3 Reasons Why Financial Literacy Is Important For Women

Challenges in life never come with a warning. When it comes to financial ones, even the strongest of the strong people tend to crumble. So it is of utmost importance that people, especially women are made financially literate. Well, here is a startling fact: around 70% of the women globally are financially illiterate.

Isn't this surprising wherein at one hand we are fighting to strive towards a gender neutral world and deal with other issues, while on the other hand, women are financially illiterate in such huge numbers?

Well, there is more to this. It can lead women to a loop of other problems. So here are 3 reasons why women should go for being not only financially independent but also financially literate enough to manage their money optimally.

1. Financial independence:

Believe it or not, being financially independent gives you a sense of relief, satisfaction and the urge to grow. Considering the statistics, women are found to be financially dependent on men. This remains one of the major causes for the kinds of abuse women go through-be it physically or mentally. It makes them dependent on men so much so that it hampers their ordinary decision making too. Then there are women who tend to leave their career midway due to raising family or other issues, which is more as compared to men. Hence, it is necessary for them to be financially literate to carry on their life with ease and build their financial support.

So, financial literacy can help them to achieve their goals while boosting their confidence to go a mile further.

2. Contribution to growth:

Financially independent women can make better decisions and be a major contributor towards growth. This growth includes women’s personal and professional growth- both in qualitative and quantitative ways. All of this ultimately culminates to a better society and improved socio-economic factors.

A report conducted by renowned firm McKinsey Global Institute tells that as contrast to the current contribution to the GDP by women as 18%, it can reach to $770 billion by 2025 if women are given equal opportunities. Here is when financial literacy can help the nation’s economy. This actually uplifts the nation while improving the socio-economic and other vital indicators for growth, on a global front.

3. Aids in women empowerment:

Women, today are already empowered with access to numerous facilities-some tailored for them while others due to societal acceptance at large. Financial literacy empowers women to a great extent. It helps them plan their goals and guides them to achieve them.

The increasing gender gap in employment is also a concern that needs to be addressed and that can aid in women empowerment. Women account for only a meagre 19.9% of the total labor force in India. A strong sense of financial matters can support women to make better decisions in order to achieve their goals. This not only works till the existing generation but goes on to seep down to future generations as well.

Amidst all the issues that women are running after, financial literacy can be that one masterstroke which can uplift a lot of other factors. Definitely, the picture is a bit grim today but nevertheless there is a huge scope of making women financially aware, right from the age of atleast 12. It will play a huge role in elevating mankind to levels unseen before, as growth of a woman is synonymous to the growth of the world.