Why do women lack financial confidence?

Friday, March 9th

Research shows that women feel less confident about money than men do.  Why?

Today, we are going to help you overcome your financial fears.

We cash in with expert Erica Cummings CFP, Vice President at Morgan Stanley and founder of The Women, Wealth and Empowerment Series

Women, Wealth, and Empowerment™ with Erica Cummings, CFP: https://fa.morganstanley.com/krokenberger_cummings/index.htm#women,wealt...

Reach out to Erica:
[email protected]

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

It is the seven figures podcast thank you so much your being here ball the information that you need to dominate your finances and I'm seeming latter's. We're gonna try to inspire you today so all the racers that I've been doing. It keeps coming up how women feel intimidated by finances women are still less company and then then about money why. Not only do women feel less confident they say the women are feeling to do that is needed to get their finances into order. We're overspending breast saving as much as mad when it comes to saving pretty emergency fund and women are less likely to invest. In their companies for a wind catch it. So if you're female and you're nodding on everything I just said. Well we are going to try to pull out that confidence that I know is inside you when you get your finances in order from first. Let's say thank you to our good friends and family first credit union very good people very good resource in any truly believe. And financial education so we appreciate dad. OK we talk about women in finance says Serena cache engines. Yeah perfect actress Erica up Cummings certified financial planner vice president at Morgan Stanley and if the creator of the women wealth. And empowerment series. Thank you for taking the time money your busy day to spend a few minutes with us. Thank you for having me I'm looking forward to this in her views specifically because I just had a conversation with my mother now she's an Italian man you gotta know that's okay. A cute little Italian moms like oh. I pray every night that your father that I go before your father. I don't know what I would do financially without him. And I'm like mom you do it should be active with the decisions that you know Amy together financially but she's. It's overwhelming I don't know if I can do it. Yeah this industry is so intimidating. To every ten men and women. But in particular to women because it is a very male dominated industry in MD. General terms that you PR. Our main Al sports like turns out. Eating MRK it's outperform ends. I was joked that the ball is the symbol of the industry so it can't be anymore now I can't add it sure. Also in the financial services industry 86% of financial planners are. Now still down. Gas it's a it's a problem because when you look at the demographics of that of the country that it's not a reflection of the end of what is out there and so. There is this ongoing. ER and intimidation that women beyond because they're not being spoken to in a language that that they necessarily relate to him. So when you used terms alpha eight asset allocation and that's it it's over there how I asked. And whether it be how they grew up in their homes or they're so they've seen that it's something to delegate a way. It just doesn't become something that's on the forefront and tail they start to think about the potential. Yeah actually have to take care of soul. He still how was it growing up for you cause I know of your environment when you grow up really impacted and in major so passionate about finances. It did so I was a product of the seventies and early eighties where divorce was quite calm and new. My parents got divorced when I was nine and my brother was five and we over the traditional latchkey kids. My mother luckily took care of the finances my parents were married my dad owned a successful business and my mom took care of all the money when it came men. So when they got divorced at least that part ways comfortable for her a lot of women going to divorce now first time they've ever seen anything and I be really overwhelming. But I never saw that growing up. She had straps and she certainly had sleepless nights but we never knew at the time. I saw a woman who could do everything they could take care of the house both inside and out and we lived a very good child tied. And she also taught me to be extremely independent and that answer came from her having to move on on her own. That I should be able to take care of myself. I should be able to make sure that no matter what happens in my life well and it'll be a good pass and happily married. But if not that I can BC QR and independent. And so I went off into the universe when I was 26 and went into the financial world. And thought that we weren't done with this gender parity issue and move and whether or not women and men can do the same things. And I started over the years it's used slowly. See at that wasn't the case when it came to money. So many things we were starting to share or whether be cooking more. Helping to take care of the children especially as women get out into the workforce. But for some reason that financial knowledge and an engagement in finances. Was the one thing that was still. It looked like the fifties. And I would have meetings with clients where maybe the wife would come to the first line. Or heard that they would be there but they wouldn't be engaged they wouldn't have real meaningful conversations. And unfortunately. Because of the fact that we led 68 years longer than that and yen and 80% of us will be alone. At some point having to take care of our finances. It does. And that becoming their responsibility and it comes in a very usually emotional and tragic way and so what your mom is talking about is re. And so my passion is to try and eliminate that fear try and have that engagement and excitement. Before something happens yeah so that they're not dealing with the tragedy at south and then the constant fear and I'm not going to be up. You've been in this business now for how many years the B seventeen and OK so you'll have a good gauge of of your clients and what they're thinking. And you put together in this seminar and and women wealth and empowerment. Yeah it was I didn't get that executive like really great let me look at this again there's no theme I don't know why there's such a skeptic apps let you really are doing it for where women. But it comes from a a good place because you. Really feel passionate about that's I am I between my background and and growing up the way that I did it and then I just have any year old daughter. And I want her to you and her friends and every woman that that is around me to feel the ability. To do this themselves do not have that fear and not have that intimidation. So the workshops we do our free. And I always look at that. Whenever we have a roomful of women if I can have them leave with even one or two nuggets that they can apply to their life. Then I'd done something guide. And it is truly a passion of mine it has become something that gets me excited to get a bad every morning. And I am energized when I'm in front of a group. And there is so many ancillary benefits that come from it other women meeting each other that would never normally have mats there's support there at that. They wouldn't normally be inclined to find and so it's just it's wonderful all it's a great way for I still lift each other op. For some reason women and we under. Estimation under value ourselves we dare I even in the job environment and manners it's so ease becomes second nature to undergo. Four come forward and say I demand a raise yeah I am via I'm a valuable employee here you're gonna compensate me absolutely women we just sit in a corner and wait to be. Recognized and noticed. Asked well and I think it's because eyes there is this unconscious. In environments where men if they are strong. And they are they go after the what they want that Eric that's. That's good that's reality I admired at Redding acts and when it's my dearly. When wind yeah. When women do it hasn't RO it's not recede as well no strip in you and we worry so when we. And this is just from my experience when men make decisions he just make. Immediately I sit in a very decisive when we made decisions we can sit there how do we feed out. How is everyone else going to fee out. Might they really deserved as maybe I should wait I don't wanna rock the apple cart eight. Eight mean my all over it for so long that we almost talk ourselves about it and and we have do you realize that we are worse. That we deserve that we work car we are word. The and that's and that's the part that we're trying to bring out of women that that even though money is. Somewhat taboo. Talking about money is actually tougher than talking about some other op Ed yeah. We have to start talking about might have to start supporting each other. We have to start telling each other that this is important money is power money allows you to make decisions in your life. That you would not normally be able to make I was actually watching an interview the other day and and they were core leading it to you than me to movement and and what's been going on with women for so long not being able to step out and they mean that the correlation between the power that you have if you have money to be able to step out because you know you'll be okay. Verses in not having that knowledge not having. The ability to say I'm going to be okay. So you don't step out you're too busy analyzing risk vs reward acts and you haven't necessarily built. A sense of it's stress relief emergency funds to be able to say I'm gonna walk away from the stopped I don't deserve to be treated like as there is something better for me. Because you haven't focused on making sure that you're going to be a Hank and realizing that you need to empower yourself each day. So many women right now like it figure nodding your iPad app app yak and it and that is the part that we really wanna try to breakthrough is this notion that. It's not greedy. It's not scary. It's quite simple. And it's really all comes from a Lubbock yourself and a love of your family that you want to be engaged you want to become more empowered. Because when you do achieve that point in your life. And it doesn't have to be buckets of money just a place where you feel like I have to stress if there's an unexpected expense absolute when you get to that level oh my god it. It really is lake have renewed confidence and you can dedicate more time being a Miami and Atlanta beat last week look at any. Person's life as a series of critical financial patents so we're all going to face and some of them we choose so we choose the jobs that we take we might choose the home that we're gonna buy a people choose when they wanna retire but there's going to be a lot of critical financial balance that you don't have any control whether it be an illness. A divorce. Or an unfortunate loss of a spouse. What you want to do is to make sure that you have created and knocked what I call plot in the match. So when you think about a mattress if it's really really and and you fall on it it's got her. But if you get enough knowledge. You make sure the you have everything that you need you put the timing you've done the planning. You deal with the key subjects are taboo subjects the matches becomes a car. So when you fall which we all are going TO it doesn't hurt his acts yeah and you're able to address the issues that you need to address in your life. Without. The financial part being such a part and because you've taken care that you've prepared off. It was a good analogy for me tipped as you know Italians we stuff for money and I have just so perfect that I completely understand. Yeah. I keep how we understand that. I am eager to tell a little bit more about the women wealth and empowerment series now. I'm assuming a lot of what we've already discussed this things that you bring up. During a seminar but. What are some mothers being that you focus on areas those little nuggets that we can walk away with tennis. So the overarching theme of the entire program is this idea that your financial wellness your physical honest and your emotional wellness are all tied together. And as women we spend an awful lot of time whether we actually do it or not we spent an awful lot of time researching. How we can be physically well and how we can be emotionally well mindful in essence asking a leap in the oh god making sure we eat well exercise. But we really need that companionship component not the team and so we want to make sure that women understand. That these seem facts that a physical and that's. Or an emotional elements can have on your life so can a financial illness or lack of a better term. So we start off that the program by a discussing those fears that hold women back. And we engage the audience into what has been holding them back from being engaged in their finance as. And then we talk about the unique strengths that women half that actually make us really gut and managing money when events. We are multitask. And we're nurturing. We're really good relationship now. We are very good at looking at the big picture. We want to know why we're doing things extremely east. Neck and neck. Generally checked their portfolio more often. Men EL as if they have to do sound and more often where women once they have that knowledge a lot date they are. Really more patient and really more disciplined. But because very emotional creatures that doesn't that work against Ascot and finances you got to pull the emotion out well gas and now so. I really say at the plant. Is always helpful in these environments because that's what I do with my clients it it's a lot of behavioral management and so I firmly believe that if women are educated and not. They will have that patients and that disappointment cat they'll know the big picture. They are. Able to you put it in perspective and not feel as if it has to be stared at every single day and that something has to be done right now. We also look at that bigger picture and we tried to you a lying women with their purpose. And then also the connection between that purpose money and up and that's the way that we view mining. And the way that we incorporate that into the week that we bought our selves and the people around us are all intertwined. And sell one of the biggest things that we tell our clients all the time is they have to know what they have. We tell the people in the workshops she need to know what you hat. We used binders. Our clients where we organize all of their most important papers every which seems overwhelming but it's sad isn't necessary it is. Great account because you don't know which you don't now. My husband does not take care of the finances as you can imagine. We have a behind our. He doesn't care what's in the biter he just knows that it's there if something happens. And that is where the most important components for anybody is to know where everything is TU. Put it all together into one place. And very little detail every little Allentown so you wanna have your your wills and your harvest attorneys in the insurance documents and you're different accounts that you have. User names and passwords because most everything we do now is on the computer Aaron. And you want the people up that will be managing your affairs if something happens. To know where the tighter. They don't need to know what's and that. Is a lot of people feel weird about at. They just need to node accessed they need to know that if something happens we do this with my mother when she watches our kids if we go away doesn't happen and we get away and. I'm my face lit up on us not forget he Google right back. Get to go bankrupt my aunt in the united babysitting me into Yahoo! yeah yeah yeah potentially where we could be that we may not come up. Okay she knows where the brighter eyes and so any buddy as as people get older can beat their children and their spouses it Sadr should know where that binder as. That's one of the biggest. Tips weekend the other is it you should know what you had in terms of but the assets are done and more importantly why are you using them. So having that plan having these short term mid term longterm goals. 50% of the population walks out of there of work and retires with no. They just leave a man yes it's shocking. So they don't know they can afford it they don't really know what decisions they're making as far as pensions and borrowing case they just got. That is a recipe generally. Or just ask you want to have a plan in place the earlier you can do it the pattern. I had a wonderful opportunity to meet with the younger couple last week and that so exciting to me because it's almost like half hour that's lending it yet how to say it and there's so many things that you can deal when you start early and it's never too early to start. And it's never too late to take a look and we have nineteen tonight at. I don't think I've done enough well you have to start something you would build a house without a plan you need to have a plan and you have to know what your pain. Or the investment that you have a lot of people can answer those questions and they can't answer if what error investing and what life insurance they have all of these components actually fit with the planned. They have all that stuff but is it really accomplishing what needs to happen and there and I think we're very trusting to gas. Well I I used this analogy is about. The medical profession and that financial profession have a lot of similarities. And I tell people on if you were to go to your doctor for surgery. And say you please explain me what experience is going to be like if the doctor says to you may refine and you it's a now. Rain and Omar and per cent. I don't want to now. Tax buck her edge that you learned in medical school but I want you to tell me how I'm gonna feel what's the recovery time what are some of the complications what does that. Percentages around those complications. You wanna feel going and that you're making a good decision and that the doctor. Is understanding. And is speaking in a language that you feel content web you should be approaching your financial planner at the same. When you walk and you should be able to talk to the planner and have. A dialogue. You don't need to know the ins and outs of all of the ways that investments are are going on in any particular day that you should now. Why you're invested in something what your pain or rent. And is it working towards the plan that you. Because you can't possibly know what to do with your assets if you don't know what you're doing them for. It seems overwhelming. Yeah you have to look at it in small. Talks is at the biggest mistake that you see most women maker just people I should say in general so women obviously one of the biggest mistakes and they're not involved. But. Or people in general the biggest mistake is that they're not looking at why they're doing what they're. So they asked. I what they think they need a plug a way that percentage in their 401K. They throw it into whatever target date fund or whatever fund that there isn't in the hand and that's finite there's nothing against any tests it's just. Not knowing whether what you're doing is actually Ali I achieve your goals. Now the statistics show that women don't evening contribute to their far in Calais there is. This significant amount of women that don't. Contribute. Why they contribute. To a lack of knowledge it is accurate that outcast and so that's part of the reason the workshops that we do we act CG on employer. Sites as well so we have we work with their HR department and do lunch and learns from women. Because sometimes when they have their for a when he providers coming and it's still that intimidating environment they're there with airmail co workers they don't want to ask the quest and then so they just common they listen and they leave. Where an environment where it's just the women who were having a discussion and they feel more on I did ask the questions. And knowledge is power and power equals participate. So you suddenly feel as of late I should know when I'm dealing. Is it really is just getting them comfortable bad whining. Team now. I have yet to have any pushed back from a single man about this program which is so wonder if I'd like SM happily married woman this is certainly not. About putting men down men want their wives to be and opt they don't want to they bought them they don't wanna see them in just ask. So it's a health family planning TO and so it's it's making sure that women understand that. Managing your money is not on the list with mowing the line grocery shopping. It's sit down the list up. We are going to the doctor or where did address us physically we're taking Harris us emotionally it carries that much weight should be in that column. This needs to be a priority. It's B win in wealth and empowerment series is there a web safety go to tell here's the problem whether let's say it's a very long you are out okay no easy task that. You if you Google Erica Cummings ER IC EA. It will bring you writes you our website a pact also if you team now Erica doc Cummings at Morgan Stanley dot com we will add GT use the invite list. And you'll have all the information on future dean thank you so much and caromed coming in much certified financial planner vice president and Morgan Stanley. And of course the creator of women and twelve and empowerment. It is free and it it's gonna educate you can give you that confidence that you need to turn your finance. Thank you so much for having me. It's time to bring in my dad Father Knows Best my dad's too whose dads take you so much again for listening to the seven figures podcast. Rochester buy dot com Google play in subscribing in believing it's a review on iTunes is out have a great weekend examining your finances there. Never underestimate the power of small savings if you pay attention. To this small amount you spend every day. They can make a big difference in the future. Overtime bad stuff. A more importantly. It teaches you financial discipline. But making you more aware of where your money is going.