Money Smart Quiz

How money savvy are you slynkey girls?

Answer these questions - Do you think they are True or False:
1. Sixty-percent of all women end up managing their own finances at some point in their lives. T or F
2. Most women invest their portfolios in investments that are too conservative. T or F
3. Most stock market investors get wiped out at least once in their lifetime. T or F
4. Two thousand dollars is the minimum amount needed to invest in a unit trust. T or F
5. You need about 75% of your pre-retirement income to live comfortably during retirement. T or F
6. If a 45-year old woman plans to retire at age 60, she can expect to live 21 years in retirement. T or F
7. Between shares and property, property has shown the most growth over the last 30 years. T or F
8. If a woman can afford to invest only $50 a month she shouldn't bother. T or F
9. A 65-year old woman with an annual income of $50,000 can expect to have 50% of her income be replaced by National Super. T or F
10. A woman's intuitive ability to manage her emotions around money is one of the most important aspects of Creating Wealth over the long term. T or F

Here are the correct answers:
1. FALSE- 90% of all women end up managing their own finances at some point because of increasing divorce rates, becoming a widow and because they live longer.
2. TRUE- Most women are too conservative in their investing.
3. FALSE- Historically not true. There are periods of decline but over the last 50 years, the market has shown overall long-term growth.
4. FALSE- You can save in a unit trust for as little as $100 per month.
5. TRUE- You need 70-80% of your pre-retirement income when you retire. That means if you earn $45,000 when you retire, you will need between $31,500 and $36,000 per year during retirement.
6. TRUE- A woman that is 45 who plans to retire at 60 can plan on living at least 21 years, to the age of 81. Because women live so long, good retirement planning can make a very big difference in how comfortably you live throughout your later years.
7. FALSE. Over the last 30 years shares have been the top performing asset class.
8. FALSE- a monthly investment of $50 growing at 8% a year would be worth $9,147 in 10 years and $29,451 in 20 years.
9. False- She can expect National Super of $18,954.00 if single or $14,228.76 if married.
10. TRUE- You go girl! You KNOW it's true!

How many did you get right?:
8-10 Correct
Great job! You are a Money-Smart Woman. You have a solid understanding of the issues that affect women's financial lives. Consider meeting with a financial advisor to complete a review of your goals and take a picture of where you are now financially.

6-7 Correct
Pretty Good! You are a Financially-Striving Woman. You've started to grasp how important it is for women to be in control of their finances. However, you may not be saving enough to meet your financial goals. Take this opportunity to make sure you are saving enough for retirement and your other financial needs for the future. Ask yourself, am I living the life of my dreams? If not, think about what's holding you back.

0-5 Correct
You are a Financially-Naive Woman. You have a bit to learn about your finances, but don't despair! Many women are in your situation. Just because you lack financial experience doesn't mean you lack an ability to create wealth. Look at your beliefs about money and the stories your family had about money when you were growing up to see if they empower you financially. You also may want to ask yourself if you are clear on what you want in your life financially. If you are not where you want to be financially, why not?

Remember slynkey girls: Financial security is different from financial happiness. Every woman can have both. Make an effort to learn more about financial planning and, with the help of a financial adviser go over your portfolio to ensure that you're investing to help meet your short- and long-term goals.

By Sheryl Sutherland - B.A (Otago), Dip.F.A.C (Otago), DipPFinPlan (Waikato)