Financial literacy is a cornerstone for achieving economic independence and social empowerment, yet it remains an area where significant gender disparity persists, particularly in India. Financial literacy is the ability to understand and effectively apply various financial skills to life, including personal finance, budgeting, saving, and investing. Women constitute only 20% of the country’s workforce, and those in paid employment earn, on average, 19% less than their male counterparts for performing similar roles, according to data from the Smile Foundation and The Financial Express. Furthermore, the burden of unpaid labor falls disproportionately on women, with them undertaking 9.8 times more unpaid care work than men, as highlighted by global studies on gender inequality.

This gender gap in financial literacy arises due to several intertwined factors. Cultural norms and societal expectations often limit women’s access to education and career opportunities, particularly in rural areas. Early marriage, family responsibilities, and a lack of representation in leadership roles further exacerbate the gap. Additionally, many financial systems and resources remain inaccessible or intimidating for women, particularly those who are less educated.

The lack of financial knowledge among women has profound implications. Without understanding how to manage savings, investments, and expenses, many women remain economically dependent, vulnerable to exploitation, and unable to plan for long-term security. This gap perpetuates inequality not just at the individual level but also within society as a whole.

Empowering women with financial literacy has the potential to create transformative societal change. For instance, initiatives by the Smile Foundation in rural India provide training in financial management and encourage women to become financially independent. Global platforms, as cited in N26’s analysis of financial literacy trends, also stress the importance of reducing the financial literacy gap to empower women worldwide. Bridging this gap not only uplifts women but also strengthens India’s economy by fostering a more equitable and prosperous society