1. MoneyCounts: A Financial Literacy Series
Financial Literacy for Women
Dr. Daad Adel Rizk
Director, Penn State Financial Literacy Center
128A Outreach Building
University Park PA 16802

2. Learning Objectives Define financial literacy for women
Financial challenges for women
Effective budgeting strategies
Debt management principles
Vehicles for saving and investing

3. Money and ME What does money mean to you?
In one word, define your relationship with money?
Example:
Freedom, Security,
Toxic, Drama,
Struggle, Problem,
Power, Misery, etc.,

4. Four Elements of Financial Well Being
In summary, financial well-being can be defined as a state of being wherein a person can fully meet current and ongoing financial obligations, can feel secure in their financial future, and is able to make choices that allow enjoyment of life.
The four elements of financial well being (cfpb)
Present
Future
Security
Control over day-to-day
Capacity to absorb financial shock
Month to month finances
Freedom of Choice
Financial freedom to make
On track to meet financial goals
Choices to enjoy life
Consumer Financial Protection Bureau (Jan 2015)

5. Women in the United States
Total population in the U.S. = 325 million (men, women, children)
Women in the U.S. = 166 million (51% of total population)
Women in the workforce = 75 million (45% of total women)
Women not in the workforce = 91 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

6. U.S. National Debt Clock http://www.usdebtclock.org/
42 million living in poverty (for every 7-8)
42 million receiving food stamps
31 million without insurance (for every 9)
873 thousands bankruptcies
514 thousand foreclosures

7. 26% Single with Children

8. Employment of Women

9. “Pink Collar” Jobs
Women as a percentage of total employed in selected occupations, 1985–2012 annual averages

10. Weekly earning by women

11. Distribution in labor force

12. College Graduates and Debt

13. Student Loans Total U.S. student loans: $1.4 (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.org

14. Credit Card Debt 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

15. Moms as Breadwinners 10 million Mother as the Sole or Primary
Provider: 1960–2011
10 million

16. The Lost Years 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

17. Social Security Is Neutral with Respect to Gender
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?

18. Ladies Last! 5–7 Years Average Gap

19. “Bag Lady Syndrome”

20. 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

21. Top Financial Missteps Women Take
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

22. What women are saying?

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

24. Set Financial Goals Set SMART goals – it’s key to financial success
S = Specific
M = Measurable
A = Attainable
R = Realistic
T = Timely

25. Budget as % of net income

26. Eliminate Debts Strategies to eliminate debts Credit card debts
Student loans
Car loans
Other loans
Interest rate, total cost of loans (terms)
Know your rules (10% monthly payment)

27. Saving for a specific goal
Emergency Fund
? How many months?
Saving for a specific goal
Vacation
Car
Furniture, etc.,

28. Investment vehicles: Investing Retirement account (401K)
Additional retirement accounts (403, 427, IRA, Roth IRA, etc.,)
Accumulation of assets – real estate
Stocks, Bonds, Mutual Funds, Futures, Commodities, etc.,

29. Put Your Name on It!
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!

30. What Can Women Do Collectively?
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

31. Money and ME What does money mean to you?
In one word, define your relationship with money?
Example:
Freedom, Security,
Toxic, Drama,
Struggle, Problem,
Power, Misery, etc.,

32. MoneyCounts: A Financial Literacy Series
Thank You!
Comments and Questions
Dr. Daad Adel Rizk
Director, Penn State Financial Literacy Center
128A Outreach Building
University Park PA 16802