Midlife Money: The Importance of Financial Literacy

Midlife Money: The Importance of Financial Literacy
By Vix Munro – Our Money & Wealth Expert

There’s a lot of hype about financial freedom. But did you know that financial literacy is the first step to towards achieving financial freedom.
Financial literacy provides people with the knowledge, skills and understanding necessary to make informed decisions about their personal finances, which in turn helps them build wealth.

Numerous studies have explored the correlation between financial literacy and (i) financial wellbeing; and (ii) wealth, revealing a strong link between them.

People who are financially literate are more empowered to make informed decisions, establish strong financial foundations, plan for the future, and build wealth.

Financial literacy is more important than ever before as the financial demands on us are increasing. Traditionally we could rely on the government/state to fund our retirement but that has now become our responsibility. And there’s now so many different financial products that it can overwhelming to have to choose one.

Financial literacy is particularly important for midlife women for a number of reasons:

1.Changing life circumstances:

Midlife is often a phase of significant life transitions for women. They may experience changes such as career shifts, divorce, widowhood, caring for aging parents or becoming empty nesters.

Each of these transitions can have substantial financial implications. Financial literacy equips midlife women with the knowledge and skills to navigate these changes effectively, make informed decisions and safeguard their financial well-being.

2.Retirement planning:

Midlife is a crucial time for retirement planning.  Women often, due to other commitments, don’t start thinking about this until they reach midlife.  Yet, it’s more important for women than men due to longer life expectancy and the negative impact of the gender pay gap and career interruptions (due to caregiving responsibilities) on retirement savings.

Financial literacy helps midlife women understand retirement options, investment strategies and the importance of planning to ensure a secure and comfortable retirement.

3.Long-term financial security:

As midlife women approach later stages in life, financial security becomes paramount. Financial literacy allows them to assess their financial situation, identify potential risks, and implement strategies to safeguard their assets and future.

4.Breaking financial stereotypes:

Historically, women have faced societal biases and stereotypes when it comes to financial matters. And many women in heterosexual relationships have left management of the finances to their male partner.

Financial literacy provides midlife women with the knowledge and confidence to challenge and overcome these stereotypes. It empowers them to engage actively in financial discussions, negotiate better terms, and assert their financial interests.

5.Role Model to Younger Generations:

Midlife women often have a significant influence on their families, particularly children and younger generations. When they become financially literate, they set a positive example for their families and contribute to breaking the cycle of financial illiteracy.

This is particularly important as personal finance is rarely taught in schools. So, educating themselves about personal finance enables midlife women to guide their families towards better financial decision-making and long-term financial success.

So do I hear you saying? How do I become Financially Literate?
Or maybe, I am a good with money so am I already Financially Literate?

I am intending to produce some articles over next few months about my RICHES FORMULA:

R  – Receive (Make)

I   – Insure (Protect)

C  – Clear (Debt)

H  – Hold (Save)

E  – Expand (Invest)

S  – Spend

So whether you are prepared to admit you need to learn about managing money or think you are quite good already, there will be something in these articles for you to learn.

Love Vix

PS As Francis Bacon said, ‘Money is a Good Servent but a Harsh Master’.   When I am talking to young people, they finds these terms rather old fashioned so I updated it by saying ‘If you don’t control your money, you will find it will control you’

Vix Munro is a certified financial coach, mentor, and educator. She’s also an entrepreneur, author, and eternal optimist.

She’s passionate about money, investing and the economy. Her mission is to help women create and grow wealth so that they can live the lives they want.

She believes we all have the ability to transform our money mindset, rewrite our money story and become financially empowered . And that this can be liberating, life changing and fun.

Vix is also author of – Financial Cliteracy:  A Woman’s Guide to RICHES and financial pleasure