Guest column

Why women should take a personal finance day from this Houston founder

August 23 is pHERsonal Finance Day — a day dedicated to education about financial practices for women. Getty Images

You've seen the statistics on Americans' financial health. The average American is not in great shape: $6,000 per person in credit card debt, $4,900 per person in student loan debt, and 51 percent of all workers who feel they aren't saving enough for retirement.

You also probably know about two other trends: women are living longer than men and divorcing at higher rates. What you may not know is that in 2019, most married women still say their husbands manage their finances. Even more surprisingly, millennial women have their husbands manage their financial futures at higher rates than their mothers. According to a 2017 UBS survey, 61 percent of millennial married women say their husbands manage their finances versus 54 percent of boomers. How do these trends come together?

Each year, there are two million American women who get divorced or widowed. These women grapple with a traumatic life event while trying to figure out the passwords to their investment accounts. In addition, married women are waking up to discover their retirement savings are short of their expectations. In a world of women's marches and the "Future is Female" t-shirts, women should be stepping up to shape their financial futures. For that reason, women should take a financial health day.

What's a financial health day? It's 24-hours where you take the day off work or dedicate a Sunday to writing down the balances of your investment accounts, renegotiating your auto insurance, and deciding if you should roll over that old 401K. A financial health day is not going to magically wipe away your student loans or solve your spending problem, but it can give you a plan for paying off debt or your mortgage three years early.

There is growing consensus on what being financially healthy means: you should maintain a four to six-month emergency fund, carry zero credit card debt, and contribute 10 to 20 percent of your monthly income to a retirement fund. Additional goals, like buying a house or paying for your kids' college, don't come until you have achieved a stable foundation.

Along with knowing what "financial health" means, there is also general agreement among financial experts on the best ways to achieve it:

  • Know your money situation. Physically write out your loans (credit cards, auto loans) with their interest rates, and all of your savings (including retirement). Seeing it all in one place will help you figure out your priorities.
  • Create money goals. Set multiple goals and prioritize them (you can also fund more than one goal at once). Is it saving for the down payment on a house or becoming debt free?
  • Track your spending. Where is your money going? There are budgeting apps from Mint or YNAB to help you keep track. Are there places where you can tweak your spending habits to fund your savings goal? Can you cancel a recurring expense you aren't using? Could you negotiate a better rate on your phone bill?
  • Automate to achieve your goals. Set up recurring payments to your debt and savings. Automated monthly transfers from your checking account to your savings goals make sure you aren't as tempted to spend that money. Schedule monthly and yearly calendar alerts to check your spending, rebalance your portfolio, etc. One advanced tip is to enroll in your 401K plan's "save more later" option. This will increase the percentage of your paycheck you put into your 401K annually.

These items seem simple. Yet, why are so few people doing them? It takes a LOT of work to get this money infrastructure set up. At the end of a long day of client meetings, chasing a toddler, or some combo of the two, it's difficult to muster the mental energy to address your finances – especially if you have the option of outsourcing this responsibility to a capable partner. That's where a day dedicated to your financial to-dos will help. You don't need to be solely in charge of your money, but you definitely need to understand the plan.

While we feel that everyone can benefit from a financial health day, the first pHERsonal Finance Day targeted to millennial women is scheduled for August 23. Check out our schedule if you want to get started. If taking a whole day off feels like a long-shot, take this quiz here to help you prioritize your financial to-dos. Whether it's a daily money minute or an appointment with a financial adviser (pick one who is a fiduciary), what are you doing to own your financial future?

------

Eryn Schultz is the co-founder of pHERsonal Finance Day.

Trending News

Building Houston

 
 

From opioid research to plastics recycling, here are three research projects to watch out for in Houston. Photo via Getty Images

Research, perhaps now more than ever, is crucial to expanding and growing innovation in Houston — and it's happening across the city right under our noses.

In InnovationMap's latest roundup of research projects, we look into studies on robotics advancing stroke patient rehabilitation, the future of opioid-free surgery, and a breakthrough in recycling plastics.

The University of Houston's research on enhancing stroke rehabilitation

A clinical trial from a team at UH found that stroke survivors gained clinically significant arm movement and control by using an external robotic device powered by the patients' own brains. Image via UH.edu

A researcher at the University of Houston has seen positive results on using his robotics on stroke survivors for rehabilitation. Jose Luis Contreras-Vidal, director of UH's Non-Invasive Brain Machine Interface Systems Laboratory, recently published the results of the clinical trial in the journal NeuroImage: Clinical.

The testing proved that most patients retained the benefits for at least two months after the therapy sessions ended, according to a press release from UH, and suggested even more potential in the long term. The study equipped stroke survivors who have limited movement in one arm with a computer program that captures brain activity to determine the subject's intentions and then works with a robotic device affixed to the affected arm, to move in response to those intentions.

"This is a novel way to measure what is going on in the brain in response to therapeutic intervention," says Dr. Gerard Francisco, professor and chair of physical medicine and rehabilitation at McGovern Medical School at The University of Texas Health Science Center at Houston and co-principal investigator, in the release.

"This study suggested that certain types of intervention, in this case using the upper robot, can trigger certain parts of brain to develop the intention to move," he continues. "In the future, this means we can augment existing therapy programs by paying more attention to the importance of engaging certain parts of the brain that can magnify the response to therapy."

The trial was funded by the National Institute of Neurological Disorders and Stroke and Mission Connect, part of the TIRR Foundation. Contreras-Vidal is working on a longer term project with a National Science Foundation grant in order to design a low-cost system that would allow people to continue the treatments at home.

"If we are able to send them home with a device, they can use it for life," he says in the release.

Baylor College of Medicine's work toward opioid-free surgery

A local doctor is focused on opioid-free options. Photo via Getty Images

In light of a national opioid crisis and more and more data demonstrating the negative effects of the drugs, a Baylor College of Medicine orthopedic surgeon has been working to offer opioid-free surgery recovery to his patients.

"Thanks to a number of refinements, we are now able to perform hip and knee replacements, ranging from straightforward to very complex cases, without patients requiring a single opioid pill," says Dr. Mohamad Halawi, associate professor and chief quality officer in the Joseph Barnhart Department of Orthopedic Surgery, in a press release.

"Pain is one of patients' greatest fears when undergoing surgery, understandably so," Halawi continues. "Today, most patients wake up from surgery very comfortable. Gone are the days of trying to catch up with severe pain. It was a vicious cycle with patients paying the price in terms of longer hospitalization, slower recovery and myriad adverse events."

Halawi explains that his work focuses on preventative measures ahead of pain occurring as well as cutting out opioids before surgery.

"Opioid-free surgery is the way of the future, and it has become a standard of care in my practice," he says. "The ability to provide safer and faster recovery to all patients regardless of their surgical complexity is gratifying. I want to make sure that pain is one less thing for patients to worry about during their recovery."

Rice University's breakthrough on recycling plastics

A team of scientists have found a use for a material that comes out of plastics recycling.

Houston scientists has found a new use for an otherwise useless byproduct that comes from recycling plastics. Rice University chemist James Tour has discovered that turbostratic graphene flakes can be produced from pyrolyzed plastic ash, and those flakes can then be added to other substances like films of polyvinyl alcohol that better resist water in packaging and cement paste and concrete, as well as strengthen the material.

"This work enhances the circular economy for plastics," Tour says in a press release. "So much plastic waste is subject to pyrolysis in an effort to convert it back to monomers and oils. The monomers are used in repolymerization to make new plastics, and the oils are used in a variety of other applications. But there is always a remaining 10% to 20% ash that's valueless and is generally sent to landfills.

Tour's research has appeared in the journal Carbon. The co-authors of the study include Rice graduate students Jacob Beckham, Weiyin Chen and Prabhas Hundi and postdoctoral researcher Duy Xuan Luong, and Shivaranjan Raghuraman and Rouzbeh Shahsavari of C-Crete Technologies. The National Science Foundation, the Air Force Office of Scientific Research and the Department of Energy supported the research.

"Recyclers do not turn large profits due to cheap oil prices, so only about 15% of all plastic gets recycled," said Rice graduate student Kevin Wyss, lead author of the study. "I wanted to combat both of these problems."

Trending News