Financial literacy for women and the role of financial education: an exploratory study of promising practices

Abstract

Financial literacy involves learning to be an informed and effective financial decision maker, requiring adaptable skills that can adjust to age, health, income, wealth, needs, and personal goals. Financial education can provide financial knowledge which can inform financial literacy. Research shows that women test as less financially literate than men (Prast & van Soest, 2016). As women control the majority of wealth and make the majority of financial decisions, this study explored the financial advisors’ and financial services companies’ practice of providing financial education to women. The stakeholders of focus were financial advisors who had client facing practices where financial education for women was a part of their business model. The purpose of this study was to explore the knowledge, motivation, and organizational influences that impact financial advisors’ ability to provide financial educational programing to female clients. The study explored the professional practices of financial advisors to determine how client access to financial education best fit into their business models, and if there was ongoing engagement in financial education by female clients. The study also explored the impact of organizational support from financial services companies for financial education for women. The study methodology was qualitative and consisted of interviews with financial advisors, interviews with financial services executive leadership, and analysis of relevant artifacts and documents. The study culminated with recommendations to support financial advisors in their practice of delivering financial education to women with the goal of improving their financial literacy, illuminating the role of private sector financial services providers.