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
Learning Objectives
• 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
MoneyCounts: A Financial Literacy Series
Poll
• 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.
MoneyCounts: A Financial Literacy Series
Women in the United States
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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
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
MoneyCounts: A Financial Literacy Series
Poll
• 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.
MoneyCounts: A Financial Literacy Series
College Graduates and Debt
MoneyCounts: A Financial Literacy Series
Student Loans
• 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.org
MoneyCounts: A Financial Literacy Series
Poll
• 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.
MoneyCounts: A Financial Literacy Series
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:
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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
MoneyCounts: A Financial Literacy Series
Average per Year = 1 Million
Civilian labor force by sex, 1970–2012
MoneyCounts: A Financial Literacy Series
Poll
• 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
MoneyCounts: A Financial Literacy Series
“Pink Collar” Jobs
Women as a percentage of total employed in selected
occupations, 1985–2012 annual averages
MoneyCounts: A Financial Literacy Series
45% Are 45 or Older
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
MoneyCounts: A Financial Literacy Series
Are All Women Equal?
MoneyCounts: A Financial Literacy Series
Poll
• 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.
MoneyCounts: A Financial Literacy Series
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
MoneyCounts: A Financial Literacy Series
Ladies Last! 5–7 Years Average Gap
MoneyCounts: A Financial Literacy Series
Wo--------------------------Men
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
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 bigitem things – boats, hobbies, cars, houses;
men tend to depend on women to take care
of daily money matters
•Men see themselves as investors
MoneyCounts: A Financial Literacy Series
Young, Fabulous, and Broke!
• Women tend to spend more than men on:
– appearance at work and in general
– safety and security – safer cars, familyfriendly homes and neighborhoods
– charity and gifts – volunteer activities, social
activities, family and friend obligations
MoneyCounts: A Financial Literacy Series
Poll
• 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.
MoneyCounts: A Financial Literacy Series
Moms as Breadwinners
• 10 million
Mother as the Sole or Primary
Provider: 1960–2011
MoneyCounts: A Financial Literacy Series
26% Single with Children
MoneyCounts: A Financial Literacy Series
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?
MoneyCounts: A Financial Literacy Series
“Bag Lady Syndrome”
MoneyCounts: A Financial Literacy Series
Poll
• 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.
MoneyCounts: A Financial Literacy Series
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
– Aim for self-improvement at work
– Keep moving ahead in your career
– Break the traditional feminine career track
MoneyCounts: A Financial Literacy Series
Set Smart Goals!
• 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
MoneyCounts: A Financial Literacy Series
Build an Emergency Fund!
• 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
MoneyCounts: A Financial Literacy Series
Needs Versus Wants
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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
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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
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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
MoneyCounts: A Financial Literacy Series
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!
MoneyCounts: A Financial Literacy Series
Examine Your Lifestyle
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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.
MoneyCounts: A Financial Literacy Series
Start Work Young and
Research Your Marketplace!
• 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.
MoneyCounts: A Financial Literacy Series
Evaluate Your Attitude
Toward Money!
• 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
MoneyCounts: A Financial Literacy Series
Top Financial Mistakes
Women Make
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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
MoneyCounts: A Financial Literacy Series
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
MoneyCounts: A Financial Literacy Series
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