5 Cases When Women’s Financial Independence Is Important

Reality of Today: Women and Money 

We know that women continue to earn less than their male counterparts – on average, we earn 87 cents per every euro earned by men.

The difference can be seen in financial literacy too. Only 52% of women show high financial literacy rates, compared to 62% of men.

The pay gap doesn’t show only on the large scale, but on the micro scale too. When we look at relationships, EU women earn a third less on average compared to their partners. This further downgrades their leverage and their effect on the financial decisions of the household.

Despite all of the things mentioned above, certain financial independence is an absolute must for every woman, because: 

1. More and more women are living on their own, in single-member households (voluntary single life, divorce…) and, therefore, need to manage their money well.
2. More and more women are becoming single mothers, thus raising a child without a partner. In such adverse conditions, it is especially important to track expenses and try to put aside at least small amounts of money.
3. Financial dependence on a partner is one of the key factors why domestic abuse victims continue to stay in such relationships. With an emergency fund, covering at least a few months’ worth of rent, leaving an abusive relationship would be much easier.  
4. A lot of women continue to work for below-average wages in jobs they dislike, simply due to fear of losing a “guaranteed” income. The fear of negotiating better working conditions or looking for a new job entirely will partially go away if you have the feeling of financial security.
5. You never know when you as a woman might have to cover the household expenses for the partner too, e.g. due to a long-term illness. Therefore, even if a woman is in a healthy relationship, it is important to strive for a better wage and for more financial knowledge.

What Does Financial Literacy Look Like in Practice? 

Financial independence and security shall be achieved after hitting the following targets:  

• Emergency fund – a personal money mattress provides security in case of unexpected life events. It’s the first important step towards financial stability. Everything important regarding an emergency fund is contained in the PDF available at the end of this article, be sure to check it out!  
• Retirement planning  - relying solely on the state pension will not be sufficient. Continuous saving and investing, even in smaller amounts, can still give you a much nicer and more comfortable retirement.  
• Understanding the basics of personal finance and investing – the more financially literate you are, the greater the control you have over your future while being surer of your financial decisions.

Take Control of Your Money 

Financial independence is not just about having money put aside in your account – it’s about freedom do act according to your goals and values. Whether it’s planning for the future, a career change or simply having more control over your money, taking active steps will guide you onto the right path.

Ladies, we’ve never had as much financial power as today, yet studies continue to show that many of us still continue feeling self-conscious with money compared to men. The good news? Financial literacy is withing a hands’ reach, and it starts with small but controlled steps. So what to do if you want to set off for the journey of better personal finance management?   

1. Set clear financial goals – determine what financial freedom means for you.
2. Start investing  - thanks to the magic of compounding, even small but regular investments appreciate significantly over time.
3. Discuss money openly – discuss it with your partner and friends, and have your financial matters resolved.
4. Join the financial community – surround yourself with financially literate and independent women to draw from their motivation and advice.

Financial independence is not about money only. It’s about having freedom of choice. Understanding and smart money management gives you control over your future, whether it’s a career change, working on your goals or simply having peace of mind.