There is strong consensus from existing research to support the view that men are more financially literate than women. What may this stem from? And what solutions are there to combat this gendered gap?

What is financial literacy?

Financial literacy is a term given to the concept of understanding and effectively using a variety of financial skills. These can range from basic concepts such as monthly budgeting and personal financial management to more complex aspects of personal finance such as investing, pensions and retirement funds. Financial literacy skills are the building blocks of an individual’s relationship with money and impact virtually all financial decisions one makes. People who are more financially literate are less likely to be vulnerable to financial fraud and less likely to accumulate unsustainable debt burdens.

The gender gap in financial literacy

The language surrounding financial literacy is greatly different in media coverage when catered to a male versus a female or non-binary audience. Part of a wider issue of the gendered nature of media coverage regarding certain social issues, the ways in which financial skills and money management are presented to men and women can differ greatly.

According to Starling’s examination of financial media articles, 73% of articles aimed at men discussed investing, while 90% of articles aimed primarily at women talked about cutting back on spending. The gender pay gap is a well-cited starting point in this debate and consensus around its prevalence is growing. Recent ONS statistics estimate the monetary disparity between men and women for doing the same job was 15.5% in 2020, which is a decrease from 17.4% in 2019. While the gender pay gap is a relatively widely known form of gender based economic discrimination, there are many more elements behind the gendered nature of financial literacy beyond the pay gap.

What can be done to close this gap?

There are a number of third sector and private start-ups aiming to close this gap in pragmatic and innovative ways. One such venture is Your Juno, a London based start-up that recently launched as an app on both the Apple and Android app stores. The app is a financial education app specifically designed to combat the financial literacy gap by offering its services to women and non-binary users. Developed by sister duo Alexa and Margot de Broglie, the app markets itself as a financial skills tool for women, by women.

Your Juno offers a series of informative videos about various financial topics that allow its users to gain specific knowledge about a wide range of topics via its app in minutes, through these bite-size and accessible videos. Some of the many topics included range from basic saving tips to buying property, investment and saving for retirement. Alexa and Margot cite the economic uncertainty of the pandemic as a major influence in their development of Your Juno, stemming from the differing nature of the attitudes men and women had to the fragile economic state of the world in 2020.

‘We decided to build a financial empowerment platform aimed at providing the best education in a fun way – a bit like the Duolingo of Money’

Men are much more likely to be investors. Specifically in 2020 with the rise of cryptocurrency, CNBC research found that men were twice as likely to invest than women. Traditionally, the nature of the conversation surrounding women and financial literacy has revolved around penny-pinching and frugalness, concepts which stem from outdated views of women in the home environment. Start-ups like Your Juno show promising signs that the gendered financial literacy gap could close in the future, with financial education the key to levelling the playing field.

About the Author: Chris Thomson

Chris Thomson is a political researcher and writer, specialising in political communication, online misinformation and the role of social media in contemporary democratic processes.