Women face distinct financial challenges due to longer lifespans, caregiving roles, and the gender pay gap, impacting their savings and financial security.
CHARLOTTE, N.C. — As Women’s History Month draws attention to the progress women have made, financial experts said a persistent gap remains and it starts with a simple question: where’s the money?
Women face a distinct set of financial challenges compared to men, driven by a combination of longer lifespans, caregiving responsibilities and the gender pay gap.
“Women face many different financial challenges compared to men,” Kimberly Palmer, a personal finance expert with NerdWallet, said. “Women tend to have more caregiving responsibility, which can lead to income gaps, and there is also the gender pay gap—women on average earn less than men.”
Those factors don’t just affect day-to-day finances. Over time, lower earnings mean less saved for retirement, less room for emergencies and a narrower financial cushion.
Palmer recommends women take several foundational steps to get ahead: build an emergency fund, check their credit score regularly and start saving for retirement as soon as possible.
“People can start sooner, even though retirement is so far away, it will make it easier to save over your whole career,” she said.
She also suggests using the 50-30-20 budgeting rule as a starting point: allocate 50% of take-home pay toward needs, 30% toward wants and 20% toward savings and debt repayment.
Palmer stressed that having an emergency fund is critical to long-term financial health. Without one, an unexpected expense can force a person to raid retirement savings or rack up credit card debt, both of which can set back financial progress for years.
“It’s important to have an emergency fund so you don’t have to dip into those savings or use your credit card,” she said.
Contact Meghan Bragg at mbragg@wcnc.com and follow her on Facebook, X and Instagram.