap narrows among Millennials, but remains significant across generations.
There are two structural reasons why this happens:
- Women are still underpaid relative to men in similar roles
- Women are more likely to step away from the workforce to care for children or aging parents
The issue isn't ability. It's engagement and confidence, along with societal constraints.
Five actions every woman should consider
Whether you manage the finances in your household, share the responsibility with a partner or simply want to be more informed, there are practical steps you can take to strengthen your financial foundation.
1. Establish and maintain credit in your own name.
Have at least one credit card in your own name and use it regularly. Being an authorized user on a spouse's card might help your credit score, but you do not control that account.
If a divorce or death occurs, access can disappear overnight. The worst time to apply for credit is during a crisis. Build your credit history before a disaster strikes.
2. Maximize retirement contributions — even during career breaks.
If you're working, prioritize contributions to your employer-sponsored retirement plan. Take full advantage of any employer match.
If you step away from the workforce but are married and filing taxes jointly, consider contributing to a spousal IRA.
As long as household earned income meets contribution requirements, you might still be able to fund retirement savings.
Time out of the workforce doesn't have to mean time out of retirement planning.
3. Invest: Don't sit on cash out of fear.
Many women report feeling intimidated by investing, which can lead to holding excess cash. While cash provides short-term comfort, it often erodes purchasing power over time due to inflation.
Create a diversified investment strategy aligned with your long-term goals. If you're unsure how to begin, seek guidance. Confidence grows with understanding and experience.
Make sure any cash you keep on the sidelines is earning a higher yield; consider FDIC-insured, high-interest savings accounts at online banks.
4. Review estate documents, titling and beneficiaries.
Do you know how your accounts are titled? Who is listed as a beneficiary on retirement accounts and life insurance policies?
If a spouse dies without proper documents or with assets titled solely in their name, the estate might go through probate.
In some states, dying without a will (intestate) can lead to unintended outcomes, including children inheriting portions of the estate outright. It could also tie the surviving parent's hands by limiting the use of a portion of the estate.
Proper planning helps to ensure assets transfer efficiently and according to your wishes.
5. Be an active participant — even in a strong partnership.
Even in healthy marriages, I often see one spouse handle most financial decisions. That can work, until it doesn't.
Both partners should understand where accounts are held, how investments are allocated, what debts exist and what estate documents are in place.
Both partners should also be familiar with their team of professionals —financial adviser, attorney and CPA.
Financial awareness is not about distrust. It's about preparedness.
Honoring the women who came before us
The women who fought for the right to open a bank account, apply for credit and own property did not do so for us to remain passive observers of our own finances.
Every time a woman reviews her retirement plan, negotiates her salary, opens an investment account or asks questions about estate planning, she honors that progress.
Women are poised to control historic levels of wealth. That power carries responsibility — not just to spend, but to invest, protect and grow it.
This Women's History Month, don't just celebrate progress, but participate in it.
Take ownership. Ask questions. Build confidence.
Financial independence isn't just about money. It's about freedom, security and choice — for you and for the generations that follow.
Hightower Advisors, LLC is an SEC registered investment adviser. Registration as an investment advisor does not imply a certain level of skill or training. Securities are offered through Hightower Securities, LLC, Member FINRA/SIPC
Related Content
- 6 Financially Savvy Power Moves for Women in 2026 (Prepare to Be in Charge!)
- How Money Guilt Holds Women Back (and How You Can Send It Packing)
- Six Steps to Being Empowered and On Track: An Expert Financial Guide for Women
- You're Divorced, But the Work Isn't Over: A Guide to Five Financial Tasks to Do ASAP
- I'm a Financial Planner: This Is How Smart Women Can Plan for Financial Freedom Despite Life's Curveballs
