The year 2020 came in with a bang. One, that we honestly could have done without, but nonetheless, changed everything. In fact, the world was so turned upside down that three years later we’re still having conversations about how the pandemic changed literally everything.
It changed the way we work. It changed the way we communicate. It even changed our finances and the way we handle our money. And like most societal changes, women have been impacted disproportionately.
From putting major life milestones on hold, to even pushing back when they plan to retire, the impacts the pandemic had on women’s confidence in their finances have been life changing.
Changes in personal life
Even before the pandemic, the idea of ‘adulting’ had drastically changed. With many young adults already living through the 2008 financial crisis and being burdened with overwhelming student loan debt, many of these milestones had already been delayed.
Putting off starting a family
No matter how you choose to start your family (through natural means, adoption, or fertility treatments) it’s a major expense. And it’s not a ‘one-and-done’ expense either. Recent data suggests the average cost of raising a child (to age 18) can run just over $300,000.00.
Putting off purchasing a home
Between an overpriced housing market, skyrocketing interest rates, and general financial health–women aren’t jumping into homeownership. Again, in addition to the extra costs that come with owning a home, even qualifying for a loan is a stressful endeavor.
The pandemic highlighted a financial pain point that went from a ‘what-if’ situation to a reality. Job loss happens often, and it can happen to anyone–financial security will outweigh homeownership every time. At the end of the day, what good is a home if you can’t afford to live in it?
Impacts on mental and physical health
Excessive worry and uncertainty about your financial situation doesn’t just wear on your physical health, it can also wear on your mental health. The financial impacts rippling from the pandemic are still very much felt to this day.
Whether it’s unexpected childcare costs or the ever-growing cost of everything from eggs to gas, women everywhere are feeling the pressure. Excess stress is detrimental to our overall health, but what happens when it’s too expensive to get medical care or mental health treatment? It’s a catch-22. Women’s anxiety can be triggered by financial stress, but then they don’t have the financial means to take good care of their health.
Changes to professional life
The pandemic didn’t just impact women’s financial confidence at home, but it significantly impacted their careers, earning potential, and even retirement plans.
Job loss or change in job status
According to the National Women’s Law Center, since February 2020 women in the United States have lost more than 5.4 million net jobs. Much of the time women ended up dropping out of the workforce to fulfill caretaking roles within their families. And while this work is just as, if not more, important–it’s also unpaid work. So on one hand, while they weren’t able to contribute financially to their household currently, the impacts go beyond the present day and affect their retirement savings as well as social security benefits later on.
Women are waiting longer to retire
No matter how much you love your job, no one wants to have to work forever. However, the unexpected, unprecedented financial impacts of the pandemic disrupted ‘retirement goals’ that otherwise had been fairly set in stone.
As mentioned, many women were forced out of work because of precarious childcare (or other caretaking) situations. So not only is there a pause and delay when it comes to continuing their career, this ripple effect also pushes back the date they’re able to retire. Additionally, not only are women unlikely to still be contributing to their retirement during times of unemployment, they may even dip into their existing retirement savings to make up for lost income.
The pandemic impacted women’s financial confidence in several ways, it’s important to talk about it and seek help and support to navigate moving forward.
Our therapists here at Let’s Talk Psychological Wellness are committed to helping regain and strengthen your confidence and coping strategies. Learn how to manage the stress and anxiety that comes with financial concerns and job security. Call, text, or email us.
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