What is Financial Literacy, and How Can It Empower Women? Part 1
Growing up, many of us heard phrases like money can’t buy you happiness. While it is up to the individual to define what a happy life looks like, it is important to acknowledge that in most modern societies, money provides access to crucial things like food, housing, and healthcare. Even when things feel stable, unpredictable events like the Covid pandemic have shown us the need to be financially prepared to weather any storm.
Like many industries, the world of finance has historically been shaped by men, but there are now growing conversations around the unique monetary needs of women. Women are often caretakers for family members and tend to live longer, thus necessitating substantial retirement savings. These factors are complicated by the fact that women earn less than their male counterparts. It cannot be overstated that financial literacy is paramount to making the world more equitable for all.
The website Investopedia provides the following definition: “Financial literacy is the ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing.” Broad concepts like this can be overwhelming at first, so it’s important to break them down into smaller pieces.
Learning how to budget is a great place to start, as it is a keystone pillar of financial health. The 50/30/20 budget plan is a guideline that encourages one to spend 50% of your take home pay on necessities, no more than 30% on wants, and at least 20% on savings and debt repayment. Of course, there will be times when this is not realistic for everyone, but having information like this can help inspire people to take the steps towards making this a reality.
Women who are financially empowered are better equipped to enrich their own lives as well as contribute to their families and greater communities. Having the tools to navigate financial decisions in a healthy way helps one avoid scammers, be prepared for emergencies, and pursue one’s long-term goals with confidence.
Climb Your Everest wants to show the world how women’s empowerment can contribute to sustainable community development. Through workshops that provide hands-on learning in a collaborative environment, CYE gives girls and women the skills to become financially independent and spread the word to others. Learn more about how you can contribute to women’s empowerment programs currently active in India and Nepal. And stay tuned for the next post in this series!
