“Think Equal, Build Smart, Innovate for Change”
The theme of this year’s International Women’s Day was designed to put all efforts to achieve gender equality.
Well, there has been an increase in the adoption of pro-women initiatives by corporates, public bodies, social institutions. But the change is just setting in and the journey has begun!
There is a paradigm that gender equality means women are getting equal rights as men! But why it should be like equal rights as men?
Are men superhumans in this world?
I believe, your answer is gonna be NO! Then, of course, being a human being, it’s a woman’s right to get treated like a citizen of any country. And claim for their rights as per the law.
And there lies the importance of financial literacy to empower women in our society! Yes, you heard it right! But what exactly is financial literacy?
Well, you can say that financial literacy is the knowledge that is necessary to make responsible financial decisions by the confluence of Financial Credit and debt management.
- But how financial literacy can empower women like you?
Let’s find it out!
1. A 2018 CDC report says, the average man in our country will live to age 76. While the average woman lives up to the age of 81.
No doubt, it’s a positive sign to live longer. But this also means, about five more years of food, housing, and most importantly, health care!
You might be thinking that how is this related to financial literacy?
Well, let me tell you buddy, financial literacy plays a major role over here! You need to plan for your golden years right from the day you receive your first paycheck.
Be it 401k or IRA, you need to invest for your golden days at the earliest. Being financially stable helps you to handle your situations more efficiently.
2. A 2015 CNBC report reveals that women in our country approaching retirement had an average of about $81,300 in their retirement nest-egg. On the contrary, men had about $118,400 in their retirement fund.
Isn’t it shocking?
In our country, women in the workforce decrease during the mid-career stage. The reason being, you might get married, have children, and/or busy in taking care of your aging parents.
And unfortunately, women are often considered as the primary caregivers for their extended family.
Eventually, you might get less time to save for your future. And thereby, your retirement nest-egg gets compromised to a great extent!
3. Have you heard about the gender pay gap?
Well, it’s the ratio of female to the male median or average yearly earnings among full-time, year-round workers.
A 2018 study by the Pew Research Center analyzed that women earned about 85% of what men earned in our country.
That means, you have less money than what a man is earning on your level. Still, you can handle your dollars in a better way if you have sound financial knowledge.
4. Nearly half of the marriages in our country end in divorce. And in many cases, women encounter dire financial consequences than men.
Read also: Are You Walking Someone Else’s Road?
You need to pay the legal fees, tax liabilities and complications of dividing assets with your spouse.
And you might get shocked to know that financial recovery may take several years. Unlike financial matters, you can’t plan for your divorce! Come on, who does that?
So, getting divorced brings upon a lot of emotional stress along with financial burden. The majority of women retain custody of children. And as a result, you might struggle to make ends meet because of soaring high-costs of childcare.
5. Are you prepared for the rainy days?
If not, then it’s high time to get prepared for it! Life is uncertain and anything can happen at any point in time.
So, you can start saving dollars each month to cover any emergency expenses. Well, I am not telling you that being financially prepared will sort out your problem.
But still, having a substantial amount in your emergency fund can help you to tackle any mishap in a better way!
To cover any emergencies like
- Unexpected job loss
- Emergency room visit
- Sudden car repair or house repair
You might tend to take out loans, especially fast cash loans. And if you are using a credit card, there are high chances that you are gonna opt for a credit card cash advance!
But let me tell you buddy, this fast cash option is going to burn a hole in your pocket by its high-interest rate and other ancillary charges.
And eventually, you might see a substantial part of your paycheck is getting deducted to pay off these loans.
- But how will you get out of this debt trap?
The best cure for credit card debt would be consolidating your multiple debts into a single monthly payment! You can approach a genuine debt consolidation company. The consolidation company will try to negotiate with your creditors on your behalf.
If everything goes fine, you can pay off your debts at reduced interest rates and making single monthly payments for all your debts.
So, what I feel is, you need to speak up and dream big! You can do it lady! Through confidence and planning you can get on track with your goals and achieve the life you want!
About the Guest Contributor
Linda Richardson is a New Jersey-based financial content writer and enduring learner with an ongoing interest to learn new things.
She uses that curiosity, connected with her knowledge as a financial writer, to write about subjects valuable to small businesses
Connect with Linda
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