- Posted by Dr. Madeline Ann Lewis
- On July 29, 2015
- 0 Comments
- financial education, financial illiteracy, financial literacy, financial planning
What women don’t know about financial matters is hurting them and their families. Quite sadly, there are no financial literacy classes in high school. When one considers the number of classes that one takes while in high school and college, it is quite staggering that there are usually zero financial literacy requirements.
It is up to women to learn about financial matters on their own since no societal support network exist to foster this education. You likely had to take foreign language and algebra in high school, but odds are you didn’t have a class on managing your money, how money works, how to save or develop wealth.
It Is Vital for Women to Set Aside Money for Retirement
It is incredibly important to set money aside for retirement and for emergencies. Women need to have their money work for them so that they can build a future that is secure.
Most Women Do Not Have a Financial Plan in Place
According to Women and Money Magazine, only one-third of women have a financial plan in place, but that isn’t the most troubling statistic they reveal. Sadly only about 10% of women ages 25-34 have a financial plan in place.
Yet, one of the easiest and most powerful ways to build wealth is one that is rarely discussed. The power of compounding interest works by using time. That means the sooner that women start investing, the sooner they can put the power of compounding interest to work on their behalf. The longer you wait to invest, the less money you will have for retirement. Saving early is extremely beneficial!
Women & Money Magazine also revealed that a full 86% of women don’t currently know how to invest or choose a financial product. Again, this is something that should have been taught in high school. But since the educational system has chosen to ignore this vitally important topic for generations, people are left completely vulnerable. The end result of not understanding how money works or how to invest no doubt plays a role in the fact that a shocking 70% of people across the income spectrum live paycheck to paycheck. This statistic was included in a recent Wall Street Journal article.
Women’s Growing Economic Clout
By 2020, women will control an amazing $22 trillion, yes, with a “t” worldwide, according to US News & World Report. It is now more important than ever for women to learn what to do with their economic power.
Dr. Madeline Ann Lewis is a Career Strategist, Business Consultant, Financial Educator and President/CEO of the Executive Women’s Success Institute. Her research and interests focus on leadership, women issues, business development and getting the importance of financial literacy across to women. Dr. Lewis is currently working with LiSA Initiative (www.lisainitiative.com), a grassroots movement sponsored by First Financial Security, Inc. to address the financial concerns that women from all walks of life experience every day in this country. LiSA Initiative informs, educates and empowers women to achieve financial security. The goal is to create wealth for women and their families through mentoring and education. Contact Dr. Lewis at firstname.lastname@example.org