Why Financial Education is Important for Women
Wherever you go, the importance of financial literacy is clear. Understanding money isn’t just about teaching kids multiplication tables and balancing a checkbook. It’s about understanding how to make good decisions with our money and teaching others to do the same.
Women are an important part of this equation, but they're not always given the space to talk about their finances on a global scale. So we decided to explore why financial education is so important for women and how it can help them build their wealth over time.
Women and money
Women and money. Yes, it’s a phrase that seems to be constantly debated on the internet. But the truth is, women are making their way in the world of finance at an unprecedented rate.
In 1980, just 5 percent of financial advisors were female. Today, that number has grown to 20 percent. Women make up more than half of Americans with 401(k)s and are expected to inherit 70 percent of wealth over the next couple decades.
Women have made huge strides in the world of business and finance, but they still face some obstacles when it comes to understanding money.
Financial literacy myths
Financial literacy is a term that gets thrown around a lot. We hear it mentioned in speeches, newspaper articles, and around the dinner table. But what does it actually mean?
A recent study by the OECD found that we’re not very good at talking about our finances with each other. In fact, one-third of people said they don’t talk about money with their partner because they find it too difficult.
This is where we come in: breaking down common myths and misunderstandings when it comes to discussing money as a woman.
Myth #1: Women just want to spend money on clothes
Women may want to buy new clothes from time-to-time but financial literacy isn’t about shopping for clothes - it’s about understanding how much you have, how much you need, and how best to make those two numbers work together.
There are lots of different ways to build your wealth when you start thinking about saving and spending wisely. In fact, there are women all over the world who use their savings as investments! They put their money in things like stock markets or property instead of using it for everyday expenses.
Myth #2: Financial literacy is only important for kids
It's true that financial literacy starts with children (especially girls). But according to recent studies conducted by the OECD and World Bank, adults also need help understanding their finances. One way adults can learn more about finance is by enrolling in courses or reading
Acknowledging your own gender's biases
One of the hardest parts about talking about money is acknowledging your own gender’s biases. Women often have different relationships with money than men, and a lot of that has to do with how they were raised. For example, parents often teach their daughters to be more cautious when it comes to money, giving them a “spend less than you earn” mentality versus telling their sons to spend now and save later.
Conclusion
There are many factors that shape how women think about and handle money. The most important thing is to be aware of those biases and be proactive in eliminating them. As mothers, we have a responsibility to our children, to teach by example that we can be financially strong and independent, to lead by example and create a world of abundance for all.