Yahoo Finance is celebrating the 50th anniversary of the Equal Credit Opportunity Act, the landmark law that gave women the right to access credit independently of their male relatives. This law is widely recognized as an important step toward empowering women to take control of their finances and build wealth.
“It’s very important to realize that financial independence is not just based on the amount of money you have,” says personal finance educator and author Jamila Suffrant. “But we do need access to tools and objects that help us achieve freedom and autonomy in our lives.”
Lorna Sabbia, Director of Workplace Benefits at Bank of America, added: “Because of this law, I have a bank account, I have my own credit score, I have access to financial planning tools, I have confidence in my investments, all of which are really great. ”
Mastercard research highlights the importance of early access to financial tools for long-term success. Consumers who have access to debit and credit cards within the first three to six months of opening a bank account are able to access loans and credit cards much faster than those who relied solely on debit cards. They were able to achieve “financial health” within two years, including access to investment. Or a prepaid card. Bonita Sawhney, Mastercard’s global head of consumer products and processing, added, “Getting familiar with this access and use of these tools is critical to our progress.” .
When it comes to paying for the next generation, Mastercard is spending a lot of time focusing on Gen Z consumers. “They are the future generation. They are our future workforce,” Sawhney said. “They’re not traditional. They’re not learning in traditional ways. They’re on social media…I think it’s important to find a way to make sure they have reliable and secure information. It’s important to us.”
“We have to speak their language in a way that they understand and can speak openly without fear,” Souffran stressed.
Women have come a long way, but there is still more work to do to level the playing field, including addressing the pay gap. “It always starts with a wage gap, because it bulges into a wealth gap,” Sabbia added.
This post was written by John Tejada.