BETTER MONEY HABITS AND ECONOMIC MOBILITY

By Yalanda L. Wells, Commercial Banker, Bank of America

In a 2005 speech, Barack Obama stated, “A budget is more that just a series of numbers on a page. It is an embodiment of our values.” Financial literacy and economic mobility are important for everyone, but women often feel less knowledgeable and less equipped than men to make smart investments and financial moves. 
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With more than 20 years of experience in the financial services industry, I have had the opportunity to listen to the financial journeys of many individuals and families.  A common theme I hear is: “I wish I would have started saving and investing earlier.” There is an increasing demand for knowledge and guidance in the area of financial wellness and literacy. The latest Merrill Lynch study revealed that more women are owning their financial futures and 48% of women feel confident managing money, up from 32% in 2018.

I am passionate about encouraging better money habits and financial discipline for women and strive to help even more women feel confident about being financially independent. 

Pennsylvania Women Work has a vision to empower all to succeed in the workforce, earn equitable compensation and attain economic security. Community programming like PA Women Work’s truly makes a positive impact on the overall health and wellness of families in our community. I am thankful to align my passions with PA Women Work’s vision and work together to educate women on financial literacy.  

Collectively, let’s go beyond the basics of “What is a checking and savings account?” and “What is credit?” Let’s actually work to improve economic mobility. Bank of America shares Better Money Habits throughout the community and here are a few action steps that you can take. 

Develop A Budget: Developing a budget can bring on a bit of anxiety for some, but it serves to keep us disciplined with our financial decisions. Getting organized and gathering all your sources of income and expenses is the first step. Fortunately, there are a plethora of technology and applications that can make this easier. Most banks have online platforms that can track expenses and provide reporting to help adjust where needed. This can assist in your strategy to reduce debt. Streamlining your payments and opting for electronic processing can also help maintain your budget and improve efficiency.

Jump-Start Your Emergency Fund: Saving can be challenging, especially given our current economic conditions. Starting small is the best advice that I can give. The most important thing is to develop the behavior and the return will happen over time.  Making your income work for you and finding creative ways to increase income can help build savings, as well. For example, if you are passionate about animals offer to dog sit for a neighbor or sell those cupcakes that everyone loves. Also, do not take on the task of creating a savings plan alone. You can reach out to a financial advisor or a trusted friend to help you develop a plan and hold you accountable to it.   

Saving Best Practices: Establishing goals and staying disciplined is key. Behaviors that can help you save money and stay on track include, reviewing monthly subscriptions and phone plans, stick to a grocery list and eat in, and forgoing something you buy often but perhaps do not need. Also, celebrating yourself when you hit a goal is important. It does not have to be extravagant but could be something simple like sharing the news with loved ones.    
 
Tackling Financial Stress: Managing the stress that comes with trying to improve your financial situation can certainly be difficult. Better Money Habits reveals that 66% of adults said that money is a significant source of stress and 43% reported feeling that saving enough money for things in the future is their main source of stress. Financial stress can impact your mental, emotional, and physical health, so it is important to be aware of this and take advantage of available resources. Some tips to alleviate stress include things previously mentioned, such as creating a budget, building an emergency plan, and reaching out to others for support.

Regardless of where you are financially today, know that you are on a journey and things do not change overnight. Stay encouraged to practice better money habits and remember to share your knowledge and story with others who may benefit. 

Sources:
(Study: Women's Financial Literacy & Investing Knowledge (ml.com)
https://bettermoneyhabits.bankofamerica.com/en).

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