Most of what is written about women and money focuses on the disadvantages and bigger challenges that women face.  The truth is women have significantly greater challenges in the area of money.  These challenges spring primarily from lifestyle differences in men and women.

The Reality	The Financial Challenge
Women live longer on average than men	They need a larger retirement nest egg
Women take more time out of the workforce for caretaking of children and other family members	The years out of the workforce are years for which they do not contribute to retirement plans or earn Social Security credit, resulting in lower income in retirement
Women are more likely to work for smaller firms	Smaller firms are less likely than larger firms to offer retirement benefits - resulting in a smaller of non-existent pension
Women are more likely to work part time	Part-time employment often means women do not qualify for retirement benefits or if they do, they are lower
Women on the average earn 76 cents for every dollar paid to men	Lower pay produces lower retirement benefit

     These lifestyle differences mean real dollars in retirment.  In 2001, the average women's Social Security benefit was $756 compared to $985 for men.  Men are twice as likely to have a private pension plan as women.

     What this all adds up to is understanding and managing finances is critical for women.  To live an empowered and finaincially satisfying life, women must overcome these challenges through education and training.

     We live in a paradigm of self responsibility.  In my parents' generation the paradigm was, you went to work for a good company, worked hard and when you retired the company sent you a pension check for the rest of your life.  You needed little or no education in the areas of money and finance.  If you could manage to live within your means with effectively budgeting or simply being thrifty, most  of your financial concerns were taken care of by someone else.

     Not so today.  Now, for the most part, employers provide 401k, a savings vehicle where the employee is responsible for his or her own investment choices.  And at retirement, the employee takes the 401k dollars and has the responsibilty to solve the challenge of how to make this money last for the rest of his or her life.  Is it any wonder given this paradigm that one of the greatest fears among retirees is the fear of running out of money?

Women Not Afraid to Ask for Direction
     And for women, the need is greater and the challenge longer.  So what is the advantage women have in this maze of understanding money?  They are free of the fanatsy that they already have to know about money.  Men are raised to believe that they have to know how to solve problems and take care of things.  How many jokes are there about men not asking for directions when they are lost?

     Women are raised free of this conditioning - free of the potential embarrassment of not knowing.  Women find it acceptable to ask questions.  Women will stop, ask directions and get clarity.

     And so it is in the world of money and finance.  With all the disadvantages women have, our conditioning has given us one really big gift: we are willing to risk looking foolish by asking questions.

     Today there are many sources for learning.  Extension classes are offered by many local school systems, Northern Kentucky University and the Center for Learning and Retirement.  There are online classes, and the library is full of books and tapes to help you become a savvy financial person.

    A good advisor does not replace the need for knowledge.  The best consumers are those with the most understanding about money, finance and investments. However, having an advisor may shift your focus.  Using an advisor, your needs are more understanding financial terminology and evaluating your advisor's recommendations.  And always the ability to ask great questions!

     Why not make a decision in this moment to change your financial future?  How are you going to parlay you advantage, the ability to ask questions, into a more satisfying today and tomorrow?  What do you need to learn?  What specific steps are you going to take to put yourself in a learning environment?  Do you need to get in touch with your advisor, or make time to find one?  Get up from your chair and make an appointment with yourself and write your next step in your calendar.  Enjoy the journey. 

Reprinted: The Sunday Challenger, By Mackey McNeill, April 10, 2005