?Money has some rules attached to it. And if you follow the rules, you?re going to have more stability in your life than if you don?t follow the rules. Doesn?t matter if you?re a man or a woman. The rules are the same:?You need to?have a plan?for how you use your money, you need to have a healthy credit identity, you need to have emergency money and some insurance. I think it?s really important that we come to realize that life is about balance, that it?s not all or nothing. It?s not spending every waking moment thinking about money or spending no time thinking about money, Managing money isn?t really that hard. It requires some discipline and there is some detail involved, but in reality it doesn?t take that much time and the payback is huge.??-Gail Vaz-Oxlade?
Why Financial Literacy For women??
The prevailing socio-economic climate makes financial literacy more relevant than ever. Financial well being is critical to in order to achieve a balanced lifestyle because it affects other areas such as; self-worth, coping ability, mental health, physical and socio-emotional states. There are many reasons why financial literacy for women is very important:
- Increasing life expectancy among women
According to Statistics Canada, women outlive men by an average of 8 years. At some point in their lives, women would be solely responsible for their financial decisions. It may be due to the loss of a spouse, or even through divorce, separation etc They have to start early to develop skills that will serve them well much later in life.
- The most commonly cited reason for divorces is financial incompatibility
According to the Huffington Post, the No. 1 reason marriages end in divorce: Money problems. ?A strong financial background by each party in a relationship, with respect to budgeting, debt management, wealth creation and saving, fosters ?better communication, reduces the burden of stress on either partner, increases the chances of achieving joint and individual goals and creates?healthier relationships, overall.
- Trans-generational wealth transfer (Baby boomers generation)
A sound Financial knowledge is critical for those who receive any form of inheritance from their parents or grand-parents.
- Women are increasingly becoming more educated than men
This leads to more opportunities but invariably also means women are acquiring high debt loads via student loans. Financial Literacy is key to managing these debts so they do not lead to?poor health and high stress levels, thus wiping off the gains of a good education.
- Social consciousness among women to give back to the community
There is an increasing need to volunteer, make charitable donations and contribute to the society. This is particularly common among the 40+ demographic. This need for fulfillment, connection and commitment to good causes can be achieved with a knowledge of wealth creation and management as it helps to provide the flexibility, time-freedom and ?resources needed. You cannot give what you do not have.
- Managing the different life stages: widowhood, divorce/separation, single parenthood, empty-nest etc
A sound financial base is becoming increasingly important in order to successfully navigate the complex nature of the present family structures and cycles. There are more single parent household more than ever in history and the challenges also ?need to be addressed. According to the Women`s ?Legal Action Education Fund, the percentage of single-parent families,?headed by women who live in poverty is 52%!
- More women are becoming primary breadwinners in their families
The harsh economic climate has led to a reversal of roles in many households. New money management skills are necessary to adapt effectively to these evolving family dynamics.
- More women are choosing self employment/entrepreneurship as career paths
Women who operate in the fluctuating entrepreneurial or independent contract environment calls for a different mindset and set of money management skills when compared to the more stable 9-to-5 world.
- Due to increasing life expectancy, more women are now in the ?sandwich generation?
A lot of women are now primary care-givers for both their immediate families and also for their parents and grand-parents. The financial stress associated with this dual role is enormous.
- Lack of a systematic financial literacy culture
No one is immune from bad money habits. As women become more educated and successful, there is the danger of also acquiring more debts and responsibilities. And if this exists within a society where most household debts are at an all time high, financial insecurity and instability become the norm, even among college-educated and professional women.
- A need to create awareness for holistic behavioural changes?
Women are often the primary nurturers and are critical in shaping the characters of children. A sound financial literacy among women would enhance the general societal culture and help leave a legacy of sound financial culture to upcoming generations.
Ladies, let today be the day you take action towards a Healthier, Sexier, Wealthier YOU! Wondering where to start, grab a copy of Gail Vaz-Oxlade`s book: `It?s Your Money: Becoming A Woman Of Independent Means.`
(Sources: Vanier Institute for the family, Statistics Canada, Canadian Human Mortality Database, TD Economics,?Women`s ?Legal Action Education Fund, Huffington Post).
??????????????????????????????????????????????????????????????The preceding is a guest post from?Juliet Ume, MBA ?Wealth Management Consultant & Lifestyle Coach at Whole Woman Network.?Juliet is an avid?Life Connoisseur and a?passionate advocate of WomEntrepreneurship, Investment & Financial Literacy for women. Follow her on Twitter: @wholewomaninc
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