Financial Literacy Test: Where Do You Stand with Financial Wellness?

Article Summary

• Throughout their lives, women face a number of changes that lead to financial questions. Many women choose to find an expert financial advisor to guide them through those milestones in an informed way.
• Some of the life changes that influence finances for women include salary inequities, career hiatus for child rearing, caregiving, and an average lifespan that is longer than that of men.
• Women actually aren’t worse with financial issues than men, but many times they believe they are because financial literacy wasn’t prioritized for them. Support and awareness build confidence for women who find finances intimidating.

Women have a tendency to sell themselves short when it comes to their knowledge and comfort level with financial issues. There are a number of reasons why this happens, including the fact that financial literacy, historically speaking, has not been prioritized for women.

Over the course of generations, the value of financial literacy for women has taken a backseat. Women may be surprised to find that many already have a strong foundation for making informed financial decisions. It truly comes down to awareness, confidence and support. Svvy® provides access to financial experts and educational blog resources to support financial decision-making.

Take A Financial Literacy Quiz

Personal finance for women looks different from what it does for men. Women are forced to navigate seasons of life that present more complex financial situations. From gender pay gaps and career breaks for child rearing to middle-aged caregiving duties, caregiving for a spouse later in life and other unexpected life transitions, women are prone to experiencing several life moments that have financial implications.

But despite career interruptions and persistent wage inequality, women continue to make gains in a financial system that wasn’t built with them in mind. Financial intimidation is often linked to confidence and familiarity; many women find that education and the right support system can help. It goes without saying that women know more than they think they do about finances, as they practice financial habits that support their goals every day, sometimes without even realizing it.

For women who want to get better visibility into their financial awareness, here is a three-question quiz. Don’t worry, answers are included at the end of this blog.

• True or False: The quality of life diminishes more substantially for women than it does for men after a divorce.
• Which statement best describes the difference between risk tolerance and risk capacity?
  • Risk tolerance is based on age, while risk capacity is based on income.
  • Risk tolerance reflects emotional comfort with risk, while risk capacity reflects financial ability to take risk.
  • Risk tolerance applies only before retirement, while risk capacity applies after retirement.
  • Risk tolerance and risk capacity mean the same thing.
  • Why is the “Great Wealth Transfer” especially important for women to understand?
  • Women are increasingly managing inherited and transferred assets
  • Different assets come with different tax implications
  • Major wealth transfers often follow emotional life events
  • All of the above

  

  Financial Empowerment For Women

  Every woman knows that life throws its fair share of curveballs, and many of those curveballs have financial implications that come with them. To navigate uncertainties, many women choose to work with a trusted financial expert who can offer individualized guidance on the best paths forward, given the circumstance.

  Svvy® was created by women for women with the goal of creating a safe space for females to learn and get matched with female-vetted financial professionals. If you are looking for the expertise of a financial advisor who specializes in working with women facing life changes and their financial implications, Svvy® helps connect you with financial experts based on the information you choose to share. The free Svvy® match quiz, available on our website, is the first step in the process.

  If you would like to be connected with a female-vetted expert, learn more about Svvy’s matching process, or want to decide whether speaking with a financial professional is right for you, get matched with a Svvy® expert today.

  Disclosure: This content is provided for general educational purposes only and does not constitute individualized investment, legal, or tax advice. Svvy® acts solely as a solicitor and connects and matches individuals with independent third-party financial professionals through a quiz-based matching process on the Svvy® Network. Matching is based on information provided through Svvy’s platform and does not constitute any advice. Any advice, recommendations, and services are provided only by the independent professional you choose to engage.

  Financial Literacy Quiz Answers
  Answer: True. Some studies have indicated that the standard of living, tied directly to finances, diminishes by an estimated 27% for women following a divorce. Men experience a 10% increase on average.
  Answer: B. Financial priorities and planning considerations often evolve with goals and life changes.
  Answer: D. The Great Wealth Transfer is moving trillions of dollars to women, often during major life transitions like widowhood or divorce.