Gendered Approaches to Financial Education Contribute to Literacy Gap
A new study from the Universitat Oberta de Catalunya (UOC) highlights a key driver behind the persistent gender gap in financial literacy: differing learning strategies. While women tend to rely on free resources and formal education, men are more inclined to invest in paid training opportunities, such as specialized courses and postgraduate degrees. This disparity in educational approaches contributes to a skills gap, with potential consequences for economic decision-making and financial security.
The research, published as an open-access article titled “Exploring gender differences in financial literacy decision-making,” analyzed data from 865 students, tutors, and academic advisors at the UOC, maintaining a proportional gender balance within the sample. Researchers Elisabet Ruiz-Dotras and Josep Lladós found that men demonstrate a greater willingness to financially invest in their financial education. “Our analysis suggests that men are prepared to invest in their training, while women limit themselves to free options or self-teaching,” Ruiz-Dotras noted.
This reliance on free resources can present challenges for women. The study points out the difficulty in effectively identifying and selecting reliable financial information online without a solid foundational knowledge base. “Without the necessary knowledge, it is difficult today to select which content on the internet is correct or the most appropriate,” Ruiz-Dotras explained. “All of this leads to the need to raise awareness among women about the importance of financial training.”
The findings align with broader trends observed in financial literacy surveys. The Bank of Spain and the Spanish National Securities Market Commission’s Financial Skills Survey, as well as similar studies in the United States and Germany, consistently show women are more likely to respond “I don’t know” to financial questions. This gap isn’t simply a matter of overall education levels; the UOC study found that even among university-educated individuals, financial knowledge remains unevenly distributed by gender.
The Impact of Financial Decision-Making
The implications of this gender gap extend beyond individual financial well-being. The UOC research emphasizes that informed financial decision-making is crucial for equitable outcomes within households. “Men and women touch money every day. Both must have financial knowledge and skills that help them make the best decisions,” Ruiz-Dotras stated. She highlighted that, traditionally, men often take the lead in major financial decisions, such as purchasing a home or securing a loan, a pattern the study suggests should shift towards more joint decision-making.
The consequences of unequal financial literacy are far-reaching, impacting everything from personal security and fraud prevention to entrepreneurial opportunities and overall confidence in financial matters. “The more knowledge you have, the more you will be able to take advantage of opportunities,” Ruiz-Dotras explained. “Without information, you will delegate decisions to another person, whether it is your partner, a family member, a financial institution, or a salesperson trying to sell you something. With skills, you know which options are best for you. Without them, you delegate decisions to someone who may not be choosing what is best, or what really suits your risk profile and needs.”
Policy Implications and Future Research
Addressing this disparity requires a nuanced approach to financial education policy. The UOC researchers, affiliated with the UOC-DIGIT center, argue that programs must consider the diverse learning preferences of both genders. Crucially, they emphasize the need to raise awareness among women about the value of investing in quality financial education. “The results show that women need more financial training than men because they have less knowledge, but also because they train with more limited options,” Ruiz-Dotras pointed out.
The study’s findings have already been communicated to the Banco de España and are informing the development of new initiatives, including the Cátedra de Salud y Educación Financiera, a joint venture with the Fundación Caja Ingenieros and the Instituto de Estudios Financieros.
Looking ahead, Ruiz-Dotras and Lladós plan to investigate the underlying motivations driving these gendered learning choices. They draw a parallel to cultural factors influencing interest in sports, questioning whether similar dynamics are at play in the financial world. “We have already shown that training processes are different; now we want to know if behind these choices there are interests and motivations that are also different,” Ruiz-Dotras said. “We have the example of football, which has traditionally received more interest from men due to cultural issues. We want to know if the same thing happens in the financial world.”
This research contributes to broader efforts to promote financial inclusion and reduce inequalities, aligning with the United Nations Sustainable Development Goals related to poverty reduction, quality education, gender equality, and reduced inequalities.
