Women’s Guide to Making Financial Moves After College

Graduating from college is an exciting time, full of potential to begin investing in your financial and personal goals. But life after college brings its own challenges for women — especially if you’re carrying the burden of student debt, which many are. It’s helpful to arm yourself with solid practices as you embark on the next phase of your life. The earlier you’re able to start saving, build credit and knock down debt, the better your financial future will be.

While there are many challenges college graduates face when it comes to their finances, women face a unique set of hurdles. Discrimination in the workplace, lack of representation in the job market (especially in certain fields where men dominate) and gender differences that impact workplace dynamics are all just some of the issues women confront.

But the gender pay gap is perhaps the biggest issue since the difference in what women earn compared to their male counterparts can influence their ability to pay off debt and save money.

Research has found that a year after graduation, a pay gap exists between women and men who majored in the same field. Among business majors, for example, women were paid just over $38,000, while men were paid just over $45,000. The gender pay gap eventually becomes the retirement gap.

These common challenges can impact finances in the following ways:

It can take many years for college graduates to pay off their student loans, but it can take even longer for women to do so in comparison to men. According to the AAUW, it can take women as much as two years longer than males to repay debt. This is largely due to the pay gap that exists between men and women.

Colleges and universities continue to increase attendance fees at a rate that doesn’t match the rise in the average income earned. While this can affect both sexes, women are more likely to fall back on loan repayments because they generally earn less than men.

Taking control of your debt and paying back your student loan is possible, especially with a plan. Here are some steps you can take to reduce your debt:

Entering the workforce as a new graduate can be overwhelming — and even more so for women. Studies have shown that women struggle with confidence early in their careers and are less likely to promote themselves compared to men.

Research has found women are generally less assertive and less successful than men when it comes to salary negotiations, and so they are less likely to be hired or offered competitive remuneration. When women agree to lower income levels, this only widens the gender gap even more.

There are also some areas of work that are dominated by men and seen to be out of bounds for women. There are many reasons for this, including the different ways men and women are socialized. For example, young boys are often encouraged to become scientists, upholding the societal perception that certain fields are for men only. Women may grow up seeing female nurses and teachers as role models who eventually inspire them to pursue careers in similar fields.

Learning how to establish independence as a woman and how best to navigate the job market and workplace dynamics that may exist are essential to overcoming the challenges that arise in the work world. Women are generally not as effective as men at self-advocacy, so it may take some work for it to become second nature. Here are some steps to take:

Job-searching can be competitive, and hiring managers often have to sift through a high volume of resumes. Obtaining a job that will offer a reliable amount of financial security requires you to stand out as a strong candidate. There are steps you can take to ensure you leave a lasting impression:

It’s never too early to start financial planning. Establishing a solid financial foundation depends a lot on your level of financial literacy. Women are less likely than men to be financially literate, and many graduates may not have the necessary financial skills at all.

While it is unclear if the financial literacy gender gap exists due to a lack of financial knowledge or confidence, financial literacy is a skill that can be learned. It starts with understanding a few basic principles that you can apply to different decisions in your life.

The first step to taking control of your financial life is to come up with a budget. This can impact what you’re able to spend and save, and it can give you a clearer picture of where you are and where you’re going. A budget can help you gauge how much you’re spending over a given period, and it can help you stay on track to reach your long-term financial goals, whether that’s paying off student debt or saving for your first house.

Once you’ve established the financial goals you’d like to achieve, there are a few steps you can take to start putting your budget to work. Many budgets can be made according to personal choice, but there are a few elements that are similar across the board.

One of the ways you can best keep expenses down is by making sure you have the most affordable rates for your fixed expenses. While there may not be much you can do about your rent, mortgage or car payments, you have more leeway when it comes to insurance for these items. There are ways to find affordable insurance providers, especially if you think you may currently be paying too much.

The renters insurance guide can help you compare quotes and find out which company offers the best rate for your state.

If you’re unsure as to how much you should be paying for your homeowners insurance, research the options that are available in your state, and check if you need personal property insurance, too.

When it comes to auto insurance, you can investigate the going rates in your area, and if you’re a young driver you’ll want to find out more about what you qualify for.

Life and health insurance can be tricky to nail down, but don’t neglect them because you never know when you may need them. Researching options for life insurance can give you a good idea of what plans are available, while looking into health insurance can help you find out if you qualify for Medicaid or other types of assistance.

You’ve likely heard the adage ‘the sooner the better’ when it comes to investing, and it’s true. Compound interest works in your favor as a recent grad. Although it’s never too late to start, you have more time to grow your investments if you make a plan to save as soon as you leave college.

Having a good credit score is vital for the next phase of your life as a college grad. A good or excellent score, between 650-850, will ensure you have access to financial services and products that can make it easier to own a home, buy a car or even get a job.

You can build a healthy credit score by accruing a good financial history through on-time payments and strong management of existing credit. If you have no credit history or a limited one, consider opening a secure credit card. If you already have a student credit card, you don’t have to cancel it after graduating, but you may need to be reclassified to continue using it.

Starting a path toward financial independence once you’ve left college can seem intimidating. But there are plenty of resources that can help you navigate the terrain. Here are some of the resources that can help:

• AAUW: The American Association of University Women offers a substantial range of career development grants.
• Department of Education and Cultural Affairs: This government department awards grants to support academic, cultural and professional goals.
• GIRLBOSS Foundation Grant: This grant is awarded twice a year to female and female-identifying entrepreneurs in design, fashion, music and the arts who work in creative fields.

• Women Employed: Non-traditional students can find the help they need to succeed in their education and career goals through Women Employed programs, which are designed to bridge gaps in knowledge and skills.
• Women In Data: This membership-based community seeks to close the gender gap and increase diversity in data careers by providing awareness, education and advancement to women in the tech industry.
• Sisterhood Agenda: For the past 25 years, this group of women has been educating, empowering and supporting women around the world with their mentorship programs and partnerships.

• Department of Education and Cultural Affairs: This US department provides resources on its site to uplift women in areas of education and career opportunities.
• USAID: You’ll find a number of resources on gender equality and women’s empowerment through the development agency’s online platforms.
• Women’s Empowerment: This initiative was founded to help women who find themselves homeless or living in poverty, with programs, services and resources.

• Lean In: If you’re looking for a space to connect with other women or with your women co-workers, this is a group that helps facilitate that.
• Authentic Connections: This organization runs groups that help participants develop strong, supportive relationships to increase their well-being and resilience.
• Mayo Clinic: Most universities offer support groups for female students and graduates, but if you’re still struggling to find one, the Mayo Clinic can help link you up with like-minded women.