What Every Woman Needs to Know about MONEY

Thank you FINRA This program is provided through a grant from the Financial Industry Regulatory Authority (FINRA) Investor Education Foundation and the American Library Association (ALA). The grant is distributed as part of the Smart investing@your library® initiative, an ALA program. This project is in its sixth year of educational partnership with libraries across Colorado and the country. Marsha Yelick CFA(retired) Financial Programs Consultant myelick@estesvalleylibrary.org 970-586-8116 Ext 831

Women CAN manage MONEY! Major Themes Women and money go hand in hand! Gain control of your financial affairs. Learn and practice basic money management skills. (Earn more than you spend.) Major Themes

How well do Americans manage their money? Consumer debt? Retirement savings? Balanced budgets? People & Money

Short term decisions build to long-term goals. Savings vs. Debt Short term decisions build to long-term goals. US Saving Rate

Do women manage money differently? Women & Money

SURPRISE! Women are… Female Advantage Better at the daily financial tasks More responsible Better investors (higher returns) Female Advantage

The Female Advantage(s) More suspicious of “deals” Take more time (slower) Weigh alternatives Do the research Admit mistakes Are risk averse Have discipline Ask questions Are calmer Have goals Possible Reasons

What else is special (related to money) about being a woman? (The young… Young & Old and the old of it!)

Disadvantage 1 Women still earn 77% less than men Female Disadvantage(s) Part 1 (the young) Women still earn 77% less than men (on average – not equal work) Reasons: Part time Interruptions Careers of low pay Disadvantage 1

Women live longer than men – and they are alone in old age. Female Disadvantage(s) Part 2 (the old) Women live longer than men – and they are alone in old age. Reasons: Life expectancy is five years greater than men Women are younger than husbands More than 40% are divorced Disadvantage 2

Financial MISTAKES that make a HUGE difference $$$...! Major Mistakes (that everyone makes) Not saving for retirement… Not having cash reserves for emergencies… Not keeping a budget… Avoid MISTAKES

Financial MISTAKES that make a HUGE difference $$$...! Major Mistakes (that WOMEN make) Avoid MISTAKES

Checklist for all to follow… Let’s have a PLAN Thanks to Suze Orman, Women & Money

Attend to all things CASH Create a budget & follow it Track every dollar spent Start building cash for emergencies Balance your checkbook Look for good short-term rates Weeks 1 - 5 Spend money on others, Top page 6: Activity slide – pause for 2 minutes. (Search for happiness in spending $500). Ask for responses to see if any fit into categories of creating happiness and wellbeing.

Weeks 6 - 12 Attend to Consumer DEBT Have at least one credit card in your name only. Understand your credit card bill and reconcile each month. Create plan to pay off any balance (high rates first). Understand FICO scores and find yours. Weeks 6 - 12

Attend to YOUR Future Weeks 12 -24 Start saving regularly for retirement – aim for at least 10% of earned income. Investigate any employer 401(k) options. Learn about investments. Discuss all retirement planning with current family members. Weeks 12 -24 Feel financially secure, middle Page 7 to middle of Page 8: First four of the list of things that increase financial security and additionally add to physical wellbeing.

Attend to your paperwork (or computer files). Create the emergency file. Get and give directions for all critical accounts and documents. Create “must have” documents. Review insurance coverage. Weeks 1 -24 Feel financially secure, middle Page 7 to middle of Page 8: Last four of the list of things that increase financial security and additionally add to physical wellbeing.

to improve financial skills Attend to on-going habits to improve financial skills Make it a habit of reading one financial article at least once a week. Read a financial book every six months. Talk to your daughters and granddaughters about money matters. Common Cents

Common Cents Experiment with online calculators. mycalculators.com choosetosave.org finra.org/Investors/ toolsCalculators/index

totally dysfunctional Ignore these… Egg Money Shopaholic Common Cents totally dysfunctional Conclusion: Page 10: Interconnectedness and interdependence of all factors that contribute to wellbeing. DUMB BLONDE

Five-part Basic Financial Education Take free classes at the Library Five-part Basic Financial Education Everything you need to know to manage your own personal financial affairs. Common Cents

Thanks for attending! BE MONEY SMART FOR LIFE