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Consumer Tips

Saving Tips for Women

You might think that saving money is no different for women than for men. Well, that's not entirely the case. True, the return on a share certificate of deposit or the dividend rate on your saving account is not gender-bias. Yet women's financial life experiences are often very different than those of men, and that means women must manage their money different from their male counterparts.

Why? Women live longer than men, an average of seven years longer. Of course, that means women must save more than men, because they are more likely to live on their savings and investments.

Women typically earn less than men. Unfortunately, it's a fact that women still earn only 75 percent to 80 percent of what men do. This means women have to budget better than men in order to free up enough cash to save and invest.

Women are more likely then men to drop out of the workforce. Women, more than men, are the family caregivers, raising children and caring for elderly relatives. Therefore, women are less likely to qualify for a retirement plan such as 401K.

So what can be done? Designing a personal budget is the first step. Housing, food and utilities should take up roughly 65% of your expenses. Clothing, recreation and household repairs might represent another 20%. 10% should be budgeted for insurance, property taxes and tuitions. The remaining 5% is for savings.

Save! Save! Save! Stark FCU has excellent saving programs that can help. First, a basic share (savings) account gives immediate access to funds and can be used in conjunction with payroll deduction and direct deposit.

Next, share certificates offer a higher rate of return than a share account. You agree to keep your money on deposit for a fixed period of time. The longer the term, the higher the dividends, so if you have extra funds you don't anticipate on using this option is ideal.

Finally, many experts highly recommend the tax-deferred savings options of an IRA. If you’re a working woman and married, you and your husband can each open an IRA and deposit up to the maximum in each account. If you’re a working woman and single, you can start and IRA and save up to the maximum amount. Call 330-493-8325.

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