Three Dangerous Finance Habits June 25, 2013My MoneyOff

Women now bring home the bacon in 40 percent of American households with children under 18, according to Pew Research.

For the 63 percent (or 8.6 million) of those households headed by single women, smart spending rests on her shoulders, alone.

While women generally take less risks with money, we too have areas of weakness. Three watch-outs? Overspending on beauty and kids, and failing to negotiate at work.

“It costs a lot to look this good,” quips strategic wealth advisor Julia Chung.

Beauty is a multibillion dollar industry because women spend a lot on cosmetic products and services.

“It’s a massive expense and many of us won’t forego it,” says Chung, “so it pays to be really meticulous about these costs.”

She recommends product research and sticking to a budget.

Chung also believes a mother’s soft spot for her children can wreak havoc on her finances.

“We tend not to be as tough with love as men when it comes to our children.” Chung says, “and much more open with our pocketbooks.”

She suggests teaching children self-sufficiency by only helping with what you can comfortably afford.

Jan Cullilnane, author of The Single Woman’s Guide to Retirement also cites passiveness early on in our careers as a financial no-no.

“Failing to negotiate a first salary can result in $500,000 less by the time a woman is 60,” says Cullinane.

According to Linda Babcock, Professor of Economics at Carnegie Mellon University, women compare negotiating to going to the dentist while men compare it to playing a ball game.

Budget, create boundaries and negotiate. Your financial health depends on it.

Bonus PINK Link: Are your friends the reason you’re living paycheck to paycheck?

What budget-breaking bad habits are you trying to quit?

By L. Nicole Williams

Nicole is the Editor at Little PINK Book. Follow her on Twitter @iamnicwill.

“I do not wish women to have power over men; but over themselves.” Mary Wollstonecraft Shelley

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