Do women need more specific financial advice and better education on how to manage their money? According to the vice-principal of the IFS University College, Alison Pask, they certainly do.
“Women have a lower market participation and lower earnings. Combine this with a discontinuous career and longer life expectancy, and it is clear that women need more help to manage their finances,” said Pask.
Her comments came after a special meeting on financial literacy held by the Organisation of Economic Co-operation and Development (OECD), in which global leaders were called on to advance financial literacy.
“Bodies such as the World Bank have been charged with identifying the barriers to women’s financial health and to provide a way forward. The IFS has seen more young women studying finance both at GCSE and A-level equivalent, but we do need more women to pursue careers in the City,” continued Pask.
While we support initiatives and advocates that put a spotlight on the need for financial literacy, we think that financial education transcends the topic of gender bias.
Simply put, financial education is not about gender. It is about starting early and building good financial habits from a young age so that it doesn’t become an issue later in life. Good money management skills developed early on will stick as you get older.
To move in the right direction, we need to give our children the right tools to learn to manage money, tools that provide independence to children with oversight from a parent is a good place to start. This is in turn will give them the confidence to make the right decisions as they grow into adults.
Learning how to save and becoming responsible spenders is a critical learning experience for young people. If we can empower our children to develop these skills, boys and girls, the issue of gender bias in financial literacy won’t really matter in the future generations to come, will it?
We’d love to hear your thoughts below. Do you think boys and girls receive different financial skills at a younger age?