The importance of financial literacy for women and how it can help close the gender pay gap

Financial literacy is an essential skill for women in today’s world. With the gender pay gap still alive and well, it is more important than ever for women to understand how to manage their money effectively. Financial literacy can help close this gap by giving women the power to make informed decisions about their finances, ensure they are not taken advantage of, and create long-term financial stability.

Financial literacy helps women take control of their money and make educated decisions. Women need to have the knowledge to understand how investments work, what options are available for saving and retirement planning, budgeting tips, and more. This knowledge empowers them to become financially independent so they can achieve their life goals.

Kortney Murray

“Women have historically been given different tools for navigating life than men with business and financial education being of significant disparity,” says Kortney Murray, Founder and CEO of Coastal Kapital. “Women should be versed on their options for creating wealth. Not only is this beneficial for the woman herself but it is a fact that women use their money to create 80% more opportunities for other women, children, movements, and other ways to benefit those outside of themselves. This speaks volumes when you have an imbalance in financial education. We need more women to be financially fluent in their education to help humanity long-term.”

In addition to the humanitarian aspect of feminine financial literacy, having more women be financially literate helps them make better long-term financial decisions. By understanding credit and debt, they can avoid falling into a bad debt cycle that could take years to get out of. Having the knowledge to understand what kinds of investments and habits are best for them can help them build their wealth and reach financial stability in the future.

Lady JB Owen

“Every person on the planet is responsible for their own financial independence; your financial literacy is the key to living your life by design, not by default. Knowing how money works and how to accumulate, disperse, acquire, and save all leads to the energy of money working for you, not against you,” shares Lady JB Owen, Founder and CEO of Ignite Publishing, JBO Global Inc, and Ignite Moments Media. “Giving, tithing, banking, and spending all have habits, skills, and attributes that women need to master in order for them to use money to benefit their lives and the lives of others. Money allows you to help contribute to the world in larger ways – so being literate about how money flows will allow you to recognize that there is a system and process that procures more wealth. Money allows the helping of others and the creation of freedom for everyone.”

Andrea Bell

Andrea Bell, Founder and CEO of Profitability shares her top tips on how more women can become financially literate. “That which gets tracked gets improved. If you don’t control your money, then it will control you. In today’s digital world, it is so easy just to swipe or tap a card, and really, not many people have a clue about how much money is in their bank account or what they are spending on a weekly basis. It’s really easy to overspend. Being aware of your money flow on a daily, weekly, and monthly basis, and tracking it, will empower you with information as to your spending habits. With that information in hand, you can then do something about it. If you don’t track it, the issue will never be fixed, and money will continue to control you and be a headache. As you become more financially literate, you can then educate the next generation to have correct money values, and they will have a better chance to start off strong and make good money choices.” 

Finally, financial literacy can help close the gender pay gap. With financial knowledge, women are empowered to negotiate fair salaries and advocate for themselves in order to get the wages they deserve. They can also use their financial knowledge to break down barriers that hold them back from achieving parity with men in terms of economic opportunity. It is important that we continue to educate ourselves on how to make the best decisions when it comes to our money in order to ensure a bright future.