(Image credit: Getty Images)Now more than ever, women need Galentine’s Day — not just as a celebration of friendship, but as an important reminder about the importance of financial knowledge.Financial literacy is an essential issue for women. Numerous studies indicate that living without financial awareness leaves women particularly vulnerable regardless of marital status. Low financial literacy can result in poor financial resiliency.The 2024 TIAA Institute-GFLEC Personal Finance Index found that, on average, U.S. women correctly answered only 43% of financial literacy questions. Minority groups, including African-American and Hispanic women, scored even lower, while men, on average, answered 53% of the questions correctly. This gap in financial literacy doesn’t just reflect a lack of knowledge — it often manifests as a lack of confidence in financial decision-making.Subscribe to Kiplinger’s Personal FinanceBe a smarter, better informed investor.
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Sign up for Kiplinger’s Free E-NewslettersProfit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more – straight to your e-mail.Profit and prosper with the best of expert advice – straight to your e-mail.The financial gender confidence gapA recent BNY Mellon study underscores the lack of literacy and confidence connection. The study found that only 1 in 10 women globally feel they fully understand investing, and just 28% feel confident managing their investments.Many women, even those who are highly successful in their careers, have been conditioned to believe that investing and wealth-building are complex, risky or best left to someone else. As a result, they may defer major financial decisions to their spouses, family members or financial advisers, instead of fully owning their financial future.Women’s hesitation to fully lean into investing can have serious financial consequences, potentially causing them to miss out on stock and bond market growth. Growing your savings is especially important for women because we live longer than men and must stretch our savings further. Relying on savings alone will not keep pace with inflation or rising living costs, making investing in the market a must for a secure financial future.How women can empower one another financiallyWomen can close the financial confidence gap by having open financial discussions, leaning into financial education and supporting one another. Here are some ways to extend the Galentine’s Day spirit to financial empowerment.1. Normalize money conversations among womenWomen often shy away from financial discussions due to societal taboos around money talk. However, discussing salaries, investments and financial goals openly can help break the cycle of silence and create a culture of empowerment. Hosting regular “money meetups” or Galentine’s finance brunches, where friends discuss investment strategies, savings goals and financial wins can make these conversations more
