The Importance of Saving for Women

Women face a different set of financial-planning challenges than men because they tend to live longer, earn less, and take more breaks from the work force. Women may also experience more difficulties if they are widowed or divorced. The good news is that women tend to save more.

According to Vanguard’s “How America Saves 2012” report, women saved at rates about 5% to 10% higher than those of men across every income group. However, even though their savings rates were higher, women’s balances in savings accounts tended to be lower than those of men because women, on average, had lower incomes. This illustrates the extreme importance that saving (and starting to do so early) has for women. It’s not always easy, but managing debt, controlling expenses, and contributing to a retirement plan can make a world of a difference down the road.