Empowering Catholic Women to Take Control of Their Finances
“Tell the rich in the present age not to be proud and not to rely on so uncertain a thing as wealth but rather on God, who richly provides us with all things for our enjoyment.” - 1 Timothy: 6:17
Financial experts predict a “great wealth transfer” in the coming years as baby boomers distribute or leave their assets to the next generation. Some projections estimate as much as $124 trillion will change hands by 2048 – and most of it will go to women, creating the largest wealth transfer by gender in history.
With this in mind, now more than ever, women need to educate themselves regarding finances – a topic that has traditionally been male dominated. What does this mean for us as Catholic women?
Because we are all unique, the way finances are managed varies greatly from individual to individual and family to family. As such, the approach will look different in each situation. However, there are some basic steps that women should take regardless of their circumstances to be more prepared for this “great wealth transfer.” As Catholics, we have a responsibility to be good stewards with the gifts God has given us. As 1 Peter 4:10 states: “As each one has received a gift, use it to serve one another as good stewards of God’s varied grace.”
Start the Conversations
We are only able to be good stewards if we are educated on how to manage the gifts given to us. The first step is to begin having conversations. As awkward as it may be, it is worth talking with your spouse, your parents, and anyone else you believe you might receive an inheritance from. These conversations will open the door to understanding what you may be receiving, how it has been managed, and who you should talk to. Having these conversations now allows you to prepare rather than feel blindsided. No, estate planning conversations are not fun, but they are worth having.
When approaching this topic, remember to do so from a place of humility and not entitlement. You should never assume you are inheriting anything from anyone; you just never know someone’s plans. However, it is best to get an understanding while they are still here rather than trying to sort it all out after they have passed.
Within these conversations, be sure to ask who you would need to contact after the death of your loved one, what their contact information is, and any other helpful information. It is also a good idea to understand how the assets are being managed, if there is a trust involved, and what the terms might be. Approach these conversations from a place of learning. Of course you do not want your loved one to be gone, but you also do not want to be managing your grief and be stressed about assets or money at the same time.
Look for Educational Resources
Finances, assets, and estate planning are complicated and can get confusing fast. Begin educating yourself on the processes and terminology. Keep your eyes open for webinars or other resources to build your knowledge. Many of us were not taught these things in school, leaving it up to us to learn from other places. Oftentimes financial companies will offer free seminars, lunch and learns, and other presentations to teach basic financial concepts. That being said, make sure to validate what you hear, see, and read. There is also a lot of misinformation about how to manage money.
I would also recommend building a relationship with a financial professional now. Having someone you trust goes a long way as you try to manage and sort through an inheritance. You can begin by talking to the person currently managing what you may inherit, but if that does not feel like a good fit, do more research. There are millions of financial professionals out there. The right one for you is out there, it just may take some time to find him/her.
Finally, ask for advice from the current owner. Whether your spouse, parent, sibling, or someone else, this person has plenty of knowledge he/she can share and help you understand at least where to start.
Female Specific Advice
There are a few specific areas that women should be mindful of: we have a longer life expectancy than men, we tend to be more conservative than men, and we can be seen as more vulnerable and therefore targets for scams.
Having a longer life expectancy, we may need more money than men. This depends on our spending habits, healthcare needs, and many other factors; however, it is good to be aware that we may need more in the long run and make sure retirement planning advice takes this into account.
Being more conservative often means our investments do not grow as fast. There is a balance here. My best advice is to talk with a financial professional and really dig into the risk and reward analysis of different saving and investing opportunities. The right professional will be able to create the best plan for you, allowing you to release the stress that might surround money while at the same time providing for your financial needs.
Being aware of scams is always good advice. Unfortunately, there are many things that sound good on the surface but have hidden fees, restrictions, or other concerns. Be mindful and make sure you can trust the person you are working with and that you fully understand what you are doing. Do not let yourself be rushed and always ask for a second opinion if something just doesn’t feel right.
Catholic Perspective
As you educate yourself, do not forget to lean on your Catholic faith. The church has plenty of teachings on wealth, money, and stewardship. It is not a sin to be wealthy; it is what we do with that wealth and how we allow it to affect how we are living that could be either sinful or beautiful. We are all called to be stewards of the gifts God gives us, both spiritually and materially.
Discern
Discernment and an active prayer life are important aspects to take into consideration as well. When we remain close to God, asking Him to direct our lives and inspire our actions, we will know how He is calling us to live. That will look different for everyone. When we are responsible, prayerful, and generous we can navigate all major changes we may face. It will take time and patience and we may make wrong decisions at times, but we can regroup and learn from those.
In all areas mentioned above, we need to invite God in. Allow him to bring us the people, the resources, and the education we need, so we can be who He is calling us to be and work to further His kingdom on earth. As we navigate the “great wealth transfer,” we can be sure He will not leave our side and that we will be empowered to work with Him. By keeping Him at the center of everything, we cannot go wrong.
Erica Mathews is a CERTIFIED FINANCIAL PLANNER™ Professional with Financial Counseling Associates, a family-owned financial planning and investment management firm. She helps relieve financial stress with organization, automation and a plan, helping others manage their finances so they can live as God is calling them to. She lives in Colorado with her husband and four kids; they love CrossFit, rock climbing, gardening, and exploring nature. Erica’s email is erica@fca-inc.com