In recent years, there has been a growing trend of women assuming the role of breadwinner in their families. According to a study by Wells Fargo, this trend is particularly evident among younger women. In this article, we will explore the reasons behind this shift and offer some advice to professional women who find themselves in this position.
Introduction
The traditional gender roles that have defined family dynamics for generations are changing. Women are entering the workforce in record numbers and are assuming leadership roles in various industries. As a result, more and more women are becoming the primary earner in their households. This trend is particularly evident among younger women, as a study by Wells Fargo has revealed.
The Study
Wells Fargo conducted a survey of over 2,000 adults to better understand the financial challenges faced by modern families. The study found that 54% of millennial women (those born between 1981 and 1996) are the primary breadwinners in their families. This is a significant increase from the previous generation, where only 42% of Gen X women (born between 1965 and 1980) held the same title.
The study also found that the average millennial woman earns 85% of what her male counterpart earns. While this wage gap is concerning, it is worth noting that it is smaller than the gap for Gen X women, who earned only 60% of what their male counterparts earned.
Reasons for the Shift
There are several reasons behind the growing trend of women assuming the role of breadwinner. One major factor is the increasing number of women entering the workforce. Women now make up almost half of the workforce in the United States, and their numbers are expected to continue to grow in the coming years.
Another factor is the changing nature of work itself. The rise of the gig economy and remote work has made it easier for women to balance their work and family responsibilities. Additionally, more women are pursuing higher education, which can lead to higher-paying jobs and greater opportunities for career advancement.
Advice for Professional Women
If you are a professional woman who finds herself in the position of breadwinner, there are several steps you can take to manage your finances and ensure your family's financial stability:
1. Create a budget
Having a budget is essential for anyone who wants to manage their finances effectively. As a breadwinner, it is particularly important to know where your money is going so plug money leaks - things like unused subscriptions or gym memberships. That will afford you the chance to invest in new opportunities.
2. Build an emergency fund
Having an emergency fund can provide peace of mind and help you weather any financial storms that may come your way. Aim to save at least three to six months' worth of living expenses. Keeping it in a high interest savings account can give you a little financial reward while still keeping the money liquid for well.. and emergency!
3. Invest in your retirement
As the primary earner in your family, it is important to plan for your future. Investing in your retirement is a great way to ensure that you will be financially secure in your golden years. Image yourself at 65. You want her to be comfortable, right?
4. Communicate with your partner
If you have a partner, it is important to communicate openly and honestly about your financial situation. Together, you can develop a plan that works for both of you. Setting a monthly or bi-monthly financial meeting can really do wonders for your relationship and bank account!
5. Prioritize self-care
Being the breadwinner can be stressful and demanding. Even more so if you're a full time mom too! It is important to prioritize self-care and to take care of your physical and emotional well-being. Stress can lead to stress spending - that ugly pair of shoes you bought on clearance after a bad day at work. Instead, plan your self-care spending so that you get something you can look forward to and enjoy!
The trend of women assuming the role of breadwinner is likely to continue in the coming years. While this shift may present some challenges, it also offers opportunities for women to take charge of their financial futures and to achieve greater professional success. By following the tips outlined in this article, professional women can navigate this new reality with confidence.
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This information is for educational purposes only and should not be considered specific tax, legal, investment or planning advice.
https://newsroom.wf.com/English/news-releases/news-release-details/2021/Wells-Fargo-Younger-Women-Are-Increasingly-Earning-the-Title-of-Breadwinner/default.aspx
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