THE IMPORTANCE OF FINANCIAL LITERACY FOR WOMEN
Have you ever heard of the term “financial abuse” and that the National Network to End Domestic Violence noted that research shows this form of abuse occurs in 99% of physically abusive relationships where women are mostly the victims? Victims of domestic violence often say that financial abuse is the main reason they stayed with an abusive partner. This is because the financial burden placed on them made survival on their own seem impossible.
Financial abuse is one major consequence of financial illiteracy. Financial literacy is the ability to make informed judgements and effective decisions regarding the use and management of money. The pillars of financially literacy include: Budgeting, Saving, Investing, Understanding Credit /Managing Debt and paying bills.
Financial literacy for women is a critical aspect for them to reach their personal as well as professional objectives, without being dependent on anyone. It prepares them for crisis in the future as well as create a fallback for retirement. Being financially literate enables you to make smarter money management decisions that lead directly to a financially secure future, one that protects the assets built by you and your loved ones.
Financially-literate individuals do better at budgeting, saving money, controlling spending, participating in financial markets, planning for retirement and ultimately, successfully accumulating wealth. Research shows that there is a link between women’s financial status and other important aspects of household well-being, as a matter of fact, low financial status correlates with poorer physical, mental and emotional health outcomes for all household members and lower educational attainment of children.
Financial literate women are seen as assets to those around them rather than a liability. There is a great deal of respect that comes from a financially stable woman being able to hold her own irrespective of what the people around her are able to provide for her. Such women become role models and occupy prestigious places of respect in society. Their voices and opinions are valued and appreciated.
Individuals can engage in financial literacy in multiple ways, as follows: by reading up on financial issues, by taking up online or in-person financial literacy course, by Listening to Podcasts and Radio Shows or by talking to a financial professional.