“The most powerful force in the universe is compound interest.” — anon
The AAUW Financial Literacy outreach effort targets and provides resources to support the three stages of a woman’s financial life:
- The Growth stage introduces an individual to basic money language and financial concepts and explains ways to implement them.
- The Accumulation stage of personal wealth building includes strategies for setting financial goals, budgeting, saving and investing, managing debt, and understanding credit reports and credit scores.
- The Choices & Distribution stage targets women ready to make choices about securing their financial future for retirement so that the accumulated money will last throughout their lifetime.
Each financial literacy stage introduces a woman to concepts and ideas designed to assist her in building her personal financial fitness for life.
This could be called Financial Literacy 101 and covers basic money language and the financial building blocks. It is primarily geared for girls and young women, from middle school through college. However, women of any age can benefit from the material as it provides the basic foundation upon which all further financial education is based.
Topics such as the following are covered:
- Bank On It—the skinny on financial institutions
- Check It Out – understanding checking accounts
- Setting Financial Goals – how to create a spending plan & manage money
- Pay Yourself First – various options for saving money
- Borrowing Basics – how to use credit wisely
- Charge It Right – how to use credit cards responsibly
- Paying for College and Cars – installment loans? What’s that all about?
- A Roof Over your Head – how to rent an apartment—obtain a mortgage
These are the core earning years for women. The financial education resources provided by AAUW can help women develop a plan for building personal wealth.
It is imperative they learn to manage their personal finances to secure their financial future and to adequately provide for their retirement years. These programs will cover personal wealth-building strategies such as:
- How to fund your lifestyle: Setting Financial Goals that work
- Maximizing Your Income
- Developing a spending plan for peace of mind Saving and investing for financial independence
- Home Buying Basics
- Understanding credit reports and credit scores.
Choices and Distribution Stage:
The longest stage of a woman’s financial life may well be her pre-retiree through retirement years. Average female life expectancy in the United States now is set at 80.4 years, and 3% of females born in 2004 are expected to live to 100 years. Our AAUW Financial Fitness rallying cry is Make Your Money Last As Long As You Do! Topics for consideration include:
- Fill Up The Money Bucket – How to optimize retirement savings
- My Health Care is How Much? – Making smart medical and long term care insurance choices
- The Market Did What? – Understanding retirement investment strategies
- Somebody Help Me – Obtaining support for caregiver, widow, and divorcee dilemmas
- Is That All There Is? – Finding meaning in retirement.