Do we learn our money behaviors from family?
Cultural differences in saving and spending behaviors explored in a recent panel discussion sponsored by the Women’s Inter-Cultural Exchange, Charlotte, NC. June 6, 2011.
Part A. Chinese saves more than American??
According to the Bureau of Economic Analysis, for every dollar earned in the U.S. about 5 cents was saved. In Taiwan and China, for every dollar earned 30 cents was saved. From their past experience, the Chinese tend to believe everything can be taken away at any time. During war, everyone lives in poverty. A 30% income savings rate is average; most people save more than that.
Part B. 44% of small business owners DO NOT have retirement savings account.
Business owners are more likely to own tax-deferred IRAs if they are older, female, white, non-Hispanic, better educated, and married. Women are more likely than men to own an IRA, while men are more likely to own Keogh accounts and participate in 401(k)/Thrift plans. Some 56% of small business owners have retirement savings accounts. One-third of those who have an IRA don’t contribute regularly or at all.
Part C. Study shows 72% of small businesses indicated "exit" is not a priority even if they are over 40-year-old.
According to the Center for Women's Business Research, 39.3% of women business owners will sell to a third party, 21.3% will pass the business on to family members, 3.5% will simply close the business and 17.3% have no plan. And a majority of business owners don't want to think about an exit. Why? Because 78.8% believe that going into retirement is the trigger point for when they need to begin to think about their exit. Don't you think it's a bit too late at that point? Things take time, and you can count on needing about three to seven years to strategically increase the value of your business, regardless of whom the buyer is.
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