As women’s access to education and employment has steadily increased, so has their contribution to the economy. However, significant challenges remain, including the wage gap between women and men, along with other barriers to women growing their wealth.
Such challenges can affect women’s ability to save, as well as how they feel about their finances. For example, women have an average of $54,000 in cash savings, compared to an average of $62,000 for men, according to Fidelity Investments’ 2025 Women and Money Study. According to the study, 81% of women say their finances keep them up at night, with emergency expenses and monthly bills paying the highest amount of stress.
Those with strong financial literacy can use their knowledge and skills to manage their money effectively when it comes to budgeting, investing, and saving for emergencies, retirement, and other goals.
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More than a quarter (28%) of women working or looking for work did not contribute to their retirement savings between 2024 and 2025, compared to 18% of working men. Among working women who are saving for retirement, more than half (51%) say they are not saving enough to retire comfortably, compared to 44% of men.
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1 in 5 (19%) female investors frequently discuss financial information with others, and among this group, 37% do so to feel more confident in their financial decisions.
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Female workers earn just 81 cents for every dollar that male workers earn in 2024, based on median weekly earnings.
Sources: Bankrate’s Retirement Savings Survey, Charles Schwab’s Survey of Women Investors, Data from the US Bureau of Labor Statistics
Common disadvantages of a lack of financial literacy include risking too much debt, having an inadequate emergency fund or not saving enough for retirement.
The TIAA Institute’s 2025 Financial Literacy Survey found that women answered only 45% of personal finance questions correctly on average, while men did significantly better with an average of 55% correct.
Lack of knowledge about one’s financial options can ultimately lead to high interest debt and less money in savings. In fact, a TIAA Institute survey also found that 30% of women say debt prevents them from considering other financial priorities, compared to 25% of men.
When it comes to borrowing money for college, approximately 64% of student loans belong to women — and the average student loan for women in the United States is $31,700 — according to the Educational Information Initiative.
The TIAA Institute’s previous 2022 survey also found that women with very low financial literacy are five times more likely to have trouble making ends meet and three times more likely to be unable to handle a $2,000 financial shock, compared to women with very high financial literacy.
Not having enough money in an emergency fund can contribute to debt levels, whether through the use of a credit card or personal loan.
Another financial area where research shows women struggle is retirement. According to a recent study by Allianz Life Insurance Company, 62% of single women worry about running out of money in retirement, while 61% are divorced, 52% are married and 51% are widowed.
Bankrate’s Money and Mental Health Survey found that among US adults who have money worries that affect their mental health, 65% of women say the source of the stress is paying for everyday expenses, such as groceries and utilities (compared to 56% of men). What’s more, 62% of women reported not having enough emergency savings as another concern affecting their mental health, compared to 51% of men.
Common sources of money-related stress include being in debt, not having a stable job, not being prepared for retirement, and not having enough money for discretionary expenses.
For every dollar a man earns, women earn only 81 cents, making it more difficult for women to cover basic living expenses such as housing. More than half (63%) of American women have become more concerned about the cost of living in the past three months than 55% of men, according to a 2026 BMO Financial Group report.
More than a third (38%) of women identified monthly bills as an obstacle to real financial progress, compared to 30% of men, according to a report from BMO Financial Group. It also found that 66% of women say that keeping up with bills causes financial stress, compared to 58% of men.
Due to having lower financial literacy levels than men, women may ultimately face obstacles when it comes to managing living expenses, building wealth and managing loans and credit card debt.
Some of the things Foster says women can do to improve their finances include:
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Practicing a zero-based budgeting model to ensure that every dollar goes toward savings, investments or necessities.
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Know how much you can afford to spend on optional purchases to avoid overspending.
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Invest in the financial markets to ensure that your wealth beats inflation over time.
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Have a savings account with a competitive annual percentage yield (APY).
The best high-yield savings accounts currently earn around 4% APYs.
Additional ways you can improve your personal finance knowledge include:
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Read personal finance books. To save money, check out what your local library has to offer. Amazon Prime members also have access to many books for an additional cost. “The Psychology of Money” by Morgan Housel is a book that discusses how what you’ve been taught about money can affect how you now manage your personal finances.
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Personal finance podcasts and blogs. Examples include The Wall Street Journal’s Your Money Summary and NPR’s Planet Money.
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Courses in banks and credit unions. Many banks and credit unions offer free resources for financial education. For example, Bank of America’s Best Money Habits page offers videos and articles in English and Spanish on topics such as budgeting, saving, retirement planning and home ownership. Capital One, in partnership with Khan Academy, offers an online financial literacy course that covers budgeting, savings, credit, debt and retirement planning.
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Webinars from financial institutions. Various banks and credit unions offer a schedule of free webinars on financial topics. For example, Suncoast Credit Union offers financial success programs on topics like debt and budgeting, reviewing your credit report and managing student loans.
Retirement: Studies have found that women lag behind men when it comes to saving for retirement. For example, among those born from 1959 to 1964, the average retirement savings for women is $185,000, versus $269,000 for men, according to a 2024 study by the Retirement Income Institute and the Alliance for Lifetime Income.
“Taking advantage of an employer-sponsored retirement plan like a 401(k) can also come with big tax savings,” says Bankrate’s Foster. “Contribute until your employer matches, or better yet, increase your annual contributions. If you want to go the extra mile, consider adding a traditional or Roth IRA to your portfolio.”
savings: When it comes to arranging funds for emergencies, men may be in better shape. Only 38% of women would pay a $1,000 unexpected expense with their savings, compared to 45% of men.
One way to earn a little extra money in your savings is to put it in a high-yield savings account. It’s important to save what you can, even if it’s a small amount, says Lindsey Lawrence, EVP and group head of deposit services at EverBank. “$20 a week or $20 a month these little pieces — it starts to add up.”
Lawrence recommends using an online savings calculator to figure out how much you can earn over time. “It’s a really simple tool that we all have access to.”
Investment: According to Fidelity Investments’ 2024 Women and Investing Study, only 64% of women see themselves as investors, compared to 76% of men. What’s more, the study found that if given $25,000 to invest in the stock market, only 1 in 3 women say they would know what to do, compared to 1 in 2 men.
For anyone starting to invest, an employer-sponsored 401(k) plan can be a good place to start. For these retirement investment plans, money is typically taken out of your paycheck automatically, and companies often match contributions up to a certain percentage of your annual salary, such as up to 6%. What’s more, a 401(k) allows you to invest on a pre-tax basis, which reduces your taxable income during the years you contribute.
Other ways you can start investing include using a robo-advisor, which is a digital tool that helps you invest based on your goals, timeline and risk tolerance. You can also ask a financial advisor for expert advice.
Increasing knowledge about personal finance is key for women looking to build an emergency fund, start investing or get out of debt. Increasing one’s awareness of money management—no matter at what age it occurs—can lead to greater confidence and a better quality of life.
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methodology
The survey on homeowners’ regrets was conducted between April 2-4, 2025, with a total sample of 2,487 adults, including 1,363 who are homeowners. The Home Affordability Survey was conducted by YouGov Plc between March 4-6, 2025 with a total sample size of 2,373 adults, including 979 Americans who do not own a home (with or without a mortgage) but want to own a home one day. The down payment survey was conducted between January 15-17, 2025 with a total sample of 2,703 adults, including 1,453 who are homeowners.
The survey was conducted online and met strict quality standards. Each collected non-probability-based samples and employed demographic quotas and weights to better match the survey sample to the broader US population.
Bankrate commissioned YouGov Plc to conduct the emergency savings survey. All figures, unless otherwise stated, are from YouGov Plc. The total sample size was 2,564 US adults. Fieldwork was conducted from 2 to 8 December 2025. The survey was conducted online and met strict quality standards. It collected a non-probability-based sample and employed demographic quotas and weights to better match the survey sample to the broader US population.
Bankrate commissioned YouGov Plc to conduct the Money and Mental Health Survey. The total sample size was 2,363 US adults, of whom 1,046 had money worries that affected their mental health while 1,317 did not. Fieldwork was conducted from 19 to 21 March 2025. The survey was conducted online and met strict quality standards. It collected a non-probability-based sample and employed demographic quotas and weights to better match the survey sample to the broader US population.
