5 WAYS FINANCIAL LITERACY AND FEMALE EMPOWERMENT GO HAND-IN-HAND

WORDS: Sonia Gibson PHOTOGRAPHY Supplied

Financial literacy is an understanding of finances and money management, including budgeting and investing but in a practical way, it really comes down to knowing your own financial health, learning how to balance your income and expenses, understanding the value of your time and ensuring you have financial goals that are realistic and that come with action-based steps.

 

Independence matters

The ability to choose whether to stay in a relationship or leave is independence. It applies to romantic relationships as well as agreements such as business partnerships and employment contracts. Financial literacy gives a woman the tools to know when she can make her next move and what she needs to have in place in order to make that move effectively. In a workplace, financial literacy gives a woman the knowledge of understanding her worth and seeking opportunities aligning with that. In romantic relationships, financial literacy empowers a woman with the knowledge to support herself effectively, enabling her to leave when she feels the relationship is no longer positive.

 

Equal say in decision-making gives couples equal ownership

Whether she is dealing with a business partner, working on a project with a colleague, or running a household with a spouse, financial literacy enables the woman to be just as much in the know as the partner. That means there can be greater ownership for both parties in decision-making processes. Double participation means double the ideas, inspiration, and solutions. When women understand numbers and finance, their ability to bring innovation to the table gives them opportunities to rise, earn promotions, or manage the household more effectively. Knowledge is power.

 

The next generation: Financial Literacy is more easily learned from mothers than fathers

With mothers at the helm of managing the family, they’re cited as the most influential member of the family, especially for children. Financial literacy is profoundly empowering and learning how to work with money from a young age is far simpler when it is role modeled. Every shopping trip is a learning opportunity in which children can see how the mother selects items by referring to her budget. The mother can then explain to the children how the weekly grocery list fits in with the overall monthly budget. Kids that learn this from a young age understand that money isn’t limitless, it requires planning and management.

 

Financial literacy levels out the playing field

When it comes to equitable workplaces, financial literacy for females creates an environment in which we can see more female workers in the workplace because there are more female leaders that are launching well-planned businesses that are built on solid financial strategies. Women tend to be more in favour of flexible work schedules too, these schedules empower more women to enter competitive fields like IT, accounting, science and technology because they can nurture both their families and careers.

 

About the author

Sonia Gibson, Director at Accounting Heart Chartered Accountants

Sonia has always loved solving puzzles and empowering people to help themselves. Accounting Heart brings these two passions of hers – her head and heart – together.

While figures might send you batty, to Sonia they tell the unique story of your business. It’s her role to translate that story into one you’ll understand so you can then write it your own way.