This week, the investment firm T. Rowe Price released its Retirement Saving & Spending study that offers an interesting comparison of the savings habits of baby boomers versus millennials. Based on the findings, the media needs to dial back its criticism of our generation and our money habits. Despite being weighed down by so much student-loan debt, we're saving at almost the same rate as our parents, and according to this study, "72% of millennials say they are somewhat or much better off financially than their parents were at the same age."
That's all wonderful news, but the study found an alarming difference between the way millennial men and women are saving. Of the non-savers, 68% were women. Those who do have a 401(k) account are carrying an average balance of $38,000 — compare that with men, who have an average of $74,000. The study found that "women are contributing an average of 7.2% (median: 5%) of their annual salary to their 401(k), compared with men, who are contributing an average of 8.4% (median: 7%)."
In a Morgan Stanley study released in fall 2014, 55% of the women surveyed said they “know less than the average investor.” Personally, I find the topic of investing to be so confusing. I don't understand how to properly allocate funds in my 401(k). I'm unsure how and where to invest my savings. And don't even get me started on the two retirement funds from previous jobs that have sat untended for a number of years. But I don't think I'm alone in thinking there are very few resources geared toward women who want to improve their knowledge.
I think we can fix that, and over the next few months, I'm going to be sharing my experiences getting my financial life in order, in hopes that my stories will empower others to take charge.
Tell me in the comments what you want to learn about, and I will try my best to find clear, actionable answers to your every money problem. There's no reason we should be falling behind the guys in any area of our lives, and it will be so empowering to develop our financial intelligence and grow our wealth.
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