Why You Need Strong Financial Literacy Skills

Being a woman is a wonderful thing. We are able to create life, which is something our male counterparts will never be able to do. Above and beyond child bearing, in more recent years, women have started to actively pursue positions in the workforce, both out of necessity, and desire to pursue a meaningful career.

Women have fought their way into management roles, and while the workforce has started to even out, by no means is it perfect. There are still large discrepancies between men and women. Many will complain that women are just making a fuss and that equality between genders has been achieved… but that simply isn’t the case.

It is more expensive to be a woman, that’s a fact.

Companies know that women, on average, use more beauty and hygienic products than men. These items, such as shampoo and deodorant, cost about 30% more for women than men. This ends up costing women about $1400 more per year on gendered beauty products. In total women spend $426 billion more per year on beauty products than their male counterparts.

If that doesn’t convince you, taxes, such as tariffs, are higher on women’s products than on men’s.

For example, men’s sneakers are taxed at about 8.5%, while women’s come in at around 10%. Clearly, companies know that women are purchasing more, or are the main shoppers, in the household and are increasing prices and taxes accordingly. Insurance is another huge cost that women end up paying more for. Women shell out $1 billion more than men do for the same coverage.

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Women not only pay more for products and insurance, they also make less money.

The gender gap has been closing over the years but there is currently a discrepancy of about 82 cents to the dollar when comparing women’s wages to men’s. Women also typically take time off to raise children, which is forgone salary, and in total this ends up costing a women about $431,000 in missed pay over a 40-year career.

Above and beyond the added costs, women also live longer than their partners by about five years, which means women need to save about $200,000 more than men do for retirement (with an average spending of $3500 a month during retirement). In total, over a woman’s lifetime with forgone salary and increased costs, a woman will end up paying $849,000 more than men do to live their life.

All of the above identify why it is imperative that women learn strong financial literacy skills so that they can properly manage their money. Women with low financial literacy tend to carry a balance on their credit card, make only the minimum payment, and pay late fees, all of which are completely unnecessary but occur due to a lack of knowledge.

Her Success is a not-for-profit organization created to help women sharpen their financial literacy skills. Her Success is a group of young women committed to building their own financial literacy skills and becoming empowered to help others build theirs as well. Her Success hopes to build an online community to empower women to become successful with their finances and their future.

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Her Success President, Lauren Hennig, says:

“What’s most important, in my mind, is that women start talking about these issues. Through starting a dialogue and raising a consciousness around our current realities, we become more powerful. We can take actions aligned with our goals, and support other women to do the same. There is no reason why one woman’s success can not extend to all of those touched by her influence. Together with collective ambition, we can achieve collective success.”

For more information on Her Success and upcoming event details please visit the Her Success website or connect with them on Twitter at @HerSuccessEd.