President Obama signs executive actions to strengthen enforcement of equal pay laws for women during an event marking Equal Pay Day in the White House on April 8, 2014. (Jim Lo Scalzo/European Pressphoto Agency) My first money manager was my grandmother Big Mama. Most of my core financial instruction — lessons that helped me become a lover of saving and a hater of debt — came from my grandmother, who never made more than $13,000 a year and yet was a master at her finances. She is my hero when it comes to money. March is Women’s History Month, and I wondered how women in general compare to men when it comes to their finances. “Women account for more than half of the consumer spending in the U.S., manage a growing share of investments, and are increasingly the primary breadwinners in their households,” Maria LaMagna wrote for MarketWatch. “Yet despite their influence over American household dollars, women still lag in other, related, areas — from wages to their confidence about their own financial wherewithal.” LaMagna laid out six ways men and women differ financially. She looked at pay, credit scores, student loans, savings and retirement. Two areas stood out for women: They have better credit and better investment strategies. Still, the differences are keeping us apart financially. According to one report, three years after graduating from college, women had paid off 33 percent of their student loans compared with 44 percent for men. But as LaMagna noted, “Wages play an important role in those statistics; when you earn less, paying off loans is harder.” Take a look at the graphic illustrating how women compare to men when it comes to their finances. And read this article about the historical pay difference. “Over the years, a raft of studies have opened windows into unconscious bias,” wrote The Washington Post’s Danielle Paquette. “Consider the men and women negotiating for higher pay in one famous 2005 report: They used the same words, but the men were seen as confident, while the women came off as pushy.” How long will we have to wait for equal pay? Because it’s already been too long. Color of Money Question of the Week
What’s the best financial advice you got from a woman you know or admire? Send your comments to colorofmoney@washpost.com. In the subject line put “Women’s History Month.” Please include your name, city and state. As I’ve said before, when people have to own up to their comments they tend to be more civil. Live Chat Today
I’m back. Did you miss me? I made sure I left you in good hands. Jonnelle Marte, The Washington Post’s personal finance reporter, and Rodney Brooks, our retirement columnist, did a great job taking your questions last week. On occasion they will continue to step in for me. If you missed their chat last week, here’s the link to the transcript. What financial issue is on your mind? Or perhaps you just want to chat about the latest personal finance news. Either way, I hope you stop by online for a conversation about money. Here’s the link to join the discussion today. What every woman should know about money
If you want to make your money work for you, you need to work to know more about money. For Women’s History Month, Credit.org has come up with some facts that every woman ought to know. Here are a few: — Women are 26 percent more likely than men to be the victims of identity theft. If you know you’ve got a target on your purse, take steps to find out how to protect yourself. The Federal Trade Commission has a dedicated website with tips that can help. — Women who have a savings plan save more. Bankrate.com has a simple savings calculator you can use to start your plan. | 