Closing the Wealth Gap: Women's Financial Education Matters

We’ve all heard about the gender pay gap which refers to the difference between the average earnings of men and women in the workforce. Despite attempts in more recent years to narrow the gap, women in 2022 still earned 17% less than men on average, particularly for older women and women of color.

I believe that financial education has a huge role to play in helping us close the wealth gap. It’s not just about women earning more money but knowing how to make that money work harder and smarter for them. 

Traditionally investing, real estate and even being a business owner (in 1972 only 4.2% of all US businesses were owned by women compared to 42% today!) were male dominated industries which perpetuated the cultural myth that women didn't possess the necessary skills or knowledge to engage with these things.

But that is changing! We have more women owned businesses, more women in real estate investing, more women teaching how to invest in the stock market and this is amazing but we are still very much in the first few generations of women doing this and we need to keep building on what we are learning so that we can change the game for the millions of women who come after us.

So why is it so important that women make more money, have greater financial education and learn how to build real wealth?

Well apart from increased financial security and wellbeing, a recent article from RBC Wealth Management cited that:

When women, particularly younger ones, acquire US$5 million+ in assets, they tend to reach a tipping point where they take more control of their financial decisions and use their wealth to improve the world.

For example, while men at the US$5 million+ wealth level cite tax benefits as the top influence on where they decide to give, women in the same bracket most often cite the ability to make the greatest impact.

Moreover, younger women at the highest wealth levels are more likely than men to align their investments with their giving goals, thereby not only trying to increase their wealth, but also help others.

When women make more money the impact on the community and world at large is greater. The emphasis becomes on helping more people - whether that’s immediate family or beyond. And this ripple effect is so needed right now in the world. 

I see this very desire in my own coaching business where women will often tell me that their ‘why’ for wanting to grow more wealth is intrinsically linked to helping more people and being able to give back more. But they also relay how they are unsure how to manage their money or make it grow without working themselves into the ground and this is where financial education and learning about how to grow your personal wealth is a game changer. 

So how do we continue to break down the blockers that limit women’s access to financial education?

1. We offer education at all levels - that means that wealth building seminars priced at thousands of dollars aren’t the only way to gain insider knowledge. Women, especially those from lower-income backgrounds, face real financial constraints and so we ensure that knowledge is not gate-kept and hidden away but shared openly. Yes we may have higher-ticket coaching which dives deeper or is more personalized but we also continue to share information we have so people can easily start to see the first steps to take. 
2. We have more women leading the charge! - What do I mean by this? Women who are breaking the financial barriers have to stand up and be counted and share their stories so that we can start to break the perception that only men deal or are successful with financial matters. A  lack of female role models and mentors in finance can discourage women from seeking financial education and entering the financial sector.
3. We tailor resources specifically to the needs and experiences of women! Often women have limited time available to self-development due to their balancing work, family and personal commitments. This disproportionate burden of household and caregiving responsibilities alongside gender-specific financial challenges, such as the gender pay gap, disparities in retirement savings, and unique life events like maternity leave, require tailored resources and information to address them effectively.
4. We create safe inclusive non-judgemental spaces and communities where women can share their challenges, dreams, aspirations and get support and guidance from each other. Without access to such networks, they may have limited opportunities to learn from others' experiences and gain practical insights into managing finances.

I’m passionate about helping to break down each and every one of these barriers within the work I do with women around financial coaching and learning how to grow their personal wealth. If you would like to find out more then DM or comment “Wealth Gap”.