The Importance of Women Reading and Discussing Personal Finance Books

Financial literacy is more important than ever, the gap between men and women in financial knowledge and empowerment is more like a chasm and even worse if you are a woman of color. Yes, some progress has been made, over the past 50 years or so but is it enough?? Nope!?

Since empowering ourselves through financial literacy is not something taught in schools or in most homes, we have to take matters into our own hands. But sometimes you just don’t know what you don’t know. One of my favorite tools to close this gap is by reading books about personal finance and engaging in discussions about them with other women. This practice not only enhances my financial knowledge but also builds a supportive community that can drive change. Women can be both mentees and mentors.?

Financial Literacy: A Gendered Gap

The lack of equality between genders and races concerning financial literacy should piss you off! According to a 2021 study by FINRA, only 32% of women could correctly answer at least four out of five financial literacy questions, compared to 47% of men. This is concerning because financial literacy is closely linked to financial security, especially in making informed decisions about savings, investments, and retirement.?

The Unique Financial Challenges Women Face

Women often encounter distinct financial challenges that make financial literacy even more crucial. For instance, women generally earn less than men; according to the U.S. Bureau of Labor Statistics, in 2023, women earned only 82 cents for every dollar earned by men. This wage gap, combined with longer life expectancies and career breaks often taken for caregiving, means that women must be particularly savvy about managing their finances. Let’s also not forget about the role money can play in providing safety for a woman. The ability to leave an abusive situation or provide a habitable and clean home is immeasurable.?

The Power of Reading and Discussion

Reading personal finance books is an effective way to gain knowledge. Books like "Rich AF" by Vivian Tu and "Financial Feminist" by Tori Dunlap provide practical advice tailored to women's unique financial needs. However, reading alone is not enough. Discussing these books with other women can deepen their impact.

Why Discussion Matters

Discussing personal finance books with other women creates a space for shared learning and mutual support. Research shows that social support and peer discussions can significantly enhance financial knowledge and confidence. A study by the Global Financial Literacy Excellence Center (GFLEC) found that women who engage in financial discussions are more likely to take control of their finances and feel more confident in making financial decisions.

These discussions also help break down the stigma around money talk, which is still prevalent in many cultures. By normalizing conversations about money, women can empower each other to ask questions, share experiences, and collectively seek solutions to common financial challenges.

Building a Community of Financially Savvy Women

Creating or joining a book club focused on personal finance can be a game-changer. It provides a structured way to explore different aspects of financial literacy, from budgeting to investing to retirement planning. It can also create a sense of community, where women can share not just knowledge but also encouragement and accountability.

In a survey conducted by Fidelity, 92% of women said they want to learn more about financial planning, yet 80% of women say they have refrained from talking about money with people they are close to. This highlights the need for safe, supportive environments where women can openly discuss and learn about finances.

If you aren’t sure where to start I’m happy to send you some book recommendations and resources on where you can get free or cheap books, ebooks, and audiobooks. Just DM me!??

References:

1. FINRA Investor Education Foundation. (2021). "Financial Capability in the United States 2021."
2. U.S. Bureau of Labor Statistics. (2023). "Highlights of Women's Earnings in 2023."
3. Global Financial Literacy Excellence Center (GFLEC). (2022). "Gender and Financial Literacy: A Global Perspective."
4. Fidelity Investments. (2022). "Women and Money: Bridging the Confidence Gap."