I talk a lot about the importance of women achieving financial literacy. But, what exactly does that mean? Simply put – financial literacy is understanding money. How to manage your money, invest your money, effectively navigate financial systems, and make sound financial decisions.
I am not a financial planner. I have zero background or formal education in finance. There is a lot about the financial world that I don’t understand. Do I consider myself to be financially literate? 100%. Because here is the deal – finance bros make money seem more complicated than it needs to be. This is the patriarchy at work, and it is total BS. Becoming financially literate does not need to be overly complicated; it is a skill set all women should have. Let’s explore the steps to becoming financially savvy.
Before we get started… recognize the disadvantage
Women start at a disadvantage. We just do. Glass ceilings, wage gaps, and unpaid maternity leave. The list goes on and on. No need to wallow in it. Just acknowledge it, allow yourself to feel annoyed by it, and then work to overcome it.
Talk about money!
If you know me, you know I love to talk about money. There isn’t a money question that you could ask that would offend me. Rather than feeling like money talk is taboo, women need to be talking money with their girlfriends all the time. Share your knowledge and experience with any woman that will listen. Talk about salary, talk about investing, talk about saving, talk about budgeting, shop woman-owned businesses. NORMALIZE MONEY TALK!
Understand your credit score
Your credit score is a number used to represent your creditworthiness to banks. A healthy credit score helps you unlock low rates on car loans, a lease for a new apartment, and good credit card offers for travel hacking. If your credit score is low, there are ways to improve it. If it’s strong (yay you!), be sure to maintain it.
Create a budget
A budget will help you understand how much you have coming in and how much you have going out every month. It will also help you gauge spending when you are working on a credit card bonus for reward travel.
Build an emergency fund
An emergency fund allows you to stop worrying so much about money. You can cover minor emergencies with cash rather than using high-interest credit cards. It allows you the freedom to walk away from a toxic job or relationship. This peace of mind is priceless.
Pay off debt
Make a list of all of your debts. Figure out the interest rates you are paying. This is painful, I know. But you have to do it. Once you have your list, you will start chipping away at these, one by one.
Start investing
Keep it simple! There is no need for analysis paralysis. Investing for retirement doesn’t need to be complicated. The longer you are out of the market, the longer you’ll have to work (ew). So the most important thing is that you get started now!
TL;DR
Financial literacy is a powerful tool for women to take control of their money, overcome gender-based economic disparities, and achieve long-term security. Being financially literate helps women break barriers, make informed decisions, and establish a solid foundation for economic empowerment. It’s the ultimate boss feminist move! 💪
