This Month Only! >> $20 off and a FREE SHRM tote with your membership and code TOTE2018!
Sign up for free email newsletters and get more SHRM content delivered to your inbox.
Is your employee handbook keeping up with the changing world of work? With SHRM's Employee Handbook Builder get peace of mind that your handbook is up-to-date.
Build competencies, establish credibility and advance your career—while earning PDCs—at SHRM Seminars in 12 cities across the U.S. this spring.
#SHRM18 will expand your perspective – on your organization, on your career, and on the way you approach HR. Join us in Chicago June 17-20, 2018
Women still lag men in financial knowledge and confidence
Members may download one copy of our sample forms and templates for your personal use within your organization. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organization’s culture, industry, and practices. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRM’s permission. To request permission for specific items, click on the “reuse permissions” button on the page where you find the item.
Women are still significantly behind men in their knowledge and confidence in virtually all areas of finance, despite the fact that the gap has narrowed since 2010, according to
a report by Financial Finesse, a provider of workplace financial education.
Among the report’s findings:
The findings are disconcerting because women generally face more obstacles than men in meeting long-term goals and income needs in retirement, said Liz Davidson, CEO and founder of Financial Finesse.
“Women face more financial obstacles than men do," noted Davidson. "They earn less on average than men but have significantly longer retirements due to the fact that women live an average of five years longer than men. They also face higher health care costs throughout their lives. To overcome these obstacles, they should be saving more than men and investing their savings more aggressively to get a strong long-term return that will sufficiently grow their portfolios. Instead, we see the opposite happening, and this could put women in a dangerous position of not being able to meet their financial needs later in life.”
To rectify this problem, women need to “educate themselves and make their finances a priority,” Davidson said. The good news, she pointed out, is that there are signs that women are taking this message to heart. In the first quarter of 2011, the gender gap began to narrow across all demographic groups, with women under 30 showing the most improvement.
In addition, Davidson noted that women are twice as likely to use workplace financial education services as men and that they are more likely to make changes as a result of the education they receive. "There are numerous studies showing that when they are educated about finances, women actually tend to outperform men in their investing because they tend to trade less, incurring lower fees and taxes," Davidson said.
“This problem can be solved,” she concluded. “We’ve seen firsthand the impact of financial education on women and how well suited women are at taking an active financial role in their households. All the pieces of the puzzle are there. Now it’s just a matter of putting them together.”
• Sign up for SHRM’s free
Compensation & Benefits e-newsletter
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Please sign in as a SHRM member before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
CA Resources at Your Fingertips
SHRM’s HR Vendor Directory contains over 10,000 companies