Improving financial literacy for women and girls: where to start for credit unions
Financial literacy—the ability to understand and use financial skills like budgeting and investing—is essential for participating in today’s economy. Many young women lack the education to make informed financial decisions for their future.
Research shows that women and girls are generally less confident when it comes to managing money than their male counterparts.
A recent study from the University of Montreal discovered differences in financial confidence for men and women accounts for a 19% gender gap in financial literacy.
A report from the Girl Scout Institute found only 12% of girls felt confident making financial decisions. That same study shows that 90% want to learn how to better manage their money.
It is vital that girls and women understand the basics of personal finance and economics to not only be ready for emergencies but also to plan for a successful financial future. North American women often live longer than men and are more likely to manage household finances. It is crucial that they receive financial education.
Improving financial literacy among women and girls will take time and require more focus from both the public and private sectors. However, there is something you can do now to improve financial literacy for girls (and boys) in your membership and local communities…
Implement a financial literacy program at your credit union.
According to a recent global meta-analysis of financial education programs conducted by GFLEC, financial education programs work and are cost effective. Further, the effects of financial education boost financial knowledge, inclusion and well-being, particularly among vulnerable groups.
There are many financial education programs to choose from. However, narrow your selection to those that are:
Professional: Developed in conjunction with school educators
Engaging: Fun education is more effective education
Generous: Lots of program content with minimal content use restrictions
Safe: It incorporates online privacy and safety for children
And (in a shameless plug) I recommend including our own financial education program in your consideration. It’s called It’s a Money Thing and I’d put it at the top of your list.
Tim McAlpine is the Founder & CEO of Currency Marketing. He is best known for developing the It's a Money Thing Financial Education Program that credit unions from around North America are using to connect with new young adult members. He is also a driving force behind CUES Emerge, an emerging leader program that combines online learning, peer collaboration and an exciting competition component.
