Why This Conversation Matters
March is Women’s History Month, a time to celebrate progress and reflect on the challenges that remain. One area where women still face hurdles is financial confidence.
The confidence gap in financial literacy refers to the disconnect between what people know about money and how confident they feel making financial decisions.
Studies show that even when women manage household budgets, pay bills, and make financial decisions daily, they often feel less confident about long-term planning, investing, or negotiating salaries. This isn’t about ability, it’s about access, history, and how financial education has traditionally been approached.
A Look Back: How History Shaped Women’s Financial Confidence
For much of history, women played a central role in managing household finances but had limited legal or social access to more significant financial decisions.
- Credit and banking were restricted. Until the 1970s, women in the U.S. often needed a male co-signer to open a credit card or take out a loan.
- Financial education was limited. Traditional financial advice for women focused on saving and budgeting, while men were often encouraged to invest and build wealth.
- Long-term financial planning wasn’t a priority. Since women historically weren’t expected to be primary earners or wealth builders, topics like investing and retirement planning were often overlooked in financial education for women.
Today, women have full financial independence, yet the effects of these past restrictions still linger. Many women were raised hearing messages emphasizing being careful with money rather than taking control of it. This hesitation can make long-term financial decisions feel intimidating even when women already have the skills they need to succeed.
How to Close the Confidence Gap
Financial confidence isn’t something you’re born with, it’s something you build. Here’s how to start:
Recognize Your Financial Wins.
If you’ve ever set a budget, saved for a goal, or paid down debt, you already have financial skills. Confidence grows when you acknowledge what you’re doing right instead of focusing on what you don’t know yet.
Shift from Just Saving to Also Growing.
Saving is important, but long-term financial security comes from growing your money. Whether that means investing, negotiating a higher salary, or building a side income, taking small steps toward financial growth builds confidence over time.
Adopt a ‘Learn As You Go’ Mindset.
You don’t have to know everything about money to start making smart decisions. Financial knowledge isn’t a finish line, it’s a lifelong skill that grows with experience. Make it a habit to learn something new each month, whether it’s reading about investing, taking a financial workshop, or having conversations about money with people you trust.
Find a Financial Mentor or Community.
Confidence builds when you surround yourself with people who support financial growth. Seek out books, blogs, podcasts, or communities focusing on financial education. Talking about money openly helps break down the fear of making mistakes and reinforces that financial literacy is for everyone.
Final Thoughts
Women have overcome generations of financial barriers, and today, they are building wealth, running businesses, and shaping financial conversations more than ever before. The key to closing the confidence gap isn’t about knowing everything, it’s about trusting yourself to make informed decisions and taking action, one step at a time.
Your financial journey is yours to own. Every choice you make, from saving a little extra each month to negotiating your worth, is a step toward greater financial confidence. Keep learning, keep building, and know that you belong in this space.
