How Men and Women Think About Finances

Results from the FINRA Investor Education National Financial Capability Study revealed that women with low levels of financial literacy knowledge were more likely to engage in bad credit card behaviors such as incurring late fees than men with low levels of financial literacy knowledge. 

However, there were no differences in behavior between men and women with high financial literacy knowledge. Increasing financial literacy knowledge can improve credit card management and reduce or eliminate gender based differences in credit card behavior.

Financial literacy is linked to retirement planning, investing, quick cash methods such as payday loans or cash advances, and generating wealth. A vast understanding of financial literacy improves credit card behavior for men and women.

Women were more likely to carry a balance, pay the minimum payment on their credit cards and be charged a late fee.  Women were less likely to pay their credit card balance in full each month and comparison shop for credit cards.

Women trail behind in finances and usually have low confidence when trying to set and obtain financial goals.  Many women shy away from finances and don’t view managing their finances as a high priority.  Many women focus more on their appearance and spend their money on shopping or entertainment.  Women put other’s needs first and focus on other priorities such as their children, college funding, etc.  However, women must put their needs first especially regarding finances.

The difference in how women view money may be related to how parents and educators teach girls about money.  These girls grow up and continue to use the same lessons they learned about money as a child.  Women are more emotional when it comes to spending.  Women like to spend money on things with little to no value like makeup, clothes, purses, shoes, etc. 

Many women are taught to find a husband who will take care of them which may prevent them from learning about the various aspects of financial literacy such as budgeting, investing, savings, debt management and retirement planning. Many women feel they don’t need to learn about finances because their husband will manage the finances. 

Women have to change the way the think about money and set an example for their daughters and future generations of girls.  If you want to own a home, go on vacations and live a certain lifestyle you have to save, invest and make good financial decisions.

Many women are forced into different roles when a life-changing event occurs.  Many women find themselves unemployed, divorced or widows and didn’t know how to manage their finances.  This can lead to making bad financial decisions based on emotion and mistakes that may take years to recover from.

According to the Prudential and Hearts & Wallets study women feel less confident than men in their understanding of financial products, their ability to make financial decisions and their perception of their current economic standing.

The financial services industry caters to men in the way it presents and discusses information and products.  Women don’t make quick decisions regarding finances and are concerned with long-term results.  Women are not proactive about learning how to manage their finances and take it for granted that they won’t need to learn because their husbands will do it for them.  

Women earn less than men but have longer retirements due to the fact that women live an average of five years longer than men. Women have higher health care costs throughout their lives.  Women should be saving more than men and investing their savings more aggressively to get a strong long-term return that will grow their portfolios.

Women who don’t manage their finances properly directly affect men. If your wife or girlfriend always asks you for money or needs help with her bills, if you provide financial support to your mother because she has little to no savings or retirement or your daughter keeps borrowing money because she can’t pay her bills - this is a direct result not properly manage their finances and lack adequate financial literacy knowledge.

Men are self-directed learners and use the Internet to find out information more than women.  Women tend to rely more on personal networks with friends, family and financial planners, and they take a networking approach to gathering information or get validation. Men and women need to have a strong grasp financial literacy knowledge to help them make sound financial decisions that will improve their lives. 

9 Tips to Get Your Finances in Order

 

Many people spend time on the weekends or during the week cleaning their house, putting things in order, throwing away things, organizing, updating, replacing and moving things around.  Some people do more extensive cleaning of their house when spring or the new year arrives.  Some people clean their house and donate unused items to charity.  Whatever the case – everyone cleans their house or place where their live but do you clean your finances?

Many people do not know how much money they earn, how much they spend or how much debt they owe. Organization is the key to getting your finances in order and cleaning your financial house.  Approximately seventy percent of Americans are living paycheck to paycheck.  In some instances people live paycheck to paycheck because they do not know where their money is going.  Here are 9 ways to help you get your finances or financial house in order and help you achieve your financial goals.

Increase Your Credit Score

Get a copy of your credit report at least once a year.  Get current on all late bills and dispute any errors.

Create a Budget

Create a budget or spending plan to determine how much you earn and how much you are spending.   Include savings in your budget.  Ensure that everyone in your family follows the budget. Track your spending daily, weekly or monthly. Use pen and paper, software or apps to assist you.

Reduce Spending

Reduce your expenses by determining areas where you can reduce spending by buying more needs vs. wants such as bringing your lunch to work, shopping at discount stores or buying generic brands. Call your service providers and ask about discounts or specials.

Pay Down Debt

Pay down debt and keep credit card balances at 20% or less of the limit which also helps increase your credit score.  Do not open any new accounts or incur any additional debt.

Establish an Emergency Savings Fund

Create an emergency fund to cover bills and monthly expenses for 12-18 months to prevent going into debt for unexpected expenses.

Plan for Retirement

Plan for retirement and contribute at least 20% towards a retirement fund each month.  Contribute to a retirement account through your employer or make automatic contributions to an IRA if you are self-employed or if your employer does not offer a retirement plan.

Pay on Time

Pay bills on time or before the due date to maintain good credit and increase your credit score.  Pay bills online or through automatic deduction to save money.

Assess Needs

Determine your needs for insurance such as life, health, disability and long-term care.  Make adjustments as needed on a yearly basis or when a life event change occurs such as divorce, death, long-term illness or childbirth. Bundle services with the same company to save money.

Get Organized

Organize all bills, financial statements, debt, and loans in separate folders.  Create a bill calendar to identify when each bill is due or create a list of keep track of bills.  Get a file cabinet, cash box or accordion folder to store receipts.   Tally receipts daily, weekly or monthly and track in your budget. Set alerts or reminder when bills are due and when account balances go below a certain limit.

Money Management Advice for Actors

 

Everyone can use financial or money management advice including actors. Actors and other creative professionals are subject to variable incomes and schedules so it is difficult to track spending, and set and achieve financial goals. However, there are several practical tips that actors can utilize to help them get on track with their finances.

Automate
Use technology to make automatic contributions to a savings and retirement account. Use smart phones app or mobile apps to create a budget and track spending, set financial goals, set alerts and reminders when bills are due and set alerts on back account balances.

Use Social Media to Find Work
The Internet is an important tool for aspirant actors to get work. You can harness the power of internet in two ways. You can either create your own website or join some social networks to seek work. While creating a website is quite cheap, yet an expense is an expense. Joining social networks will instantly connect you with thousands of others who may be looking for fresh faces.

Use the Services of a Good Financial Consultant
Though hiring a financial consultant can be a bit expensive, he can help you in arranging your finances and giving you valuable advice about savings and investments. He will also help you in preparing your tax returns in a way, which will help you in saving taxes.

Get Rid Of Old Gadgets
Many of us keep old cell phones or other gadgets in drawers without using them. Instead of dumping them, you can sell them on e-bay and earn some extra cash.

Use a Pre-Paid Mobile Service
If you face huge telephone bills due to your habit of being a chatterbox, you can switch to a prepaid service. This will automatically inculcate self-discipline in you. Make sure that you never load you cell phone with excess balance or this strategy will backfire, as prepaid tariff are usually higher than postpaid ones. Moreover, keep only one phone with you. If you keep two cell phones or a home phone, disown it immediately.

Get Rid Of Your Cable
If you are not a heave user of internet, you should opt for a cheap internet connection. This will shave off a few dollars each month from your bill. Better still, get totally rid of your internet connection and instead use Starbucks or some other restaurant, which offers free Wi-Fi. Also, consider ditching cable TV or watch TV shows and movies on internet streaming services such as Netflix, Hulu or Amazon.

Socialize At Home
Instead of frequently going out with your pals, try organizing meet ups at home. You can spend time on your PlayStation, rent a movie, or simply conduct an acting session. This will save you money, which you would have otherwise spent on Cinema, eating out, pubs, etc.

Exchange and Share
If you have something, which is of no use to you, you can exchange it with someone who needs it and get something from him in return. This will not only save you money but also clear clutter from your house. There are barter networks across the country, join one to save money on new or used items.

Don't Go For Brand New
When you have to purchase something, say a book, do not rush into the store to purchase a brand new copy. Instead, look for second hand copies of the book, which you can get at a bargain price. Later, when you are finished with the book you can re-sell it and recoup all your money.

Look To Save Small Amounts Everyday
Analyze your day-to-day expense and try to find out how you can save few dollars by slightly modifying your lifestyle. If you facing severe cash crunch, restrict frivolous expenses such as going to pub, cinema, etc. Always decide on your shopping list before going into the supermarket to avoid unnecessary expenditure. Do not look to save very large amount of money. Instead, find ways to cut back some expenditure from your day-to-day activities. If you do this regularly, and make saving a habit, you can create a sizable fund for yourself, which you can use in case of an emergency.