Hey Glamour Gals, Avoid These Money Mistakes!

Posted at | Categorised in financial literacy, investing, money, saving money, women

Gentlemen, ladies have proven themselves incredibly skilled in handling their finances, particularly when seeking out fantastic bargains. It turns out that women excel so much at financial management that 20% of Canadian partners depended entirely on their female counterpart to establish and adhere to the family’s monthly budget, as indicated by a survey conducted in 2023.

Loans Canada

, the country’s initial loan comparison website.

Even those of us who are used to being frugal regularly might still fall into some significant traps. Here are the top five financial errors women often commit—ranging from moderately problematic to ones you should immediately cease doing!

Table of Contents

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Buying poor quality clothes

When many women shop within their means, they often wind up with garments that disintegrate or shrink after minimal use. Rather than purchasing disposable fashion—trendy items sold cheaply—it might be wiser to put money into acquiring several key pieces of top-notch wardrobe essentials.

Retailers such as Club Monaco, established with the idea of providing “superior essentials,” represent an upgrade from quick-fashion choices. This store serves well if you aim for a wardrobe filled with versatile garments suitable for various occasions.

An alternative choice is purchasing pre-owned clothes. Despite being previously worn, these garments often have a greater longevity compared to cheaply produced “fast fashion.” Those who consider buying and wearing vintage or recycled attire might discover excellent selections either via online platforms or specialized physical shops offering well-preserved second-hand items. As an example, sites such as Poshmark provide top-quality designer labels at significantly lower costs.

Change where you buy your clothes — and what you buy — and you could save hundreds of dollars in a year or two.

Not investing

The stock market is largely controlled by male investors. Hollywood depicts investing as a boys’ club driven by adrenaline and testosterone, particularly evident in films such as
The Wolf of Wall Street
.

However, research indicates that women who choose to invest in stocks and other securities generally surpass men’s performance. It is suggested that women exhibit lesser reactions to market volatility, as stated in a report from

Fidelity Clearing Canada

—and more likely to adhere to their financial plans and investment strategies. Another perspective suggests that women are less inclined to chase high market returns and instead focus on steady, long-term approaches—an investment philosophy frequently advocated by financial gurus such as Warren Buffett.

The positive aspect is that you don’t require thousands of dollars or a broker to start investing. Women have the option to initiate trading through an online brokerage account. Some of these accounts are offered by banks, like

CIBC Investor’s Edge

, along with fintech trading platforms like

Wealthsimple

and

Questrade

The main point is to locate an online brokerage account that meets your requirements. If you’re just starting out in investing, look for a brokerage account that includes comprehensive educational resources.

If your objective is to initiate a buy-and-hold investment approach—and steer clear of the anxiety and costs associated with active trading—you’ll seek out a

online trading platform

at little to no cost for trades.

To assist your selection, here are some options to contemplate:

CIBC Investor’s Edge: Ideal for Novices + Superior Offer for New Account Openers

CIBC Investor’s Edge emerges as a strong option for both experienced and beginner investors alike. For customers who are already banking with CIBC—or its standalone digital arm, Simplii Financial—the connection between their bank accounts and investment platforms is straightforward and user-friendly. In addition to this seamless integration, CIBC Investor’s Edge provides competitive rates, with trade fees spanning from $4.95 to $6.95—open an account,

today

.

Wealthsimple: Perfect for diversity + Excellent for setting up automatic investments

Wealthsimple is among the leading investment applications within the Canadian fintech sector, and for good reason. You can start investing without meeting any minimum balance requirement, and they provide multiple portfolio options tailored to match each investor’s risk profile. It provides

stock trading

,

crypto trading

and

autopilot investing

.

Moka: Affordable fixed-rate digital advisor + No cost for stock and ETF transactions

Configure automatic savings and set up automated investments through your Moka account. For a minimal monthly charge, you gain entry to five expertly curated investment portfolios along with complimentary transactions of stocks and ETFs. Start yours today.

Moka

account, today.

Questrade: Affordable trading platform featuring advanced investor resources

Clients have the ability to trade stocks, ETFs, mutual funds, and more, including access to global markets through Questrade. The platform offers advanced trading tools, up-to-date market information, along with extensive research materials—start your account today.

new account

.

Failing to keep a healthy credit score

According to data, women generally have lower credit scores compared to men.

MSNBC

Men typically have an average credit score of 630, whereas women generally have an average of about 621. Credit scores usually fall between the low 500s and 900.

A convenient choice for establishing and sustaining a solid credit rating is through the utilization of a credit card. When used appropriately, credit cards can be excellent tools for developing your financial history. Nevertheless, once they reach their limit, such short-term borrowing facilities can strain your finances and adversely affect your credit score.

If you want to begin establishing your credit history, think about getting a credit card designed for individuals who have no- or low-credit scores.

If rebuilding your credit score is necessary—especially due to having a substantial credit card balance—you might want to look into ways to lower the interest paid on that debt. One approach could involve transferring the balance to a low-interest credit card, which would decrease the overall interest charges on what you owe. By doing so, less money goes toward interest fees, providing more funds available for paying off the principal quicker. Consistently make at least the minimum required monthly payments across all your debts, and you’ll accelerate your journey towards becoming debt-free.
and
Reconstruct a strong credit score. Some good low-interest credit card choices include:

Falling for pyramid schemes

Many moms feel pressured to achieve everything. Pyramid schemes aimed at work-from-home opportunities—where individuals at the base earn minimal wages—are particularly focused on women looking to generate income while caring for their children. The aspiration to accomplish it all isn’t recent, and neither are the scams exploiting this ambition, as noted in a 2021 article from the

Huffington Post

.

These businesses exploit women’s insecurities — such as the notion that popularity equals worth and that financial input determines one’s influence over family finances. Avoid falling for this misconception. Invest some time in educating yourself about these issues.

pyramid schemes

There isn’t anything incorrect about aiming for everything, but you must focus on prioritizing what matters most at this very moment.

Looking for an additional $1,300,000 for your retirement savings? According to Dave Ramsey, this could be achievable.

This 7-step strategy ‘guarantees success each and every time’ for eliminating debt and achieving wealth.

—and ‘everyone’ can achieve it

Undervaluing your skills

According to data released by them, women are typically paid 9.2% less than men when both have identical levels of education and work experience.

Statistics Canada

.

If you have been with your company for some time, don’t hesitate to request a raise or find out if a promotion could be in the works.

Speaking up can be tough, especially if you sense that your boss doesn’t recognize your true value. If you find yourself stuck in a pay situation that probably won’t get any better, it may be time for you to look for new opportunities elsewhere.

— with contributions from Shannon Quinn and Leslie Kennedy

This article

Hey ladies, here are the biggest errors you’re making with your finances.

originally appeared on Money.ca