It’s well known that when it comes to money and finances, women are subjected to a steady barrage of patronising “advice” and stereotypical assumptions. This encourages a sense of taboo and humiliation which can lead to women disengaging in the conversation altogether. Making money a normal topic of conversation and gaining financial literacy is crucial for women and here’s why.
To have financial literacy is to have the knowledge and skills necessary to manage one’s personal finances effectively. Without the ability to manage money well, we and future generations will be doomed to repeat the same cycle of stagnation. Although there are several factors at play, below are listed some of the many reasons why women need to be financially literate.
Women’s economic advancement is hampered by a lack of financial literacy.
The United States Department of Education estimates that 3.8 million adult American women are financially illiterate. According to Annuity.org, “Women lacking competency in financial literacy face serious repercussions,” such as taking on substantial credit card debt, failing to repay student loans, and having trouble keeping track of their income, taxes, and investments. All of that is extremely stressful, and it can have long-lasting effects.
Similarly, women have a financial disadvantage when they enter the workforce.
Hello, unequal pay, unpaid leave, and a disproportionate share of the nation’s student loan burden.
It’s important for women to be financially independent before marriage because it is a sign of economic emancipation and responsibleness. You are not reliant on being stuck within a situation if you have the resources to provide you with other options.
Divorce is a major contributor to poverty for one in five women.
Regarding violent and controlling partnerships: Around 98% of cases of domestic violence involve some form of financial abuse. It has been found that abusive partners negatively affect the credit scores of 59% of their victims.
Debt incurred by students: Statistics show that women make up 58% of all student loan debt.
As a whole, women borrow 9.6 percent more than men do. It takes women two extra years, on average, to repay their school loans than it does males.
Regarding saving, investing, and retiring: Due to the fact that women live longer than men, our retirement savings must be able to provide for us for a greater number of years; but, due to the wage difference, women typically earn less than men and have less disposable income. While some women do save for retirement, the majority of women prioritise other things, such as their families or paying off debt. If you’re a man in his twenties, you’re more likely than a woman to have a savings cushion and other investments outside of a retirement account.
If you’re convinced, read up on “The Ultimate Guide to Financial Literacy”