Financial literacy is important for every American. You should understand your cash flow, budget your spending and saving, and make sure you're making the right moves to set yourself up for a steady retirement. While is true for everyone, it is especially important for women to gain financial literacy. Women are taking on greater roles in society with each passing year and succeeding in the tough balancing act of running a household and managing a career. As such, women should possess the financial knowledge to exert independence in money matters. Here are three reasons why this financial literacy is so important for women.
Women Live Longer
Sorry gentlemen, but it's a fact that women live longer than men. For example, the average woman in Canada lives 8 years longer than her male counterpart. Women need the financial literacy to make smart choices for their own retirement, because that retirement is bound to last longer than a man's and the money set aside is going to have to last longer as a result. Additionally, if the woman in a coupling has less financial literacy than her partner, what happens if the partner dies first? Women deserve the confidence that financial literacy brings, as well as the security and stability it provides.
Women are More Likely to Leave the Workplace Mid-Career
Unlike most men, women are more likely to leave the workplace mid-career. Some will leave to have children and even stay out of work longer to raise those kids through at least the start of their school years. Also, women are more likely than men to step away from their career to care for a sick child, sick partner, or aging parent. This can hurt a woman's earning power over the course of their career and potentially derail retirement savings and planning. Financial literacy ensures that a woman can make the choice to step aside from work for a period while understanding the risks it brings.
Women Make Less Money Than Men
The average woman makes 82 cents for each dollar a man earns. The accounts to a woman having to work roughly four more months in a year in order to make the same amount of money as a man. While younger generations are seeing the pay gap close, it's time to ensure that the financial literacy gap is also closed.
Money is often a sticking point in any relationship. The financial superiority of one partner over another can lead to problems in a marriage as well. When men have greater financial knowledge, it leaves women with less power to exert. Financial literacy is important for women because it gives them the knowledge to push for the pay, they deserve, save more for their retirement, and strengthen their sense of independence and security. Financial literacy also enables women to support children and other loved ones by making smart choices with their money, and it also enables them to fund charitable causes that align with their individual beliefs.
The views expressed are not necessarily the opinion of Social Advisors, and should not be construed directly or indirectly, as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed.