By Paulvia Shiburi
Both women and men need to be sufficiently financially literate to effectively participate in economic activities and to take appropriate financial decisions for themselves and their families, but women often have less financial knowledge and lower access to formal financial products than men.
Women therefore have specific and additional financial literacy needs.
Women are likely to take primary responsibility for child rearing, to make important and daily decisions about the allocation of household resources, and to have a major role in the transmission of financial habits and skills to their children.
Hence, they need to have adequate financial skills not only for themselves but also for future generations.
Financial literacy is needed not only to improve women’s management of their personal and household finances, but also to empower them to choose and access appropriate financial services and products, as well as to develop and manage entrepreneurial activities.
Women & Financial Literacy
Managing money in the midst of life’s other priorities is no easy task. Women of all ages and backgrounds struggle with the pressure to earn enough, access education, care for a family and plan retirement.
Taking the initiative to educate yourself about complex financial decisions will help you achieve your next major milestone.
Every informed financial decision you make gets you closer to that goal.
Informed Financial Decisions
Women are three times as likely as men to say they can’t afford to save for retirement and have significantly lower rates of financial literacy.
Women also make up the majority of caregivers, and are three times more likely than men to quit their jobs to care for a family member. Generally speaking, women earn less, save less, and live longer — but are still responsible for the same living expenses men pay. And since they live longer, they face additional costs, including more long-term and overall health care expenses.
Overcoming these obstacles demands serious dedication to planning. Learning how to increase earnings and make use of available resources to the fullest potential can help you make the most of paychecks and approach financial choices with confidence.
More Women Struggle with Financial Literacy
Low literacy rates dramatically impact the lives of women, demanding they work harder, take more time to pay debts and, sometimes settle for earning less.
Women lacking competency in financial literacy face serious repercussions, such as taking on large amounts of credit card debt, defaulting on student loans, and experiencing difficulty managing income, taxes and investments.
Paulvia Shiburi is the founder of PS Debt Management, and is a debt counsellor and financial planner.