5 Steps Women Can Take to Become Money Smart
Contacts:
Brad Stroh, Bills.com, 650-393-6210, brad@bills.com
Aimee Bennett, Fagan Business Communications, 303-843-9840, aimee@faganbusinesscommunications.com
The Feminine Financial Mystique: How Every Woman Must Take Control of Her Finances
-- Women can take 5 steps to become money-smart --
SAN MATEO, Calif., Sept. 6, 2006 - Although all Americans struggle with increasing costs of living, women still suffer the most when financial matters go awry - but women can take charge of their finances, said Brad Stroh, co-CEO of Bills.com.
"Studies prove that women still earn less than men do, and are more likely to be widowed or faced to raise children with one paycheck," Stroh said. "Even given those alarming factors, some women remain uneducated about their financial situations. This is especially dangerous given that many women will be required to control their own finances during their lives. Being in control of their finances can be very rewarding once they start taking the steps to do so."
Women who work full-time earn a median income of $31,223, according to U.S. Census information released in late 2005 - just 77 cents to a man's dollar. Even worse, when families crumble, a divorced woman with children is most likely to file for bankruptcy -- and she is three times more likely to file than someone without children.
In 1995, more than 900,000 people became widowed; 70 percent were women. According to the Social Security Administration, the average monthly Social Security benefit for a widow or widower in 2006 was just $967. That's less than $12,000 a year, or less than one-sixth the median family income of $73,000.
"Clearly, all women need to have a financial plan in place," Stroh noted. A few simple steps will set any woman on the track to financial success, whether with a partner or alone.
- Know what you have. Whether you are married or single, be sure to understand your household's mix of assets, debts and other accounts. Know your net worth, or the amount of your debts and liabilities subtracted from the amount of your assets. In this day and age, you can't count on Social Security or your spouse's pension to cover your golden years. Participate in your own retirement savings plan, through work and/or an individual retirement account (IRA).
- Keep yourself covered. Be sure you have adequate health insurance, auto insurance, and life insurance. Add liability insurance if you are at risk (if, for example, you or your spouse is highly visible in the community, or if neighborhood kids swim in your pool), and disability insurance if your expenses would outstrip your income if illness or injury forced you to quit working.
- Have your own financial identity. Even if you are married, always keep at least one credit card in your name only. If your spouse died, or if you divorced, it could be tough to obtain credit in your own name in the short term.
- Protect your credit reputation. Discuss frankly with your spouse how and when bills are paid to be sure you protect your own good credit - or work your way towards good credit. Paying bills on time - no matter how much you pay - is the simplest way to improve your credit score. Doing this for even one month can raise a modest credit score by as much as 20 points. Even if your partner handles money matters for your household, know where bills and checkbooks are stored and which bills must be paid when, in case of emergency.
- Claim everything. Be sure your name is on all checking and savings accounts, home ownership documents (such as title and mortgage), car deeds and asset accounts. Confirm that you are listed as a beneficiary of your partner's life insurance, annuities and other assets.
"Hopefully, your life will be full of financial harmony," added Stroh. "However, we all can benefit from taking control of our own destinies - and women's financial well-being can depend on it."
Based in San Mateo, Calif., Bills.com is a free one-stop online portal where consumers can educate themselves about complex personal finance issues and save money by choosing the best-value products and services. Since 2002, Bills.com's partner company, Freedom Financial Network, has provided consumer debt resolution services, serving more than 10,000 customers nationwide and managing more than $250 million in consumer debt. The company's co-founders and CEOs, Andrew Housser and Brad Stroh, were recently named Northern California finalists in Ernst & Young's 2006 Entrepreneur of the Year Awards.
