Galentine's Day: Promote Financial Literacy Among Friends

Three girlfriends laugh and talk at a cafe while drinking wine.

(Image credit: Getty Images)

published 13 February 2025

Now more than ever, women need Galentine's Day — not just as a celebration of friendship, but as an important reminder about the importance of financial knowledge.

Financial literacy is an essential issue for women. Numerous studies indicate that living without financial awareness leaves women particularly vulnerable regardless of marital status. Low financial literacy can result in poor financial resiliency.

The 2024 TIAA Institute-GFLEC Personal Finance Index found that, on average, U.S. women correctly answered only 43% of financial literacy questions. Minority groups, including African-American and Hispanic women, scored even lower, while men, on average, answered 53% of the questions correctly. This gap in financial literacy doesn't just reflect a lack of knowledge — it often manifests as a lack of confidence in financial decision-making.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-200-80.png

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

The financial gender confidence gap

A recent BNY Mellon study underscores the lack of literacy and confidence connection. The study found that only 1 in 10 women globally feel they fully understand investing, and just 28% feel confident managing their investments.

Many women, even those who are highly successful in their careers, have been conditioned to believe that investing and wealth-building are complex, risky or best left to someone else. As a result, they may defer major financial decisions to their spouses, family members or financial advisers, instead of fully owning their financial future.

Women's hesitation to fully lean into investing can have serious financial consequences, potentially causing them to miss out on stock and bond market growth. Growing your savings is especially important for women because we live longer than men and must stretch our savings further. Relying on savings alone will not keep pace with inflation or rising living costs, making investing in the market a must for a secure financial future.

How women can empower one another financially

Women can close the financial confidence gap by having open financial discussions, leaning into financial education and supporting one another. Here are some ways to extend the Galentine's Day spirit to financial empowerment.

1. Normalize money conversations among women

Women often shy away from financial discussions due to societal taboos around money talk. However, discussing salaries, investments and financial goals openly can help break the cycle of silence and create a culture of empowerment. Hosting regular "money meetups" or Galentine's finance brunches, where friends discuss investment strategies, savings goals and financial wins can make these conversations more approachable and routine.

2. Encourage financial education and literacy

Many women lack financial confidence simply because they have not had the opportunity to learn about investing and wealth-building. Be sure to share your favorite books, online courses and podcasts focused on personal finance.

3. Hold one another accountable for financial goals

Just as women support one another in fitness or career goals, they can also create a network of accountability partners for financial growth. Setting up a financial mastermind group, where members meet quarterly to discuss budgeting, investments and all things finance, can be a game-changer in keeping your money confidence and knowledge moving forward.

Final thoughts

Women are starting businesses at record rates, earning more college degrees than ever before and leading in industries once dominated by men. While these achievements are worth celebrating, there is still one major frontier left to conquer — financial literacy and investing confidence.

By making money conversations normal, frequent and empowering, women can rewrite their money narrative. So, this Galentine's Day, let’s raise our glasses, not just to friendships, but to financial freedom, investment confidence and collective wealth-building.

Disclaimer

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Stacy is a nationally recognized financial expert and the President and CEO of Francis Financial Inc., which she founded over 20 years ago. She is a Certified Financial Planner® (CFP®), Certified Divorce Financial Analyst® (CDFA®), as well as a Certified Estate and Trust Specialist (CES™), who provides advice to women going through transitions, such as divorce, widowhood and sudden wealth. She is also the founder of Savvy Ladies™, a nonprofit that has provided free personal finance education and resources to over 25,000 women.