Why young women?
Most statistics show that independent young women become strong individuals, able to take care of themselves, while those who are dependant on others are the ones who usually fall prey to “predators” and thus, are most likely to be abused. Additionally, since women do tend to live longer, if they learn creative financial strategies while they are young, chances are that they will have a higher standard of living once they are older and live alone. Sara Ban Breathnach, author of Simple Abundance best summed up the relationship that women have with money, when she stated: “ Like success, money is an emotionally volatile issue for most women. It’s probably the most complicated relationship we have – and the one that most controls our lives because we let it.” It explains more than ever how crucial it is to have young women of today learn the necessities of financial independence so that this important facet of live that so “controls” women can help them have a better standard of living.
Let’s
look at some figures that indicate how lacking “financial education” is
especially for women in our society, and how important this goal is considering
how many women will be working in the coming years. In 1981, women comprised
the smallest group of those declaring bankruptcy – just 17% of all
filings. However, by the end of 1999, women comprised nearly 40% of filers – with
single women accounting for 500,000 of them (Bernstein Law). Moreover,
U.S. Department of Labor, Bureau of Statistics, projects that the rate
at which women enter the labor force will continue to be much faster than
the rate for men, and women’s share of the labor force will increase
to 48% by the year 2005. What this indicates is that there will be more
women who will have to make independent financial decisions, making it
very necessary for them to be educated about the financial world.
Recently,
Working Woman magazine’s survey on Women in Business revealed that
women are now starting new companies at twice the rate of men and actually
earn over $1 trillion annually (US Census Bureau). However, these are the
empowered women who have had the advantage of an education in finance and
business. Otherwise, the average women’s median pension benefit is
$3,000 - approximately two and half times less than a man’s median
(Women’s Institute for a Secure Retirement), while the average in
a woman’s 401(k) is $11,000 compared to $25,000 for a man. (Watson
Wyatt). In addition women are much more likely than men to be unsure of
the amount they have currently saved towards retirement (Terry Savage),
and are less confident in their investing abilities than men are (Long
Island University).
CONCLUSION:
According to the Gender Investment Comparison Study in 1997, sponsored by the Dreyfus Corporation and the National Center for Women and Retirement Research (NCWRR) reveals that starting in their teen years, women’s math anxiety and lower self-confidence in their financial prowess begin to work against their learning more about investing. This study compared the financial attitudes, behavior, decision-making, investment history, financial goals, and retirement preparation of men and women. Another study conducted by NCWRR also indicated that in comparison to their male counterparts, women lacked significant knowledge and the confidence with regard to money management and investment programs. This study also revealed that due to this apprehension and unpreparedness, women often had a fear of having inadequate income for retirement.
In collaboration with McCall’s Magazine, in 1989, NCWRR undertook a project in order to find how actively women were planning for retirement. While this study did show that there were many women who were aware of or actively involved in some financial aspects of their lives such as: knowledge of monthly expenses, responsibility for credit cards in their own names and life insurance, there were considerable and serious financial deficiencies in financial knowledge. Some of the areas that women lacked in were: never having a bank loan in their name, not having their own checking accounts, no savings or investment objectives or related activities, no income replacement options in case of a disability, no knowledge of entitlements with regard to Social Security and pension programs and no financial plans for retirement.
This study concluded the following major facts about women and finances:
- Women tend to assume that they know more than they actually do
about their financial-management abilities, often mistaking household money management for long-term asset;
- Employers, governmental and women’s organizations offer precious
little retirement planning geared to the special problems women face
as they age. There is almost no pre-retirement education specifically
focused on mid-life women;
- Women in their 20’s, 30’s, and 40’s are especially
reluctant to think about planning for retirement;
- Single, widowed, and divorced women represent the most “at-risk” group that faces later life financial impoverishment.
Therefore, women face many obstacles in building their financial nest egg and securing their financial future. They tend to live longer spend more time out of the workforce in order to raise and take of their families, and thereby earn less.
The time to educate them to become strong and independent financially is when they are younger so that they can learn the lessons, apply them and gain from their knowledge.
This is the reason why it is imperative that our program reaches young women. We need to ensure that the next generation of women is able to be financially independent so that they in turn can empower the future generation of women.
But we cannot do this alone. We need your help. We need your support so that we can accomplish this vital mission.
Learn more about supporting the financial future of young women.