Financial literacy: worth its weight in gold for ageing women

We are increasingly being faced with distressing news about the growing number of older women who suddenly find themselves in desperate financial straits. This can be due to a variety of factors, such as not having enough superannuation, taking time out of the workforce for child-rearing responsibilities, the gender pay gap, workplace age discrimination, or a variety of difficult domestic situations, from abuse to family breakdowns, or the increasingly unaffordable rental market.  And the result is that many women are actually facing homelessness at a most vulnerable time in their lives.

To reduce the likelihood of being in such difficulties, what is increasingly being recommended for women is that they should be planning ahead, and that a part of that is developing the essential understanding of how to manage their finances, as early in their lives as possible. Financial literacy, as it’s called, has been defined as “a combination of financial knowledge, skills, attitudes and behaviours necessary to make sound financial decisions, based on personal circumstances, to improve financial wellbeing”.

And the importance of this is becoming increasingly recognised, to the point where there is now a growing push for it to be included in school curricula, as a starting point. On the other hand, it is never too late to acquire as much practical knowledge of this as possible. Research has shown that “addressing financial literacy for women is crucial because it directly impacts their ability to build a secure future”. And the good news for those who feel that they need to develop this, is that guidance is now on offer in various forms, including advisory services, and/or courses and resources, some of which are free and some having to be paid for. 

Financial advisor Natallia Smith, for example, has detailed a list of useful “financial strategies for women over 50” (https://moneyandlife.com.au/pre-and-post-retirement/financial-strategies-for-women-over-50/), which involves developing an understanding of life expectancy and living arrangements and has the following elements:

• Assessing your retirement readiness

  • Envision your retirement lifestyle

  • Estimate your expenses

  • Evaluate your superannuation balance

  • Identify income sources

  • Plan for emergencies

  • Assess investment risk

  • Seek professional advice from a financial planner

• Considering career changes or reduced work hours

  • Analyse the financial impact

  • Explore flexible work options

  • Upskill or reskill

  • Network actively

• Overcoming common roadblocks

  • Set clear boundaries

  • Prioritise self-care

  • Stay informed by educating yourself about financial planning to make informed decisions

  • Build a support system

• Enhancing your retirement savings

  • Make additional super contributions

  • Eliminate debt

  • Optimise investments

  • Consider government Social Security entitlements

Online, WiRE – an Australian Centre for Gender and Economic Equity – provides a lot of free resources for “Women’s Financial Empowerment” (https://www.wire.org.au/learning-opportunities/womens-financial-empowerment/), which has been funded by Financial Literacy Australia. Clicking on to “Visit talk money” (https://www.womentalkmoney.org.au/) accesses a whole bundle of resources, including:

• Financial literacy for women

• Women and money: an introduction

  • Relationship and money

  • Common issues

  • Gender and money

  • Financial abuse

• Your money and your life

  • Getting together

  • Moving in together

  • Getting married

  • Taking a break from work

  • Retiring

  • Splitting up

• Putting it into practice

  • Talking about money

  • What’s your money story

  • Dealing with negative responses

At the interpersonal level, there are some organisations that provide free counselling services, such as the Salvation Army’s “Monecare” (https://www.salvationarmy.org.au/need-help/financial-assistance/moneycare-financial-counselling/), which has a “free and confidential counselling service….supporting anyone who would like to improve their financial situation or is looking for help with budgeting their money,….[by providing] personalised financial guidance and support to overcome [current] money problems and build financial strength for the future”.

The take-home message? It’s never too late for us to take charge of our financial future, and there is help out there, for that.

Anne Ring ©2025