International Women’s Day is an opportunity to celebrate women’s achievements while acknowledging the challenges they still face, particularly in areas like financial independence and literacy. Although progress has been made, many women continue to struggle with financial planning, investing, and building wealth due to historical barriers, wage gaps, and limited access to financial education.

Improving financial literacy goes beyond just understanding numbers; it’s about empowering women to take control of their finances, secure their futures, and achieve financial independence. This journey fosters confidence and capability.

When I was younger, I witnessed my mother struggle financially due to barriers in her career and a lack of access to reliable financial advisers. The economic challenges faced by my mother and many other women in my life, including my siblings, inspired my passion for helping women and anyone seeking financial independence. I have seen firsthand how financial literacy can transform lives, and I am committed to sharing what I have learned to help others.

Empowering women to become financially literate is not just about personal benefit; it’s also about improving the well-being of their families and communities, fostering a sense of responsibility and care. If I were to advise my sisters on how to achieve financial enlightenment…

Here are 7 actionable tips to enhance financial literacy among women:

Educate Yourself on the Basics of Personal Finance

Understanding the fundamentals of budgeting, saving, investing, and debt management is essential for financial success. Women should read books, attend workshops, or follow credible financial websites and podcasts to build their knowledge.

Key areas to focus on include:

• How to create and stick to a budget.
• Understanding credit scores and interest rates.
• The basics of investing and wealth-building.

Take Charge of Your Budget and Spending Habits

Tracking income and expenses is crucial for financial stability. Many women manage household finances but may not have long-term financial plans.

Steps to improve budgeting:

• Use budgeting apps like Mint, YNAB, or PocketGuard.
• Follow the 70/30 rule: Spend 70% of your income on needs and wants, save 10%, invest 10%, and give 10%.
• Identify unnecessary expenses and redirect that money toward savings and investments.

Prioritize Emergency Savings

Women often face career breaks due to caregiving responsibilities. An emergency fund helps maintain financial stability during job loss, illness, or unexpected expenses. Aim to save 3 to 6 months’ worth of living expenses. Although saving can be challenging, it is achievable. You can start by saving as little as $10 a week, which can grow over time. which can grow over time.

 Invest Early and Consistently

Many women hesitate to invest due to fears of losing money or a lack of knowledge about investing. However, consistent investing is crucial for building long-term wealth. If you are employed, one of the smartest ways to start investing is by opening a retirement account (such as a 401(k), IRA, or Roth IRA in the U.S., or an RRSP in Canada or a SIPP in the United Kingdom) as early as possible. Why? Because you want to take advantage of compound interest—the sooner you start, the more you can earn. Compound interest operates like a snowball effect: your money earns interest, and then that interest earns more interest, and so on, which helps your savings grow faster. You can begin with a mutual fund, and investing in rental real estate is another effective strategy for building wealth.

 Reduce and Manage Debt Wisely

High-interest debt can be a significant barrier to achieving financial independence. Women who learn to manage their debt and work towards paying it off enjoy a higher level of economic freedom and overall well-being than those who are in debt. Generally, it’s essential to pay off high-interest debt, such as credit card balances. Those struggling to make payments should consider consolidating their loans to lower interest rates. Additionally, it’s important to avoid unnecessary debt and only borrow to purchase assets, such as real estate or a business.

 Understand Credit and Build a Strong Credit Score

A good credit score affects loan approvals, interest rates, and even job opportunities. To maintain a strong credit score, pay your bills on time and keep your credit utilization below 30% of your credit limit.

Seek Financial Advice and Mentorship**

Women can greatly benefit from financial mentorship and professional guidance. To strengthen their financial awareness, women should consider joining women-focused financial groups or communities, consulting a certified financial planner (CFP) for personalized advice, and learning from successful women investors and entrepreneurs.

Teach Financial Literacy to the Next Generation**

Empowering young girls and women with financial knowledge is essential for long-term change. Children should be taught the value of saving and budgeting from an early age to pass on financial wisdom to the next generation. Older women should encourage their daughters, nieces, or mentees to learn about investing. Ongoing advocacy for financial literacy education for girls in schools and communities is vital.d communities is vital.

Final Thoughts

Financial literacy is essential for women’s independence, security, and success. This International Women’s Day, let’s pledge to enhance our financial knowledge, break down barriers, and take control of our economic future. Women who are financially empowered contribute to stronger families, communities, and economies.nd economies.