The Recession Forced More Women To Become Financially Literate
While the Great Recession has scarred laid-off workers and struggling businesses, it has had some upsides. The recession forced everyone to grab the reigns on their finances. As a result, there was an upsurge financial literacy, especially among women, to endure the stagnant times, reports USA Today.
The recession proved to be a rude awakening for many Americans with frivolous spending habits. Compelled to pull through the difficult times, women have been making money-savvy investment decisions. Twenty percent of women, according to Allianz Life’s 2013 Women, Power, and Money study, now have a sturdy grip on their cash. Since the first survey Allianz issued eight years ago, “more women in general indicated an increase in financial inderstanding and involvement,” adds USA Today.
Between the 2006 and 2013, the number of women who expressed interest in financial, retirement, and investment planning doubled from 35 percent to 62 percent, according to the Allianz survey.
With the recession causing some women’s partners to become unemployed, it was up to them to be in the forefront of money management. A Prudential study, highlighted by MN, shows that the economic stagnation expanded the “breadwinner” role to more women. Thirty-one percent of married Black women were the main providers last year.
The recession isn’t the only culprit behind women’s increase in financial knowledge. Nowadays, more women are deviating from the traditional structured path of a woman’s life. Now women are “staying single longer, divorcing more frequently, entering into same-sex relationships, and outliving men,” USA Today explains. As a result, the absence of a man has required many women to become more financially independent.
In the study, compared to the average woman who made $48,000, these “women of influence” — as USA Today calls them — make an average of $57,000 a year. The data also shows that majority of the women of influence are White and are between the ages of 45 and 54.
Among financially literate women, only one percent did not save up for retirement; 12 percent of the other respondents are not remotely prepared for their financial future.
“We had a worst-case scenario a couple years ago, and it is a wake-up call to a number of people, women in particular,” said Lisa Hanson, a Philadelphian financial planner, “It’s important (for them) to feel a sense of security.”