Women have made incredible strides towards equality in the last 50 years, especially in terms of financial independence. It’s almost a challenge to remember that we only attained the legal right to open a credit card in our own names in 1974. To emphasize just how important it is for women to continue striving for financial independence, here are five statistics that prove that women need to learn more about money.
- Nearly 60% of Widows and Divorcees Regret Not Being More Involved in Long-Term Planning. If you’re one of the many women married to a man and he’s the one who does the investing and financial planning, then there’s a good chance you may outlive him. Do you have a plan? What about a plan for if you get divorced and your financial situation changes?
- Over 80% of Women Failed a Retirement Income Literacy Quiz. The vast majority of women lack retirement knowledge, despite having an average life expectancy over a decade beyond full retirement age. Again to those women mentioned earlier whose husbands manage the financial planning: what would you do if you were widowed or your spouse became incapacitated? Understanding your retirement plans helps protect you and your family from even more struggles.
- 40% of Women Have $100 or Less in Their Savings Accounts. There are many complicated reasons for this statistic, but the result is less financial stability for women. This combined with other facts – such as that the overwhelming majority of single parents are women and women are still less likely to be promoted to management positions – means that women are often forced to do more with less money. And that’s not even taking into account the compounding ways members of marginalized communities are affected.
- Less Than Half of Women Feel Confident in Their Ability to Save. Considering the above, this one isn’t very surprising. But without having confidence in your own abilities then how can you achieve your goals? It is so important that women build their confidence when it comes to money in order to make the decisions necessary to reach financial security.
- Only Half of Women are Confident Managing Investments. Investing is one of the best ways to grow your wealth. While your income only goes up if you get a raise or promotion or start a business, investing is a way for your money to potentially increase in value over time. Not learning about and making investment decisions is likely holding women back from really being able to grow wealth for the long haul.
Women, regardless of their age, whether they are single or married, or whom they are married to, deserve to have financial security and stability. If you recognize yourself in any of these statistics, then take Women’s History Month as your yearly reminder to brush up on your money knowledge and close the gender gap in financial literacy one step at a time.
Hanscom FCU has the tools to help you learn more about money and finances – you’re in a great place to start. Visit our Seminars & Events page to see a list of upcoming in-person and virtual financial education sessions. Our Partner Relations team covers topics ranging from first-time homebuying, credit reports and using credit, planning for retirement, and more.
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