Women: The Importance of Financial Literacy
Women face unique challenges when it comes to managing their finances. Research by the Transamerica Center for Retirement Studies, shows women are less likely than men to invest their money. When they invest, they invest less overall. Financial literacy empowers women to take control of their financial futures.
Financial Independence
Financial literacy is a critical tool for achieving financial independence. When women understand how to manage their finances, they are more likely to make informed decisions that support their long-term financial goals. Financial literacy can help women increase their income and reduce their stress about money.
Financial independence also gives women the freedom to pursue their passions, whether that means starting a business, traveling the world, or spending more time with family and friends. By achieving financial independence, women can create the life they want and enjoy the peace of mind that comes with financial security.
Once a person is financially literate, they can take steps to safeguard their money in the future. Investing is a key component of long-term financial planning. Unfortunately, many women are hesitant to invest because they lack knowledge and experience. Women have not had and are not given equal opportunities, especially with money.
The gender pay gap is still a huge issue. According to the Pew Research Centre, women still on average earn $.82 for every dollar earned by a man. Never mind the added financial and other burdens that come with raising children. Financial literacy is the key to helping women achieve long-term financial goals.
When women understand how to invest, they are more likely to take advantage of investment opportunities and grow their wealth. According to a global survey, 1 in 10 women feels they don’t fully understand investing. Only about 28 percent feel confident about investing some of their money. In the U.S., some 41 percent of women feel confident about investing.
Financial literacy can also help women avoid common investing mistakes, such as chasing hot stocks, timing the market, or ignoring diversification. Both women and men who invest in a diversified portfolio with a long-term focus are more likely to achieve their financial goals than those who make impulsive or short-term investment decisions.
Retirement Planning
Financial literacy can teach women the importance of saving for retirement as soon as possible and provide them with tools and resources to create a retirement savings plan.
Financial literacy can also help women make informed decisions about Social Security benefits, Medicare, and other retirement benefits. By understanding how these programs work, women can make the most of the benefits available to them and create a retirement plan that meets their financial needs.
Financial literacy is a powerful tool for empowering women, especially with investing and retirement. By understanding how to manage their finances, women can support their long-term financial goals and create the life they want. Investing in financial literacy can help women overcome the unique challenges they face and achieve financial independence, security, and peace of mind.
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.