Are we doing enough to support women in achieving financial security?

The other day I was going through my extensive book collection to see where I could purge and free up some shelf space. I offered some books for free, including three financial planning books – Balancing Act: A Canadian Woman's Financial Survival Guide and The 80% Majority by Joanne Thomas Yaccato, along with The Wealthy Barber Returns by David Chilton.

A young woman claimed the Joanne Thomas Yaccato books, then messaged me the next day asking for The Wealthy Barber. She mentioned that Balancing Act was “literally the cure to her anxiety and helping to align her goals for 2025.”

When she came to pick up The Wealthy Barber, I spent a few minutes chatting with her and discovered that she had saved up quite a bit of money and lost it all to her ex-husband. She was now trying to figure out whether to pay lawyers to fight him or just start all over again with her savings. I commended her on taking the steps to educate herself and recommended she follow Saijal Patel, CFA for more help.

Needless to say, her story stuck with me, and I haven’t been able to stop thinking about how many women out there have found themselves in similar situations.

I am not a financial planner, but I did spend 20+ years working in financial services and began saving and investing in my early 20s. I bought my own condo when I was 25, started working with a financial advisor, used credit VERY judiciously, and generally tried to live below my means using a very simple budget template. As a couple, my husband and I have our own life insurance policies, tax-free savings accounts, retirement plans, an education savings plan for our kids, and, as of two years ago, no mortgage.

For a long time, I naively thought this was just normal… until I started talking to some friends and I realized that I’m the exception, not the norm. It's scary how many people I know have no savings, high debt, and no clear understanding of how much they'll need to retire comfortably.

And yes, I am fully aware and appreciate that the current economic environment is not conducive to getting ahead. But as a GenXer, my journey took me through the fallout of the 9/11 terrorist attacks and the financial crisis of 2008, so even though it's definitely not always easy, it is possible.

Here are some sobering stats (sources: Benefits Canada & HOOPP):

• In 2022, women in Canada earned approximately 79% of what men earned on average
• Half (49%) of Canadian women have less than $5,000 in savings, compared to 33% of men
• 53% of unretired women have not set aside any money for retirement in the last year, compared to 45% of men
• Among women aged 55-64, 36% have no savings at all, compared to 22% of men in the same age group
• 57% of unretired Canadians don’t feel prepared for retirement, including 64% of women and 49% of men

Women’s lower rates of saving and investing compared to men can be attributed to a combination of factors, including income disparities, lack of confidence, societal norms, caregiving responsibilities, and gaps in financial education.

The Ontario government’s recent move to include financial literacy as a compulsory component of grade 10 math is long overdue; hopefully, it’ll help set our kids up for a healthier and more informed approach to future savings.

But what can we do NOW to empower women to take control of their financial futures and participate in saving and investing activities so that one less young woman has to start from scratch?