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.
- Women who reach the age of 65 are expected to live more than two years longer than men who reach 65.
- In a 2022 study, women correctly answered 45% of financial-related questions, while men were able to answer 55% of the questions correctly.
- Women are not expected to reach pay equality for the next 43 years.
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.
The U.S. Department of Education reports that 3.8 million American adult women possess literacy skills below a “basic” level. The basic level refers to reading, writing and math skills at a third-grade level. This lack of education makes it difficult to understand bank statements, credit card agreements and other financial documents.
An American College of Financial Services literacy study of men and women between 60 and 75 found:
- Thirty-five percent of men passed a quiz on retirement income literacy
- Eighteen percent of women passed the same test
Those who passed were more likely to have a retirement plan, as well as a plan to cover the costs of long-term care.
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.
Do you want to know more? Read the complete article here: