The gender gap in the workplace is well talked about. Getting equality in the wages earned for the jobs done in the world of business is important. However, something which is barely spoken about is the financial equality at home. Did you know that the cost of borrowing money is more expensive for women than men? This needs to be put right and there are things that ladies can do to balance the cost of borrowing.
The Cost Of Borrowing
Right now, there is no financial equality in the world of borrowing money. On average, women pay £17k more than men do to borrow money over a lifetime. If we take the average life expectancy of 79 years, that's over £200 every year of their lives! What could £17k buy you? A deposit on a
house. A new car. Perhaps a couple of amazing holidays. You could start your own business with some of that cash. It could even go towards your retirement, giving you a more comfortable future. The difference in the cost of borrowing between men and women is huge and there are a few reasons for this. Fortunately, there are also a few things that you can do it fix it.
Connect With Your Finances
So often at home, the man takes the financial lead on things. Research tells us that almost a third of women have financial agreements in their partners names. There are other factors in place but all of this limits credit exposure. Women need to take charge of their own finances more.
Understanding their money and implementing small changes now will help in the long term. You might be in a stable relationship right now but what would you do if something happens? What would you do if your marriage broke down and you had to do the finance side of things yourself? What if your partner died and you had to take it all on. Their credit score doesn't transfer over to you so you need to be attractive to those who would lend you money! Right now, it would cost you more to borrow cash.
Small Steps
These small steps begin with having a credit card or mobile phone contract in your name. The lenders who you would want to borrow money from, can't actually assess you if you've never actually had credit. A simple credit card you only use now and again and pay off as soon as you use it, is ideal. Be sure that you are on the electoral roll as well.
This is used by credit companies and provides a proof of address. You need to keep an eye on your credit score. Don't worry too much about it but ensure payments aren't missed. Even one missed payment can significantly impact your credit score. Which, if you were to then wanting to borrow, would affect what you could get your hands on.
In conclusion, financial equality needs addressing. An engagement doesn't mean women should become disengaged from their finances. It simply shouldn't cost women more to borrow than men.