The importance of financial literacy for women
By Nova Kane 11 March 2019 2 min read
Women today are more financially savvy
More women today are realizing the importance of being financially literate. They also feel more empowered to control their own, or their family’s, finances.
“I see the world changing, and women are a lot more financially savvy compared to previous generations," says Nova Kane, Senior Financial Advisor with ATB Securities Inc. “We’re still mothers and wives, but now we’re also career-driven leaders in the workplace.”
Nova is passionate about helping women become more financially savvy because she believes that having competence in finance, including investment knowledge, can help set women up for a secure financial future.
“Financial literacy is empowering—and necessary. It’s one of those life skills you want to learn early.”
Managing the family finances
After almost 30 years in the financial services industry, Nova has noticed in her work with mature clients that men often take on the role of managing the family finances. She’s now seeing a shift away from this common theme; however, it does provide a learning opportunity for younger generations.
“Some women didn’t have the time to learn about what was going on with the family finances, or they didn’t take an active role in it,” says Kane. “Then when they’re on their own, their lack of financial knowledge holds them back.”
This is just one reason why Nova encourages women to gain financial knowledge early in life. “It’s crucial in the event that a woman suddenly has to take on financial responsibilities on her own, possibly due to death of a spouse or divorce,” she explains. Practical experience with managing finances provides women with a foundation for growing wealth and financial security no matter what their future holds.
Women and investing
“In terms of skill, women are better investors than men on average,” according to the research of finance author Dr. Daniel Crosby. ”Women, on average, exhibit better behavior and higher returns.”
These findings were attributed to the ways in which women approach investing, such as women conducting more research before buying trending investments, not waiting too long to sell winning investments and not holding losing investments too long.
With these types of results, there’s no question as to why women are becoming more involved in their finances and more interested in having a better-than-basic level of financial literacy.
Women bring their own unique perspective and voice to the world of finance, and as this voice and skill becomes more prevalent, everyone will continue to benefit from the conversation.
We’re here to listen
There are many experienced and knowledgeable financial advisors who bring an approachable like-mindedness and expertise to women seeking advice.
Whether you’re a first-time investor, or a savvy family money manager, it’s always a good idea to seek professional advice when creating a personalized plan to achieve your goals. It's the job of the advisor to help you manage your emotions and make informed decisions, regardless of your gender or attitude towards money.