Women Closing Financial Literacy Gap
When it comes to handling cash flow, debt management, retirement planning and investing, women still have a way to go compared to men.
One-third of women felt confident about their investment allocation compared to one-half of men, according to Financial Finesse, a provider of workplace financial wellness programs, in its annual study, Gender Gap in Financial Literacy.
Tracking data from employers and employees nationwide who use the firm’s assessment programs, 66% of women reported a general knowledge of investing compared to 85% of men.
Likewise, 63% of women reported having a handle on cash flow, and 47% indicated having an emergency fund, whereas men reported 78% and 62%, respectively.
Both genders considered retirement planning a top priority, which is a good sign since the vast majority of employees lack confidence in being on track to achieve retirement goals, according to Financial Finesse.
For women, their second and third priorities continued to be managing cash flow and getting out of debt, the study revealed. As in the past, women tended to focus more on immediate financial needs than men.
By contrast, men indicated investing as a second priority, followed by managing cash flow.
“I think society is beginning to realize the severity of the challenges women face in achieving long-term financial security, but they are still so significant that women have to do even more in order to overcome them,” said Liz Davidson, CEO and founder of Financial Finesse, citing the fact that women earn less on average than men and have to make their savings last longer due to longer life spans.