'Don't Ever Let Somebody Control You With Money.' Reese Witherspoon Urges Women to Maintain Financial Independence, Keep Their Jobs

Married women should maintain their financial independence and keep their jobs to protect their future self, actress Reese Witherspoon recently said. 

"Don't ever let somebody control you with money," she said on an episode of the "Aspire with Emma Grede" podcast. "That person could leave, that person can hurt you. You always keep your job. Your job is your life insurance."

Witherspoon has seen many women, including her mother and grandmother, get into financial trouble after divorces or other life events, she said.

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"I don't know a woman who doesn't have a disaster financial story in her past," she added. "I have this past of women not being taken care of financially. That's why I have a passion for helping women understand [personal finance], and also demystifying it."

Women and financial education

Women typically have lower financial literacy than men, according to a report released earlier this year by the Global Financial Literacy Excellence Center. Only 45% of women correctly answered key personal finance questions and 11% demonstrated "very high financial literacy," compared to 53% and 22%, respectively, for men, the report says. 

A lack of high-quality education is one of the reasons why women fall behind in financial literacy, Witherspoon said on the podcast. 

"A lot of what we learn is one course, three days in high school," she said. "We're lucky if you get three months. That was the end of my financial learning."

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Witherspoon has a net worth of $440 million, according to Forbes, largely due to the 2021 sale of her Hello Sunshine production company, which she still has a minority stake in. She could've been worth more if she learned more about saving and investing earlier in life, the "Legally Blonde" star said.

"I did well, but I could've done amazing if I learned a few things," she added. "I didn't invest properly."

Her financial management is now largely outsourced to other people, though there are "frequent check-ins," she said.

Witherspoon's financial advice to women 

Avoiding debt is the best piece of financial advice Witherspoon received and encourages other women to do the same, she said. 

"Do everything you can to not get into debt," she told Emma Grede. "Pay off those credit cards, or don't spend the money like it's yours. It's not yours, girlfriend."

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Witherspoon acknowledged that many people struggle to build up their savings, but added that it's important for long-term financial stability.

"You have to think ahead," she said. "What you don't spend today, you're saving for your future self."

Seemingly complex topics like the stock market, index funds, and bonds can be easily understood if they're explained in a way that makes sense for each person, Witherspoon added. 

"If you're a visual person you see a visual chart," she said. "I'm a visual person, so every time I talk to people about finances I need it laid out, and I want cute colors. I want a pleasing palette and a pie chart." 

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