Margaret Price - Single Women and Money: How to Live Well on Your Income

Margaret Price is an author, editor and journalist. She has been an editor at Bloomberg Wealth Manager magazine, international editor at Crain Communications Pensions & Investments publication and senior editor at Treasury & Risk Management magazine. She also has written for such prominent publications as Investors Business Daily, New York Daily News, Newsday newspaper and the Christian Science Monitor. Price is a member and past president of the New York Financial Writers Association. She also is the author of the book Emerging Stock Markets: A Complete Investment Guide to New Markets around the World. Active in her community, she is cochair of the Women and Families Committee of Community Board 8Manhattan. Price is a 2021 recipient of a New York State Women of Distinction award, presented by State Assembly Member Rebecca Seawright.

Jill Gianola is a published author and teacher and the founder of Gianola Financial Planning, a fee-only planning firm. Her work has been recognized by Mutual Funds magazine, which named her one of the top 100 planners in the United States, and Money magazine, which featured her advice in Secrets of Americas Top Advisors. She is the author of The Young Couples Guide to Growing Rich Together, named one of 10 books you should read if you want to retire rich, by the Insider website. She has written personal finance columns for the iVillage website and All You magazine. She has taught personal finance courses at Ohio State University, Franklin University and Columbus State Community College, and economics at Wittenberg University.

W here to start? So many people have generously contributed to the making of Single Women and Money. To them, we say a massive thank-you. This book would not have been possible without all their support and ideas.

A big shout-out to the many single women who shared their remarkable stories with us. Their unique experiences underscore the many rewards and challenges of being single in todays society.

Thank you to Marie Swift, who opened doors for us; John Willig, our agent; Suzanne Staszak-Silva, our editor, and the entire crew at Rowman & Littlefield.

We are grateful to Marlene Star and Mercedes Cardona for their professional contributions and to Jared Trexler and Meg Wannemacher for lending their expertise. Thanks, also, to Batya Yasgur for her editorial insights and to Diana Akhavan for her illustrations.

A big thank-you to the staff of Gianola Financial Planning, including Sana Haque, Melanie Dunbar, Kevan Murphy and Matthew Hofacre.

We also owe much to our family and friends; these patient souls have served as sounding boards as we wrote this book.

Above all, we thank Arthur Nealon and Dan Fleisch, our life partners, who listen, encourage and inspire.

I f you are an unmarried woman, you have plenty of company: in America, more than 66 million women are either widowed, divorced or never married.

And although some media portray you as fancy-free, reveling in the latest fashions or lounging at a chic beach resort, your reality may be different. Unlike dual-earning couples, you typically survive on one income and may scrimp on extras to cover your food, housing and transportation costs. Indeed, over your lifetime, you may pay moreby as much as $1 millionthan married couples pay on taxes, health care and various other services. At least at times, you may have little cash available for Caribbean cruises.

Theres also the pressure to save for the future. As a single woman, your financial safety netthe money youre able to savehas to stretch through your life. But will it last? What if a financial maelstrom were to suddenly sweep away assets, halving the value of your 401(k), as happened to some in the 20072009 market crash? Could you find your way back to solvency? What if a succession of crises were to strike, as happened to Christina Burruss?

Consider what Christina, a marketing professional, has enduredand overcome: wed in 2007, marital problems began early on for her amid infidelity by her husband who, she later learned, also was selling drugs. Eventually, tensions in the home exploded: in 2013, after her husband physically and verbally assaulted her, Christina and her children fled to her parents house.

The problems didnt abate. During Christinas five-year divorce process, her spouse unsuccessfully battled her for custody of their children in order to get child support payments. And in 2019, she lost her 14-year job with an electronics company.

But Christina turned job loss into opportunity. In 2019, using funds from her severance package, she launched her own consulting firm specializing in brand and product marketing. Its fulfilling two of her goals: by working at home, Christina pursues her career while being home for her kids.

This story and others like it underscore some of the experiences of single womentheir trials and triumphs and how they manage, often as solo earners. They typically support themselves and sometimes family members. Their numbers are legion and eventually could include women who are currently married. Indeed, its possible that, amid the divorce rate and the demographics of longevity, all women will be single at some point as adults.

But many women arent financially ready to live solo. Traditionally expected to marry and be supported by their spouse, many women have not been schooled in financeat least not at home. According to a study by Allianz Life Insurance Company of North America, fewer than one in five women, and only four percent of men, say they teach their daughters to be financially independent.

That matters. This knowledge gapthis disadvantage for womencan stifle their ability to manage in a financial crisis and can worsen their fears about old age. Without a clear understanding of moneyhow to get it, grow it and make it lastwomen can face a lifetime of fears about outliving their funds.

Or if their savings are meager, they may believe that they can never retire.

Take the case of Alicia, from Northern California. She earned a masters degree and has had several careers over her adult life. But her salaries have never enabled her to save much money. Now in her 60s, Alicia works as a household helper to supplement her Social Security benefit. And shes unsure if, or when, shell be able to retire.

And what about the deep-pocket crowdthose wealthy Americans who seem able to spend and luxuriate as they wish? Evidently, lack of financial knowledge can be frightening even for them. For instance, after the financial crisis of 20072009, one multimillionaire woman living in the South was so worried about misdeeds on Wall Street and potential market crashes that she feared ending up as a bag lady on the street if she gave her money to a broker. As a result, she kept her funds in cash, including some at home. That lasted until she finally consulted a financial advisor, who found better places for her money.

But maybe you arent wealthy, financially strapped or afraid of investing. Instead, maybe youre simply wondering how to afford to buy a house and stop paying rent while still saddled with student loans. Or you are stressing over how to erase the balance on your high-interest credit cards. Or youre pondering one existential quandary: Who will care for you, and pay the bills, if you become incapacitated?

So what do you do? Are you ready to fend for yourself? Is there an amount of money that ensures youll live comfortably?

To manage on your own, and perhaps support others, you need a guide to long-term financial security thats focused on your issues. The fact that you often survive on one incomewhich is typically less than what many men earnstrains your ability to save for the future. And if hit by a costly emergency, your savings may be depleted for years.