A new study by researchers at Kansas State University and the University of Georgia finds a large gender gap in what the authors call “financial capability.” The study not only looks at gender differences in knowledge about financial affairs but also the gap in “what people think they know versus what they actually know.”
The study found that the gender gap in financial capability is apparent in all age groups. But the gap is larger for those under the age of 35 and over the age of 55.
The gender gap in financial capability is extremely important, according to the authors because one quarter of all U.S. households are headed by women and many of those women have children. “If women heading households are less capable,” says lead author Cliff Robb, an associate professor of personal finance planning at Kansas State University, “that has huge implications for their own well-being as well as the economy and future generations.”
Dr. Robb recommends that to close the gap in financial capability “we need to do a better job of engaging females at younger ages and encouraging females of all ages to be more proactive.”