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  • When to spend, when to save.. A young woman’s guide

    Managing your money is important at every age and the earlier you start, the better off you’ll be in the long run. This three-part series is intended to give young women starting out in the work force a simple guide for prioritizing spending. Consistent with WISER’s values and mission, but geared towards younger women, here are three major financial priorities that will put you on a steady track to a secure retirement: investing in your health, paying off debt, and saving for retirement.


    Priority #1: Your Health

    Invest in your health with a catastrophic coverage plan

    If you’re young and “invincible” you’re not alone: people age 23 to 30 are the group most likely to lack health insurance. Twenty-somethings are likely to go a few years uninsured because of a combination of factors:

    • they have aged out of their parents’ coverage,
    • they no longer qualify for a school-sponsored health care plan when they graduate from or leave college,
    • they have not yet settled into a “real world job” that offers employee benefits like health insurance

    Combine these four factors with relatively low-income employment, a desire to pay off student loan debt, and a youthful and generally healthy body and you have a recipe for being uninsured and, therefore, being vulnerable to health emergencies that could cripple your economic future before you’ve even gotten started!

    What can you do? To avoid this potential disaster, make the decision to trade some of your purchasing power now for long-term peace of mind with a high deductible health plan (HDHP), also called a catastrophic or emergency health insurance plan. HDHPs are health insurance plans that require you to pay a much higher deductible (around $5000 a year) before the insurance company begins paying towards your medical expenses, but also charges a significantly lower monthly premium (for non-smoking females, around $50 a month) than traditional “complete coverage” plans with lower deductibles. The HDHP option is best suited to women that are generally healthy, have no chronic conditions, and are mainly seeking a “safety net” in case of an expensive accident or unforeseen medical emergency.

    You can compare these and other kinds of health insurance policies for free online by clicking here to visit ehealthinsurance.com.

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    WISER

    About Us

    WISER is a nonprofit organization that works to help women, educators and policymakers understand the important issues surrounding women's retirement income. WISER creates a variety of consumer publications including fact sheets, booklets and a quarterly newsletter that explain in easy-to-understand language the complex issues surrounding Social Security, divorce, pay equity, pensions, savings and investments, banking, home-ownership, long-term care and disability insurance.

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