Personal Finance
Guidance from Michelle Singletary
 
 
Venus vs. Mars when it comes to money

President Obama signs executive actions to strengthen enforcement of equal pay laws for women during an event marking Equal Pay Day in the White House on April 8, 2014. (Jim Lo Scalzo/European Pressphoto Agency)

My first money manager was my grandmother Big Mama. Most of my core financial instruction — lessons that helped me become a lover of saving and a hater of debt — came from my grandmother, who never made more than $13,000 a year and yet was a master at her finances. She is my hero when it comes to money.

March is Women’s History Month, and I wondered how women in general compare to men when it comes to their finances.

“Women account for more than half of the consumer spending in the U.S., manage a growing share of investments, and are increasingly the primary breadwinners in their households,” Maria LaMagna wrote for MarketWatch. “Yet despite their influence over American household dollars, women still lag in other, related, areas — from wages to their confidence about their own financial wherewithal.”

LaMagna laid out six ways men and women differ financially. She looked at pay, credit scores, student loans, savings and retirement. Two areas stood out for women: They have better credit and better investment strategies.

Still, the differences are keeping us apart financially. According to one report, three years after graduating from college, women had paid off 33 percent of their student loans compared with 44 percent for men. But as LaMagna noted, “Wages play an important role in those statistics; when you earn less, paying off loans is harder.”

Take a look at the graphic illustrating how women compare to men when it comes to their finances. And read this article about the historical pay difference.

“Over the years, a raft of studies have opened windows into unconscious bias,” wrote The Washington Post’s Danielle Paquette. “Consider the men and women negotiating for higher pay in one famous 2005 report: They used the same words, but the men were seen as confident, while the women came off as pushy.”

How long will we have to wait for equal pay? Because it’s already been too long.

Color of Money Question of the Week
What’s the best financial advice you got from a woman you know or admire? Send your comments to colorofmoney@washpost.com. In the subject line put “Women’s History Month.” Please include your name, city and state. As I’ve said before, when people have to own up to their comments they tend to be more civil.

Live Chat Today
I’m back. Did you miss me? I made sure I left you in good hands. Jonnelle Marte, The Washington Post’s personal finance reporter, and Rodney Brooks, our retirement columnist, did a great job taking your questions last week. On occasion they will continue to step in for me. If you missed their chat last week, here’s the link to the transcript.

What financial issue is on your mind? Or perhaps you just want to chat about the latest personal finance news. Either way, I hope you stop by online for a conversation about money. Here’s the link to join the discussion today.

What every woman should know about money
If you want to make your money work for you, you need to work to know more about money. For Women’s History Month, Credit.org has come up with some facts that every woman ought to know. Here are a few:

— Women are 26 percent more likely than men to be the victims of identity theft. If you know you’ve got a target on your purse, take steps to find out how to protect yourself. The Federal Trade Commission has a dedicated website with tips that can help.

— Women who have a savings plan save more. Bankrate.com has a simple savings calculator you can use to start your plan.

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— Women have less saved for retirement. Use the Ballpark E$timate interactive tool at choosetosave.org to help you figure out how much you need to save to fund a comfortable retirement.

Want to know the secrets of women who are successful investors? Read these tips from Kathy Kristof at Kiplinger’s. Follow the advice, and you’ll be, as one expert told Kristof, “flattered if someone says you invest like a girl.”

It’s better to have a boss that’s a jerk all the time
Research suggests employees prefer the predictability of a supervisor who is nasty all the time to one who is a jerk only some of the time, reported Washington Post leadership columnist Jena McGregor. So last week’s Color of Money question was: Which type of boss would you rather work for — one who is unfair some of the time or all of the time? And tell me about your worst supervisor.

Men’Di of Chicago wrote: “If I just had to chose, I suppose consistency would be the better choice so that I would know what to expect from the monster on a regular day. On the flip side: a ‘sometimes’ monster might give me … occasional relief — this just might be my lucky day, the day I manage to avoid unmerited treatment.”

“Oh, boy, I would SO much rather have a boss who was awful all the time,” wrote Laura McAfee of Catonsville, Md. “I’ve had the other kind, and that was the only job in 35 years that routinely sent me home in tears. I spent hours every night checking our budget to see if I could quit without us losing the house. This boss would turn from sweet to personal attacks in the blink of an eye, so you learned to duck and cover and hold your breath until you figured out whether it was a good day or a bad one — and for the bad ones, hope she lighted on someone else.”

McAfee offered some background (the poor dear): “I had a miscarriage followed by surgery, and we got a big demand on one of my projects during the week I was out. The day I returned, she called an all-hands meeting in her office and parceled out all of my work on that project to others, without even acknowledging I was there. When I later asked her what I had done wrong, she told me that I hadn’t done anything wrong, she just didn’t want to ‘burden’ me at a difficult time. But then for the next two years, she refused to give me a raise or promotion because I ‘fell down’ on that project. So I quit. No job is worth my self-respect. Give me someone who is straight up any day. At least I know where I stand. And if I am doing something wrong, I’d much rather have a fair chance to fix it than have it silently held against me for the rest of my career.”

John Yoch from St. Louis, Mo., didn’t want to choose: “Nice boss or jerk isn’t the issue. Predictability isn’t the issue. Fairness and correctness in criticism are crucial.”

Video Watch: “The Worst State for Retirement When it Comes to Taxes”
Last week, I debuted a new feature on financial videos that I think will be helpful. If you find a money-related video that you think will be helpful, send an email to colorofmoney@washpost.com. Put “Video Watch” in the subject line.

This week’s feature is from Kiplinger. They looked at various taxes in all 50 states and the District of Columbia to determine which state is the worst to live in for taxes. Which state do you think took the top spot? Watch and find out. Scroll down the list to find the featured video.

Color of Money Columns
Here are my columns for the past week:

Understanding your credit score and how to raise it
Read about this month’s Color of Money Book Club selection

What is a fair payout for brother who gave up his part of house? Readers weigh in.

Readers may write to Michelle Singletary at The Washington Post, 1301 K St. NW, Washington, D.C., 20071, or michelle.singletary@washpost.com. Follow her on Twitter (@SingletaryM) or Facebook (www.facebook.com/MichelleSingletary). Personal responses may not be possible, and comments or questions may be used in a future column, with the writer’s name, unless otherwise requested. To read previous Color of Money columns, go to washingtonpost.com/business.

 
More Personal Finance News
What is a fair payout for brother who gave up his part of house? Readers weigh in.
“Get it in writing, even if it is your twin brother,” says a woman who was in a similar situation.
 
Understanding your credit score and how to raise it
This book helps you make sense of the one number that rules your financial life.
 
•   Michelle’s Bio and Color of Money columns
•   Live Q&As
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