As women’s access to education and employment has steadily increased, so has their participation in the economy. However, significant challenges remain that include a wage gap between women and men, along with other barriers women face in growing their wealth.
Such challenges can impact women’s ability to save, as well as how they feel about their finances. For instance, women have $54,000 in cash savings on average, compared with the average for men of $62,000, according to Fidelity Investments’ 2025 women and money study. Per the study, 81% of women say their finances keep them up at night, with top stressors including paying for emergency expenses and monthly bills.
Those who have strong financial literacy are able to use their knowledge and skills to effectively manage their money when it comes to budgeting, investing and saving for emergencies, retirement and other goals.
Key financial literacy statistics
- More than a quarter (28%) of women who were working or seeking employment didn’t contribute to their retirement savings between 2024 and 2025, compared to 18% of working men. Among working women saving for retirement, over half (51%) say they’re not likely to save enough to retire comfortably, compared to 44% of men.
- Around 1 in 5 (19%) of women investors frequently discuss financial information with others, and among this group, 37% do so to feel more confident in their financial decisions.
- Female workers earn just 81 cents for every dollar male workers earn, based on median weekly earnings in 2024.
Sources: Bankrate’s retirement savings survey, Charles Schwab women investors survey, U.S. Bureau of Labor Statistics data
Impact of the gender financial literacy gap
Common pitfalls of a lack of financial literacy include the risk of getting into excessive debt, having an inadequate emergency fund or not saving enough for retirement.
Risk of excessive debt
A 2025 TIAA Institute financial literacy survey found that women answered an average of only 45% of personal finance questions correctly, whereas men fared significantly better with 55% correct on average.
Lack of knowledge of one’s financial options could ultimately lead to high-interest debt and less money in savings. In fact, the TIAA Institute survey also found that 30% of women say debt prevents them from adequately addressing other financial priorities, as compared with 25% of men.
When it comes to borrowing money for college, nearly 64% of all student loan debt belongs to women — and the average student debt for women in the U.S. is $31,700 — according to the Education Data Initiative.
Inadequate emergency fund
An earlier 2022 TIAA Institute Survey also found that women with very low financial literacy are five times more likely to have difficulty making ends meet and three times more likely to be unable to handle a $2,000 financial shock, compared to women with very high financial literacy scores.
Not having enough money in an emergency fund could contribute to one’s debt level, whether through the use of a credit card or a personal loan.
Not saving enough for retirement
Another financial area in which research has shown women to be struggling is retirement. According to a recent study from Allianz Life Insurance Company, 62% of single women worry about running out of money in retirement, compared with 61% who are divorced, 52% who are married and 51% of those who are widowed.
Mental health impacts
Bankrate’s money and mental health survey found that among U.S. adults who have money concerns that impact their mental health, 65% of women say a source of stress is paying for everyday expenses, such as groceries and utilities (compared to 56% of men). What’s more, 62% of women reported not having enough emergency savings as another concern impacting their mental health, as compared with 51% of men.
Common sources of money-related stress include being in debt, not having a stable job, being unprepared for retirement and not having enough money for discretionary spending.
Difficulty making ends meet
For every dollar a man earns, women earn just 81 cents, which can make it more difficult for women to afford basic cost of living expenses, such as housing. Well more than half (61%) of American women say concerns about cost of living have increased, compared to 54% of men, based on a 2024 BMO Financial Group report.
More than one-third (38%) of women identified monthly bills as a barrier to making real financial progress, compared with 30% of men, according to the BMO Financial Group Report. It also found that 67% of women say keeping up with the bills causes financial anxiety, compared with 60% of men.
Ways you can improve your financial literacy
Due to having lower financial literacy rates than men, women may ultimately face obstacles when it comes to handling living expenses, building wealth and managing loans and credit card debt.
The main way women can liberate themselves from the chains of major economic barriers — whether it’s pricey child care or the gender pay gap — is by growing their financial wealth.
— SARAH FOSTER | BANKRATE U.S. ECONOMY REPORTER
Some things Foster says women can do to brush up on their finances include:
- Practicing the zero-based budget model to ensure every dollar is put to work toward saving, investing or essentials.
- Knowing how much you can afford to spend on discretionary purchases to avoid overspending.
- Investing in the financial markets to ensure your wealth beats inflation over time.
- Having a savings account with a competitive annual percentage yield (APY).
The best high-yield savings accounts are currently earning APYs around 4%.
Additional ways you can boost your personal finance knowledge include:
- Read personal finance books. To save money, check out what your local library has to offer. Amazon Prime members also have access to many books for no extra charge. “The Psychology of Money” by Morgan Housel is a book that delves into how what you were taught about money could be affecting how you handle your personal finances now.
- Personal finance podcasts and blogs. Examples include The Wall Street Journal’s Your Money Briefing and NPR’s Planet Money.
- Courses from banks and credit unions. Many banks and credit unions offer free resources for financial education. For instance, Bank of America’s Better Money Habits page offers videos and articles, in English and Spanish, on topics such as budgeting, saving, retirement planning and owning a home. Capital One offers an online financial literacy course in partnership with Khan Academy that covers budgeting, saving, credit, debt and retirement planning.
- Webinars from financial institutions. Various banks and credit unions offer a schedule of free webinars on financial topics. For instance, Suncoast Credit Union offers financial success programs on topics such as debt and budgeting, reviewing your credit report and handling student loans.
Tips for women on money management
Retirement: Studies have found women are behind men when it comes to saving for retirement. For instance, among those born from 1959 to 1964, the median retirement savings for women is $185,000, versus $269,000 for men, according to a 2024 study from the Retirement Income Institute and the Alliance for Lifetime Income.
“Taking advantage of an employer-sponsored retirement plan such as a 401(k) can also come with major tax savings,” Bankrate’s Foster says. “Contribute up until your employer match, or better yet, max out your annual contributions. If you want to go the extra mile, consider adding a traditional or Roth IRA to your portfolio.”
Savings: When it comes to setting aside funds for emergencies, men may be in better shape. Only 38% of women would pay a $1,000 unexpected expense with money from their savings, as compared with 45% of men.
One way to earn a little extra money on your savings is to keep it in a high-yield savings account. It’s important to save what you can, even if it’s small amounts, says Lindsay Lawrence, EVP and group head of deposit services at EverBank. “Those little bits of $20 a week or $20 a month — it starts adding up.”
Lawrence recommends using an online savings calculator to determine how much interest you can earn over time. “It’s a really simple tool that we all have access to.”
Investing: Just 64% of women see themselves as investors, compared to 76% of men, according to Fidelity Investments’ 2024 women and investing study. What’s more, the study found that if given $25,000 to invest in the stock market, only 1 in 3 women say they’d know what to do, compared with 1 in 2 men.
For anyone looking to start investing, an employer-sponsored 401(k) plan could be a good place to start. For these retirement investment plans, the money is typically taken out of your paycheck automatically, and companies often match contributions up to a certain percentage of your annual salary, such as up to 6%. What’s more, a 401(k) allows you to invest on a pre-tax basis, which reduces your taxable income during the years you contribute.
Other ways you can begin investing include using a robo-advisor, which is a digital tool to help you invest based on your goals, timeline and risk tolerance. You can also seek out a financial advisor for expert advice.
Bottom line
Increasing knowledge of personal finances is key for women looking to build up an emergency fund, start investing or get out of debt. Increasing one’s understanding of money management — no matter at what age it takes place — can lead to more confidence and better quality of life.
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