Consider These Financial Tips for Single Women
If you’re a single woman, most of your financial challenges and aspirations may resemble those of single men. Men and women face the same economic stress factors of modern life, and both groups have similar financial goals, such as the ability to retire comfortably.
But women still face specific obstacles. You need to be aware of these challenges – and do everything you can to overcome them.
For example, women still face a wage gap. Statistics Canada reports that pay inequality between women and men is a persistent phenomenon. According to data from the Labour Force Survey, women in Canada aged 15 and older earned $0.87 for every dollar earned by men in 2017, as measured by average hourly wages.
However, the wage gap narrows among younger workers, and may even disappear for highly educated women, especially those in the STEM fields – science, technology, engineering and mathematics.
Another financial concern for women is connected to their role as caregivers. According to Statistics Canada, women are the predominant providers of informal (unpaid) care to children as well as to family members and friends with mental or physical limitations related to aging or chronic health conditions or disabilities.
According to data from the 2012 General Social Survey (GSS) on Caregiving and Care Receiving, 62.3% of women aged 25 to 54 in Canada had a child under the age of 13 in the household, and/or served as a caregiver to family members and friends.
The comparable figure for men was 56.7%. This means fewer contributions to the Canada Pension Plan and other retirement plans.
Faced with these and other issues, what can you do to help yourself move toward your important goals? Consider these steps:
Develop good financial habits. Establishing good financial habits can pay off for you throughout your lifetime. These habits can include maintaining a budget, keeping your debts under control, and putting aside some money for a “rainy day.”
Take advantage of available opportunities. If you work for an organization that offers an employer sponsored retirement plan, contribute as much as you think you can afford.
At the very least, put in enough to earn your employer’s matching contribution, if one is offered. And every time your salary goes up, increase the amount you invest in your plan.
Also, think about opening a TFSA, which, like a Registered Retirement Savings Plan (RRSP), can offer tax-advantaged investment opportunities.
If you have children, you’ll also want to explore a post-secondary education savings vehicle, such as a Registered Educations Savings Plan (RESP).
Educate yourself about investing. Get professional advice.
Some people think investing is just too complex and mysterious to be understandable. Yet, with patience and a willingness to learn, you can become quite knowledgeable about how to invest, what you’re investing in and what forces affect the investment world.
And to help you create an investment strategy that’s appropriate for your goals, risk tolerance and time horizon, you may also want to work with a financial professional.
Discuss financial issues with your future spouse. If you get married or re-married, you’ll want to discuss financial issues with your new spouse.
Specifically, you’ll want to answer questions such as these: What assets and debts do each of you bring to the marriage?
Do you plan to merge your finances or keep them separate?
Are your investment styles compatible?
Do you have similar long-term goals?
You and your new spouse don’t need identical views on every financial topic, but you both need to be willing to work together to advance your common interests.
Ultimately, you have a lot of control over your own financial future. And making informed choices can help make that future a bright one.
Edward Jones, Member Canadian Investor Protection Fund.
Barbara A Armstrong
Financial Advisor, Edward Jones Investments
P: 250 384 8722
TF: 1 877 342 3280
Barbara.Armstrong@edwardjones.co