Women and Money -- an important conversation · Storyselling for Financial Advisors pg. 169 How men and women look at money cts. Women misunderstood or under served by the financial

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

pac

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

, mo

ney

an

d im

pac

tsHow men and women look at money

Women misunderstood or under served by the financial industry

– Investments

– Home buying

– Business growth

Wo

men

, mo

ney

an

d im

pac

tsImpacts

Wo

men

, mo

ney

an

d im

pac

ts

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

Wo

men

, mo

ney

an

d im

pac

ts

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

men

, mo

ney

an

d im

pac

ts

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

Wo

men

, mo

ney

an

d im

pac

ts

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

men

, mo

ney

an

d im

pac

ts

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

men

, mo

ney

an

d im

pac

ts

Wo

men

, mo

ney

an

d im

pac

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

les

to A

ctio

n

What inspires action

• Accountability

• How will my life be different?

(Source: Holly Buchanan, Marketing to Women consultant)

Stra

tegi

es t

o b

uild

fin

anci

al s

ecu

rity

• Motivation

• Emotion/identity

• Short-term success (measurable)

• Who’s responsible for my financial future?

• How do I want to feel?

• Am I making progress?

Stra

tegi

es t

o b

uild

fin

anci

al s

ecu

rity

Actions you can take

Have a budget- or something like it

• Where is the money going?

• Does it reflect what you value?

• Gut check

Stra

tegi

es t

o b

uild

fin

anci

al s

ecu

rity

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

Stra

tegi

es t

o b

uild

fin

anci

al s

ecu

rity

Actions you can take

Don’t sacrifice retirement savings for children’s education expenses

• You can’t borrow for your retirement

Stra

tegi

es t

o b

uild

fin

anci

al s

ecu

rity

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

tegi

es t

o b

uild

fin

anci

al s

ecu

rity

Stra

tegi

es t

o b

uild

fin

anci

al s

ecu

rity

Going forward

• Find your motivation (not about money)

• What are three things that get in your way?

• Take a 30-day challenge

Op

enin

g th

e C

on

vers

atio

n

• What do you want to change?

Thank you!