“Age is more than just a number when it comes to financial planning,” says Lisa Caputo and Linda Descano – the dynamic duo behind Women & Co. “Starting early can help give you a leg up on a comfortable retirement. This is particularly important for women because we live longer than men, are more likely to require long-term care services, and take more time out of the work force to care for children and family members.  These financial realities make it even more important for us to start saving early, to save more as we earn more, and to plan carefully for those ‘time-out’ periods.”

These money lessons for women in their 50s and 60s are effective for women close to retirement – better late than never! For more financial info about retirement planning, click Women & Money: A Practical Guide to Estate Planning.

Money Lessons for Women in Their 50s and 60s

“Having a financial plan is an important step, but you need to review it regularly to make adjustments as life transitions occur,” say the financial experts at Women & Co. If you’re married or living with someone, you might find Dealing With Different Money Personalities as a Couple helpful.

Money Lessons for Women in Their 50s

Re-balance Your Portfolio. Review your investment portfolio regularly. Make adjustments to accommodate different cash-flow needs and changes in income and living expenses, as well as your changing vision of life after retirement.

Catch Up on Retirement Savings. At age 50, you become eligible to make “catch-up” or extra, contributions to your IRA and 401(k) plan, or similar retirement plan. This year, the 401(k) plan catch-up amount is $5,500 over the basic limit of $16,500, for a total contribution allowed to $22,000.  For an IRA, you can make an extra $1,000 contribution for a maximum of $6,000 for the year.

Review Your Coverage. Regularly review your life and disability insurance coverage, which generally should replace enough of your income so that your family’s current and future needs are met. This includes everyday living expenses, short and long-term debts, education for your children, and retirement for your spouse/partner.

Money Lessons for Women in Their 60s

Look Into Social Security Benefits.  At age 62, you’re eligible to start receiving Social Security. However, your benefits could be reduced by as much as 30% if you opt to get Social Security before your Normal Retirement Age (also known as Full Retirement Age, which ranges from age 65 to 67 depending on year of birth).

Get Back to Budgeting Basics.  Learning to live on a fixed income requires different money management tactics than when you earned a salary with potential for increasing over time.  A timeless money tip for women is to practice good basic budgeting by tracking your money and spending habits.

Update Your Estate Plans.  Review your beneficiary designations on qualified plans, IRAs and life insurance policies. Talk to your financial, legal and tax advisors to make sure your estate plans are up-to-date.

If you’re experiencing a financial disaster, read Turning Failure to Successf for Female Entrepreneurs — it could help you rebound!

If you have any thoughts or questions on these money tips for women, please comment below…

Women & Co. is a financial resource program from Citi, dedicated to helping women achieve their financial goals.

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3. Dealing With Different Money Personalities as a Couple – Suze Orman

First, a word from money guru Suze Orman.

“We never had it as rough as the kids have it today,” says Orman. “Look at the price of a gallon of gas or a piece of real estate or a college education.”

Our children may have a tougher financial times than we did – but we can help them by role modeling excellent money habits! For help getting your financial house in order, click on Women and Money: Owning the Power to Control Your Destiny by Suze Orman.

And, learn how to be a financial role model from Lisa Caputo, Founder, Chairman and CEO and Linda Descano, CFA, President and COO of the excellent website for women and money, called Women & Co…

“Today’s women are more involved in financial decision making – not because they have to be, but because they want to be,” say Caputo and Descano. “A recent Women & Co. study found that 63% of women are the Chief Financial Officer (CFO) of their household, responsible for making the majority of financial decisions.  And women who are the CFO of their household are more likely to come from mothers who are CFOs and have daughters who become CFOs.  While only one third of today’s adult women feel they had a female financial role model, 92% now consider themselves a financial role model to their children!”

But, being a financial role model doesn’t come easily to all women.

How to be an Excellent Financial Role Model – from Women & Co

Talk to your children about money: Similar to the birds and the bees, money should be an ongoing topic of conversation with your children. It’s never too early or too late to help your children develop a strong foundation of financial knowledge.

Get financially fit:  Financial fitness, like physical fitness requires exercise.  Get a piggy bank (or make one!) and create a scenario in which your children can “work” for money, such as payments for household chores or tasks outside the household routine like wrapping presents for charities at holiday time.

Practice what you preach: The financial decisions you make today have a lasting impact – now and for future generations. To be a financial role model you must be financially responsible, so your children will be more likely to follow suit. Define your financial goals and put a plan in place to work toward them.

Create a common goal:  Get your kids involved in financial planning early by starting a family fund that will be put toward a common goal such as a vacation, gift, or a specific charity that family members would like to support. Let the whole family experience the positive end results of saving and budgeting.

Know why money matters:  Strike a balance between your family’s finances and your family life as a whole.  Your finances should support your life, not control it.  Help children build a positive relationship with money by demonstrating that money is not a status symbol, but one of the many components to building a stable and fulfilled life.

If you have any questions on financial role modeling, budgets, or even investing - please comment below!

Women & Co. is a financial resource program from Citi, dedicated to helping women achieve their financial goals. Members can read newsletters, listen to audio conferences, and find out about Master Class seminars in major metropolitan areas.

Related posts:

1. Overcoming Fear and Connecting With Courage – Suze Orman and Cher
2. How to Start a New Career – Suze Orman
3. Dealing With Different Money Personalities as a Couple – Suze Orman