Women Really Are Differentin Wealth and Philanthropy: Let’s Understand the FactsPreface, Introduction & Chapter 1

Overview of Lecture

1.) The lifelong process of wealth and philanthropic management/responsibility

2.) The rules for this class…..3.) Why focus on gender?4.) Who is Janet Bodnar and Knight

Kiplinger?5.) The facts and distinctions between

women and men?6.) What is being money smart about?7.) How do we start being money smart?8.) Wrap up

Wealth and Philanthropic Management/Responsibiltiy is a process

While writing Money Smart Women Janet Bodnar, the author, found things in her own life that needed to be created or updated such as: Wills that had not been updated since before the

birth of their third child Retirement plans that had not been updated to

include her children as beneficiaries

Tax breaks that her mother could have taken advantage of

Coping with mother during early and later stages of widowhood when her father died

New found thoughts on long term care insurance

The Goal

The goal of this book and this class is to gather in one place answers to the questions uppermost in your minds at every stage.

In the passages you will find all the information you need to build financial security-- with your spouse or partner or on your own.

Let’s learn how to be Money Smart

The Rules When Taking this Class Have a realistic attitude and understand that

these are life lessons. While we might not be perfect in every area….gain knowledge, apply knowledge, and don’t beat up on yourself if you are not perfect every time in every thing.

Early, Regularly, Aggressively (ERA)- We are learning to navigate through a long process – the process of life. You will always deal with these issues in every stage of your life.

Recovery is key….If you have debt, okay, pull your plan together and work towards goals. If you make foolish investment mistakes….okay….rearrange your plan and move forward.

Knowledge is key….Basic foundation of knowledge will take you through life even though the rules might change along the way. EARLY, REGULARLY AND AGGRESSIVELY

Rules of this class (continued):

THE RULES: You have no income other than what

you earn on your own or what you and your spouse earn.

That means, your parents will no longer support you and MORE IMPORTANTLY – you don’t need their financial support because you can do this on your own.

You are responsible for your own debt

Why would Bodnar lobby to write a book for women only?

Women and men have different financial needs.

Women need specific financial advice tailored to the financial decisions they must make.

Different advice for different stages in life We would not necessarily recommend the same

type of retirement planning for a women with a full-time job as for a stay-at-home mom

Who is Janet Bodnar and why learn from her?

Janet Bodnar is the Editor of Kiplinger’s Personal Finance Magazine which is one of the most respected money management magazines and web sites in the world.

She has been studying and writing about wealth, finances, and raising money smart kids for about 30 years.

She is an expert in the area and very well respected with appearances on all of the major network programs including the Today Show and Oprah.

Janet Bodnar - continued

Janet was the keynote speaker at the 5th Annual and 12th Annual Women’s Philanthropy Board Spring Symposiums and at a WPB Winter Board Meeting.

She is the author of numerous books and has an online weekly column at www.Kiplinger.com which is an excellent online resource for education about wealth and money management.

Women Really Are Different…

But not because they’re financial neophytes who are unsophisticated about money

This is a stereotype sometimes promoted by self-help gurus who promise to save women from themselves and their own worst instincts

What Sets Women Apart Are the Facts…..

The different situations they will face during their lives, each with financial implications. Longer lifespan – Women – 81 vs. Men - 73 More checkered careers - At age 40, the average woman

in the labor force has accumulated 4.3 years less experience than the average man according to the Employment Policy Foundation.

Moving in and out of the paid labor force. According to the Women’s Institute for a Secure Retirement, the average woman spends 15 % of her career out of the paid work force caring for children and elderly parents.

The typical woman spends 10 years out of the workforce for care giving, while the typical man spends just two years (Joint Economic Committee, March 2006)

What Sets Women Apart Are the Facts

A few other statistics to make note of: The average age of widowhood for women

is 55 according to the Social Security Administration

Women 65 years or older today have a 44% chance of entering a nursing home at some point in their lives (Genworth Financial, 2006)

Note: Women can certainly face years alone after passing of husband and parents and launching of children

In 2010, women became the greatest wealth owners in the United States (Women in Higher Education, 2007)

What Sets Women Apart are the facts

In a study by OppenheimerFunds, 65% of the women surveyed said it’s their job to pay the household bills, and 54% are responsible for developing or maintaining a budget.

What is being Money Smart?

Being a “Money Smart” woman or man is about having a state of mind in which you’re confident of your ability to support yourself financially (if necessary) and comfortable with handling money- or seeking help if you need it.

What is Being Money Smart?

Empowerment Taking individual responsibility for your

own future, whatever that future holds. “It means not being dependent on

another person’s knowledge or judgment that might be inferior to your own.”

Knight Kiplinger, Editor in Chief, Kiplinger’s Personal Finance Magazine

According to Knight Kiplinger “The concept of being money smart is all about

empowerment – taking individual responsibility for your own future, whatever that future holds. It means not being dependent on another person’s knowledge or judgment that might be inferior to your own.”

For example: “If you have a partner in life, you will both benefit from your growing financial savvy, enabling the two of you to make better plans together than just one of you could do alone. And if you find yourself on your own--- today or years from now – you will be much better prepared.”

Who is Knight Kiplinger? www.kiplinger.com

Being Money Smart is About Engaging in the Life Long Quest for Learning

Make it your quest to stay up on the data and current trends that have an impact on your life

Examples of excellent resources:Kiplinger Magazine and web site, Money

Magazine, the internet – social security web site, brokerage firm web sites like, live and online conferences, seminars, and educational outreach venues such as WPB.

So How Do We Start?

1.) Know your money personality2.) Recognizing gender distinctions3.) Begin to put your plan into action

with the BIG FOUR and tracking your expenses.

The Money Personalities

The AccountantThe Social WorkerThe CEOThe Entertainer

Which one are you?

The Accountant

You keep your checkbook balanced, and one of your greatest thrills is watching your savings account grow. You blanch when our spouse or someone you know spends impulsively on a piece of furniture or a set of golf clubs. You can be a downer to live with, but you’ll never be broke. For you, money means security.

The Social Worker

You regard money as filthy lucre, and the quicker you wash your hands of it the better. You are, however, willing to spend it on the people, and causes, you love. You’re the one who gets talked into hosting the family dinner every Thanksgiving, and you probably have a “save something” bumper sticker on your car. For you, money means affection.

The CEO

You lease a BMW, live in a house you can’t afford, and you have a closet full of designer silk suits. When your kids bring home good report cards, your write them a check. Your motto is, “The one with the most toys (and the nicest clothes) wins.” For you, money means success.

The Entertainer Every Friday afternoon you have an outing

with the gang from the office, and your pick up the tab. On Saturday night you go out to dinner with friends, and you pick up the tab, or you host brunch on Sunday. You never balance your checkbook and can’t be bothered saving receipts. You drive our accountant spouse crazy, but your neighbors and co-workers love you. For you, money means esteem.

Your Money Personality

There’s nothing inherently good or bad, male or female, about these personality types. They’re just distinctive.

Knowing where you fit in will help you manage your money more effectively by playing to your strengths and correcting your bad habits.

The Gender Gap The gender gap starts slowly but shows itself

early. In children as young as 4, boys tend to have

higher income than girls- and spend more of it, according to James McNeal, an expert on marketing to children. Also, girls tend to spend more of their parents money….

OppenheimerFunds found that where women are more likely then men to manage everyday financial matters in most families

Men have more confidence than women in their knowledge of investments and are more likely to make investing decisions.

The Gender Gap in Investing Women are less likely to act on hot tips and

more inclined to do their homework, make a decision, and stick with it. As a result, they have a better track record.

Women may be less willing to take risks with their money because they’re less sure of their ability to make up ay losses This is a reasonable presumption considering

that women change jobs more frequently than men, and that the average women spends 15% of her career out of the paid work force according to the Women’s Institute for a Secure Retirement.

So How Do We Get Started and Put Some of This Into Action?1.) Spending Plan2.) Net Worth Analysis3.) Debt List/Debt Reduction Plan4.) Financial Goals Worksheet5.) Tracking Expenses

Each one of these worksheets will be a deliverable in this course and should be included in your life folio.

Spending Plan (see sample)

Spending Plan Tips

Keep it simple. A successful budget needs to be compatible with lessons you learned in kindergarten: Stay on task and take one step at a time.

Make it personal. Rely on software if you wish, but paper and pencil work fine, too.

Be Positive. Don’t think of a budget as a straitjacket that limits your spending and takes the joy out of life. Think of it as a way to control small expenses now so that you can buy bigger stuff-- and have more fun-- in the future.

Spending Plan Tips Stick with Cash. We may live in an

electronic era, but stashing money in envelopes according to spending categories is a powerful budgeting tool because you can actually see where the money’s going.

Predict Costs. Predict your expenses up front, and then make adjustments, if necessary, to reflect the actual cost.

Savor your rewards. Nothing motivates you to get your spending under control like having a better place to put your money- in other words, a goal.

Debt List (see sample)

Debt Repayment Worksheet (see sample)

Net Worth (see sample)

Net worth = Assets - Liabilities

Financial Goals Worksheet (see sample)

Tracking Expenses

Deliverable: Students will track their expenses for the month of June 2014.

Tracking Sheet (see sample)

Don’t underestimate the power of knowledge

The personality traits that have the most influence on smart money choices are: Assertiveness Openness to change Optimism A spirit of adventure

On the other hand, fear of failure and fear of the unknown are the greatest obstacles to your financial success. So I say to you

YOU CAN DO THIS!!

Don’t Stop Now and Wrap Up! Consider your money personality and how

it affects the way that you spend, manage, and invest your money.

Streamline your financial life by getting rid of records and other paper you don’t need

Figure out your current net worth, take a look at your cash flow, and create a budget

Write down specific financial goals for yourself including a plan to reduce your debt

Use this book to help you create an informed confidence that will overcome any fear of failure or fear of that unknown

In short, when you start your adult life as a single women or man, take control of your finances and never give it up!

Early, Regularly and Aggressively

Wrap Up:

Are there any questions, cares, concerns, feedback you would like to share?

Congratulations – You are well on your way to being a

MONEY SMART MILLENIALS!You can do this!