Several studies have shown that females tend to display lower scores than males on measures of personal financial literacy. The study by Chen and Volpe (2002) reveals that gender differences in financial literacy remain statistically significant.
Chen and Volpe (2002) also maintained that the impact of financial education on financial literacy was greater for females than for males, as females’ literacy was more likely to be improved by studying business-related courses than males’. Similar results were also found by Becchetti and colleagues (2011) in a study carried out in Italy of adolescents exposed to a financial education program. This trend was named “financial learning convergence”, since the effect of the program is stronger in subgroups with lower ex-ante financial literacy.
Thus, it is important to intervene in order to prevent these gender differences from turning into inequalities in adult life, through specific financial education programs which help girls develop higher self-confidence in managing money (Hira & Mugenda, 2007). These programs also contribute significantly to improving perceived financial self-efficacy (Sanders, Weaver & Schnabel, 2007). As money is a key resource of Girl’s empowerment in adult life, it’s recommended that educational policies more openly address the issue of financial literacy and money attitudes in school programs, in order to ensure that both boys and girls are better equipped to face social challenges in their later adult life
Either for boys or girls one of the best ways to teach your kids about money and good financial discipline is to get children used to reading books that teach valuable money lessons – and remember Money Doesn’t Grow On Trees.
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