5 Steps Women Can Take Today to Up Their Money Game

When it comes to their money, Gen Z women are feeling confident. That’s the finding in Northwestern Mutual’s 2024 Planning & Progress Study, which indicates that younger American women are feeling more confident about their finances than their older counterparts. For example, 60 percent of Gen Z women think they will be financially prepared to retire when the time comes, as compared to 40 percent of Gen X women.

Gen Z women are also more likely than women in other generations to report that their household income is growing faster than or keeping pace with inflation. They’re also among the most confident consumers: 57 percent of Gen Z women say they will spend more or the same in 2024 while just 37 percent expect to spend less.

“The youngest generation of working women is setting ambitious financial goals, and their rising incomes could provide them with the financial fuel they need to reach them,” says Kamilah Williams-Kemp, chief product officer at Northwestern Mutual. “The key question is: Will these young women protect what they’ve already built and save money for tomorrow’s dreams while they’re having the time of their lives today?”

If you’re feeling good about where you are with your finances, that’s great. But there’s always room to up your money game and make sure your longer-term financial planning is on the right track.

5 steps to up your money game

1. Set specific goals

Before you can create your financial plan, you need to have some idea of what you’re planning for. So set aside some time to jot down three goals each for the next one to three years (short-term), three to five years (intermediate) and five to 10 years (long-term). Depending on your situation, these might include:

Short-term: reviewing your credit card statements and other debt, creating an emergency fund, saving for a vacation

Intermediate: buying a car, getting married or having children, researching how to turn your hobby or side hustle into a business

Longer-term: buying a home, saving for your kid’s college education, planning your retirement

If you’re feeling really inspired, create a vision board to give yourself a visual reminder of all the goals you’ve set.

2. Avoid unconscious spending

Now that you’ve identified what’s important to you, make a point of aligning your lifestyle so you can get what you want out of life. Think of it as the “say no so you can say yes” approach. Are you spending money on what matters to you—or have you made one too many trips to Target for toothpaste and detergent and left with $100 worth of stuff you hadn’t planned to pick up? (Most of us have been there!)

Earlier this year, the term loud budgeting gained a lot of traction on social media as more people embraced saying no to spending money on things like going out for drinks after work or having brunch every weekend. This isn’t about cutting spending as much as it’s about prioritizing it on what’s most important to you. Pay yourself first so you can take that vacation you’ve been dreaming about without going into credit card debt or dipping into your savings.

Saying yes to their own goals can be challenging for women who traditionally tend to rank others’ needs and wants before their own. Who are you putting ahead of yourself that is getting in the way of what you want to enjoy? Even if you decide these other priorities are worth it, getting into the habit of asking the question can help your bottom line.

3. Choose a few financial terms to master

Financial jargon can make even the simplest concepts seem confusing but there’s no need to be intimidated. As the saying goes, knowledge is power. Start by reading up about concepts you’ve likely heard but can’t fully define. Getting a handle on some basic financial terms can go a long way toward building your financial literacy and even overall feelings of wellness.

4. Make sure you aren’t leaving free money on the table

If you work for a company, you likely get a range of workplace benefits beyond your salary. If they’re offered to you, you’ll certainly want to take advantage of a 401(k) match and contributions to your health savings account (HSA), which are great perks to have.

5. Explore how to protect your income

A common blind spot that can be easy to overlook—especially when you’re young—is the possibility that something could happen to you and prevent you from working. To help protect against this, many employers offer short- and long-term disability insurance to their employees. However, in many cases it will cover only about half of your income. You may want to consider additional ways to protect against this risk—spoiler: We can help.

Talk to someone you trust

Finding the right balance between paying for your current needs and wants and saving for your future hopes and dreams can feel overwhelming at times. Sometimes you just need to talk it out. Discussing these issues with a friend or relative can often help you put things in perspective.

If you’re still feeling uncertain or want more expertise, it could be time to look for a financial professional who can meet you where you are. Though that can feel like a big step, the right financial advisor for you will ask the right questions to help you sharpen your goals and find things you might have overlooked.