Budget Basics

Women and Money

If you’re a mom looking to balance career and family, check out Working Mother Magazine’s list of Best Companies for Working Moms (www.workingmother.com). If you’re looking for a great work environment with benefits or the opportunity for advancement, Fortune magazine also publishes an annual list of the 100 Best Companies to Work For (www.fortune.com). Finally, if your company offers tuition reimbursement, take advantage of it and take classes to increase your salary and marketability.

Perhaps you just can’t seem to find a job that gives you the flexibility or opportunity you want. Starting your own business may be your ticket to financial independence. It isn’t always easy, but you can often test the waters by starting a small business part-time or from home, and grow at your own pace.

A terrific resource for small business advice is SCORE, which provides free business planning and consulting advice. Visit www.Score.org for more information. Be very careful, though, about work at home opportunities that promise lots of money for little work – especially if they also require a large upfront investment.

Get Your Credit In Shape

• Women file bankruptcy at 662% times the rate they did twenty years ago.

• Women shoulder the largest burden when their family is in financial trouble. Three quarters of wives assemble the paper work for credit counseling alone, and women are twice as likely as their husbands to pay the bills and deal with bill collectors.

The single greatest predictor of whether a woman will end up in financial ruin is if she has children, according to bankruptcy researcher Elizabeth Warren, writing in The Two Income Trap. Plenty of parents know how expensive children can be, but that does not mean that you shouldn’t have children. However, the added financial responsibilities of parenthood mean that since you do have children you should budget more carefully and be extra vigilant about avoiding debt and setting aside money for emergencies.

It is also important to maintain your own credit history, and try to keep it strong. Too often women want to help their loved ones (including spouses) by cosigning loans, lending them money, or taking over the bills. This can prove detrimental to your credit rating.

No one wants to think their marriage won’t make it. But the truth is, debt and money troubles are cited as one of the major reasons for divorce. Do not cosign loans for a partner or spouse with a bad credit history. You could end up with debt that lasts longer than the marriage. Even if you stay together, it is important to have one spouse with a strong credit history and a low debt ratio – especially in case of emergencies.

Check your credit history at least once every year (you are entitled to one free credit report each year) and if it is less than perfect, start the process of correcting errors and rebuilding your credit. It is never too late! Visit ConsolidatedCredit.org for free publications about credit reports and scores, as well as a myriad of topics including divorce and credit.

If your family is digging itself into debt, don’t be shy about asking for help. Even if your spouse isn’t willing to acknowledge the problem, it’s important to obtain advice before the situation becomes so bad that you have no choice but to file bankruptcy. For a free, confidential consultation on your debt situation, call Consolidated Credit Counseling Services Inc. at 1-800-320-9929.