The economic empowerment of women is the biggest social change in recent times
(Inglis, 2012). With the change in the economic status of women, it has become
critically important to enhance their financial knowledge and awareness in order
to enable them to make informed financial decisions (Koenen and Ziegelmeyer,
2011). Research on financial awareness and education of women provides evidence
that on average women have lower levels of financial knowledge than men. Lower
level of financial awareness among women has the potential to reduce their active participation within the economy, lessening their economic power within the
households, decreasing the transmission of knowledge to the next generation
and worsening the existing social disparities (Hung et al., 2012). On the other
hand, an increase in the awareness of women will lead to their overall development,
thereby helping the nation to prosper.
As far as the impact of financial awareness on the participation of women in
economic activities is concerned, stock market participation is much lower among
women than men (Rooij et al., 2007). While men and women are equally not likely
to invest due to lack of capital, lack of interest, income, risk aversion, educational
orientation, etc., women are more likely not to invest due to the lack of awareness.