The Five Mistakes Married Women Make
The Five Mistakes Married Women Make peaked my interest as I am an advocate of women not losing themselves once they get married. Being a newlywed myself I understand the societal pressures to get married and leave it all up to your husband.
Big Mistake.
I contend that women should have as much an interest and a part in their personal finances as their partners. No matter how much you trust and love your husband, the state of your personal finances should always be a joint event. You should know how much you have in your 401k, savings, stocks, mutual funds and your current debt load.
The article highlighted the following mistakes:
1. Mistake: Handing Over the Purse Strings
Not only is ignorance NOT bliss, it can lead to the rug being pulled right from under you. As I stated earlier, do you know how much you have in savings? What about your 401k? Is the mortgage being paid on time every month? What role do you have in the finances of your household? If you don’t know then its time to re-evaluate your position and become a key player. If you do, then pass Go and collect $200. It pays to be knowledgeable in this area.
Solution: Pay Attention to the Household Finances
Both partners should attend the meetings with insurance agents, accountants, financial planners and lawyers, says Watchung, N.J.-based Kaye. Women should also look over monthly bank statements and credit-card bills. And Kaye recommends that couples make a list of all bank and brokerage accounts and insurance policies and keep it with other important documents, such as wills and medical directives.
2. Mistake: Losing Your (Financial) Identity
Who are you? Are any credit card accounts in your name? Does your credit only exist in the form of an authorized user on your partner’s accounts? That should change, and soon. While you’re married, you should still be able to maintain some sense of who you are in the credit realm, doing so hurts your ability to obtain credit down the line.
Solution: Maintain Some Individual Accounts
“You always want to maintain your own credit identity,” says Lisa Caputo, president and CEO of Women & Co., a division of Citigroup. She recommends that couples keep three bank accounts (his, hers and ours) and maintain separate credit cards.
3. Mistake: Walking Away From Your Career
I agree with this point to an extent. I fully support women becoming stay-at-home moms if that is their choice. My only advice would be to keep one foot in the door via part-time or a contract position to keep your resume updated while you are taking time off from full time work. Not just in the case of divorce, but what you choose to get back into your career after your children are grown? Maintaining some level of involvement in your career gives you some leverage when you choose to return full time. I don’t ever recommend walking away and never looking back unless you are independently wealthy.
Solution: Keep Your Skills Fresh
It might be hard to do when you’re up to your eyeballs in dirty diapers, but unless you’re independently wealthy, you should always be aware that you might someday return to the work force for one reason or another. (Kids, after all, do grow up.)So don’t lose touch completely. Try to take on consulting projects during your industry’s busy season and attend professional networking events. Even charity work can give you a leg up when you start applying for a new job. For more tips on re-entering the work force, read our story.
4. Mistake: Not Saving for Retirement
Consider that since we are living longer than men, this should be an important area for us as we navigate our finances. So many times we don’t give it a second thought if our partner is the breadwinner and think they will save enough for both in retirement. We ought to have a plan that makes sure both parties are saving collectively or that the major breadwinner is saving collectively.
Solution: Penny-Pinch Now for Your Future
Make saving for retirement a priority, says Women & Co.’s Caputo, even if it means stashing away less for your children’s college education. If you’re working, save as much as you can in your company’s retirement plan, or in an IRA. If you’re not employed, contribute to a spousal IRA, which has an annual contribution cap of $4,000 in 2006 and 2007 ($5,000 if you will be age 50 or older by the end of the year).
5. Mistake: Asking for the House During a Divorce
Another point, I am not sure I agree with in its entirety. The article states that we shouldn’t focus so much on the house only to end up not being able to manage the monthly payments and upkeep. Who says we won’t? What if you can afford to focus on retaining the house and children in the divorce. I think better advice would have been to focus your efforts on being financially stable in the aftermath and if that doesn’t mean getting the house because you can’t afford it then so be it. But I think many divorced women would rather keep the house in order to maintain a sense of stability for their children.
Solution: Get Financial Guidance
When women are going through a divorce, they need to determine which assets will help them pay their bills and reach their long-term goals. Some women might want to consult a financial planner, says Wife.org’s Wall. Too many women, says Wall, fight for the home to avoid uprooting their children, only to find that they don’t have the cash flow to pay for it.
What do you think are some common mistakes women make when getting married?
About the Author: Girls Just Wanna Have Funds is for the woman that wants to take charge of her personal finances. We value budgeting, investing, frugality and remain mindful of our spending habits. Move over and make way for women who are in control of their financial destinies and not afraid to say it. We're armed with a positive net worth and not afraid to flaunt it while breaking financial ceilings one stiletto at a time!
