Misconceptions Holding Young Women Back

Despite inroads working women have made in recent years, according to the American Association of University Women (AAUW), on average, they still earn 16% less than men — 84 cents for every $1 a male counterpart earns. The gap is wider for working mothers. A report from the National Women's Law Center found year-round, full-time working mothers are typically paid 71 cents for every dollar paid to year-round working fathers.* What's at work here? For many young women, it can be these financial misconceptions.

I'm Too Young to Save for Retirement

Retirement savings may be a low priority at the beginning of a career. But it's never too early to take advantage of the power of time and compound interest. Open an Individual Retirement Account or join your employer-sponsored retirement savings plan. If your employer matches contributions, contribute at least the match amount to maximize your savings.

I Don't Have Enough Money to Invest

No amount is too small to start a regular investment program. Creating a relationship with a financial professional now can help you find suitable investments based on your financial situation and give you a foothold in future success. Take this opportunity to financially plot a plan for life events such as unexpected emergencies, buying a home, or starting a family. Debt is bad. Some debt, such as a credit card that offers cashback or other reward programs, can benefit you. Just don't charge more than you can afford. Paying credit card bills in full when due avoids interest and allows you to build credit. A good credit score can lead to better interest rates on mortgages, car loans, etc.

Personal finance can be complex and present unique challenges, especially for women. Talking with a financial professional can help you navigate these challenges.

Avoid The Retirement Gender Gap Older Women May Face

U.S. Women Turning 65 from 2024 to 2030

• Median Retirement Assets - 45% less than male cohorts


• Expected Annual Social Security - 5% less than male cohorts


• HDHP Maximum Out of Pocket (excluding premiums) - 43% less than male cohorts

Statistics from AAUW show that gender-based financial barriers can set a 20-year-old woman starting full-time employment today back $462,000 in income over a 40-year career compared to a similarly situated man.

*AAUW analysis of the U.S. Census Bureau Current Population Survey and the National Woman's Law Center Mother's Wage Gap Study, 2024