Women told ‘retail therapy is big mistake’

Retail therapy is a mistake and store cards should be avoided — instead women should learn how the stock market works and assess the true value of their pensions.

That’s the advice from economist and author Susan Hayes, who’s holding a special seminar, the ‘Savvy Woman’s Guide to Money, in Cork’ this week ahead of International Women’s Day next Saturday.

Women are often less confident about handling money than men, even though in many homes they’re responsible for the day-to-day running of the household budget, says Hayes, managing director of the international financial training company Hayes-Culleton.

Female investors are statistically proven to perform better on the stock market than their male counterparts, but many are wary of getting involved, says the self-styled ’Positive Economist’.

“When I worked in a stock-market training company, only about 10% of the people attending courses on investing were women. A lot of women say ‘Oh, I’m no good with money’ — but this has a lot to do with confidence. Men tend to be more confident about managing money than women.”

If you have some disposable funds, don’t be afraid to dip your toe into the stock market, she suggests. But first take the time to understand how it works, she urges. This will also give you confidence when dealing with life insurance and pension schemes.

“Women are often totally under-funded when it comes to their pension — learn about pensions. Go to the Pensions Board on www.pensionsboard.ie and calculate what your pension will be worth on retirement based on your current contributions,” she advises. Contributing 10% more to your pension now can have a massive impact on your lifestyle when you retire.”

Set down clear financial goals and to decide on how to achieve them — through saving, overtime, or even seeking a promotion, she said.

“Instead of just voicing a vague wish to have more money, work out ways of getting it,” advises Hayes who is also a very strong opponent of retail therapy:

“Retail therapy is a big mistake. The only person it works for is the retailer,” she warns.

However because many women put the needs of others before their own, they can end up feeling under-appreciated and try to compensate by buying something expensive, she said.

Instead Hayes suggests making a list of cheering, non-costly pursuits — phoning a friend, trying out a new recipe, or reading a good book.

She’s also a big opponent of short-term debt — avoid store cards, which tend to have high interest, she says and make it a rule never to take out a loan whose shelf-life is longer than the life of the thing you’re borrowing for.

If you find yourself in the red, write a list of every piece of debt and the interest rate — then work out a plan to start paying off the most expensive first, she advises.

* ‘The Savvy Woman’s Guide to Money’ will take place at Maryborough House Hotel, Cork this Thursday at 8pm. Tickets €15. www.rosecommunications.ie/events