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How Women Can Balance Shopping, Saving For The Future

MINNEAPOLIS (WCCO) -- Too often when we talk about women and money, we're making jokes about shoes or impulse buys. But there are some serious issues. Women actually make very different financial decisions than men, some with lasting consequences.

So, we found some tips for managing your money for the future, and avoiding those impulse buys.

Is there a better place to talk about women and money than the Mall of America?  It's 2.5 million square feet of retail madness, 520 stores full of temptation and almost 60 percent of the shoppers there are women.

"Women love to splurge," one woman told us. "We love to shop, we just love fashion." Another said, "Women maybe spend more, but they spend it on the good stuff."

Yes, it's a cliché, but it's also big business. The sale sign calls, and many of us admit, we answer.

"We are known for that," said another woman at the mall. "Especially going for the sales."

So how can we avoid the lure of those deals?  We'll have some tips later, but first, let's deal with the big picture.

"What if I get divorced, what if I die, what if my spouse dies, what if I love my job?" said financial advisor Nicole Middendorf.

She said women need to prepare for the "what ifs" by keeping their own credit cards and maintaining their own credit ratings.

"Don't lose yourself," she said. "Don't lose your own credit, don't lose your own identity."

Another big thing is to save for retirement. Did you know the average woman is supposed to put away 12 percent of her annual income, compared to 10 percent for men?

"Women live longer," said one woman at the mall. "So they've got to plan for that, right?"

Yes they do, but most don't. As natural nurturers, women tend to take care of others first, like saving for the kids' education.

"Well, your kids will probably be much happier paying for their own education than paying for you in your own retirement," said Middendorf.  "And so it's not short-changing yourself, it's making sure that you're taking care of yourself first, and that's not being selfish."

"It's about valuing your income," said Tara McCarthy, a financial advisor. "Where does your hard earned paycheck go, and where do you want it to go?"

McCarthy wrote a book on managing money, and she said it helps to lay out your income and expenses on a budget worksheet or website. After factoring in fixed living expenses, you can get down to the nitty gritty.

"Between the cell phone and the cable bill and trying to cut back on additional spending for hair care, entertainment, whatever, it can really make a 25 to 30 percent difference," she said.

Food is another place to save. Cutting back on restaurants is easy, and so is bringing lunch to the office. But Tara also suggests making a different list before your grocery list.

"Start to create a menu and start to shop based off the ingredients that you need," she said. "Instead of just going to the grocery store and not being prepared."

And how to avoid those impulse purchases, those sale signs that keep screaming buy me, buy me?  Using cash instead of credit is one smart strategy.

"Give yourself an allowance," said Middendorf. "Let's say it's 100 bucks a week, or whatever fits your budget, and when the money's gone, it's gone."

But our best strategy may have come from a different kind of expert.

"Park near the entrance of the things you need," said Ciara Bryant, who works in the Mall. She knows from experience that the best way to avoid temptation is to physically avoid the temptation.

"When you park near something you know you don't need, you're going to buy things you know you don't need," she said.

And what if you don't know which entrance is closest to what you need?  Ciara said she walks in and asks a clerk to lead her to what she wants so she isn't tempted to stop and shop along the way.

If you want more advice from professional's on saving money, check out McCarthy's web site called "Managing My Cash."

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