OppenheimerFunds, Inc. Survey Finds:

NEW YORK, June 21 /PRNewswire/ -- A new survey (1) by OppenheimerFunds, Inc., a leading asset manager, found that Gen X women (ages 26-39) are spending more than they are saving which could have long-term repercussions on their financial future. Sixty-seven percent of female respondents (and 62% of all respondents) admitted to living paycheck to paycheck. Among Gen X men and women, 56% of respondents carry an outstanding credit card balance of at least $3,000.

A Generation Defined by Debt

When asked what motivated Gen Xers to start saving they cited learning to manage their debts better (67%) and learning that living on Social Security alone will leave them in poverty in old age (67%). Credit card debt was the most cited type of debt owed by Gen X survey respondents. Nearly 40% of female respondents carry a credit card balance of $5,000 or more (20% of those owe more than $10,000). Similarly, Gen X women rate paying off debts with the same importance as having a job they like, and more important than buying a home, saving for retirement or finding a spouse or partner to spend the rest of their life with.

"It's very difficult for Gen Xers to start to think seriously about saving and investing when excessive debt is a pressing issue for them," said Lauren Coulston, Assistant Vice President, Advocacy and Training Manager at OppenheimerFunds. "Eliminating existing credit card debt is the first step toward getting their financial houses in order."

Saving for the future? Not yet ...

While Generation X women said saving for retirement was important (more so than finding a spouse, buying a home or having nice clothes or a car), over half (62%) said they have not bought any investment products for either retirement or investing purposes. In fact, more Gen X women responded that they would accumulate 30 pair of shoes (45%) before saving $30,000 in retirement assets (30%).

"Our research shows that Gen X women want financial security and are aware that they could be doing a better job of investing and saving, but they have not taken the steps to be successful in their financial lives," said Coulston. "There is a tremendous opportunity for financial advisors to work with this demographic, most of whom do not work with an advisor, to develop a financial plan to promote good spending and saving habits."

Back to the Basics: Gen X Women Would Benefit From Education

Most women in this demographic understand that investing is an area in which they wish they had more control, however, they lack basic financial knowledge. More women than men (28% vs. 14%) did not know the best way to potentially achieve long term financial security when given a choice of several investment options. Also, 65% of the women surveyed strongly agree that they do not know how a mutual fund works vs. 48% of men. Similarly, most of the women surveyed are not really sure which type of investment (stocks, bonds, CDs) has had the greatest return over the last 30 years. Nearly 65% of respondents didn't know that when interest rates go up bond prices typically go down.

According to this research, Gen Xers both think and act conservatively with regard to investments. With longer investment horizons, Gen Xers could benefit by understanding how diversifying their portfolios with an investment mix including equity investments suitable for their individual needs may benefit them over time. For example, 68% of respondents said they never make adjustments to their investments (i.e. buy and/or sell stocks, bonds, or mutual funds) or they don't have any investments to adjust. Knowledge of investment types is still lacking. When asked about the best way to achieve long term financial security, 28% said a CD while 28% said savings account.

Gen Xers Know They Need to Save Yet Are Compelled to Spend ...

With regards to spending, three in ten surveyed said that at this point in their life, money is for spending vs. saving and the same number of respondents said they are happy with the amount of money they are able to save right now. While over half of all Gen X respondents (female & male) have saved $5000 or less on their own or through an employer-sponsored plan, 38% of Gen X women have not even started saving for retirement.

"This generation will face different and potentially greater financial obligations than their parents due to social trends such as people living longer, increased spending and having even less dependency on Social Security or pension plans," adds Coulston. "Those at the top end of this demographic are turning 40 which is late in the game to start planning and saving for retirement, but there is still time to make a difference in their financial future."

  Other Survey Findings ...
   * Sixty-percent of Gen X women admitted that they are not knowledgeable
     about investing and only 20% felt they were doing a good job managing
     their money.
   * Gen X women are largely responsible for managing the household "chores"
     such as balancing the checkbook (69%) and paying bills (62%).
   * Of the 44% of married respondents, 80% decide on making large purchases
     together and 60% say they share decisions about money equally.
   * More Gen X women said they rely on family and friends for advice on
     retirement funds rather than their employer, financial planner, co-
     worker or media. In fact, only 13% use a financial advisor.
   * More than half of Gen X women were motivated to start saving for
     retirement because their employer made a retirement plan available.

OppenheimerFunds conducted its first major research study on women and money in 1992, and has been a leading advocate for women's financial independence since then. In 2001, the Company conducted nationwide research on the saving and investing habits of Generation X women and men.

About OppenheimerFunds, Inc.

OppenheimerFunds, Inc. is one of the nation's largest and most respected investment management companies. At March 31, 2006, OppenheimerFunds, Inc., including subsidiaries and controlled affiliates, managed more than $215 billion in assets, including mutual funds having more than 6 million shareholder accounts.

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525.7048 or visiting our website at http://www.oppenheimerfunds.com/. Read prospectuses carefully before investing.

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The products and services of OppenheimerFunds, Inc. and its controlled affiliates include: mutual funds, hedge funds of funds, qualified retirement plans for individuals and corporations, investment management for institutions and sub-advisory services. OppenheimerFunds is widely recognized as a leader in educating and empowering investors and for its award-winning customer service.

Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc., Two World Financial Center, 225 Liberty Street, 11th Floor, New York, NY 10281. OppenheimerFunds, Inc. is a member of the MassMutual Financial Group and is not affiliated with Oppenheimer & Co, Inc. or Oppenheimer Capital.

(1) The survey, which was conducted in March 2006 by Insight Express for OppenheimerFunds, Inc., examined the investment behaviors, knowledge and attitudes of 215 female and 85 male investors between the ages of 26-39.