Celebrating Women’s Financial Strides For Women’s History Month
PUBLISHED: Mar 9, 2023
Despite the many uphill financial battles women have faced generationally, the trajectory for women appears to be shifting as they find ways to build wealth.
According to a study conducted by LendingTree, single women own more homes than single men. The study finds that 12.9% of single women now own homes compared to 10% of single men. Furthermore, a study by Fidelity reported that out of 5.2 million investment accounts surveyed, those managed by women earned higher returns over the long term.
While American women still generally earn less than men (83.1 cents for every dollar on average), more women, particularly those younger than 30, are catching up. In fact, the Pew Research Center reports that the gender wage gap varies by age and metropolitan area, and in most places, has narrowed since 2000. All this said, it makes sense why women are also saving and investing more than previous generations.
In honor of Women’s History Month, let’s look at the strides women have made over the past several decades, and where some financial experts say they are headed.
Women And Investing
Women have been investing, managing and trading investments for decades, starting with Muriel Siebert who became the first woman to trade on the U.S. Stock Exchange floor in 1967. Further, while it has always been the case that women invest less money than men, in large part because women make less than men on average, it turns out that investments made in the stock market by women may perform better on a consistent basis.
According to the Fidelity 2021 Women and Investing Survey, in a study across 5.2 million self-directed accounts, the investments made by women performed slightly better than those made by men by about 0.4% on average. The small difference may not seem like much, but make no mistake, compounded over time it can mean thousands of dollars more.
While women still have some catching up to do when it comes to how much they invest compared to their male peers, the fact that more women are investing than ever before is certainly progress worth celebrating!
Women And Homeownership
According to a 2021 Lending Tree study, single women now own more homes than single men in 48 out of the 50 states. Across the United States, that equates to about 12.9% of single women owning homes compared to 10% of single men, with Louisiana having the highest percentage of single women that own a home.
Unsurprisingly, it can be more difficult for anyone to save up for a home when you’re working towards that goal by yourself. That said, Rocket MoneySM can help using our Smart Savings feature to automate your savings and transfer money toward your future home goal little by little.
Women And Access To Credit
It was only a few decades ago that many women – single, divorced and widowed – often required a male cosigner to take out a credit card or loan, regardless of their income. Keep in mind, access to credit allows people to obtain things – sometimes crucial to their livelihood, like a home or a car – that they might otherwise not be able to afford. Thanks to the Fair Credit Opportunity Act of 1974, however, women and other groups are now protected against discrimination seeking access to credit based on gender, race, religion or national origin.
Fast forward to today and a 2022 study from the Financial Health Network found that 54% of women have credit card debt versus 57% of men. While the number of women compared to men that have credit card debt may not indicate equal access to credit products overall, the protections in place and what we know about the use of credit by women implies a positive shift in terms of financial access.
How Did We Get Here, And How Do We Sustain It?
Linda Chavez, the founder and CEO of Seniors Life Insurance Finder, says women's strides in finances have been made possible by a range of individuals and organizations, from corporate executives to entrepreneurs to advocacy groups.
Chavez says that a large part of women’s forward strides in finances are thanks to advocacy groups that have fought for legislation that provides resources to help close the gender wage gap and improve workforce policies for women.
“These trailblazers are dedicated to creating equal opportunities for women in the financial industry, making sure they are given the same access to resources and investments as men,” says Chavez.
Kimberly Hamilton, Senior Manager of Financial Education at Rocket Money and author of “Building Wealth on a Dime,” also believes access to educational resources has played a big role.
“Access to educational resources about money and financial products in general is wider than ever before. Combine that information with tools like Rocket Money that provide real insights on your spending, and it’s no surprise that more women are taking control of their finances in a big way,” says Hamilton.
So, the trajectory shows that women are making strides toward financial success, but how can we sustain this uptick?
Erin Pryor, the Chief Marketing Officer of First Horizon Bank, says that although women have made many strides forward, there’s a lot of work that still needs to be done.
“While there’s a fair amount of representation of women in the industry, women are still underrepresented in senior leadership positions,” says Pryor. “And, although there’s more awareness surrounding the gender pay gap, women are still earning less than their male counterparts.”
Pryor says that thanks to diversity, equity and inclusion (DEI) being a major area of focus for many institutions, there is significantly more awareness around the gender pay gap.
As for tips, with 20 years of experience working in finance, Pryor says crucial elements in her success have been networking and building relationships with colleagues, mentors and industry leaders that can help you learn about new opportunities and gain insights.
Bottom Line
The fact of the matter is that although inflation is making it more difficult for everyone to save, invest and purchase homes, women are still making strides when it comes to their finances. Despite generationally trailing behind men when it comes to equal pay, saving and investing, several signs point toward a wealthier future for women as they continue to save and invest more.
“It is clear that there are many individuals and organizations who are familiar with women's strides in finances and who are fighting to create even more opportunities for all genders,” says Chavez. “Together, we can ensure that financial equality becomes a reality for everyone.”
Looking for a better way to manage your money and track your assets to build wealth over time? Sign up for Rocket Money today to gain new insights and find additional savings to help on your financial journey.
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