It does not matter who you are, financial literacy is important, however it seem that is may be more important for women. Studies have shown that when it comes to women and finances, we know a lot less than we should, and a lot less than men do. It is important for women to increase their financial literacy not just so they can catch up with men, but for their own financial future.
The FINRA Investor Education Foundation released a study that shows us that women who have a low financial literacy level spend more on credit cards every year than women who have a high financial literacy level. This means that they are paying more in interest than other women are. This interest can add up quickly and cause financial problems for those who get in over their head.
This survey also shows us something else. It shows that those who have higher financial literacy levels are better at managing credit cards. This is a good reason for any women to gain more financial literacy.
According to this survey women are six percent more points more likely to end up being charged a late fee than men are. This can have something to do with not having a high enough financial literacy level. If you have a higher financial literacy level, then you understand why you should do everything possible to avoid late fees.
Women also seem to be less likely to pay their credit card balances in full. This can cause interest to add up. Most of us know that interest can add up very quickly if not dealt with in a timely manner. Those who are more financially literate understand why it is important to try and pay off the whole balance.
Financial education should start in the home. The earlier it starts the better off the person will be. Women need to make sure that they are financially literate so they can pass on what they know to their children. Women seem to need to work harder to become financially literate than men do. If a woman works hard, she can be just as financially literate as a man, if not more so. It is not about a competition on who is more financially literate, it is about making sure that one’s financial future can be the best possible, and that you can pass all that information you have down to the next generation.
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