Everyday Money Management

Women and Money

When it comes to women and money, the news can be gloomy. We live longer, we earn less, and are less secure in retirement. But the news isn’t all bad, because women can also be terrific budgeters, investors, savers and entrepreneurs.

Take women business owners as an example. In Millionaire Women Next Door, Thomas Stanley profiles female entrepreneurs who have become millionaires. Here are some of the things he learned about these women in his research:

• Nearly all are homeowners, and one in three owns her home outright.

• They are significantly more likely than men to have a detailed accounting system for tracking household expenses, research stocks more thoroughly, and have a well defined set of both short and long-term investment goals.

• Total average income is a whopping $413,960 and these women earn 71% of the household income.

• They are frugal, and certainly more frugal than men.

• Their average age is 52

• Eight out of ten are mothers

• Half of those who are currently married have been divorced at least once.

Sure, the deck may be stacked against us a bit, but with some planning, hard work and a willingness to learn, women can be financially successful and independent.

If you want to be financially successful, the first thing you have to tackle is the family budget. As we just mentioned, millionaire women are good at budgeting and they are frugal. (And frugal, by the way, means wise with money, not necessarily cheap.) You need to know where your money is going. If you haven’t done so already, start tracking your spending and create a budget. If you have a family, involve them in the process. Visit the Learning Center at ConsolidatedCredit.org for helpful booklets on budgeting.

Once you have created your budget and started tracking your expenses, you’ll want to find ways to get the most for your money. Consolidated also offers helpful brochures on spending. The less you spend, the more you have to save and invest. So don’t be afraid to clip coupons or commit your family to turning the lights out when they leave a room. Every little bit helps!

Be A Smart Spender

• Women control $3.3 trillion in annual consumer spending

• Women make 62% of all car purchases

• Women take more than 50% of all business trips

Earn Your Worth

• Women earn 77 cents for every dollar men earn on average for full time, year round work

• Women earn less than men in almost every type of industry, including highly paid professions like doctors and lawyers.

Working women are much less likely than men to negotiate pay on a job, and then are less likely to ask for a raise. Research has found that women's salary expectations are between 3 and 32 percent lower than those of men for the same jobs. Men expect to earn 13 percent more than women during their first year of full-time work and 32 percent more at their career peaks.

If you are going to work for someone else, it’s important to research pay rates for the type of work you do (start at salary. com), to negotiate your starting salary, and to develop the skills you need to ask for and get a raise. If you don’t, you not only shortchange yourself in your current job, but also in terms of your lifetime earnings. In fact, statistics show that women who consistently negotiate their salary increases have been found to earn at least $1 million more during their careers than women who don’t.