Women constantly encounter belittling “tips” and stereotypes regarding finances and money. This creates confusion and embarrassment and sends the message that finances are a masculine concern. Which is complete nonsense. Normalizing conversations about money and educating ourselves about finance is exceedingly important for women. Exactly why is financial literacy important for women?
There are several reasons why women must be financially literate. Financial literacy allows women to use personal finance tools and fundamentals to construct a positive relationship with money. Without financial literacy, we become restricted in a cycle that not only hinders our growth, but also the growth of future generations. While this is a multifaceted issue, below are some of the primary reasons why financial literacy is important for women.
Why Is Financial Literacy So Important?
Not Understanding Money Holds Women Back
The U.S. Department of Education reports that 3.8 million American women lack basic financial literacy skills. This lack of competency can have serious repercussions, including taking on large amounts of credit card debt, defaulting on student loans, and difficulty managing income, taxes, and investments. All of this can lead to a lifetime of chronic stress.
Additionally, not having enough money is a big reason why women have a tough time leaving abusive relationships and why they go back to them. A recent study found that if women improve their money management skills, it can significantly lower the rates of violence against women perpetrated by their male partners.
Our Relationship With Money Starts Earlier Than You Think
Our early experiences with money make a significant impact on the rest of our lives. Studies have shown that we get the concept of money by age three and develop money habits by age seven. So not only do we need to be knowledgeable and confident when it comes to our finances, but it’s also important to start teaching future generations early.
Women Start At A Financial Disadvantage
Women still get paid less than men for the same work, maternity leave is unpaid and women hold the majority of student loan debt. For these reasons, women start their lives significantly behind men financially.
Best Resources To Learn About Money
It is understandable if you feel overwhelmed by all of this- because it can be daunting! The patriarchy is unfair. However, do not let it stop you from taking steps to improve your financial literacy. If you don’t know where to start, here are some resources we’ve used to get smarter about money.
Books About Money
Podcasts About Money
Million Bazillion (this is intended for kids but is really good at explaining financial concepts)
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Why Is Financial Literacy Important For Women? | The Lady Loves Living