This Wealth With Sophia column looks at how building a good money mindset can equip you with the tools you need to face life’s financial stressors
Money. Stress. Anxiety. Are these words that keep you up at night?
While both men and women suffer from money stress, women still bear the brunt of it. According to US asset manager Ellevest, 49 percent of women say their mental and emotional health has suffered due to financial stress, and 40 percent of women felt their physical health has been negatively impacted. Yet, fewer than a quarter of women took the lead with long-term financial planning with regard to investments and insurance.
So, what exactly is it that women are worrying about? And what stops women from achieving financial well-being?
Our relationship with money
The main answers are: money, and not making enough of it (thanks to the gender pay and gender investing gaps); and worries around health and retirement. A study showed that 72 percent of women believe they will not have enough money to cover their medical and care expenses after retirement.
But let’s dig deeper: what will in fact help us achieve financial well-being? A well-planned retirement would help, but how do we get there? To truly understand our relationship with money and growing wealth, we need to look into how we were raised to think, talk and feel about money. Only 14 percent of women regularly reach out to others for financial support and guidance, and 34 percent were taught growing up that discussing finances with others is taboo. Studies also show that children as young as seven have already developed well-formed attitudes and habits on money.
If we’re starting our lives without these crucial positive money conversations, how can we rewrite the script as adults on our wealth creation journeys? It’s time to develop a good money mindset.
What is a good money mindset?
A good money mindset does not mean thinking you won’t ever have to solve financial challenges again in your life. On the contrary, a good money mindset means that you understand your needs, your wants and you can plan for both the foreseen and the unforeseen.
A good money mindset means that you have a healthy relationship with money. Money is a tool. Money means more choices. Money means power—the power to choose your path. You can create the life you want, and we can help you get started.