This week was Financial Literacy Day. The headline? In Spain, it's low compared to other European countries, especially the Nordic countries. Financial literacy is measured based on knowledge of three key concepts: compound interest, inflation, and risk diversification. It's not just about knowing how to define them, but also knowing how to incorporate them into everyday decisions. People who are familiar with these concepts tend to have an emergency fund, save more for retirement, and make better decisions.
However, gender differences are rarely explored in depth. Scouring the research, an analysis The 2016 financial knowledge survey in Spain stated that married women had less knowledge than single women. However, among single men and women, knowledge was the same. And no, I can't help but recall the statement of a prominent woman in a court case: "My husband takes care of that." This study was almost ten years ago. Is it possible that financial responsibilities are still delegated to men?
Well, it seems so. And the reason lies in a cultural tradition of joint financial management as opposed to individualized management. Another study, published last year, calculates the probability that a woman, within a heterosexual couple, has an individual bank account in her name, based on the premise that such an account lays the foundation for independent financial management. The probability of having an individual account decreases when: neither member of the couple values the importance of financial autonomy, if they are married (as opposed to being in a civil partnership), if the couple has children, if the man earns more than the woman, and if the couple does not have a university degree.
This leaves women in a situation of financial dependence, which can be detrimental if conflicts arise or a divorce is necessary. It also widens the economic gap beyond their working lives, partly as a result of lower wages, which also affects any private savings they may have managed throughout their lives. This is confirmed by a report published by ClosinGap and the Mapfre Foundation.
Although women are gaining ground as investors, stereotypes persist. Women, if they can, generate long-term savings and low-risk investments. Men take on greater risks. The fact that finance is masculinized is also evident at the professional level, where women tend to occupy positions related to human resources or communications, while corporate finance is dominated by men. Investment forums in capital markets have a male voice.
The economic empowerment of women also involves finances, starting with always maintaining autonomy with an individual checking account and a pension plan, and possibly continuing with investments in stocks, ETFs and even becoming cryptosisters, if we so decide.
