Why Financial Education is important?

The need to improve financial literacy is not limited to a specific gender; both men and women can benefit from greater knowledge in this area. However, there are certain aspects and contexts that highlight the importance of financial education specifically for women.

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Gender Pay Gap

The United Nations has declared September 18 as World Equal Pay Day. There is an estimated gender pay gap of around 20% globally. This means that women earn less than men for the same work. Financial education can help women negotiate when taking a job or asking for a raise, as well as maximize their resources and manage their finances more effectively.

Longevity and Retirement

Life expectancy is generally higher in women. According to the World Institute for Aging Policy Research, women live on average about 5-7 years longer than men.

This means that they need to face greater financial needs during the stage where it is needed most. A good financial education can help you plan and ensure a more comfortable retirement.

Family Life Cycle

Women often play a crucial role in household financial decisions. Financial education can empower them to make informed decisions, manage family budgets, and plan for the family's future needs.

Economic Empowerment

Financial education is a powerful tool for women's economic empowerment. It gives them the confidence and skills to take control of their finances, invest and make informed financial decisions.

Female Entrepreneurship

According to the World Bank's Annual Business Climate Report, women represent a significant portion of new entrepreneurs worldwide. However, there are persistent barriers, including financial ones, that affect the success of women-led businesses. More and more women every day choose to start and lead their own businesses. Financial education is essential for business success, helping them understand concepts such as budgeting, cash flow, investing, and business financial management.

Preparation for Financial Crises

Financial education can help women prepare for economic crises, such as job loss or unexpected situations. It provides them with tools to face financial challenges more effectively.

Financial Independence

Financial education promotes financial independence. Women who understand how to manage their money are more likely to make autonomous financial decisions and not depend exclusively on others.

Investments and Wealth Building

Several studies have noted that women tend to invest less in stocks and more in lower risk assets compared to men. According to a report from the New York Stock Exchange (NYSE), women are more likely to hold cash and less likely to invest in stocks.

Understanding investment and money management concepts is essential for building long-term wealth. Financial education empowers women to engage in investments and make decisions that allow them to accumulate assets.

Financial education is essential for everyone, and it can play a key role in addressing financial challenges. Taking control of one's own financial situation, at a more informed level, empowers, provides security and removes stress. Which directly impacts other aspects of your life. On a personal and emotional level, a better relationship with money is a way of self-care.

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