Women face multiple hurdles when it comes to money. For example women tend to live longer than men, but make less than men. It seems as though the saying “with age comes wisdom” is really true. Women seem to be getting better with money as they age.
Joanne Hsu is an economist at the Federal Reserve Board. She completed a survey of those age fifty-one and over along with their spouses on financial literacy. This survey shows that men’s financial literacy seems to stay flat over the years, while women’s financial literacy increases.
Hsu believes that there are incentives for women to increase their financial literacy as they get older. There are many different reasons such as getting married, having a child, or purchasing one’s first home. Whatever the reason is, women are using to push themselves to become more financially literate.
One big reason that Hsu believes pushes women into becoming more financially literate is the possibility of becoming a widow. It is well known by now that women tend to live longer than men do. With that being said, if a woman may have to face becoming a widow, it becomes increasingly important for her to become more financially literate so that she can take care of herself financially once her husband has passed.
There is a big correlation between high financial literacy levels and making better financial decisions. This should not surprise anyone. Hsu has been quoted as saying “Given these links, having sufficient financial literacy is becoming even more important since the responsibility for retirement planning has shifted to individuals.”
What does this mean? This means that it is important to have high financial literacy levels in order to prepare better for retirement. Many people are finding that if they increase their financial knowledge they will make better decisions for their future, making it a more financially secure future.
For any woman who needs help but does not know what to do, find a financial advisor. Do not just use the first one that you find. Make sure that you are working with someone who has your best needs in mind. This way you can get help making the best financial decisions you can. If you become a widow before gaining financial education, these financial advisors can really be helpful.
Women are gaining financial knowledge as they go forward in life. This shows us that women are working to become more financially literate. Women are recognizing the various reasons why they need to become financially literate and are working toward gaining the knowledge that they need.