Gender Gap in Financial Literacy Is Growing
The gap between men and women in knowledge and awareness of personal finances is growing, according to a new survey by Financial Finesse. The survey found wider gaps between men and women regarding general knowledge about investments and confidence about portfolio allocations. Gaps also widened for measures of financial planning, including regularly paying off credit card bills and having an emergency fund.
Just 66% of women said they had general knowledge regarding stocks, bonds and mutual funds, versus 89% of men. Only 34% of women understood the tax implications of their investment strategies, a significant 22 percentage-point gap below that of men. Worse yet, only 12% of women said they knew they were on target to replace 80% of their income in retirement—10 percentage points below that of men.
On a financial planning standpoint, fewer women than men had a handle on how much they are spending each month (62% versus 78%). Only 52% of women were comfortable with their level of non-mortgage debt, versus 71% of men.
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