Women and Money -- an important conversation · Storyselling for Financial Advisors pg. 169 How men...
Transcript of Women and Money -- an important conversation · Storyselling for Financial Advisors pg. 169 How men...
Women and Money-- an important conversation
Becky GerothanasSenior Vice President – Operations
Summit Credit UnionUW Women & Leadership SymposiumJuly 7, 2016
Issues affecting women’s financial security
• Three out of five working women earn less than $30,000 per year
• Women have a longer average life expectancy than men• Nearly half of women over 45 are unmarried
Source: AARP
Issues affecting women’s financial security
• At ages 65+, women are more than twice as likely as men to be single
• At ages 65+, more women than men live alone• Social Security represents 53% of total income for
unmarried women over 65
Source: AARP
Issues affecting women’s financial security
• Women working full time earn about 80% of what their male counterparts earn
Source: “Highlights of Women’s Earnings” The U.S. Department of Labor,U.S. Bureau of Labor Statistics, June 2010, report 1025, p. 1
Compared to men, women. . .• Make less, live longer, and have higher expenses• Are more often the head of the household• Are much more likely to end up in poverty in
retirement• Make most financial decisions • Have incredible purchasing power • Want and need financial advice but feel ignored or
talked down to
Women and Money-- an important conversation
Women, money and impacts
Obstacles to actions
Strategies to build financial security
Money style quiz & opening the conversation
Men
-Process Quickly
Wo
men
, mo
ney
an
d im
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ts
-Take action
-Compartmentalize
-Prioritize options
- Think it through
- Holistic
- Compare options
Most women want a lot more information than men before they buy
Brain Difference
Men
-Process Quicklywomen
Women
- Process Completely
Wo
men
, mo
ney
an
d im
pac
ts
-Take action
-Compartmentalize
-Prioritize options
- Think it through
- Holistic
- Compare options
• Protector/provider
• Status
• Opportunities
• Products
• Credentials
• Make it grow
• Credit (investment)
Men Women
• Not dependent
• Security
• Consequences
• Comprehensive plans
• Trust
• Longevity – make it last
• Debt (expense)
Source: 2010 Women and Finance Study, Buchanan Marketing,
Storyselling for Financial Advisors pg. 169
Wo
men
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tsHow men and women look at money
Women misunderstood or under served by the financial industry
– Investments
– Home buying
– Business growth
Wo
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tsImpacts
Wo
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Buying a condoMan
• Quick look around• How much does it
cost?• Do I like it?• Buys
Woman
• Checks out all cabinets and closets
• Talks to neighbors• Makes sure realtor is
reputable• Learns about
neighborhood• Are there medical
facilities close by?• Considers purchase
Source: Re-Render the Gender by Thomas Jordan pg. 71
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Women-owned businesses are not as well funded
• Women started their firms with about $75,000 on average, compared with nearly $135,000 for men
• Male founders were more than three times as likely as female founders to access equity financing through angel investors or venture capitalists
Source: http://www.marketwatch.com/story/women-owned-businesses-start-smaller-but-add-jobs-faster-2014-09-05
Wo
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Women entrepreneurs often self-finance
“Women entrepreneurs tend to bootstrap their businesses not only in the beginning, but also through the early startup stage.”
--Candida G. Brush, Director of the Arthur M. Blank Center for Entrepreneurship
Source: National Women’s Business Council Study, http://www.marketwatch.com/story/women-owned-businesses-start-smaller-but-add-jobs-faster-2014-09-05
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Compared to men business owners, women business owners
• Tend to be less optimistic about growth, but women owned firms tend to grow more.
Source: National Women’s Business Council Studyhttp://www.marketwatch.com/story/women-owned-businesses-start-smaller-but-add-jobs-faster-2014-09-05
Wo
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Women fear being turned down
In various surveys women have said that they've not applied for credit when they needed it because they feared they'd be turned down. When you actually look at the data and loan turndowns by banks, there are no gender differences.
-- Dr. Alicia Robb – co-author of A Rising Tide: Financial
Strategies for Women-Owned Firms
Source: https://www.frbatlanta.org/podcasts/transcripts/economicdevelopment/130124_robb.aspx
Wo
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Wo
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tsWomen-owned businesses grow with peer businesses until. . .
$1 million in revenue.
Then growth falls behind.
Source: The 2013 State of Women-owned Businesses Report, American Express Open Forum
Women’s biggest financial challenge:Inaction
Ob
stac
les
to A
ctio
n
Ob
stac
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to A
ctio
n
What inspires action
• Accountability
• How will my life be different?
(Source: Holly Buchanan, Marketing to Women consultant)
Stra
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fin
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• Motivation
• Emotion/identity
• Short-term success (measurable)
• Who’s responsible for my financial future?
• How do I want to feel?
• Am I making progress?
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Actions you can take
Have a budget- or something like it
• Where is the money going?
• Does it reflect what you value?
• Gut check
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Actions you can take
Find professionals you can trust
• Don’t settle
• Expect listening, communication, dialogue, and answers to your questions
You can’t spend your way to wealth
• Pay yourself first
• Your goals and life stage
Actions you can takeHave conversations about money
• Annually • With your family and anyone impacted by your
decisions• Be specific
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Actions you can take
Don’t sacrifice retirement savings for children’s education expenses
• You can’t borrow for your retirement
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Start the conversation
• Ask what’s most important to you, own it and take action
• How can you encourage women in your life to take action?
Stra
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Stra
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Going forward
• Find your motivation (not about money)
• What are three things that get in your way?
• Take a 30-day challenge
Op
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g th
e C
on
vers
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• What do you want to change?
Thank you!