Many women find themselves in less-than-ideal financial situations in midlife. Here are some of the traps women can fall into and some solutions. If any of this resonates with you, sign up for our newsletter below so you can get some tips and tricks for managing your money in midlife. And, read our book, The Selfish Season!
1. Prioritizing Others Over Themselves
Midlife women often sacrifice their financial security in order to support loved ones. Whether it’s contributing to a child’s education, assisting aging parents, or cosigning loans, this goodwill can frequently come at the expense of their own stability. Women have been conditioned to put themselves last and never to be “selfish” but this can lead to financial hardships that - ironically - can be a drain on those you hoped to put first.
The Solution:
It’s essential for these women to recognize the importance of prioritizing their financial well-being. Establishing boundaries and having honest conversations with family members about realistic support options can make all the difference. It’s the oxygen mask approach: you have to resource yourself so you can help others.
2. Neglecting Self-Investment
There is a tendency among midlife women to avoid spending money on personal growth activities, such as furthering their education, paying for a gym membership, seeking therapy, or engaging a coach. Not making the investment in self when one needs it is a false economy as it can lead to illness, exhaustion or mental health issues that create even greater expenses (and suffering!) down the road.
The Solution:
Women in midlife are encouraged to view such expenditures as opportunities for greater returns. Physically taking care of oneself, enrolling in a financial literacy course, or even starting a small business can prove highly rewarding down the line.
3. Equating “Treats” with “Investments”
It’s easy to confuse treats like daily coffee out or a new dress with meaningful investment. Women at this stage may believe that pampering themselves with spa days or acquiring luxury items equates to taking care of themselves. While these moments may feel gratifying, they rarely contribute to long-term well-being. Investing in education, healthcare, skincare, therapy and other things with a longer term payoff is the smarter move in the long term.
The Solution:
A balanced approach is key. While occasional splurges are fine, midlife women should prioritize choices that enhance their future, such as putting money into retirement savings, purchasing high-quality long-lasting items, or developing career-related skills.
4. Avoiding Financial Discussions
For many women, conversations about money can feel uncomfortable or overwhelming, leading them to avoid the topic altogether. However, this can result in a lack of awareness and planning, which may worsen financial struggles.
The Solution:
Reframing these discussions as acts of self-care can help remove the stigma. Engaging with a financial advisor to assess current circumstances and establish goals can provide a strong foundation for better planning and peace of mind. There is a lot of shame around money - particularly as one ages and is supposed to have their affairs in order - and women are often afraid to admit that they need more information or have questions. We were not taught these things in school so there is no shame in asking your financial advisor to educate you in this area.
5. Failing to Prepare for Major Life Transitions
Midlife women often find themselves unprepared for the financial effects of divorce or widowhood. The emotional toll of these events can overshadow the practical implications, leading to a lack of proactive planning. Some women do not have access to money to hire a divorce lawyer or know who is managing their money. The time to learn about money is before there is a crisis.
The Solution:
For those women who are married, active participation in household finances is vital. Knowing the details of accounts, debts, and shared assets ensures they are prepared for unforeseen challenges. Women navigating life after divorce or widowhood can benefit from consulting financial professionals to restructure their finances effectively.
6. Holding onto a “Scarcity Mindset”
Cultural messages about saving every penny and avoiding risks can create financial limitations for women in midlife. Focusing solely on what is lacking may prevent them from exploring opportunities that foster financial growth such as investing or building a business.
The Solution:
Adopting an abundance mindset can be a game-changer. Strategies like finding pathways to increase income—whether through investing, starting a business, or monetizing unique skills—can transform fear into empowerment, paving the way toward financial freedom.
7. Overlooking the Value of Community
Financial struggles can feel isolating, and many midlife women avoid sharing their challenges out of shame or embarrassment. This can cut them off from access to helpful advice or support networks. Many of us have been conditioned to think it’s impolite to talk about money and that does not serve us well.
The Solution:
Building a community of like-minded women can be invaluable. By joining networking groups, attending workshops, or participating in financial forums, women can find encouragement, share knowledge, and learn from others’ experiences.
When it comes to money, knowledge is power and community is key. We look forward to cheering you on as you become a more savvy about your money in midlife!