Yahoo Finance

Yahoo Finance marks 50 years of the Equal Credit Opportunity Act

Yahoo Finance celebrates the 50th anniversary of the Equal Credit Opportunity Act, a landmark law that granted women the right to obtain credit independently of their male relatives. This legislation is widely seen as a crucial step in empowering women to take control of their finances and build wealth. “It's so important to recognize that financial independence is not solely based on the amount of money you have,” says Jamila Souffrant, personal finance educator and author. “But the access to tools and things that help you achieve freedom and autonomy in your life.” Lorna Sabbia, Bank of America head of workplace benefits adds, “Because of this act, I have a bank account, and I have my own credit score. I'm empowered now to use financial planning tools. I'm confident about investing. All of those things are really great things.” A study by Mastercard highlights the importance of early access to financial tools for long-term success. Consumers who gained access to debit and credit cards within the first three to six months of opening a bank account were able to achieve "financial health"—including access to loans and investments—within two years, much faster than those who relied solely on debit or prepaid cards. “This access and making sure then that you get comfort with the tools is really, really important to our progress,” adds Bonita Sawhney, Mastercard Global Head of Consumer products and processing. In terms of paying it forward to the next generation, Mastercard spends a great deal of time focusing on the Gen Z consumer. “They are the generation of the future. They're our workforce going forward,” notes Sawhney. “They're not in traditional; they're not learning through traditional means. They are on social media...It's important for us to find ways to ensure they're getting trusted and safe information.” “We have to speak their language in the methods in which they understand and don't be afraid to, to speak plainly,” emphasized Souffrant. While women have come a long way, there is still more to be done to level the playing field, including addressing the pay gap. “It always starts with that pay gap because it does balloon into a wealth gap,” adds Sabbia.This post was written by John Tejada.