A Financial Guide for Women

Problem:
Women live longer than men; average age of widowhood in the U.S. is 56. Women as a group earn less money than men. Women leave the workforce more often to care for children or aging parents. Women suffer more monetarily from divorce and widowhood. Some women lack financial experience. Many women are handling their basic needs, but want more from their money...financial security in later life, education for their children or a home of their own.

Response:
Three successful Money Talk programs were taught in Greene and Jasper Counties between October 3 and December 15, 2005. (The December 8 class was postponed to January 5). The two in Jasper County were contracts by local employers for their staff -- Skiff Medical Center and Capstone Mental Health Agency both in Newton.

The first five lessons listed were taught by an ISUE Family Resource Management Field Specialist:

• Financial Basics: Setting Financial Goals, Planning Spending, Needs & Wants, etc.
• Banking Basics: Credit use & abuse, checking, saving, home loans – this session was developed by ISUE
• Insurance Basics: Auto, Life, Disability, Homeowners, Renters, Umbrella, Health
• Financial Security in Later Life: participants experienced the “Welcome to Retirement” simulation and Retirement: Secure Your Dreams retirement planning presentation. Materials for this session were developed by ISUE. Long term care insurance was covered using materials from the University of Minnesota Extension.
• Investing for the Future: stocks/bonds/ mutual funds
• When Life Changes: Wills/Estate Planning/Divorce was presented by either a local attorney or the ISUE Iowa Concern Attorney
• A seventh session was added to the series in Greene County as an outgrowth of the
  2004 Money Talk series evaluations requesting education on Medical Financial Basics. A Senior Health Advocate from SHIIP – Senior Health Insurance Information Program – State of Iowa and the manager of the local medical clinic presented the program designed to answer participants’ questions.

Impact:
Forty-one participants learned from the Money Talk series. Fifteen end of series evaluations showed:

• 11 (73%) Plan to or have calculated their retirement financial projections.
• 10 (67%) Plan to or have gained greater control over their current spending, saving and financial security.
• 9 (60%) Plan to or have taken steps to reduce their debts.
• 7 (46%) Plan to or have established or revised investment goals.
• 3 (20%) Plan to or have increased their contribution to their employer-based retirement fund.

Comments from the end of series surveys included:

• Cancelled credit cards; increased contributions to 403b; working full time to pay down debt
• Have been tracking expenses to see where it all goes
• Increased monthly payments on credit cards to pay them sooner; made a goal to open a Roth IRA by Jan. 2006
• I have inventoried the contents of my house (working on this), will be able to converse with insurance people & my broker with a little more knowledge
• A good reminder to practice controlled spending & retirement planning. Thank you.
• Take more interest in mutual funds.
• Re-evaluated financial situation – considered possible changes.
• Learned that I am in pretty good shape.

Contact:
Ruth Freeman
Family Resource Management Field Specialist
104 W. Washington Street
Jefferson, Iowa 50129-1920
Phone 515-386-2138
Fax 515-386-3884
E-mail rofreema@iastate.edu