According to a recent study, there is a gender gap in financial literacy between men and women. While women reported not knowing the answers to more money and investment-related questions than men, this wasn’t solely due to a lack of financial knowledge. Rather, it came from a lack of confidence in financial decision-making.
Follow these five tips to boost your financial confidence and empower the women in your life.
#1: Set Smart Goals
Don’t limit yourself. Set some short-term goals that you can actively measure and achieve in a reasonable amount of time. These goals can be the stepping stones for your financial future and long-term achievements. Progressing through your goals will be an important component of building your financial confidence over time.
#2: Build a Budget
Creating a budget is the best way to know exactly where your money is going and avoid surprises. If you find yourself stressed out about managing your money, setting and sticking to a budget could help. Over time, seeing your money spent intentionally can help build feelings of financial confidence and reassurance.
Studies show that women are less likely to invest in stocks because they are less confident about money. Unfortunately, being reluctant to invest in stocks can truly put women at a disadvantage. When planning for retirement, investing in a diversified portfolio is often a key component of any comprehensive, long-term strategy.
If you aren’t working with an advisor already, search for a financial professional who can support and guide you in developing a portfolio and creating a solid financial plan. Doing so can help increase your comfort level with investments and improve your ability to make investment decisions on your own.
#4: Don’t Be Afraid to Ask and Answer Questions
It’s easy to feel uneasy about not knowing all the answers. Asking questions and learning is an important component of increasing your knowledge base and growing your financial confidence.
Eventually, asking questions about money won’t feel wrong or taboo. If you have young children, especially daughters, take the time to teach them about financial decision-making and encourage them to ask questions.
#5: Advocate on Behalf of All Women
No matter what gender you identify as, you can use your voice to advocate for women’s financial equality, security, and confidence. Speak up when you can and encourage other women to speak up as well. Creating meaningful conversations can help identify similar pain points among your peers, get your concerns addressed, and develop a safe space to grow your financial knowledge and confidence.
It’s okay to strive for balance rather than perfection when it comes to your financial life. Make sure that you’re doing the best for yourself. Don’t let the fear of failure or lack of confidence hold you back from taking control of your financial life and achieving your biggest goals.
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