1. MoneyCounts: A Financial Literacy Series Financial Literacy for Women Dr. Daad Rizk MoneyCounts: A Financial Literacy Series 301 Outreach Building University Park PA 16802 dar39@psu.edu 814-863-0214

2. MoneyCounts: A Financial Literacy Series Define financial literacy for women Identify what women really need –Understand financial challenges unique to women –Identify possible solutions through education and social awareness –Design a specific curriculum to educate women in financial literacy Learning Objectives

3. MoneyCounts: A Financial Literacy Series What is your gender and age? –I am a female between the ages of 25–54. –I am a female younger than 25. –I am a female older than 54. –I am not a female. Poll

4. MoneyCounts: A Financial Literacy Series Women in the United States Total population in the U.S. = 317 million (men, women, children) Women in the U.S. = 161 million (51% of total population) Women in the workforce = 73 million (45% of total women) Women not in the workforce = 88 million (55% of total women) 26% of women in the U.S. do not work (ages 25–54) –No income –No savings –No retirement plan Source: U.S. Bureau of Labor Statistics (BLS), Current Population Survey (CPS)/ Graph by the Women’s Bureau, U.S. Department of Labor

5. MoneyCounts: A Financial Literacy Series Financial Literacy for Women Financial literacy is a serious issue facing women in the United States (and globally) Women earn less over a lifetime Women spend more than 11–13 years out of work Women save and invest little, if any Women acquire same or higher debts Women end up divorced (50%) Women live longer (5–7 years) Women end up with little if any “nest egg” Women fear “bag lady” syndrome

6. MoneyCounts: A Financial Literacy Series Are you using student loans to finance your education? –I am a female student, and I am borrowing the full eligibility in student loans to finance my education. –I am a female graduate, and I have borrowed the full eligibility in student loans to finance my education. Poll

7. MoneyCounts: A Financial Literacy Series College Graduates and Debt

8. MoneyCounts: A Financial Literacy Series Total U.S. student loans: $1,066,029,(T) –Average loan for college graduate = $27,000 –Women college graduates are carrying 60% of student debts Average loan monthly payment is between 8–20% of women’s net income »U.S. Debt Clock.orgU.S. Debt Clock.org Student Loans

9. MoneyCounts: A Financial Literacy Series How do you handle credit cards? –I use credit cards, and I carry a balance on each of them. –I use credit cards, but I pay them on time and in full each month. –I do not use credit cards, because I hate being in debt. Poll

10. MoneyCounts: A Financial Literacy Series Total U.S. credit card debt = $867,784, (B) Average credit card debt = $5,600 –FINRA (Financial Industry Regulatory Authority, Inc.) 2009 study of 28,000 people: –Carrying a credit card balance: 55% of men, 60% of women –Making only minimum payment: 38% of men, 42% of women –Paying a late fee: 23% of men, 29% of women –Over-the-limit fee: 15% of men, 16% of women Credit Card Debt

11. MoneyCounts: A Financial Literacy Series Average per Year = 1 Million Civilian labor force by sex, 1970–2012

12. MoneyCounts: A Financial Literacy Series What type of job is ideal for you? –A “Pink Collar Job” –A “White Collar Job” –A “Blue Collar Job” –A “Job”—I don’t care what type Poll

13. MoneyCounts: A Financial Literacy Series “Pink Collar” Jobs Women as a percentage of total employed in selected occupations, 1985–2012 annual averages

14. MoneyCounts: A Financial Literacy Series 45% Are 45 or Older

15. MoneyCounts: A Financial Literacy Series Women’s Earnings Women’s earnings as a percent of white men’s, by race, full-time wage and salary workers, 1980–2012 annual averages

16. MoneyCounts: A Financial Literacy Series Are All Women Equal?

17. MoneyCounts: A Financial Literacy Series How are you raising, or will you raise, your family? –I am a stay-at-home mother. –I plan to stay home to raise my family. –I plan to keep my job while raising my family. –I plan to work from home while raising my family – self-employed. Poll

18. MoneyCounts: A Financial Literacy Series Women spend, on average, 13 years out of work –Maternity and family reasons –Care of elderly –Effect on retirement –Effect on Social Security –Effect on savings and investing The Lost Years

19. MoneyCounts: A Financial Literacy Series Ladies Last! 5–7 Years Average Gap

20. MoneyCounts: A Financial Literacy Series Women Earns.83 cents Work an average of 27 years The average woman can expect to live to 80.1 years old In 2004, the median income for retired women was $12,080 60% of U.S. college students 38% in management positions Women with college degree earn $35,296 Women think of income as family income Women spend small amount of money on many little things – clothes, shoes, beauty supplies, children’s needs, daily home expenses Women see themselves as savers Wo--------------------------Men Men Earns $1.00 Work an average of 40 years The average man can expect to live to 74.8 years old In 2004, the median income for retired men was $21,102 40% of U.S. college students 55% in management positions Men with college degree earn $42,918 Men think of income as men’s income Men spend large amount of money on big- item things – boats, hobbies, cars, houses; men tend to depend on women to take care of daily money matters Men see themselves as investors

21. MoneyCounts: A Financial Literacy Series Women tend to spend more than men on: –appearance at work and in general –safety and security – safer cars, family- friendly homes and neighborhoods –charity and gifts – volunteer activities, social activities, family and friend obligations Young, Fabulous, and Broke!

22. MoneyCounts: A Financial Literacy Series Who is the breadwinner in your family? –I am a single mother and the breadwinner in my family. –I am married and the breadwinner in our family. –I am married, but my husband is the breadwinner in our family. Poll

23. MoneyCounts: A Financial Literacy Series Moms as Breadwinners 10 million Mother as the Sole or Primary Provider: 1960–2011

24. MoneyCounts: A Financial Literacy Series 26% Single with Children

25. MoneyCounts: A Financial Literacy Series Women represent 56% of all Social Security beneficiaries age 62 and older, and approximately 68% of beneficiaries age 85 and older. In 2011, 48% of all elderly unmarried females receiving Social Security benefits relied on Social Security for 90% or more of their income. In 2011, the median earnings of working-age women who worked full-time, year-round, were $36,500, compared to $48,000 for men. Can we do better? Social Security Is Neutral with Respect to Gender

26. MoneyCounts: A Financial Literacy Series “Bag Lady Syndrome”

27. MoneyCounts: A Financial Literacy Series Who makes financial decisions in your family? –My partner makes most of the financial decisions. –My partner and I make decisions together. –I am single, and I make all the financial decisions. –I am married, and I make most of the financial decisions. Poll

28. MoneyCounts: A Financial Literacy Series Educate yourself about money management and investing –Do not rely on someone else for your financial security Husband, boyfriend, father Get more education/training –Aim for self-improvement at work –Keep moving ahead in your career –Break the traditional feminine career track Education and Empowerment!

29. MoneyCounts: A Financial Literacy Series Set SMART goals – it’s key to financial success –S = Specific –M = Measurable –A = Attainable –R = Realistic –T = Timely Build a solid financial plan –Assign a $ amount to each goal and work toward it! –Build a solid budget Set Smart Goals!

30. MoneyCounts: A Financial Literacy Series Build an emergency fund –At least 3 month’s worth of expenses –Increase to 6 months after you pay off all debts Credit card debts Student loans Car loans Other loans Be involved in the day-to-day management of your family’s finances, and talk about money with your spouse and children Build an Emergency Fund!

31. MoneyCounts: A Financial Literacy Series Make yourself feel good with things that promote self-respect and creativity, without spending money –Shopping is not therapy! –Assess needs versus wants –Re-examine your belief and value system about money Spend less than you earn – the secret to financial security and success! –Create a balanced budget – at least 10% of net income should be in savings –Assess ways to increase income –Explore ways to reduce spending and waste Assess your partner’s or spouse’s debt when you marry –Make a family financial plan –Share sacrifices for the family –Evaluate good debts from bad debts Needs Versus Wants

32. MoneyCounts: A Financial Literacy Series Don't let the fear of losing money, fear of failure, or fear of the unknown stop you from investing –Buy your own home –Buy your own car –Have an emergency savings account in your name – emergency fund –Establish your own credit worthiness (credit cards and debt management) Be financially independent –Invest in your retirement –Have a credit card in your name – keep it paid in full monthly –Protect your financial reputation –Protect your identity –Be your own Knight in Shining Armor! A man is not a financial plan! Put Your Name on It!

33. MoneyCounts: A Financial Literacy Series What type of house do you want to live in? Where do you want to live? What kind of a career do you want? How much do you need to earn to live there? What type of people do you want to work with? Figure out what you really want out of life, because you become what you think about. Invest time to know yourself and your lifestyle; it will help you set your goals and set a budget to reach those goals. Examine Your Lifestyle

34. MoneyCounts: A Financial Literacy Series Start work young: There is evidence that starting work young can boost confidence. Whether your first job is pumping gas, bagging groceries, or filing, the discipline of work trains the mind to focus. A first paycheck is a great motivator – you quickly learn the link between work and money! Do the research and find out the value of your contribution to the marketplace. From there, ask for this amount and do not settle for less. Value your own work and efforts, whether you are an engineer or an artist. Reach for the highest education, specialization, certification, and credentials you need to achieve your dreams. Start Work Young and Research Your Marketplace!

35. MoneyCounts: A Financial Literacy Series Treat money as the exchange tool you need to achieve your goals Invest first – spend second Make your money work for you – work hard for your money Keep a low debt ratio to income –Monthly payment (full) should not exceed 10% of your net monthly income Includes all debts except mortgage Evaluate Your Attitude Toward Money!

36. MoneyCounts: A Financial Literacy Series Let husband or partner manage the money without their involvement Sign income tax return without understanding or reading it Not taking into account women’s greater longevity Not asking enough financial questions Not sharing care of children and elderly with their partners Not having their own savings, checking, debit and credit cards Not preparing for long-term financial decisions In divorce, women tend to keep the mortgage instead of pension or retirement income In divorce, women tend to fail to identify debts, credit cards Fail to protect against future assets, change of will, beneficiaries Top Financial Mistakes Women Make

37. MoneyCounts: A Financial Literacy Series Advocate for Women: to receive the pay they deserve and equal work conditions to have access to higher-paying jobs for women in the workforce to have affordable child and elder care, as well as access to quality flexible work and paid family leave to receive the support they need through expanded tax credits to help meet the costs of raising their families What Can Women Do Collectively?

38. MoneyCounts: A Financial Literacy Series Thank You! Comments and Questions Dr. Daad Rizk MoneyCounts: A Financial Literacy Series 301 Outreach Building University Park PA 16802 dar39@psu.edu 814-863-0214