From wire reports

If ever there was a time for American women to get their financial plans in order, it's now. However, even the current economic crisis isn't enough to drive some of them to take real action and responsibility for their finances. State Farm recently released findings of a national survey revealing that 74% of American women feel anxious about their retirement and financial futures due to the recent economic decline. However, only 15% have made major changes to their financial plans, the insurer finds.

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 - information employers can leverage to more effectively plan customized retirement education messages.

"The State Farm survey indicates that women are more aware of their retirement needs, however, too many of them are not taking the necessary actions to secure their financial futures," says Susan Waring, executive vice president and chief administrative officer of State Farm Life Insurance Company. "In these worrisome times, women need to talk to someone they trust."

For many women, though, that trusted someone is not their spouse. State Farm finds more than two in five (41%) find going to the dentist less excruciating than talking to their spouses about their daily finances.

In addition to staying mum about money, key findings from the survey also show that 65% of women have reconsidered their financial strategies within the last six months, but most took little if any action: 35% conducted research, but ultimately didn't do anything differently, and 37% 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.

For such women, Waring says, "Financial planners or insurance agents can help them find the best solutions for their families or their individual needs."

From short-sighted to set for life

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:

1. Short-sighted spenders (financial IQ score of 0-4). 33% of women feel lost when it comes to finances and aren't sure how to get themselves on track.

2. Mediocre money managers (financial IQ score of 5-6). This group accounts for 31% of women, State Farm finds, and includes those who are unsure of their financial planning abilities and are uncertain about their future security.

3. Set-for-life savers (financial IQ score of 7-10). An assured 36% 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.

Across all three groups, however, "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 401ks to ensure financial stability," says financial expert and author 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 (31%) of women report only having enough money in their savings to cover one month - or less - of expenses. More than eight in ten (82%) women feel it's important to be adequately prepared for the future; however, more than two in five (41%) suspect they're falling short, worried that they haven't done enough to secure their financial futures.

Harnessing girl power

"While the market downturn is out of their control, there are feasible steps they can take to address their personal situation," says 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 savings to cover at least three months of costs.
• Seek expert financial advice to ensure secure financial plans.