Business Fit Magazine November 2018 Issue 1 | Page 28

Business
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?
Why It Pays for Women to be
Financially
Independent
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 funnelled into
investments that consequently do not bear
both their names.
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.
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.
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.
Olga Stepien
Olga Stepien, is an Anti-Money Laundering Senior Reviewer, specialising in
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emerging markets (with a primary focus on Russia), having gained experience
working for international organisations in Gdynia, Moscow, and London. She
is also a fully qualified personal trainer, and – the role she treasures most – a
mum.
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