Realty Times October 21, 1999

Women: You've Come A Long Way, For This?
by Broderick Perkins

Financial experts are questioning the usefulness and accuracy of a national survey that chronicles a quarter of a century of advances for women in the personal finance world.

The Fannie Mae Foundation's "Women and Finances" says women are more financially independent and in control of financial matters including obtaining a loan, home ownership and making retirement arrangements than they were 25 years ago.

However, men still rule the roost when it comes to financial matters at home, more men then women feel in control during the mortgage process and women don't feel as prepared for retirement as men do, the study said.

"Understanding the importance of personal finances is critical to women’s success, yet our research has shown that for many women we have a long way to go," said Stacey Davis Steed, president and CEO of the Fannie Mae Foundation.

Hart-Riechle-Hartwig Research randomly surveyed 289 men and 1015 women for the foundation. The numbers reflect the proportions of adult men and women in the U.S. The survey has a margin of error of less than three percent.

Among the findings, along with experts' comments:

  • Today, 33 percent of women feel there is financial discrimination against women compared to 56 percent in 1974. Also, 21 percent of men today stated women face financial discrimination compared to 47 percent in 1974.

  • Women feel they've made bigger strides when comparing themselves to their mother's generation than do men, who compared themselves to their father's generation. This may be because men have historically felt that they had the final say, particularly in financial matters, the survey said.

    "Women are far more likely to admit they don't understand something and to seek out more information and help. In my experience as a financial counselor and writer, if anything, I would say that woman on average are every bit as financially savvy as men if not more so. Men's egos and our society tend to cause men to be ashamed to admit when they don't know something or need help," said Eric Tyson, author of "Personal Fiances for Dummies" (IDG Books, $19.99).

  • Men and women report in roughly equal numbers that they make all the household financial decisions. About half (51 percent) the women feel that they alone set budget priorities, and about 45 percent of the men feel they are the sole planners. But when there’s a dispute, men and women agree that the man prevails.

    "Their results showed less than my research showed. Other studies show women are in charge of household financing the majority of the time rather than just half. There wasn't anything earth shattering about this report. It assumes women's confidence levels isn't high and that's not the case," said Gerri Detweiler, co-author of the acclaimed "Invest In Yourself: Six Secrets To A Rich Life," (John Wiley, $22.95).

  • When mortgage holders were asked to reflect on the mortgage application process, 38 percent of men and 36 percent of women felt they were treated differently as a result of their gender. However 16 percent of men said the lender paid more attention to them, and 17 percent of women agreed. Only 5 percent of men and 6 percent of women said the lender paid more attention to the woman.

    "I haven't had problems getting a mortgage or in banking. Perhaps it is because I am an accountant. I also ask a lot of very detailed questions and take a lot of notes," said Marie E. Sternberger (marietax@sjm.infi.net), an enrolled agent and tax preparer in Sunnyvale, CA.

  • Women clearly do not feel as prepared as men when it comes to retirement planning. More men (59 percent) have started a retirement account than women (50 percent) and more men (61 percent) are currently in jobs with a 401K or other retirement plans than women (54 percent).

    "The fear thing has been brought out in other studies. It's the fear of not having enough money for retirement given women are going to live much longer and have fewer retirement benefits and savings over all," said Detweiler, also a education advisor to the non-profit Debt Counselors of America, in Rockville, MD.


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