Financial planning is a process of looking at your complete financial picture, determining where you want to go and coming up with a plan to help you get there.
A recent UBS Investor Watch, "Own your worth", explores how women around the world approach their financial well-being. Are they fully engaged in the financial decisions that affect them?
The answers are surprising. Almost all women globally are highly involved everyday finances, like expenses and bill paying. But almost 60% of women do not engage in the most important aspects of their financial well-being: investing, insurance, retirement and other long-term planning.
Why do so many women focus on the present but ignore the future? In the US, women opt out of long-term financial decisions because they believe their spouses know more. Regardless of the rationale, failing to plan for the future carries risk. As women around the world live longer, the likelihood of becoming widowed or divorced increases. Inevitably, women who plan for these possibilities will be better prepared.
But women don’t need to do it alone. In fact, women who approach long-term decisions in partnership with their spouses report soaring levels of satisfaction. Nearly all have high confidence in the future, feel less anxious about money and make fewer financial mistakes.
By sharing decisions jointly, both women and men can face the future with optimism—and set an example of financial partnership for generations to come.