Understanding the ins and outs of finances and feeling confident about our financial decisions is a positive, empowering foundation for women to stand on. Educating women early in life can make all the difference, as women begin making choices in their teens and early twenties about how we spend money, who we trust with our financial information, navigating college loans, and the way we save or invest.
How early should we start educating young women about money early?
You might be surprised to learn that our understanding of money and our money habits actually start much earlier than our teens. According to a study by David Whitebread and Sue Bingham of the University of Cambridge, our early experiences with money have an impact that lasts throughout the rest of our lives. Research shows children understand the basic concept of money by age three, and their habits with money are developed by age seven.
How does a better understanding of money help to empower women?
Financial insecurity plays a key factor in why women have trouble leaving abusive relationships–or why they return to them. A recent report from SSRN (the Social Science Research Network) released findings stating: “...improvements in women's financial literacy can significantly reduce the rates of violence against women perpetrated by their male partners. We conservatively estimate a reduction in violence between 3% and 11%. Our evidence points to financial literacy deterring financial abuse, thereby empowering women to leave abusive relationships earlier or preventing the first incident from ever occurring.”
An American College of Financial Services literacy study of men and women found that while 35% of men passed a quiz on retirement income literacy, only 18% of women passed the same test.
Women who are educated and competent when it comes to money are able to be more secure and independent, not only in relationships but in life. Aside from incidents of abuse due to financial dependence or a lack of confidence, financial literacy helps women to avoid significant credit card debt, difficulty with student loans, and other financial stress.
Financial education at a younger age sets women on a path to success
Starting young, at a basic level, financial education focuses on the basic concept of money and how to manage it well, including saving, intelligent spending, and making the most of the resources we have.
These skills are a foundation for girls and young women to build on as they navigate the transition into independent roles and financial responsibility. Moving forward with this knowledge and skill set, young women are better positioned to build their own resources, balance their budget, remain financially independent, and plan confidently and stably for the future as financially literate individuals.
Financial education at ECHO 4 Us Foundation
ECHO is a community-based educational program designed to empower girls and young women ages 8 to 25. At ECHO, we provide classes and workshops led by experts, giving women a meaningful head start in a wide range of real-world topics, including personal finances. Our goal is to turn girls into empowered individuals who thrive emotionally, mentally, and physically. Please call today to find out more about financial classes at ECHO.
