Now more than ever, women need Galentine's Day — not just as a celebration of friendship, but as an important reminder about the importance of financial knowledge.
Financial literacy is an essential issue for women. Numerous studies indicate that living without financial awareness leaves women particularly vulnerable regardless of marital status. Low financial literacy can result in poor financial resiliency.
The 2024 TIAA Institute-GFLEC Personal Finance Index found that, on average, U.S. women correctly answered only 43% of financial literacy questions. Minority groups, including African-American and Hispanic women, scored even lower, while men, on average, answered 53% of the questions correctly. This gap in financial literacy doesn't just reflect a lack of knowledge — it often manifests as a lack of confidence in financial decision-making.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The financial gender confidence gap
A recent BNY Mellon study underscores the lack of literacy and confidence connection. The study found that only 1 in 10 women globally feel they fully understand investing, and just 28% feel confident managing their investments.
Many women, even those who are highly successful in their careers, have been conditioned to believe that investing and wealth-building are complex, risky or best left to someone else. As a result, they may defer major financial decisions to their spouses, family members or financial advisers, instead of fully owning their financial future.
Women's hesitation to fully lean into investing can have serious financial consequences, potentially causing them to miss out on stock and bond market growth. Growing your savings is especially important for women because we live longer than men and must stretch our savings further. Relying on savings alone will not keep pace with inflation or rising living costs, making investing in the market a must for a secure financial future.
How women can empower one another financially
Women can close the financial confidence gap by having open financial discussions, leaning into financial education and supporting one another. Here are some ways to extend the Galentine's Day spirit to financial empowerment.
1. Normalize money conversations among women
Women often shy away from financial discussions due to societal taboos around money talk. However, discussing salaries, investments and financial goals openly can help break the cycle of silence and create a culture of empowerment. Hosting regular "money meetups" or Galentine's finance brunches, where friends discuss investment strategies, savings goals and financial wins can make these conversations more approachable and routine.
2. Encourage financial education and literacy
Many women lack financial confidence simply because they have not had the opportunity to learn about investing and wealth-building. Be sure to share your favorite books, online courses and podcasts focused on personal finance.
3. Hold one another accountable for financial goals
Just as women support one another in fitness or career goals, they can also create a network of accountability partners for financial growth. Setting up a financial mastermind group, where members meet quarterly to discuss budgeting, investments and all things finance, can be a game-changer in keeping your money confidence and knowledge moving forward.
Final thoughts
Women are starting businesses at record rates, earning more college degrees than ever before and leading in industries once dominated by men. While these achievements are worth celebrating, there is still one major frontier left to conquer — financial literacy and investing confidence.
By making money conversations normal, frequent and empowering, women can rewrite their money narrative. So, this Galentine's Day, let’s raise our glasses, not just to friendships, but to financial freedom, investment confidence and collective wealth-building.
Related Content
- Empowering Widows: Five Goals for Financial Security in 2025
- Women, What Is Your Net Worth?
- Forget ‘Girl Math’: Handle Your Money Like a Woman
- Does Financial Fear Have You Spooked? Don’t Cower — Fight
- Women Kick Men's Butts When It Comes to Investing
-
Dow Adds 646 Points, Hits New Highs: Stock Market TodayIt was "boom" for the Dow but "bust" for the Nasdaq following a December Fed meeting that was less hawkish than expected.
-
5 Types of Gifts the IRS Won’t Tax: Even If They’re BigGift Tax Several categories of gifts don’t count toward annual gift tax limits. Here's what you need to know.
-
The 'Scrooge' Strategy: How to Turn Your Old Junk Into a Tax DeductionTax Deductions We break down the IRS rules for non-cash charitable contributions. Plus, here's a handy checklist before you donate to charity this year.
-
Dow Adds 646 Points, Hits New Highs: Stock Market Today
It was "boom" for the Dow but "bust" for the Nasdaq following a December Fed meeting that was less hawkish than expected.
-
I'm a Tax Attorney: These Are the Year-End Tax Moves You Can't Afford to MissDon't miss out on this prime time to maximize contributions to your retirement accounts, do Roth conversions and capture investment gains.
-
I'm an Investment Adviser: This Is the Tax Diversification Strategy You Need for Your Retirement IncomeSpreading savings across three "tax buckets" — pretax, Roth and taxable — can help give retirees the flexibility to control when and how much taxes they pay.
-
Dow Rises 497 Points on December Rate Cut: Stock Market TodayThe basic questions for market participants and policymakers remain the same after a widely expected Fed rate cut.
-
The Top 22 Gifts for Grandkids from Walmart in 2025From PlayStation to Labubu, you'll find the hottest gifts of 2025 for your grandkids at Walmart this year. Some of them are up to 78% off.
-
Could an Annuity Be Your Retirement Safety Net? 4 Key ConsiderationsMore people are considering annuities to achieve tax-deferred growth and guaranteed income, but deciding if they are right for you depends on these key factors.
-
I'm a Financial Pro: Older Taxpayers Really Won't Want to Miss Out on This Hefty (Temporary) Tax BreakIf you're age 65 or older, you can claim a "bonus" tax deduction of up to $6,000 through 2028 that can be stacked on top of other deductions.
-
JPMorgan's Drop Drags on the Dow: Stock Market TodaySmall-cap stocks outperformed Tuesday on expectations that the Fed will cut interest rates on Wednesday.
