Financial literacy should be taught early; nearly 20% of survey respondents say they didn’t learn financial responsibility from parents
Foster City, CA – June 2, 2021 – Women report drawing the short stick when it comes to early education on managing finances. A new in-depth study from credit card ratings leader CardRatings.com explores the real world impact of the financial literacy gender gap, revealing women respondents were taught far less than their male counterparts. But female respondents who are parents are working to change that trajectory for the next generation. Male parents? Not so much.
In the newly-released study, the Gender Gap in Financial Literacy, experts analyze survey results to explain the lingering disparity in financial literacy.
CardRatings asked 800 Americans about financial education experiences, including how their parents/caregivers addressed the topic with them. The survey then asked respondents how they are approaching the topic with their own children.
“Women are trying to close the financial literacy gap with their own children,” observes Brooklyn Lowery, CardRatings’ editorial director. “Men are trailing behind in this area, and it’s concerning. It’s important to get an early start on financial literacy education—the gift that keeps on giving.”
Early education, according to survey findings, makes an impact on whether respondents feel adequately equipped to deal with the financial aspects of life. While men have made strides in teaching financial literacy to their children, they remain more likely to leave their girls out of the conversation.
When asked at what age their parents began discussing financial responsibility, responses run the gamut:
- Under 10: 16%
- Ages 11-15: 32%
- Ages 16-18: 21%
- Ages 18-22: 9%
- Ages 23 and older: 4%
- Never: 18%
While more women of today’s generation are teaching both boys and girls financial matters at appropriate ages, a divide between how male and female children are educated on the topic persists.
“The results shine a light on the fact that while more kids are being educated about money overall, there’s comparatively an increased likelihood that girls are missing out on this critical information,” continues Lowery, “In fact, male respondents are three times more likely to neglect the financial education of their female children.”
Other noteworthy findings:
- More than half of the adults who were educated about finances before age 16 say they are happy with how it was handled
- Fourteen percent (14%) of adults whose parents or caregivers never addressed money matters give themselves low marks on financially responsibility
- Data indicates early financial education at home correlates to fiscally responsible adults
- Survey data suggests that a child’s age makes a difference when teaching finances
This report shares important guidelines for teaching kids about money, including: setting a good example; letting kids learn by doing; and keeping lessons age-appropriate.
“It’s likely going to be beneficial to teach your child financial responsibility long before he or she is applying for their first credit card in college,” quips Lowery.
CardRatings.com designed a survey dealing with a range of financial topics that was administered by Op4G in March of 2021. A total of 800 people were polled, including 411 women, 386 men and 3 people who describe their gender as non-binary.
CardRatings.com is owned and operated by QuinStreet, Inc. (Nasdaq: QNST), a leader in providing performance marketplace technologies and services to the financial services and home services industries. QuinStreet is a pioneer in delivering online marketplace solutions to match searchers with brands in digital media. The company is committed to providing consumers with the information and tools they need to research, find and select the products and brands that meet their needs. CardRatings is a member of QuinStreet’s expert research and publishing division.
CardRatings.com innovated online credit card ratings and has been offering independent ratings and reviews of credit card offers since 1998. The website collects and maintains data on more than 700 credit card offers and carefully compiles objective lists of the top credit cards by card type, making it easy for consumers to find the right card to fit their needs. Sign up for the bimonthly newsletter here.
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