7 Ways Women Can Build Wealth

Because I'm in the financial industry, my friends often come to me with questions about money, especially when something changes in their life—like when a girlfriend got a new job and had questions about her 401(k) or a baseball mom friend got an inheritance. Their financial situation had changed, and they weren't sure what to do.

My sister is a perfect example. She always let her husband handle the practical things, like decisions around money. When he died suddenly at the age of 49, she found herself facing a whole new financial reality. His life insurance left her with a million-dollar insurance payout, which put her in a new wealth category. But despite being financially secure, she was now in the driver's seat with no idea of what to do—and no time to prepare. Fortunately, I could help. I put her through a financial planning process and helped her sell and buy a house, get invested, and understand the basics. While there was a learning curve, there were positive outcomes.

As women actively engage in their financial picture, there are benefits that extend beyond money. Overwhelming majorities of women investors say that managing their investments gives them a feeling of empowerment (91%) and that they enjoy investing (83%), according to the 2025 Charles Schwab Women Investors Survey.

It's easy to feel overwhelmed by your finances. The good news is, now more than ever before, there are tons of resources offering clear, simple financial information. Listen to podcasts from trusted providers like Schwab, check out the educational resources at SchwabMoneywise.com and follow things like the Money Talk newsletter on LinkedIn. Don't be afraid of the terminology. It doesn't have to be complicated. And, the more you learn, the easier you'll find it is.

If you are in a relationship, both members of a couple should have complete knowledge of their individual and shared finances. Whether or not each of you is actively involved in financial decision-making, you should both know the big picture—things like net worth, cash flow, debt, insurance, investment accounts, retirement savings, and estate planning.

Not working outside of the home? Don't check out of your finances. If you leave the workforce temporarily or permanently, it's important to stay involved and be an active participant in your family finances. Consider scheduling money dates with your partner at least a couple times a year so you understand income, expenses, and where the accounts are located. Is your partner using a financial advisor? Attend the meetings too, and ask questions if there are things you don't understand.

Know your worth. Do some wage comparison research for your job, and don't be afraid to negotiate for fair compensation. Have a sense of the work you do and how your personal set of skills can apply to a variety of jobs. These are called "transferable skills," and knowing how to leverage them could open many new job possibilities. Also, building wealth isn't just about increasing your salary. It can also be about increasing your income streams beyond your day job. "Side hustles," like investing in real estate or starting side businesses, are becoming more popular with younger generations. Don't underestimate the value of what you can do or limit your wealth-building opportunities by thinking you can only go in one direction.

Financial confidence starts with taking control of your money. So set a budget—and stick to it! Understand what's coming in and what's going out each month. Look at where you might be overspending, and make changes where you can. Create an emergency fund of at least three to six months of essential expenses so you're prepared for something unexpected like a job loss or illness. Make sure you have adequate insurance. Now you have a foundation to build on.

Stay on top of debt. Sure, use credit cards, but don't charge more than you can pay off each month. Have a plan to pay down any high-interest debt you're carrying. Realize that your credit history can affect the interest rate you get on loans such as a mortgage. It can even be a factor in renting an apartment or getting a job. Your credit history follows you wherever you go. Make it a good one.

Setting goals and saving is part of establishing a strong financial foundation. Write down your goals—short, medium, and long term—and for each, give yourself a timeline and amount you need to save. The more concrete your goals are, the more likely you are to achieve them. And make sure saving for retirement is on the top of your list.

Eighty-five percent of women say they wish they had started investing sooner, and 65% say they delayed saving and building wealth because they didn't have enough extra earnings to set aside, the Schwab survey found.

There's tremendous wealth-building power in the tax-deferred earnings offered by retirement accounts. Consider contributing enough to a 401(k) or other company plan to at least get the company match, more if possible. No company plan? Consider an IRA. One way to fund that could be to set up automatic payments from your checking account. If you start in your 20s, aim to save 10-15% of your salary. And if you keep saving at that level, you may not have to increase that percentage for the rest of your working years. It will automatically go up as your salary increases. Start later and you'll likely want to contribute more. For those 50 or older, catch-up contributions are a great way to max out your savings.

You don't need to have a lot of money to start investing, so don't be afraid to start small. For example, you could consider starting by investing $100 or $500 and go from there. Don't let your emotions get the best of you. When you're young, you have time to help ride out market ups and downs.

The three biggest investing lessons women investors say they have learned, according to the 2025 Schwab Women Investors Survey, are:

• Staying invested through market volatility (58%),
• Acknowledging their risk tolerance (57%), and
• Diversifying their investments (54%).

An advisor could help you with an overall financial plan and help make sure your savings and investments are on track to meet your goals. Sometimes all it takes is a consultation or two, or you may want ongoing advice and check-ins to make sure you're on track. Either way, talking to a professional can give you greater confidence that the decisions you're making financially are helping you build the life you want.

These are the steps I share with my friends to help them actively engage with their finances. Take them one at a time, and as you understand more, your confidence in your ability to make good financial decisions will grow. Need a little extra moral support? Reach out to your friends. About one in five women investors (19%) frequently discuss financial information with others and almost half (46%) say they discuss finances on an occasional basis, the 2025 Schwab Women Investors Survey found. 

Share stories, and learn from each other's experiences. To me, despite the financial challenges women can face, we have the ability to take financial control and build wealth for ourselves. We just have to decide to do it!