The Paradox of Thrift

A great conundrum we all face is that in these crazy economic times, when we feel frightened and not very interested in spending money, yet if we do not, our economy will continue to falter because no one is buying goods and services and therefore companies keep laying folks off.

I found this article in the SF chronicle which does a nice job of explaining the Paradox of Thrift.

Take a read. Do you agree?

Inspiring and Important Facts

Seems that financial literacy has the usual paradoxical elements...the good and not so good. I found these inspiring and important facts when you look at the topic through the lens of women.

• The 10.6 million privately-held, women-owned (by at least 50%) businesses post over $2.46 trillion in sales annually and employ over 19.1 million people. (Center for Women's Business Research 2004)

• 90% of all women will be solely responsible for their finances at some point of their lives. (National Center for Women and Retirement)

• Women represent nearly half of all investors with $100,000 or more in investable assets. More than half of them are financially independent rather than relying on their spouse, family or inheritance (Women's Financial Network at Siebert, 2002)

• 80% of all widows living in poverty were not poor before their husbands died. (HHS Administration on Aging, 2000)

• Women retirees receive 50% of men's average pension benefits. (Women's Institute for a Secure Retirement, 2001)

• Women make up 43% of Americans with assets over $500,000. (Private Banker International, 2003)

• 75% of elderly persons living in poverty are female. (HHS Administration on Aging, 2000)