Pop Quiz!!! I’m
sure most of us have vivid memories of an elementary school teacher making this
announcement. I used to cringe. Have no fear! This quiz will be quick and
painless. Please answer the following questions…
1.
Who is the wealthiest African American female?
2.
What basketball legend became a billionaire last year?
3.
Which hip hop artist was reported to have made $3
billion from the sale of their product line to Apple?
4.
What does the acronym FIN stand for and do you know
your FIN?
5.
What is your FICO score?
6.
When will you be debt free?
I’m sure you
answered Oprah, Michael Jordan and Dr. Dre respectively to the first three
questions. But what were your answers to the last three questions? Did you have
an answer? I usually try this little experiment as an ice breaker at my
seminars and workshops and no matter what 3-4 questions I ask about pop
culture, the participants are engaged and shouting out the answers. Then, as
you’ve probably figured out, aren’t as quick to answer the questions that
pertain to their personal finances because they don’t know. My job as a Money
Coach isn’t to make anybody feel bad. It’s to help us become aware of this
mindset and realize that it’s more important to understand and have an active
role in their own lives. In other words…know what’s going on with YOUR money!
This is particularly important for women.
You see, there
are three reasons why people do not prosper financially:
1.
Lack of financial literacy. Fewer than 2 in 10
women feel “very prepared” to make wise financial decisions. Half indicate that
they “need some help”, and one-third feels that they “need a lot of help”.
(Financial Experience & Behaviors Among Women 2010-2011 Prudential Research
Study) Not to mention, in 80% of the nation’s households women are the primary
decision makers regarding purchases. (People Support, as cited on www.womanmotorist.com)
However, women are least likely to have a financial planner or money coach.
2.
Lack of a written financial game plan. The
average life expectancy for women is 81 years, compared to 73 years for men.
(The Social Security Administration) The fact that women are less likely to sit
down with a professional to map out their financial future is very dangerous
because even though women have longer life expectancies, when asked how much
they were aiming for in retirement savings, women aimed lower, with a median
goal of $200,000 versus $400,000 for men. (Retirement Fitness Survey 2010) So
it’s even more important for women to make sure they are on track for
retirement. Most people I sit down with are more concerned with running out of
money in retirement than dying too soon. It’s still important though to address
both concerns.
3.
Lack of accountability. Life is full of ups and
downs...peaks and valleys. Statistics show nearly two-thirds of U.S. women ages
40 to 79 have already dealt with a major financial “life crisis”, such as a job
loss, divorce, death of a spouse or serious illness. (AARP, “Understanding Women’s
Financial Needs and Behavior” 2007 survey) So having a money coach who has a
vested interest in your financial success is essential to helping you navigate
the twists and turns that life can bring about.
As you can see, women have a very specific set of needs
when it comes to creating a financial strategy. If you have financial concerns,
need to ask questions or would like assistance in taking inspired action to
create the life you desire, please send me an email. I pray this information
was helpful. Brightest blessings!
Misty Muhammad
This was a great read sis!
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