Only 1 in 3 People Worldwide are Financially Literate, According to the Global Financial Literacy Excellence Center
Financial literacy, which involves possessing the knowledge and skills necessary to make informed financial decisions, is crucial as it is linked to comfort in later life, according to national health institutes.
Gender Disparity in Financial Literacy
When it comes to financial literacy, there is a significant gender gap. Only 30% of women are financially literate, compared to 35% of men, as reported by the Global Financial Literacy Excellence Center. This disparity exists in both developed and developing countries.
Amplifying Challenges Faced by Women
This gap exacerbates other challenges faced by women. For example, in OECD countries, women have a life expectancy of more than 5 years longer than men. This means their retirement income needs to last longer, but despite this, women's retirement income is approximately 25% lower than men's, due to smaller pensions and fewer savings.
Combating the Problem
To address this issue, it is essential to take measures to make financial education mandatory in schools and workplaces, while designing tailored training programs.