HOW TO UP YOUR FINANCIAL GAME
HOW TO UP YOUR FINANCIAL GAME
There is a global financial literacy problem, but the problem is more pervasive with women. In a 2020 TIAA Institute study, women’s financial literacy is less than men’s across “functional areas”, such as borrowing, consuming, saving, earning, investing, insuring, risk understanding, and information source awareness. Financial literacy is an understanding of basic financial concepts.
Why financial literacy matters, especially for women?
- Compared to men, women are typically:
- are less employed,
- make less,
- are in more part-time work when employed,
- live longer,
- have shorter working lives,
- see a salary drop after having kids
To name a few contributing factors and reasons why financial literacy matters. With these and additional policies and stereotypes working against women (such as they are frivolous spenders and don’t understand financial basics), women have to make a concerted effort to up their financial literacy and their financial well-being.
What to do about it
1) Can you pass a financial literacy test? Here are two to try:
The first is called “The Big Three”, because it’s three questions that cut to the heart of basic functional financial areas:
The second is from Penn State University:
2) Take a class.
Penn State has a free one.
And here’s a list of additional free and some priced options from US News & World Report.
3) Consult a financial adviser. You do not need to be wealthy to have an adviser. An adviser can help you get on the path to generate wealth. They will help you make your money work smarter for you and help you build your skills and up your confidence when it comes to budgeting, investing, and more.
Bottom Line: If you want to protect yourself today and through retirement, you need to up your financial literacy. And most likely increase your income diversification. I’ll talk about that next.
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