Recently a survey shows that a huge number of women have little or no money in their bank accounts. About 40% of women have $100 or less in their savings compared with 26% of men. As a woman do you ever think why it is tough for women to save more than men? Have you ever tried to overcome this challenge? If not, no worries. We are here to let you know the reasons and ways to change it.
Why Can’t Females Make Good Savings Like Males?
There might be many reasons why women became able to save less money than men. The survey shows about 40% of women are indifferent to reporting having less in their checking accounts. They allow easily having their minimum checking account balance reach $100 or less while not more than 28% of men do not permit to have such a low minimum balance.
Secondly, usually, women earn less than men. So, naturally, they cannot save as much money as men can do. Moreover, in many societies the women need to leave work or jobs due to rear children or to take care of older family-members. Generally, men do not take these responsibilities. So, it is clear that in general women are incapable of making good savings because they don’t get the scope to make a huge income from jobs, business or other sectors.
On top of that, societies or families do not put as much emphasis on the income of women as they do in the case of men. Therefore, many young women may not feel the urge to save money.
Significance of Financial Literacy Awareness for Women
In most cases, due to lack of financial literacy women fail to understand the prospect of saving to secure her future. Before discussing the significance of financial literacy awareness for women, we should know some facts.
What is Financial Literacy?
The term ‘Financial literacy’ means having the ability to understand financial skills like personal financial management, budgeting, and investing. It also refers to the proper use of financial skills. If you possess only money, you may not be able to sustain these skills. You need to have financial literacy to keep track of finances. Financial literacy creates a strong relationship between you and money. Remember, it is a lifelong journey of learning. So, it is better for you if you start this learning earlier.
Women Empowerment, Wealth Building, and Financial Literacy: What are the Connections?
Like males, the females should acquire financial knowledge to participate in money-related issues of their families effectively. It is also needed for their independence, financial and other benefits. Financial ignorance can lead to a number of problems, such as, experiencing debt burdens, poverty, lack of long-term planning for future, inability to gain economic sustainability, etc.
No doubt financial literacy empowers women to make independent decisions. A financially literate female, whether she is a business woman or a homemaker, can take correct and proper steps if there arises any emergencies or unforeseen situations in her organization, business, family or home.
Surveys have shown that only a little number of women are able to build on and grow their existing wealth. The number of female entrepreneurs having the confidence to invest money is not satisfactory at all. However, at present, financial literacy for women is crucial as their presence in the domestic public sphere is on the rise.
How Does Financial Literacy Help Women to ?
– Utilizing this knowledge, women can figure out sustainable sources of earning and achieve financial freedom.
– Financial literacy can help females stay prepared for unforeseen emergencies.
– Women can easily deal with the rising costs of living if they have proper financial knowledge.
– Children are generally influenced by their parents, especially by their mothers. A mother’s financial literacy can set a good example for her children.
– In most households, women maintain day-to-day expenses. So, it is mandatory for them to have the financial knowledge to make the best use of the money.
– Naturally, we see that females live longer than males. So, it is essential for them to have the knowledge to carry on their day-to-day affairs and manage finances.
– A financially literate woman of course gains more confidence in her own decision-making.
– Financial literacy is important for young women to plan for their futures and plan for their retirement.
– Females need to have the financial knowledge to save money so that they don’t be a burden for their children in their old age.
How Can Women Enhance Their Financial Literacy?
We have already discussed how significant it is for women to have financial knowledge! But the question is how do you gain or increase your financial literacy? Nowadays, there are ample resources for women to be financially literate.
Females can learn economics and finance from educational institutes. Doing graduation of further studies can make women highly capable of managing financial matters. However, besides the traditional learning path, there are other ways.
You can take online training. Online resources are available for those who wish to educate themselves. Besides, you can take help from your friends or relatives who have sound knowledge about finance. Remember, any way you need to gain financial literacy if you wish to achieve economic independence.
How Can Women Save Money?
Saving money is a habit. It needs strong will power, patience and perseverance to control the mind and behaviour to create the habit of saving. Here are some steps you can start from today to minimize your expenses and start saving some more cash.
– The first thing you need to do is to make a list of the bills you definitely have to pay every month. They can be rent, mortgage, utilities, car, insurance, phone, etc. Then make a list of everything else where you have to spend money. Make sure you can cut down or minimize spending.
– Put emphasis on personal savings first as part of your budget.
– Open an extra bank account where you can save a portion of your paycheck directly deposited into that account.
– Stop spending money on nonessential issues. Before spending, ask yourself if it is necessary for you to spend. Try to use cash rather than debit or credit cards.
– Make sure you can pay any bill or debt in full as soon as your salary comes in.
– Don’t forget to increase the amount you direct deposit into your savings account. When you get any extra cash, throw it in your savings.
– You can write down paid-off debts so that you can track your progress.
– Make sure you fund your retirement and secure your financial future. In this regard, you can talk to a financial advisor to know your current situation and to start planning for retirement now.
Bottom Line
Although it is difficult for women to save money like men, effective planning and knowledge can make it easier for women. The key to saving money is having financial literacy. By virtue of being financially literate females can be empowered and acquire economic independence. We hope our above-mentioned discussion will help you to be financially free.
Source: United News of Bangladesh