Assessing gender differences in financial literacy in Canada

Abstract

In most countries, women average a lower level of financial literacy than men. In an era of longer lives, maintaining financial resilience throughout adulthood is more pressing than ever. At the same time, financial services and products are becoming increasingly complex and diverse. Of course, both men and women must be financially literate to make financial decisions; however, changes in the social welfare system have been shifting more responsibility onto individuals. Under the changes, women have become particularly vulnerable to the financial marketplace as women have a higher life expectancy than men, and women’s careers are more likely to be interrupted than men. The primary purpose of this paper is to provide a systematic review of the gender differences in financial literacy in Canada. The author used qualitative and quantitative research methods and drew lessons primarily from the Canadian Financial Capability Survey, the COVID-19 Financial Well-Being Survey, and made comparisons with international findings where applicable. The author then explored the factors behind the gender differences and suggests that the overall gender equality would narrow the gender differences in financial literacy and highlights the need for policies addressing gender inequalities in both social inequality and financial literacy as means to improve women’s well-being. Keywords Financial Literacy, Gender Differences, Canada, Inequality