Financial literacy and money management skills are basic life skills everyone should master. However, it gives a woman a deeper sense of security, making it easier for her to save and invest in the future. Providing her basic know-how, its challenges and the resources available can help her understand the process.
While many developments have been made in the past few decades, the fight for equality among men and women over finances continues.
Let’s take a closer look at where women stand for their financial situations.
After the pandemic women are more financially worse off today than ever. Pandemic didn’t only made million Job wiped out in various fields including , restaurants, hotels, spas, salons and non urge health care fields also it added to women extra responsibility on child care as many child care and school day care shuttered due to financial situation and moved in person school to online.
Common Challenges Women Face In The Financial World
Though financial freedom is a form of self-empowerment and personal development, there are a variety of setbacks that make it difficult for women to attain their course in this regard. Rather changing times are making it increasingly challenging to navigate.
As per the statistics released from the US Bureau of Labor, women annually earned 82.3% of that made by men. Salary discriminations, household responsibilities, and a lack of spotlight on financial opportunities are all the issues faced by women.
While positive movements work towards the financial equality of men and women, persistent social customs are difficult to break. The following list clearly explains some of the key challenges:
Women are paid less as compared to men
As per the US Bureau of Labor Statistics, there is a widening wage gap between women and men, with women financially making less than men.
Childbirth disrupts their career
Women who experience childbirth experience a 4% wage loss per child.
Women have little to no exposure to financial literacy
Owing to different reasons, women have less exposure to financial literacy because they are less likely to learn from financial institutions. For example, the ratio of men learning economics as compared to women is 2:1.
Women live longer than men
A woman’s lifespan is longer than a man, so they are left to manage their finances on their own when their male counterparts pass away.
If Covid-19 was a challenge for the world at large, for women it is equivalent to a sharp fall off a cliff; rather it was the hardest for women. The road ahead is uncertain to them as unemployment has surged worldwide but in 2020, there were 114 million job losses as compared to 2019. These figures were 5% higher for women as well.
But why does financial independence matter so much for women?
This is because self-employment primarily brings financial independence for women, which equals an equal voice in pivotal matters, a voice that can be heard at home, in the community, and across the nation.
Research conducted by Rohini Pande, professor of public policy at the Harvard Kennedy School, shows that women who received their salaries in their own bank accounts worked more and saved more. Furthermore, women, who worked, started addressing other core issues like healthcare, education, and better living standards for their families. They also began addressing their occupation as a worker instead of a homemaker. The study also mentioned that girls and women spend on average 90% of their earnings on their families.
Are we doing enough to encourage women to become economically strong?
After the pandemic world, this question has gained more validity. Are we encouraging women to save their hard-earned money in a way that aids them in handling their unique needs? Is the financial sector even thinking of women when shaping or structuring their investment products? Does this same industry educate and support women, especially women lying in the low-income bracket? Are there any options available to them or any knowledge as to why one product is better than another?
Are women reluctant to invest?
Let’s flip the question and consider if women are reluctant to invest. A part of the answer lies in the closely-knit socio-culture norms of how this world works, where women are discouraged from participating in discussions around investment. Money matters are predominantly male occupied where women are neither allowed to chime in their voice nor consulted over making decisions for the family.
They also are very naïve when it comes to decoding the financial jargon. There is a lack of relevant advice, as financial advisors are rigid in their opinions and indifferent to the needs of women. They address aspiring women with a judgmental tone. A single woman, a married woman, a mother, a housemaker, a single parent all have different roles to play, and their concerns vary, but this is something most advisors fail to oversee. There shouldn’t be a one-size-fits-all approach and clubbing them together isn’t a fair decision.
Women save less as they earn less.
The World Economic Forum’s Global Gender Gap Report 2020 reveals that men and women will receive pay equality in 257 years. For many women, especially in the low wages informal sector, saving is a luxury they can’t certainly afford. 25% of self-employed women from Europe and Central Asia lost their jobs compared to 21% of men since the pandemic hit in 2019. This trend is expected to rise as unemployment shoots up. 140 million full-time jobs will be lost as Covid-19 carries on with putting forth new variants every year, the ILO suggests, and women’s jobs are potentially at more risk than men.