7 Common Money Mistakes to Avoid

Don’t fall into these financial pitfalls. Here’s how to avoid the money mistakes women often make.

Real Simple March 2008Lucas Allen

Retail Therapy

That new pair of shoes might seem irresistible, but retail therapy, or shopping to influence your mood, is both common and unwise. A survey out of the University of Hertfordshire found that the primary motivation for 79% of respondents to shop was to "cheer themselves up." Emotional shopping is one of the most common bad spending triggers. Just know that it’s not always your fault—stores play their part in getting you to spend.

Letting Someone Else Handle the Finances

Many women out there take a hands-off approach to their finances, only to be thrust into the responsibility unexpectedly. It's crucial to not only build your own credit history so you can take out loans for major purchases down the road, like a house or car, but also to save for retirement and know the financial basics in case you ever need them.

Not Talking About Money

It's shocking how many couples don't discuss their finances until something goes terribly wrong. To be fair, the blame for this mistake probably lies equally with both partners. It’s important to establish financial intimacy, where both partners in a relationship have an awareness and mastery of the finances.

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