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Show Women & Money By Libbie Agran gm hen women think about ii h monev' now tney fee'? Wm m Moods, attitudes, behavior l II I Patterns- Jy excitement, lit anx'et'es hostilities and U guilts are intimately tied to the way women handle money and hold a great deal more power over their personal lives and careers than is often realized. Whether a woman is writing a check for charity (does her husband's college get a larger donation than hers?), making intelligent choices concerning fund raising, starting her own business, or entering into the corporate world, it is a woman's attitudes as much as her financial sophistication that will be the most significant determinants of her success in handling money. This year women in the work force outnumber women at home. More and more women will find it necessary to confront their attitudes about money and jobs. As women become more comfortable with the concepts of money and power, they will find it easier to attain their personal goals in the business community. And in the home, whether married or alone, they will be able to discuss and plan their financial futures intelligently. A survey I conducted of over 14,000 women has revealed that the following attitudes commonly shared by women, regardless of age, marital or economic status, inhibit most of them from maximizing their economic potential both in the nome and on the job. Attitude: Money Management And Money Talk Are Unfeminine Women have been taught that it is unfeminine to talk about money, to think about money and to view money as the road to financial independence and power. Women therefore often undervalue their skills in the marketplace with the result that among full-time workers, women with college and advanced degrees still average less annual income ($14,735) than male high school dropouts ($14,806). Attitude: Dependency and The Cinderella Syndrome The conflict between dependence and independence is a major one for women today. Women are often brought up to depend on a man and to feel lost and insignificant without one. The result is that most women surveyed tended not to assume responsibility for their long-term financial well-being. If they worked, few women accumulated significant savings for their retirement years; and if they did not work, few planned for their financial security should they be widowed or divorced. Most women are unaware and unconcerned about their low Social Security benefits and the fact that only one in six women will be eligible for pension benefits. See ATTITUDE page 5 i lH-if-llfle Continued Experience is the most important learning tool for women. For generations men have earned, accumulated and distributed money. The 19th century brought women political independence, but it is only in the 20th century that women have gained the ability to obtain credit, enter into contracts and control their own investments. To every woman, regardless of your age or economic status, the following are suggestions designed to build knowledge, confidence and experience in handling money. Experience the challenge of applying for and negotiating a loan. Send for your credit profile from a local credit bureau so that you can see how your creditors view you. Correct any errors in your record and use credit carefully to build a good credit history. Obtain a copy of Publication 17, "Your Federal Income Tax," from the IRS and use it to fill out or review your tax return. Set your financial goals and select investments to realize the goals. Compare the growth of one investment with another. Learn to question and compare the information you receive from financial advisors and salespeople. 'Attitude: Women Are Not Good At Numbers ( Research indicates that women Len show a tendency labeled as "math avoidance" and are less 'likely to perceive mathematics as racial to their personal or career cess The math skills necessary to Lndle the jobs women are avoiding involve simple arithmetic. These liobs in the business world do not require knowledge of higher -imathematics. Nor does management of personal finances. Any woman with an inexpensive calculator can confidently work with figures. Attitude: Women Are Too Emotional To Handle Money Women are emotional about 'money... and so are men. Women describe risk-taking as the most emotional issue involving money because women are socialized to "play it safe." This attitude is obviously reflected in the ways women accumulate gmoney. Most women responding to the survey placed their savings in a bank account or money market fund rather than making aggressive investments involving more risk such yas real estate, stocks, bonds, gemstones or natural resources. KNOWLEDGE (ABOUT MONEY) IS POWER Many women are frustrated by the fragmented approach to . financial education that they N experience in America. In today's world, women need to educate themselves on income, taxation, investment alternatives and the economy's impact on personal "1 financial management. I suggest that 'every woman attend classes at local "colleges on personal financial ) management and that elementary classes in accounting and income tax law should be part of every woman's education. J The economy is ever changing. ' Women need to keep abreast of developments affecting their -. personal lives. The business section II of the local paper, "Wall Street Journal," "Barrons," "Money Magazine," "Changing Times" and "Working Woman" contain jcurrent, concise and well-written ri financial reports and should be an integral part of a financially educated woman's daily reading. fc.1 |