(NewsDirect)
By Serah Lewis and David
Saric
While we adhere to strict editorial guidelines, partners on
this page also provide us earnings.
Ladies, we can be truly savvy with our
dollars, especially when it comes to finding a great deal. Women are
so good at managing money that 20% of Canadian spouses relied solely
on their female partner to set and follow the household monthly
budget, according to survey released in 2023 by Loans Canada, the
nation’s first loan comparison platform.
1
However, even those of
us accustomed to pinching pennies on a regular basis, can make a few
key mistakes. To help, here are the five biggest mistakes women make
with their money — ranked from not-such-a-big-deal to stop it right
now!
Buying poor quality
clothes
When
most women are shopping on a budget, they end up with clothing that
falls apart or shrinks after a few washes. Instead of buying throwaway
fashion — trendy clothes at low prices — consider investing in a
few pieces of high-quality closet ‘staples.’
Stores like Club
Monaco, which was founded with the concept of offering “better
basics,” is a quality step-up from fast fasion, and one good
option if you want a closet full of useful, wear-anywhere fashion
staples.
Another
option is second-hand clothing. Even when clothing is used, it still
lasts longer than poorly made “fast fashion.” For those open to
the idea of shopping and wearing second-hand clothing, can find great
options either online or through brick-and-mortar stores that
specialize in good quality second-hand clothing. For instance,
websites like Poshmark offer high quality name brands at more
accessible prices.
Change where you buy your clothes — and what you buy — and
you could save hundreds of dollars in a year or two.
Not investing
The stock market is dominated by male
investors. Hollywood portrays investing as a boy’s club fueled by
adrenaline and testosterone, especially in movies like
The Wolf of
Wall Street
.
But studies show that women who opt to invest in stocks and
other equities tend to outperform men. The theory is that women are
less reactive to market fluctuations, according to report from
Fidelity Clearing Canada
2
— and more apt to sticking with
their financial plan and investing strategy. Another theory is that
women are less prone to chasing market returns and more invested in
stable, long-term strategies — an investment strategy often promoted
by finance experts like Warren Buffett.
The good news is that you don’t need
thousands of dollars and a broker to begin investing. Women can start
trading using an online brokerage account. There are bank-offered
brokerage accounts, such as
CIBC
Investor’s Edge
, as well as fintech trading platforms, such as
Wealthsimple
and
Questrade
.
The key is to find an online brokerage account that suits your needs.
For those new to investing, consider a brokerage account with a robust
educational component. For instance,
CIBC Investor’s Edge
offers articles and tips on how to start and increase your trading
knowledge. Right now, new clients get 100 free trades and up to $4,500
cash back when you open a CIBC Investor’s Edge account.
If your aim is to
launch a buy-and-hold investment strategy — and avoid the stress and
fees of active trading — you’ll want an
online trading
platform
with no- or low-cost trading fees.
To help you choose,
consider the following options:
CIBC Investor’s Edge: Great for beginners +
Best promo for new account holders
CIBC Investor’s Edge stands out as a
compelling choice for both seasoned and novice investors. For clients
who already bank with CIBC — or their online-only bank affiliate,
Simplii Financial — the integration between bank accounts and
investing platform is simple and easy. Not only does CIBC
Investor’s Edge offer competitive pricing, with trades ranging
from $4.95 to $6.95, but new clients can expect 100 free trades and up
to $4,500 in cash back. If you’re under the age of 25, you can
continue your investing journey with ongoing free trades. Open an
account,
today
.
Wealthsimple: Ideal
for variety + Great for automating investments
Wealthsimple is one of
the most popular investment apps in the Canadian fintech space, and
it’s no secret why. There is no minimum to open an account, and they
offer a variety of portfolios to suit every investor’s personality.
Plus, Wealthsimple Trade will reimburse an outgoing administrative
transfer fee of up to $150 on investment account transfers valued at
more than $5,000. It offers
stock trading
,
crypto trading
and
autopilot investing
.
Moka: Low-cost
flat-fee robo-advisor + Free stock and ETF trades
Set up automatic
savings and automated investments using the Moka account. Fees will
cost you between $7 to $10 per month, but this low-cost fee gets you
access to five professionally managed investment portfolios, as well
as free stock and ETF trades. Open a
Moka
account, today.
Questrade: Low-cost
trading platform with robust investor tools
Get a $50 rebate on
trading fees when you open a
new account
.
Not maintaining a good credit score
Women tend to have
worse credit scores than men, according to MSNBC
3
. Men tend
to have an average credit score of 630, while women average around
621. Credit scores range from low 500s to 900.
One easily-accessible
option for building and maintaining a good credit score is to use a
credit card. Used correctly, credit cards are great for building your
credit history. However, when credit cards are maxed out, these
short-term loan options hurt your budget and your credit score.
If you need to start
building your credit history, consider applying for a credit card that
caters to people with no- or low-credit scores.
If you need to rebuild
your credit score — and part of the problem is a high credit card
balance — consider finding a way to reduce the interest paid on this
debt. For instance, using a low-interest credit card can help you
reduce the interest charged on the outstanding balance. This reduces
the amount of money you spend on interest and frees up cash that can
be used to pay down the debt. Do this consistently — always making
minimum monthly payments on all outstanding debts — and you’ll
get out of debt faster
and
rebuild a robust credit score. Good
low-interest credit card options include:
-
MBNA True Line Mastercard:
Annual interest rate is only 12.99% and there’s no annual
fee. Get this card before December 31, 2024, and pay 0% interest for
12 months on all balance transfers completed within 90 days of opening
the account, although a 3% transfer fee applies. Still, transferring a
balance an outstanding balance of $5,000 from a credit card that
charges 20.99% interest per year, could save you more than $550 that
first year.
Apply for the
MBNA True Line
Mastercard.
-
MBNA True Line Gold
Mastercard:
Like the True Line card, this credit card charges
a low annual interest rate of just 8.99%, but you’ll need to pay
an annual fee of $39.
Apply for the
MBNA True Line Gold
Mastercard
.
-
Scotiabank Platinum
American Express Card:
This card comes with a steep annual fee
of $399, but the low annual interest rate of 9.99% means you’ll
pay much less when carrying a balance. Approximately $4 per month for
every $500 owed. Plus, this card doesn’t charge foreign
transaction fees on any foreign currency purchases — making it a
great travel companion — and you earn two Scene+ points for every
dollar spent. Until October 31, 2024, new account holders can earn up
to $2,100 in value (in the first 14 months), including up to 60,000
bonus Scene+ points.
Apply for the
Scotiabank Platinum American
Express Card
, today.
-
Scotiabank Value Visa:
This Visa card charges an annual interest rate of 12.99% and,
until October 31, 2024, new account holders will pay no annual fee —
a savings of $29 — and pay 0% interest on balance transfers for the
first 10 months.
Apply for the
Scotiabank Value
Visa
, today.
Falling for pyramid schemes
So many mothers are under pressure to ‘have it
all.’ Work-at-home pyramid schemes — with people on the bottom
making very little money — specifically target women who want to
earn an income while raising their kids. The desire to do it all
isn’t new and the schemes that prey on this desire are also not
new, according to 2021 article published by the
Huffington
Post
4
.
These companies know how to prey on women’s insecurities
— including the idea that you must be popular to be valued and you
must earn to have a say in household monetary matters. Don’t fall
into this trap. Take the time to educate yourself about pyramid
schemes
5
. There’s nothing wrong with wanting it all but
you will need to prioritize what’s important, right here, right
now.
Undervaluing your skills
Women are still paid
9.2% less than men, on average, even if they have the same education
and work experience, according to data released by Statistics
Canada
6
.
If you’ve been working for your company for a while,
don’t be afraid to ask for a raise or to inquire if a promotion
might be available.
Speaking up can be tough, especially if you sense that your
boss doesn’t recognize your true value. If you find yourself stuck
in a pay situation that probably won’t get any better, it may be
time for you to look for new opportunities elsewhere.
— with files from
Shannon Quinn and Leslie Kennedy
Trade Smarter, Today
With
CIBC
Investor’s Edge
, kick-start your portfolio with 100 free
trades and up to $4,500 cash back.
Sources
2
Fidelity
Clearing Canada: Why women are a major force in investment circles
(Mar 2024)
3
MSNBC:
Being a woman hurts your credit score — Here’s what you can do
about it (Dec 17, 2018)
4
Huffington
Post: MLMs are a nightmare for women and everyone they know (Jan 29,
2021)
5
Competition
Bureau Canada: Pyramid schemes
6
Statistics
Canada: Intersectional perspective on the Canadian gender wage gap
(Sept 21, 2023)
Contact
Details
Wise Publishing, Inc.
Aaron
Young
+1 310-500-8744
aaron.young@wisepublishing.com
Company
Website
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Source: Hey gals, here are the worst mistakes you’re making with money
