1. The Mistakes Even Smart People Make With Their Money Dian N. Rowe Extension Educator Baltimore County “It is the policy of the University of Maryland, Agriculture Experiment Station and Maryland Cooperative Extension, that no person shall be subjected to discrimination on the grounds of race, color, gender, religion, national origin, sexual orientation, age, marital or parental status, or disability.”

2. “The real measure of your Wealth is how much you would have if you lost all your money.” Anonymous

3. # 1 They fail to acknowledge and take care of their own needs!

4. Statistics Married working women with children carry the heaviest workload of any group – about 77 hrs. per week. Six out of every ten mothers of children under the age of 3 were in the work force (March 2000). Nine percent of women care for a sick or disabled family member. 2.4 million grandparents (high percentage of grandmothers) care for grandchildren.

5. Care-giving begins with caring for self… emotionally, socially, physically, intellectually and financially.

6. # 2 They under estimate their ability to manage money!!

7. Balancing Income and Expenses If expenses exceed income, earn more or spend less.

8. # 3 They fail to make a financial plan. Financial Goals Life Cycle Planning Opportunity Costs

9. # 4 They fail to budget. Spending plan vs. budget Current vs. future consumption Flexible vs. fixed expenses Periodic expenses Include Savings

10. Prepare a balance sheet annually. Same date each year Example. December 31 Net worth = assets - liabilities

11. # 5 They fail to raise financially responsible children. Family meetings Allowances Entrepreneurs Gifts

12. Girls vs. Boys Understanding your money profile Fending off fights Saving starts early

13. # 6 They fail to appropriately manage risk. Disability insurance Life insurance Property and Casualty Insurance Health Insurance

14. How to Save On Insurance Drive Safely Use deductibles Take advantage of discounts Pay premiums annually Consider insurance costs Reduce or eliminate coverage Do not duplicate coverage

15. # 7 They commit tomorrow’s dollars to today’s treasures.

16. Credit is really debt. Opportunity costs Costs of credit The magic of cards Secured vs. non-secured credit Credit counseling Credit repair clinics

17. What to do if… You need to know what your credit report says ? You need to correct your credit report ? You can’t pay your bills ? Creditors call you at home or work ? You can’t get a credit card ? You think you need to go bankrupt ?

18. Signs of Credit Abuse Paying only the minimum on credit cards Failing to pay bills by the due date Over 20 % of your take-home pay committed to paying off credit Borrowing to make monthly payments Not opening bills Using savings to meet monthly bills Planning on tax refunds to catch up on late bills Hiding financial facts from your family Being turned down for credit

19. # 8 They fail to save for retirement.

20. Women have a lower income in retirement than men, thus higher poverty. Women face greater economic challenges in retirement…live longer…lower lifetime earnings. Divorced women have higher poverty in retirement. Women are less likely to have pension coverage at work than men.

21. AARP recommends having 75 % of your pre- retirement income available as retirement income. Many are postponing or delaying retirement to accumulate more savings. Health care costs are frightening to many retirees. Work is adding a fourth leg to the Retirement three legged stool…Social Security, Pension and Savings.

22. # 9 They fail to make a will.

23. A will enables you to select who receives your property. A will allows you to manage your estate. A will allows you to name a personal representative. A will allows you to name a guardian for minors.

24. Letter of last instruction Living Will Other tools for transferring property

25. # 10 They don’t realize that the time to begin improving their financial stability and security is now.

26. Financial Security in Later Life http://www.reeusda.gov/financialsecurity/