Women's financial literacy: What India can learn from Australia, Rwanda, Japan

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A financially literate and economically empowered female population means more informed financial decisions at the household level, increased savings and investment, and ultimately, a more robust and inclusive economy. In an era of complex financial landscapes, the persistent gender gap in financial literacy remains a significant barrier to women's economic empowerment.

This disparity, evident both globally and in India, demands urgent attention. Recent data from the 2023 OECD/INFE International Survey reveals that women globally score less than men in financial well-being and resilience.

The S&P Global FinLit Survey states that worldwide, 35% of men and 30% of women are financially literate. In India, the situation is even more pronounced, with only 21% of women deemed financially literate compared with 27% of men, according to a 2020-21 National Centre for Financial Education (NCFE) survey.

The gender gap in labour force participation directly impacts women's financial independence and literacy. By gaining greater control over their finances, women can lift themselves and their families financially, reduce their vulnerability to economic hardship, protect themselves from exploitation in the informal sector, and enhance their capacity to participate fully in productive, measurable economic activities.

The International Labour Organization'sWorld Employment and Social Outlook: Trends 2023 report sheds further light on the gender disparities in the global labour market. The report highlights that the global gender gap in labour force participation remained stagnant in 2022, with 47.4% of women participating in the labour force compared with 72.3% of men.

The gender wage gap further exacerbates the financial literacy