Women Say These 5 Big Changes Would Reduce Their Financial Stress

It's no big secret that women tend to face some extra unfair challenges in the financial world. The gender pay gap (women make about 17% less money than men) has made it harder for women to build wealth. But there are many signs of hope, and practical steps that women can take to help reduce their financial pressure.

Laurel Road (part of KeyBank), an innovative online bank that offers specialized products and services for healthcare professionals, recently announced its new Annual Survey of Women's Personal Finances.

Here are the five biggest changes that women say would reduce their money stress.

1. Greater economic and market stability (35% of women)

The No. 1 stressor on the minds of men and women in Laurel Road's survey was just the overall state of the global economy and stock market. Thirty-five percent of women (and 41% of men) said that "greater economic and market stability" would improve their confidence and reduce their financial stress.

It's true that high inflation and stock market volatility have been top-of-mind concerns for millions of Americans in recent years. But there are always going to be problems happening in the global economy, and stocks always go up and down; the risks of investing are also what makes it so rewarding. It's best to try to stop worrying about the news headlines or big problems in the world, and focus on what you can control. There's never going to be a perfect, serene moment of the global economy where everything is fine forever. Instead, try this simple plan:

• Work hard at your job. You can't save the world, but you can be great at what you do.
• Try to raise your professional value to improve your earning potential.
• Use a budgeting app to see where your money is going.
• Build your emergency savings.
• Invest money for the future by opening an IRA.
• Buy stocks a little at a time, with dollar-cost averaging from every paycheck.

You won't get rich overnight, but you'll gradually build financial security. And hopefully you'll feel better along the way.

2. More stable income (35% of women)

"Having a more stable source of income" was mentioned by 35% of women and 34% of men in the Laurel Road survey as something that would cut their stress and improve their financial confidence. If you're a gig worker, a part-time worker, or if you own a small business, it can be hard to go through the ups and downs of being busy, too busy, or not busy enough.

If you want a steadier paycheck in 2024, it might be time to boost your professional value with additional training and certifications. Or you can boost your income with a side hustle. The best side hustles let you work from home on a flexible schedule, and might pay you a higher hourly income than your day job.

3. Creating clear financial goals (26% of women)

In the Laurel Road survey, 26% of women (and 24% of men) said that setting clear financial goals (like buying a house or paying off debt) would improve their financial confidence and reduce stress. Sometimes in everyday life, it's easy to get so busy that you never sit down to look at the big picture of your financial life. But setting goals for your finances feels inspiring and empowering.

Here are a few ideas for how to set financial goals:

• The best debt payoff apps can help you hone in on your most important goals, like "how soon can I be out of credit card debt?"
• Credit monitoring tools like CreditWise by Capital One can help you understand the credit impact of big financial decisions like buying a car or getting a mortgage.
• Free calculators from The Ascent can help you see how much house you can afford, based on your preferred monthly payment and current mortgage rates.

4. Getting a pay raise or promotion (25% of women)

The Laurel Road survey found that 25% of women (and 28% of men) said that receiving a pay raise or promotion would improve their financial confidence. Keep in mind that despite some big headlines about layoffs, the American job market continues to be strong in 2024 -- the U.S. unemployment rate was only 3.8% in March 2024.

This means that your job skills are likely to be in high demand, and that gives you bargaining power. Recent research from Mercer shows that the average promotion in the U.S. in 2024 will earn a pay raise of 9.2%. Don't sell yourself short. Ask for what you want, and your employer (or a new employer) might give it to you.

5. Better financial education (18% of women)

The Laurel Road survey also found that many women (and men) are craving better financial education. In fact, 18% of women and 20% of men said that "better understanding of financial systems, products and tools" would improve their financial confidence.

If you want better personal finance education, you're in the right place! Keep reading The Ascent and other reputable online sources. TikTok personal finance education can be helpful, too -- but beware of aggressive sales pitches and sketchy stock picks.

Bottom line

No one can control the global economy or the stock market, but you have the power to improve your personal finances in other ways. Invest in your earning potential and try to get a better job or boost your income. Set powerful financial goals. And keep learning about money and investing to build wealth for the future.