In their annual study of the gender gap in financial literacy, Financial Finesse says that the gap is closing. While women are making strides in this area, they still have work to do.
Erik Carter, Senior Financial Planner with Financial Finesse, says that women are making gains in every area of financial planning and in doing so, are closing the gap on men in virtually every area. He attributes a lot of this to women being more proactive in their finances. There are gains by women being shown in cash management, managing day to day cash, having an emergency fund, paying down debt, with the biggest gains being shown in investing and retirement planning.
The study showed that it's more important to know what to do with what you have, not necessarily just to have more and that the more money you make, the more money you have to save, in absolute terms and a percentage of your income.
The wage gap is not something Financial Finesse is seeing closing, as their study focuses more on people's behaviors. That being said, Carter says it's more important than ever for women to try and close that gap in terms of behavior.
Carter believes that companies are reaching out to women in understanding they need the help more than men. With their benefits lower and them living longer, there is an effort now to make sure women are taking advantage of the resources available to them by their company. This is one of the reasons we're seeing that gap close, remarks Carter.
Financial Finesse designs customized financial education programs for employers, to help their employees not only understand their benefits but also use them in a way that improves their financial life for their entire financial future, both inside and outside of work.
Erik Carter is a Senior Financial Planner with Financial Finesse. He spoke with Retirement News Today, providing online retirement news video content and is a featured network of Sequence Media Group.