Dear @financial_laura I feel lost and embarrassed when I’m talking about my money. How do I improve my financial confidence?
On the heels of International Women’s Day last month, I learned about a new initiative that is sponsored by Equitable Bank called Stnce (not a typo). Even though the perfectionist in me had a hard time getting pst the nme, their message and mission are on point.
Their main message aligns perfectly with one of the key reasons I started Journey Financial which is to improve financial confidence by empowering people to grow their financial knowledge through experience, combined with having a clear financial plan and goals.
When surveyed, the discrepancy between a women’s financial confidence and competency was drastic when compared with the confidence of men.
Source: stnce.ca
All of my experience confirms this exact phenomenon. I’m often amazed at how well-versed women are about money matters, either in a family household, or on their own. But when it comes time to make major financial decisions or implement money strategies I hear a lot of excuses: “My husband deals with that” or “I’m just too busy to get to the bank” or “Where do I even start?”.
The website stnce.ca is a great source of financial tools and resources for women. If you’re wondering where to strt (autocorrect is getting really mad at me), the site offers book recommendations, podcasts and an ‘ask the expert’ column. It’s ambassadors and affiliates are amazing women to follow for financial wisdom.
Another great resource is a newly formed (American) facebook group, with a catchy hashtag (the sign of a great site) – #womenrockmoney community. There’s just something about the relative anonymity of facebook groups that gives one confidence to ask questions.
But one thing that’s lacking through this whole discussion is the action plan. It’s great to offer financial resources to enhance literacy and knowledge, but it’s shown women (and men) are already strong in this area.
How do we grow confidence??
1. Be like Nike – Just Do It!
Think about your work life. You’re likely an expert, or at least confident in the job you do – but how did you get that way? We learn best by getting our hands dirty through practical experience.
It’s the same for money. There’s no right answer, but only a situation that is comfortable for you from both a risk and time-to-manage perspective. To find that sweet spot you have to experiment, fail, iterate and adapt as your life changes. You have to DO!
If the fear is there, start small. Open a TFSA. Deposit $100/month ($50?, $20? Whatever!). Buy an ETF. As your money grows, so will your confidence.
2. Find a Money Mentor
Making big decisions is rarely done in isolation. Buying a house? You get a realtor (and a home inspection!). Having a baby? You suddenly have your mom, sleep consultant, and all the moms you met in pre-natal classes on speed dial.
But money? It’s so awkward to talk about. The colour of baby poop…not a problem, but how much credit card debt we have because of the thousands of diapers used each day…that’s taboo.
Having a trusted, neutral, third-party to validate your financial decisions can add peace of mind and major confidence that you’re on the right track.
Go forth, #showyourstnce, and do!
“Confidence is contagious. Women need to support women”
This article was first published on my blog at www. journeyfinancial.ca