Do you know what FICO, asset allocation and capital gains mean? Better yet, do you know what they have to do with your own finances? If you didn’t study economics or finance in college, then there’s a good chance that these terms are unfamiliar to you. Yet, gaining a good grasp of key financial terms is the foundation for smarter financial decisions and a lifetime of building wealth for women.
It’s in women’s own best interests to take financial literacy seriously. Seventy-five percent of women will be single by the age of 75. Women live longer than men and will need a bigger nest egg to sustain more years spent in retirement. Yet, women continue to score lower than men in financial literacy tests. In fact, more than 80 percent of women between the ages of 60 and 75 failed a 2017 Retirement Income Literacy Quiz.
In another study by Allianz Life, more than 50 percent of women surveyed said that they are the chief financial officer of their households and have the primary responsibility for managing their family’s savings and investing. While they reported that they felt more financially savvy, 63 percent said that they wished they knew more about financial planning and investing.
When you consider the primary mission of Her Wealth® — to empower women with the financial confidence and resources to take control of their money and wealth — then you know that financial literacy is the cornerstone of what it does. Her Wealth® works with women every day to help them re-engage with their finances so that they have more financial security and confidence.
As they say, knowledge is power, and in the case of financial literacy, knowledge is literally money! Financial literacy failure rate can’t change overnight, but women can begin to beef up their vocabulary and general knowledge with a quick lesson on financial terms everyone should know.
A good place to start is with these 20 wealth-building terms. Financial jargon is difficult to understand, so here are some translated them into more user-friendly language.