Women’s finances

Hi, I’m Jessica Moorhouse, and I talk about money all the time.

And one thing I found is most people find money very uncomfortable, even I find it uncomfortable sometimes!

And I think that’s largely because we associate money with things like shame or the fear of keeping up with our peers.

But the more interest we take in our finances, the easier it gets and that will just help us build those helpful money behaviours, build our confidence and ultimately help us make better financial decisions moving forward.

Why is talking about money so important?

Because of things like the gender wealth gap.

I mean women typically take more career breaks because they’re usually the go-to caregivers for children and elderly parents, and what this means is women usually end up with less assets and less wealth during their lifetimes because of it.

Data also shows that women typically delegate financial management to their partners and you know many marriages end in divorce and women typically live longer.

Well you may end up vulnerable and in a worse financial position than you thought if you aren’t fully engaged in your own finances.

You may be interested to know that generally, women are better savers and investors than men, but because of things like the gender pay gap, and you know the investing world has typically been pretty male-dominated, many women tend to still park their cash in savings instead of investing, missing out on potential returns.

What are some misconceptions people have about money?

So one misconception is you need to be good at math, or numbers, or work in finance to be good with money, or another is that you have to be born into wealth to be successful and have a comfortable retirement.

And those just aren’t true.

Anyone can learn how to manage their money better.

It is not rocket science and your past does not dictate your financial future.

What are some steps people can take to break the money taboo?

First, taking a look at yourself and ask:

Am I happy with how I’m managing my finances?

Should I be more involved?

What should I change?

And then make a budget if you don’t have one, take a look at your net worth, know where you’re at financially.

And lastly, talk about money.

Stop making it such a secretive thing.

Talk to your partner, your friends, your family or a professional, and I’m not saying you have to talk about numbers or how much you earn but start talking about it in general and asking questions.

It will make it seem like not much of a big deal because it really isn’t.

Before you make any decisions with your money, I want you to take stock of your finances. And that means making a budget and understanding do you have any debt. How much? What your net worth is, but especially what are your goals and what do you want to achieve?

To learn more, check out the tools and articles linked to this video.

Today we’re going to talk about money and relationships.

What should you consider before pooling your finances?

So before even thinking about combining your finances with your partner, it’s really important for you to know what’s going on in your finances and have your own goals.

Only then can you combine plans with your partner so you can achieve those joint goals together without having to abandon any of your personal goals that are really important to you.

Is it a good idea to share a joint account with your partner?

It really depends on your personal comfort level and just how you and your partner want to manage your finances together.

Do you want to split expenses and pay them through a joint account?

Do you want to do everything separately and then each person is responsible for a certain bill?

There’s no right or wrong way to do it, you just have to figure out what makes sense for you.

What are some of the risks of splitting your expenses with your partner 50/50?

The big risk is it could potentially widen the wealth gap between you and your partner or vice versa, with you having less in your bank account  compared to your partner.

It only makes sense to do 50/50 if you earn the exact same income.

How should couples split their expenses?

A more fair way of splitting your expenses is by looking at your different incomes.

So, if your partner earns 30% more than you, they should be contributing 30% more to the joint expenses.

My challenge to you is to sit down with your partner and have an open and honest conversation about how you can split your joint expenses more fairly.

To learn more, check out the tools and articles linked to this video.

Today we’re going to talk about the financial impact of starting a family.

What are some things people often don’t consider when they're planning to start a family?

They think of expenses like childcare, you know, shelter, post-secondary, but they may not consider some of the financial impact's women may experience such as will they lose their employee benefits when they’re on maternity leave or not being able to contribute to their pension or group RRSP.

As a couple, these are some things that you need to have a conversation about.

What are some of the impacts of taking maternity leave?

Well, you’re going to be at a lower income, that means having to decrease or cut some expenses or hit pause on some of your savings’ goals.

But another impact is what’s called the motherhood penalty, when your pay may actually start to stagnate because you became a mother.

And what can you do about this?

First and foremost, make a plan on how you can afford the added costs of having a child, but also have that conversation with your partner.

Does it make sense to actually share paternity leave?

How do you start to prepare in advance?

To help you get ready, National Bank offers a step-by-step tool to help you gain confidence but also to help you get prepared for this really big life change.

My challenge to you is to read the Baby Budget article with your partner on the National Bank website.

To learn more, check out the tools and articles linked to this video.

Today we’re going to talk about becoming an investor.

Why is it important to start investing?

You need to invest to get your money to grow so you can afford those big lofty goals like retirement one day. It’s never going to be possible if you just tuck money into a savings account.

But the good news is no matter how much money you have or what age you’re starting, it’s never too late to start investing.

What’s in it for you?

A lot. For example, let’s take a look at the average returns of the stock market since the Great Depression.

On average, on an annual basis, the stock market has returned 10%.

I certainly would prefer getting 10% per year compared to the single-digit interest rate I’m being offered on my savings account.

Where do you start?

To start your investing journey, here are three steps.

Number one, pay off your high-interest debt and save up that emergency fund for any unforeseen financial shocks.

Next, figure out what your financial goals are and then categorize them into short, medium and long term.

And lastly, determine your investor profile.

What’s an investor profile?

Everyone has their personal investor profile, and it’s based on your particular values, your goals, your time horizon, your risk tolerance, and once you know this information, you can start making better investing decisions for yourself and avoid some costly mistakes like taking too much risk or not enough.

My challenge to you is to figure out your investor profile.

You can do this either online yourself or by working with a professional.

To learn more, check out the tools and articles linked to this video.

The contents of this website must not be interpreted, considered or used as if it were financial, legal, fiscal, or other advice. National Bank and its partners in contents will not be liable for any damages that you may incur from such use.   

Those events, articles and videos are provided by National Bank, its subsidiaries and group entities for information purposes only, and creates no legal or contractual obligation for National Bank, its subsidiaries and group entities. The details of this service offering and the conditions herein are subject to change.

The hyperlinks in those events, articles and videos may redirect to external websites not administered by National Bank. The Bank cannot be held liable for the content of external websites or any damages caused by their use.

Views expressed in those events, articles and videos are those of the person being interviewed. They do not necessarily reflect the opinions of National Bank or its subsidiaries.

For financial or business advice, please consult your National Bank advisor, financial planner or an industry professional (e.g., accountant, tax specialist or lawyer).