Update: Canadian Women worry about the economy but aren't taking meaningful actions to secure their financial futures

State Farm® Survey Identifies the State of Women’s Financial Confidence;
Findings Indicate Many Women Have Yet to React to Today’s Economy

December 16, 2008, Aurora, Ontario.– If ever there was a time for Canadian women to get their financial plans in order, it’s now. However, even the current economic crisis isn’t enough to drive them to take real action and responsibility for their finances. State Farm® released findings of a survey today revealing that while more than half (51%) of Canadian women ages 25-65 feel anxious about their retirement and financial futures due to the recent economic decline, only 19 percent have made major changes to their financial plans. State Farm conducted the survey to understand how women are responding to today’s tough economy and what they know about planning for their family’s financial future.

Key findings from the survey show that 65 percent of women have reconsidered their financial strategies within the last six months; however, most of them have not made changes significant enough to ensure their futures. Thirty-one percent conducted research, but ultimately didn’t do anything differently, and 38 percent only made small changes with little or no impact on short- or long-term financial performance, such as moving money from checking to savings accounts. 

When women look for financial guidance, they don’t always seek out expert advice. The survey also found that many women turn to their parents (18%), friends (15%), or spouses (12%), for financial advice and may not be as likely to seek the guidance of professionals like insurance agents (7%) or accountants (5%). But then again, many women don’t jump at the chance to talk about money. More than two in five (42%) find going to the dentist less excruciating than talking to their spouses about their daily finances.

To understand how to better equip women during this tough economic time, State Farm determined their financial IQs by examining their attitudes and perceptions regarding their financial situations and overall confidence in their financial security. On a 10-point scale, respondents fell into three distinct groups:

• Short-Sighted Spenders (financial IQ score of 0-4; national average score – 3.1): 38 percent of women feel lost when it comes to finances and aren’t sure how to get themselves on track

• Mediocre Money Managers (financial IQ score of 5-6; national average score – 5.5): 31 percent of women are unsure of their financial planning abilities and are uncertain about their future security

• Set-For-Life Savers (financial IQ score of 7-10; national average score – 7.8): 32 percent of women say they are well-informed and confident about their finances, and feel adequately prepared for any economic challenge they may face down the road

 
“State Farm’s survey uncovers that most women need to gain a deeper understanding of their financial situation and most need to get beyond just the basic tools like RRSPs to ensure financial stability,” said financial expert Stacey Tisdale. “With the economic crisis intensifying, it’s more important than ever for women to take action. They may want to seek advice from professionals like financial planners and insurance agents as they get their finances in order.”

Further complicating the situation is the fact that many women aren’t prepared for a rainy day. Nearly one-third (32%) of women report only having enough money in their savings to cover one month or less of expenses. Close to eight in ten (79%) women feel it’s important to be adequately prepared for the future; however, almost two in five (38%) suspect they’re falling short, worried that they haven’t done enough to secure their financial futures.

“While the market downturn is out of their control, there are feasible steps they can take to address their personal situation,” said Tisdale. “Women need to reduce spending and increase savings now.”

State Farm advises women to act now and take the following steps to ensure their financial profiles are ready for the unexpected:

• Review credit cards and checking accounts to assess all purchases, large and small, and tally where money is spent. Then, prioritize to identify where to cut expenses.  
• Calculate monthly expenses and make sure to have enough money in savings to cover at least three months of costs.
• Seek financial advice from an expert to ensure financial plans are secure. These experts also can discuss the right mix of insurance and financial tools.

Women who need help solidifying their financial plans can visit www.statefarm.ca to get additional tips or locate an Agent that can assist them with their financial portfolios.

Additional Resources
Canadian Women Reveal Concerns and Reactions to Today’s Economic Climate (PDF)

About the Financial Survey
State Farm's survey was conducted by Kelton Research between Nov. 8-21, 2008 using random digit dialing of listed and unlisted numbers. Quotas were set to ensure reliable and accurate representation of the total female Canadian population ages 25-65. Results of any sample are subject to sampling variation. The magnitude of the variation is measurable and is affected by the number of interviews and the level of percentages expressing results.

In this particular study, the chances are 95 in 100 that a survey result does not vary, plus or minus, by more than 4.8 percentage points from the result that would be obtained if interviews had been conducted with all persons in the universe represented by the sample.

To view the complete survey results, questions and methodology, please visit www.statefarm.ca.

State Farm Life Insurance Company
State Farm Life and Accident Assurance Company
Bloomington, IL

State Farm International Life Insurance Company Ltd.
Aurora, Ontario

About State Farm
State Farm® has been serving Canadians since 1938. It is the fifth largest auto insurer, and eighth largest property and casualty insurer in Canada. State Farm’s more than 500 Canadian agents and more than 1,400 employees currently provide insurance and financial services in Ontario, Alberta and New Brunswick. State Farm's Corporate Headquarters is in Bloomington, Illinois, USA. For more information, please visit StateFarm.ca®.