Women make fewer financial decisions than men in Latin American households

A new study by CAF -development bank of Latin America- asserts that, in order to narrow the gender gaps in the region, it is necessary to generate an enabling financial environment in which women trust and feel confident to communicate their needs, and for this it is important to enhance financial education, strengthen women's skills and capacities, and create financial and non-financial products with a gender perspective that strengthen women's businesses.

The study, called 'Women's Financial Capabilities', highlights the gender gaps that exist in Brazil, Colombia, Ecuador and Peru and the need to create gender indicator systems to improve women's access to the financial sector in order to design policies that reduce inequalities. In this sense, financial education should cover risk management, money management, responsible and informed access to the credit system, women's self-confidence and digital and negotiation skills. It is also stressed that in order to achieve financial equality in the programmes or measures that are implemented, it is essential to involve men as well.

According to surveys in Brazil, Colombia, Ecuador and Peru, fewer women say they personally make decisions on financial management, representing a gender gap of 15 percentage points. In addition, more women (67%) than men (52%) require others to make decisions about finances. One of the reasons, the study points out, is women's lower autonomy, as their participation in financial decisions increases when they contribute to household income and have higher levels of financial education.

"It is necessary to work on the implementation of national strategies or financial education programmes and to create systems of gender indicators to design public policies that reduce inequalities and encourage greater participation of women in the economy of their countries. This implies working to reduce the gaps in behaviour, planning, financial knowledge and attitudes, as well as in financial inclusion and ¡vulnerability", says Diana Mejía, senior specialist in Financial Inclusion at CAF.

The publication also reflects the gender gap in the use of digital media for financial management, which is very low in all 4 countries for both men and women. On average, only 24% of men and 17% of women use a banking app. Savings levels are low in all four countries, and women tend to save less than men. Brazil has the highest gap (11 percentage points difference) and Peru has the highest percentage of men (51%) and women (42%) who save. The fact that women save less, according to the study, could be due to their lower participation in the labour market and the gender pay gap. 

Another section analyses financial literacy (calculation of simple interest, compound interest and inflation), which is generally very low. The low self-confidence of women and the higher knowledge of men is visible, being high in Colombia, Ecuador and Peru (equal or higher than 5), while Brazil remains at 4.71 and 4.40 for men and women. 

Access to the full study "Women's Financial Capabilities".
http://scioteca.caf.com/handle/123456789/1875