Financial Life Skills

What skills do you think are essential for life?  As a father of two girls and two boys, I attempt to impart skills such as coping with failure, time management, manners, and looking after yourself.  Another essential skill I teach my children is financial literacy.  I am paying special attention; however, to giving my daughters a good financial foundation.  A recent research paper published in 2018 demonstrates there is still a financial knowledge gap between women and men across all age ranges.

The research suggests that the gap in financial literacy comes down to a “women’s lack of confidence in making major financial decisions.”  A possible source of this lack of confidence is the focus women have on routine financial decisions versus major financial decisions.  Routine financial decisions include buying home appliances, managing household budgets, making utility payments, or shopping for groceries while major financial decisions are tax preparation, home loans, investing, or retirement planning

As a Certified Financial Planner, I have witnessed women who choose not to take an active role in major financial decisions as well as some who do.  I applaud those who do!  For those who do not I gentle invite them to progress meetings because all benefit from their input and they will benefit in their financial understanding.

What can you do to help narrow the financial literacy gap for women?  Offer to the women in your life that you are available to explain, discuss, and help them with their major financial decisions.  By doing this you will begin to give them the confidence in their own financial knowledge.

Financial literacy is an essential skill for all Canadians, but especially for women who will live longer and ultimately control more of the wealth when their married partner passes.