On this episode of How To Money, Matt and Joel talk with longtime financial journalist Jennifer Barrett about her new book, Think Like A Breadwinner. It’s no secret that men and women are taught very differently about money. She realized it herself when she and her husband were thinking about having a second child, and she discovered that she didn’t strategize about her money in the same way he did – even when she was earning more. In researching her book, Jennifer found that parents teach boys about building credit and investing to build wealth, while girls are taught more about budgeting and saving for short-term goals. In short, boys are taught to be breadwinners: To pick career paths that pay the most, to negotiate the best salary, and to compound that money over time. She wants women to have that same mindset about money so they can have more freedom and choices throughout their lives, be able to understand and communicate their worth in the workplace, and experience true financial independence.
Jennifer says it’s not that women are “waiting for a prince to save us, per se,” but that they don’t believe that their earnings are as critical as men’s. It’s an assumption you can see in policies, as well, such as unpaid maternity leave (and a total lack, in most cases, of paternity leave). In general, women are conditioned “not to be a breadwinner, but to marry one.” Because they don’t think they’ll be fully on the hook for their financial futures, women leave a lot of money on the table, and often get stuck in toxic situations at jobs because they feel like they can’t afford to leave. With more secure finances, women can have what Matt and Joel call “peace-out money,” a cushion that lets them walk away from a situation that isn’t serving them.
So what needs to change? First, of course, the mindset itself: Women should begin to think of themselves as solely in charge of funding their lives and the lives of their loved ones, even if they aren’t. It will almost immediately manifest serious motivation for higher wages, a better-paying career, and more long-term planning. A candid conversation with her partner is important, too: What are their financial goals, and how can she be a greater part of reaching them? Most importantly, “Invest!” Jennifer says. “I often tell women to use every paycheck as an opportunity to become less dependent on the next paycheck….Start growing that money because the more your money works for you, the less you have to work for money.” While this might seem like an episode solely for women, Matt and Joel found her insights incredibly beneficial as fathers, learning a lot about how to talk to their own daughters about building a financial future full of possibilities. Get all this great information and more on this episode of How To Money.
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