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The 2000 U.S. Census reveals some shocking statistics that should drive women from all income groups and classes to immediately create money market savings funds for themselves and their families. Most people are already aware that women still earn less than men (76 cents to every dollar, respectively), and that women are likely to live longer than men. Common sense also tells us that every marriage will end eventually either in death or divorce, and that women should prepare themselves to manage their own financial affairs. However, because women also spend less time than men in the workforce and are likely to receive a smaller pension, women are forced to rely more heavily on a Social Security System that is becoming increasingly unstable.
For all women between the ages of 65 and 75, one-quarter rely on Social Security for 90 percent or more of their income, and 40 percent of women over 85 rely on Social Security for 90 percent of their income. These figures clearly demonstrate that women need supplemental sources of income and retirement accounts, but the statistics also suggest that that a lack of financial planning by households in their productive years forces frail women into poverty in their latter years. Every generation becomes a tragedy in the making - a tragedy that can be addressed, if not prevented, with a money market savings plan.
Why Everyone Should Have a Money Market Savings Account - While the idea of saving money is a good one, the account used makes all the difference. Many traditional passbook savings accounts offer only minimum amount of interest for investors. Comparing passbook rates at local institutions may be as much a waste of time as comparing thimbles for watering a lawn. Money market savings accounts, in contrast, can significantly improve returns while providing instant liquidity and FDIC protection if opened at an insured institution. These money market savings accounts are the perfect place to store money. Follow these tips to make your family finances much more stable.
- Create a retirement account – Many mutual funds and retirement accounts require $1000 or more to open an account. Use your money market savings account to build up a retirement fund that can be opened next year.
- Everyone needs an emergency fund – Before disaster strikes in the form of a layoff, medical bill or dental expense, save up an emergency fund of 2 months income.
- Irregular expense account – Money set aside for any type of large expenses - birthday presents, school expenses, property taxes and even vacations and Christmas presents – can take eliminate large sources of stress for families
- Start early on a college fund – Show children the value of money. Over 18 years, a money market savings account earning 5% interest compounded monthly and $100 monthly deposits could earn $35,165.70 – more than $11,390 over a passbook savings account earning 1% compounded monthly and the same deposits. Interest makes a difference.
- Shop online for the best money market rates – Call local banks and credit unions to compare their rates and fees with national institutions found online and at this site.
Disclaimer - The information on this site is believed to be accurate, but no warranty is made regarding rates, terms or features of any financial product. Carefully read the prospectus for any financial product before investing. The best money market rates, accounts, and funds are determined by individual needs. Tax, financial and legal advisors should be consulted before making any investment.
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