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
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
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
youre a working woman and married, you and your
husband can each open an IRA and deposit up to the
maximum in each account. If youre a working woman
and single, you can start and IRA and save up to the
maximum amount. Call 330-493-8325.