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Widows constitute a growing segment of the U.S. population; however, very little has been done to educate them on the basics of personal financial planning. The creation and implementation of financial planning education programs for widows can help them become more financially literate and free them from anxiety and fear. Interviews with eight financial planners and 12 of their widow clients, along with research into financial planning education programs form the basis for this paper. Research findings include suggestions for financial education content in the topic areas of financial planner qualities, goal setting, cash flow management, risk management, investment management, and estate planning. Implications for the role of financial planners and non-profit educational institutions in the financial education of widows are discussed.
Key Words: financial planning education, financial planner, personal financial planning, qualitative research, widow
Introduction
Widows constitute a growing segment of the U.S. population; however, very little has been done specifically to educate this segment on the basics of personal financial planning. Historically, many married women have relied on men for their financial support. "While this attitude toward financial dependency is changing, it remains a powerful force in America," says William L. Anthes, Ph.D., president of the National Endowment for Financial Education (NEFE) (Anthes & Most, 2000, p. 130). The creation and implementation of financial education programs for widows can help them become more financially literate and economically independent.
The number of U.S. widows will grow as the baby boomer population ages. There are 27.5 million married baby boomer women (women born between 1946 and 1964), 70% of whom are expected to outlive their husbands (Jervey, 2005; Perkins, 1995; U.S. Census Bureau, 2000, Table PCT7). Financial risks faced by female baby boomers include the rising costs of medical care, longer life expectancy, doubtful viability of Social Security and Medicare, inadequate retirement savings, and marital disruption through divorce or widowhood (Gaffen, 2004; Glass & Kilpatrick, 1998). These risks are compounded by the fact that baby boomer median financial assets (net worth minus home equity) were only $51,000 in 2001 (Gist, Wu, & Verma, 2004). Single women who had been married (widowed, divorced or separated) were about twice as likely (12%) as the average boomer (7%) to have zero or negative net worth (Gist &...