Financial literacy is a crucial skill for people who want to adequately prepare for retirement, but men, and especially women, are falling behind in this critical area. The Wall Street Journal noted that a lack of financial literacy among women may be more detrimental than the knowledge gap for men, because they tend to live longer than men, and may be disproportionately affected by a lack of retirement planning.
According to a survey from the Global Financial Literacy Excellence Center, the financial literacy gap emerges early in life, and results in problems over time. Both men and women exhibit a lack of financial knowledge early in life, but women are generally less knowledgeable and fail to catch up as they age. That means even monetarily successful women may be saddled with a lack of financial knowledge. Financial professionals must target these women specifically, as expert financial advice can demonstrably improve women’s fiscal standing.
Financial professionals provide confidence
Prudential found that women who have a financial professional are twice as likely to feel ahead or “on the right track.” That demonstrates the power that a professional can have. Women who work with financial professionals have more in savings than those who do not and feel better about their financial situation. Financial professionals can forge relationships with these clients by using the Internet as an educational tool that creates a trusting relationship.
Social media and education
Women’s lack of financial confidence and knowledge is rooted in a lack of financial education that begins early in life and modern technology and marketing tools can close the gap and bring more business to financial professionals. By crafting an online presence that is rooted in client education, financial professionals can help women gain the financial literacy they may lack and can establish themselves as experts in the field.
Online services allow more people to access a financial professional’s content, which can lead to more referrals. Over time, financial professionals can earn potential clients’ trust by providing valued information. When the women who interact with these professionals online need a financial professional, they will turn to voices they already trust and believe in.
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- Robert W. Finnegan, J.D., CLU®, Published in Trusts & Estates Magazine - June 6, 2018