Every day, families across the U.S. have to make difficult decisions about budgeting, spending, insurance, investments, savings, retirement and on and on. When faced with these choices, financial literacy – that is, knowing how to make informed decisions about money – is key.
As a social scientist who studies aging and the social safety net, I recently took part in a large analysis of older women’s financial literacy. My team and I found that men’s financial literacy scores were 25% higher than women’s on average, even though the two groups showed no difference in math skills or overall cognitive ability.
Black and Hispanic women saw an even greater financial literacy gender gap, with scores that were, on average, 40% to 45% lower than those of white, non-Hispanic men.
Why financial literacy matters later in life
This gap is a big problem, especially as women approach older age. Because they tend to live longer – almost six years more than men, according to the latest figures – and leave the workforce earlier, women face longer retirements.
Consider that in 2020, women who worked full time earned a median of US$891 a week, versus men’s $1,082. Their career interruptions, lower earnings and earlier retirements mean that female Social Security recipients get only 80% of the benefits that men do.
Financial education can’t erase the effects of decades of structural inequality, of course. But the evidence shows that it can make a difference by helping women make more informed decisions for their future.
Every day, families across the U.S. have to make difficult decisions about budgeting, spending, insurance, investments, savings, retirement and on and on. When faced with these choices, financial literacy – that is, knowing how to make informed decisions about money – is key.
As a social scientist who studies aging and the social safety net, I recently took part in a large analysis of older women’s financial literacy. My team and I found that men’s financial literacy scores were 25% higher than women’s on average, even though the two groups showed no difference in math skills or overall cognitive ability.
Black and Hispanic women saw an even greater financial literacy gender gap, with scores that were, on average, 40% to 45% lower than those of white, non-Hispanic men.
Two former Texas school police officers have pleaded not guilty to charges related to the 2022 shooting at Robb Elementary School in Uvalde that killed 19 students and two