Jessica Spangler, Pharm. D., started making clever money literacy videos during COVID-19’s delta wave in 2021. She was working as a pharmacist in the emergency room of a New England hospital, and during rounds, patients would say to her, “If I make it out of here, I have no idea how I’m going to afford this hospital bill.”
Coworkers also discussed their finances with Spangler, including a colleague who wondered aloud if she needed to set up her 401(k) or if she was automatically enrolled in the program. These offhanded comments led Spangler to the realization that “nobody really knows about money,” so she decided to share bits of financial literacy, such as how to negotiate a hospital bill and set up your 401(k) at work. She now has over 1 million followers across social media platforms, where she’s known as “ecommjess.”
Spangler still works as a pharmacist at a hospital emergency room, but she is passionate about helping people increase their financial literacy. Her book, Invest Like a Girl: Jump into the Stock Market, Reach Your Money Goals, and Build Wealth, was released in March. The book provides a step-by-step guide that allows readers to design a custom investment strategy based on their individual experience, their risk tolerance and their financial goals.
Helping people increase their financial literacy
The irony of the book’s title is not lost on Spangler. “If you go to any store, you’ll see ballpoint pens for women, razors for women, laxatives for women, as if somehow being a woman makes these otherwise gender-neutral products different,” she says.
Yet, most financial products aren’t geared toward women, and, in fact, many were created to keep women out. Before the Equal Credit Opportunity Act was signed into law in 1974, women could not open a credit card in their own name.
“I think there’s intentional barriers that are put in place to keep certain people out of the conversation and make [investing] seem like it’s very difficult when, in fact, it’s quite simple,” Spangler says.
When you understand the rules of investing, it’s straightforward, Spangler says. “But a lot of people are made to feel they’re not invited and that it’s going to be difficult, and that alone is a huge barrier,” she says.
While the fundamentals of investing are the same for everyone, women often have a different experience with money and investing, Spangler says. Because of the gender pay gap, women typically only make 84 cents for every dollar a man makes.
Yet, a recent study by Fidelity Investments about women and investing found when women invest in the stock market, they have higher returns than men—about 0.4% higher. “While that sounds marginal, when you compound that over time, it can add up to tens of thousands or even hundreds of thousands of dollars more,” Spangler says.
Dealing with financial challenges
Spangler is no stranger to financial challenges. Her father had a heart attack and suddenly died when she was 7 years old. At the time, her mother was a stay-at-home mom taking care of Spangler and her younger brother.
“I watched my mom recreate her life and work her butt off to get a job in real estate,” she says.
Neither parent had a college degree, so Spangler wanted to earn a degree that would ensure a solid paycheck. But she soon discovered that her paycheck wasn’t going to be enough, especially not with inflation and student loans. She realized that investing her money would help her earn more, so she began reading every book she could find on earning money through investments.
“I don’t have a formal education in finance,” Spangler admits. “I’m a person who figured it out and felt like there has to be something I can share with other people.”
5 steps to ‘invest like a girl’
When most people think about investing money, they immediately think of an individual brokerage account that allows you to buy and sell a variety of investments. But there are other ways to invest money. Here are Spangler’s five actionable steps to investing.
1. Establish an emergency fund
Before you start investing, Spangler recommends setting up an emergency fund. Without an emergency fund, you will dig into savings or take on debt to pay for an unexpected expense like a hospital bill or a car repair. She recommends saving the equivalent of three to six months of your living expenses in a high-yield savings account.
Put a percentage of your paycheck into an employer-sponsored retirement account. Contributing to a 401(k) will allow you to dip your toes into investing, Spangler says. If your employer matches your contribution, put enough money into the account to receive the employer match, because that is free money. Also, a retirement contribution will reduce your taxable income for the year.
3. Fund a Roth or traditional IRA
If you have additional money to invest, consider opening a traditional or Roth IRA. A traditional IRA also lowers your taxable income. Spangler prefers a Roth IRA over a traditional IRA because you can withdraw the money from a Roth IRA without penalty, and if you leave the money in the account, it grows tax-free. When you withdraw money after age 59.5, it will not be taxed.
4. Fund a Health Savings Account (HSA)
Most people don’t realize that an HSA gives you a triple tax advantage, Spangler says. It will lower your taxable income and allow money to grow tax-free, and when you use the money to pay for a qualified medical expense in retirement, it will not be taxed. This money can also be invested just like a 401(k) or IRA.
5. Set up a brokerage account
You should only open an individual taxable brokerage account after completing the first four steps, Spangler says. “It’s the account that you should open last because it doesn’t give you any tax advantages,” she says.
Photo courtesy of Jessica Spangler
