Women & Money— What You Need to Know With Each Decade.

As a woman, your financial needs change with age. How you manage your money should also change. Here is a list of things you need to be aware of as you age:

Your 20s — Creating Healthy Financial Habits

• Establish your credit. And pay all your bills on time.
• Open a savings account besides a checking account.
• Pay yourself first — have at least 10% of your paycheck go to this savings account each time you get paid.
• Build your emergency fund. This should amount to 3 to 6 months of your expenses.
• Open an investment account with a Robo advisor, a discount brokerage, or a full-service brokerage. Do your research and interview a few advisors if you decide to have one. You should invest your savings once you’ve saved enough for your rainy-day fund.
• Create a budget. Look at your bank statements from the last six months to see where your money goes. Create a realistic budget around it. Can you cut out unnecessary expenses? For example, use public transport instead of driving to work.
• Write down five financial goals — and have a timeline for each.
• Save for the downpayment on a home — if it is one of your goals — it’s a great asset to own.
• Educate yourself on personal finance. Sign up for a financial literacy program or read up on personal finances.
• Do you have enough life and disability insurance to protect your family from a loss of your income in case of your death or disability?

Your 30s — Building Your Assets

• Maintain good credit. Check your credit score annually.
• Are you able to stick with your budget if you have one? Consider creating one if you don’t — you must know what’s coming in and leaving.
• If you have a partner, are you aware of where they are at? Are you able to talk openly about financial matters with them?
• Create a plan as a couple. Discuss how you can help each other achieve your individual goals.
• Have a written financial plan- with strategies on how you’d like to achieve your 3, 5, and 10-year goals. Annually review if you are on track to achieving those goals.
• Pay yourself first- if you have not already begun, have at least 10% of your income directed towards a savings plan.
• Build your emergency fund. This should amount to 3 to 6 months of your expenses.
• Open an investment account with a Robo advisor, a discount brokerage, or a full-service brokerage. Research various platforms and interview a few advisors if you decide you would prefer to work with an advisor.
• Maximize your retirement savings — through work and outside of work. It will give you greater flexibility.
• Save for your children’s education if you decide to have children.

Your 40s — Creating Wealth

• Start paying down debt. Look over your budget and cut back if necessary. Shrink your debt.
• Continue to maximize your retirement plans — at work and outside of work.
• Continue to invest in a non-registered investment account. Invest in tax-favored vehicles such as dividend-paying stocks if it aligns with your tolerance for risk and objectives for your life.
• Review your financial plan — have you achieved some of the goals you set in your 20s and 30s? What can you change to get you closer?
• Create some new goals — 3, 5, 10 — years, and more.
• Has your situation changed — through a divorce, remarriage, or an inheritance?
• Purchase a secondary property.
• Consider working with an advisor — if you never have before. Your investment account may be large enough to want an advisor instead of managing your money alone.

Your 50s — Accelerating Asset Building & Dealing with Major Life Changes

• Has your situation changed — through a divorce, remarriage, or an inheritance? Have you adjusted your finances to reflect these changes?
• Consider working with an advisor — if you never have before. Your investment account may be large enough to want an advisor instead of managing your money alone. They can also help you deal with life changes.
• Create multiple income streams — e.g., rental income from a secondary property.
• Maximize all contributions to your pension at work and non-registered accounts outside of work.
• Review your retirement plan — are you on track? Are you aware of what’s available in terms of pensions?
• Review your estate plan — essential if your family situation has changed.

Your 60s — Consolidating

• Review your retirement plan — are you on track to retire if you have not done so.
• Do you know all your potential sources of retirement income? — public and employer pensions.
• Have you considered unretirement? Are you thinking of returning to work in a different field or role?
• Review your estate plan — essential if your family situation has changed.
• Discuss with your children your goals and plans for the future.
• Create multiple income streams. E.g., rental income, a side hustle, dividend-paying stocks, and part-time work are some ideas.
• Explore the possibility of retiring abroad — part-time or full-time.
• Unfulfilled dreams? — Are there things you’d like to do on your bucket list?

Your 70s — Taking the future into your own hands.

• Review your estate plan — essential if your family situation has changed. E.g. The death of your spouse, the birth of a new grandchild.
• Are you financially prepared to be single? Through the death of a spouse or divorce later in life?
• Discuss with your children your plans for your future.
• Create multiple income streams. E.g., rental income, a side hustle, dividend-paying stocks, and part-time work are some ideas.
• Explore the possibility of retiring abroad — part-time or full-time.
• Unfulfilled dreams? — Are there things you’d like to do on your bucket list?
• Is it time to downsize?
• Work with an advisor.
• Look at ways to minimize your taxes. E.g., gift some of your assets to minimize estate taxes. See your account for this.
• Draw up a Living Will — to instruct whoever is left behind on the degree of medical intervention should you ever need it.
• Look into long-term care facilities.

Bringing it all together

Women have different needs from men. They live longer generally, are paid less than men, and have more time off work when raising their kids.

Life is not static. A woman’s financial needs change as she ages. I recognize that no two women are the same and have different needs. Not everyone wants kids, and not all women want a retirement plan.

But all women want autonomy, security, and freedom to choose their path. The list above provides general financial guidelines for women through their 20s, 30s, 40s, and beyond … so they can achieve the life they want because I believe everyone wants financial freedom.