7 Crucial Facts Women Should Know About Money and Debt

Financial planning is different for women than for men. We earn less money, we live longer on average, and we must fight harder to make the same progress in our careers.  

Women now have more choices than ever before. A few decades ago, career and financial opportunities for women were far more limited. It was difficult or even illegal for a woman to 

• Work in many professions

• Serve in the military 

• Own property 

• Open a credit card

With the right money advice and a clear understanding of smart spending, sound investing, and debt relief options, it’s much easier for women to take control of their futures and build the security they deserve.   

1. Women are Slowly Closing the Gender Pay Gap

The term gender pay gap refers to the difference between the earnings of men and women. 

Pew Research reports that in 2024, women earned an average of 85% of the amount men earned. The gender pay gap remains, but it’s slowly narrowing. In fact, in 2003, women earned 81% of what men earned. The gender pay gap is smaller among younger workers, too.

As women assume more leadership roles, this gap seems likely to keep on narrowing. If this progress continues, women should enjoy more disposable income. We can use it to pay off debt, invest for retirement, and reach other financial goals. 

You may have been hired at a certain salary, but you should earn more over time. Try these tips to negotiate a higher salary:

• Research salaries for your industry and in your part of the country to find out how your pay compares. 

• Take this information to your boss, along with concrete examples illustrating the value of your work. Maybe you brought in a new client a few months ago or found a way to save the company some cash. 

• Request a six-month check-in to revisit pay, based on measurable goals.

• Keep your resume polished and your LinkedIn profile updated—often, the best way to earn more is to switch jobs. 

Even earning a little more every week, say $50 or $100, can mean more funds to cover your minimum credit card payments or pad your emergency fund. Don’t let lifestyle creep consume your earnings—instead, route any extra cash to your goals. 

That $50 a week is new to you, so set up an automatic debt payment or savings transfer. If at all possible, let it work in the background to improve your financial status. 

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2. You Too Can Become a Homeowner

Single women in the U.S. are outpacing single men in owning homes. In fact, according to a 2023 Pew Research Center survey based on 2022 U.S. Census data, single women owned 58% of the 35.2 million homes that unmarried Americans own. That’s in comparison to the 42% owned by single men. 

If you're preparing to become a homeowner, take the time to shop around with multiple lenders for an affordable mortgage. Make sure your debt-to-income ratio is below the lender's guidelines. If you’re not sure, most lenders are happy to walk you through it.

Before buying a home, strive for the following to put yourself in the strongest possible position: 

• Boost your credit score if you can, so you can qualify for a competitive rate

• Focus on paying down debt

• Renew your commitment to monthly on-time payments —payment history and amount of debt relative to credit are the two biggest factors in your credit score

After you buy a home, you’ll hopefully build equity over time that can help increase your net worth. 

3. More Women Are Investing for the Future 

A 2023 Gallup Poll looked at stock ownership across the United States. It found that 62% of women owned stocks, compared with 59% of men. Owning stocks is often a great way to build wealth. You can benefit from the compound growth that occurs when returns are reinvested to help you potentially earn more money. 

While female and male investors achieved similar results when investing, women took on far less risk to do so, Wells Fargo found. And another study from Fidelity showed women outperformed men by 0.4% in investing, based on an analysis of more than 5 million Fidelity customers. 

On the other hand, when you have credit card debt, compound interest works against you. That's why paying down credit card balances is a smart move. If you can stop paying expensive interest, you could free up more income to save and invest. 

When you're the one benefitting from the compounding of interest through investing, your wealth can grow quickly because your money is working for you all the time. Make sure you understand any investments you buy, though. The stock market always involves risk, which you can minimize by diversifying and making smart choices. 

If you’re an investing newbie, opting for exchange-traded funds that track the broader stock market is a solid move. It’s easier and cheaper than ever to start investing, and you can open an IRA or brokerage account right from your smartphone or laptop. 

4. Women Have Less Debt Than Men

Experian research found that men carry more debt than women across most categories. Specifically, men average only slightly more in credit card debt than women, but they have:

• 9.7% more mortgage debt

• 16.3% more auto loan debt

• 20% more personal loan debt

Overall, men carry 21.7% more debt than women, with men owing an average of $18,533 more. 

No matter your gender, try to limit the debt you take on. That’s the best way to avoid increasing costs and committing future income to paying for things you purchased in the past. 

5. Creating a Written Financial Plan Can Help

Wells Fargo research showed 49% of women have a written plan for their money, compared to just 44% of men. Writing down your plan helps you achieve it, because a visual plan makes you:

• Think consciously about your goals

• Create a roadmap to achieve your objectives

• More easily track your progress

• Hold yourself accountable

Everybody, both men and women, should take the time to make a written budget. Then write down short-, medium-, and long-term goals, and list steps you'll take to achieve them. 

6. Set SMART Financial Goals as a Woman

Speaking of financial planning and setting goals, the SMART framework can help you create a plan for your money, piece by piece. SMART stands for: 

• Specific. For example, you decide to pay off your $5,000 credit card balance. 

• Measurable. You’ll know you’ve succeeded when the balance on the card is $0. 

• Achievable. You can reach this goal, because you just got a raise at work and are also cutting back on your discretionary spending to make it happen. 

• Relevant. Less debt could improve your credit score and lower your stress levels

• Time-Bound. You want to pay off the balance within 10 months. 

It’s best to put your SMART goals in writing, so you can check back in over time. You can use this approach with any financial plan—such as buying a home, going back to school to get an advanced degree, or saving an emergency fund. It can help you stay organized as you work toward multiple goals, since you have your plans to refer back to, and you can adjust timelines and plans over time as your circumstances change. 

Using SMART goals to address debt can be a slam dunk, since debt (especially high-interest debt) can really hold you back financially. If you’re struggling to make sense of where to begin with debt payoff, a professional debt relief company could help you figure out next steps. That could be a debt consolidation loan to streamline repayment or debt settlement to clear your debts for less than you owe (which typically takes two to four years). 

7. Manage Career Breaks and Financial Interruptions

The lion’s share of family caregiving work (whether it’s for children or elderly relatives) falls on women, and our financial position and career trajectory both take the hit. The Urban Institute found that between 25 and 44, two-thirds of women—a whopping 65%—are in caregiving roles with dependent children or adult family members or friends. Also, some women opt for careers that pay less but offer flexibility to make caregiving easier.

If you’ve had to step back from the workforce in service of caregiving responsibilities, remember that your needs and wants are also important. Keeping your own interests and needs in mind isn’t selfish. Even while caring for a child or an aging parent, you still need to make sure you’ll have resources to fall back on. 

Second, you can pursue career development to set yourself up for success when you decide to re-enter the workforce full time. Maybe you can take on part-time or freelance work while you also raise children or take care of your parents. You could look into options for continuing education, like community college classes a few hours a week. 

And perhaps you can find some time in your very busy schedule to maintain connections with your professional network. You could attend conferences or even meet former colleagues for lunch every so often to stay on top of what’s going on in your field. 

Don’t neglect the more distant future, either. If you’re married and your spouse is earning an income, they can contribute to a spousal IRA (either Roth or traditional) on your behalf. This is especially important, because lost wages result in lower future Social Security benefits. If you’ve survived financial hardship and are rebuilding your finances, debt settlement could be an option to help your family free up money to save and invest for the future, too. 

If you need debt relief in Lincoln, NE (or anywhere else in the country), explore your options. The first step is the most important one—find out more today.

Financial Knowledge Understanding Puts Your Current Financial Situation in a Whole New Light

If money management hasn’t been high on your list of priorities until now, that’s understandable. Life is busy, and women juggle a ton of daily responsibilities. In many cases, women are the designated family caregiver. Digging in for a full picture of your existing finances is a great starting place to get better with money. 

Start by logging into all your financial accounts (bank accounts, credit cards, loans, and so on) and write down your balances to find out more about your financial situation and debt. Compare the balances to your household income, and look for ways to cut expenses and free up more money to help you get closer to your goals. 

As you pay down debt balances and add to savings, you’ll boost your net worth and it could be easier to handle any unplanned expenses that pop up. You’ll also be able to understand how money management tasks today can move you forward to achieving big money goals for tomorrow. Maybe you dream of buying a home, helping your kids pay for college, or even paying for a luxe vacation without needing to take on debt. 

Women are slowly catching up to men in the financial realm, but it's not a competition. Everyone, of every gender, should work toward taking smart financial steps to improve their lives. Start today.