Jumping over gender gaps toward financial independence!July 16, 2020
Overcoming gender gaps and becoming financially independent sounds pretty great, doesn’t it? The good news is that financial independence is possible, while simultaneously working to narrow the gender gaps. A gender gap is the discrepancy in opportunities, status, and attitudes between men and women. What you need to know about gender gaps is that they get in the way of a woman’s financial freedom. Here are a few ways to get the ball rolling toward financial freedom, and away from gender gaps.
First, the wage gap is on course to reach wage-equality in 257 years! We can get the ball moving today by paying women the exact same salaries, raises, benefits and bonuses and provide the same promotions that men receive. Invest your dollars in firms that are transparent about wage-equality and their promotion of women in the workplace. Firms closing the wage gap are reaping financial gain.
Second, the investing gap is leaving women with less wealth. Women hold more money in cash than men and are missing out on the market returns. Money held in a savings account misses out on growth and dividends and will not make as much return as money held in the market. Working with a financial advisor who is a fee-only fiduciary is a great way to begin to understand investing and to become financially empowered. Once women begin to invest, they typically become fabulous investors!
Third, the debt gap is ravaging women’s financial independence. Student loans and mortgages aimed at women tend to charge higher rates on these long-term investments, even though women are better at paying back debt. Lower wages and caring for loved ones leaves debt harder to pay off quickly. A great way to close this gap is to push back on lenders and negotiate better rates. We can also support women and minority-owned businesses in our communities to help close the debt gap.
Unpaid labor gap
Fourth, the unpaid labor gap cuts into women’s investments. Women do everything from running the household activity calendar and planning the holidays and vacations to maintaining the home and homework schedules. It is time that women divvy up the ‘to do’ list and free up time to focus on building wealth for the household.
Pink tax gap
Fifth, the pink tax gap robs women of money and dignity. Women pay more for gender-based price discrimination their entire life. Paying extra for pink razors, shampoo, haircuts, clothes, dry cleaning, toys, school uniforms and even adult diapers! It is time to start voting with our wallet and only buy those products that don’t discriminate.
Six, the funding gap is holding women entrepreneurs back from starting businesses. Women receive roughly 2% of the available venture capital money and smaller business loans, preventing the accumulation of personal wealth. We can close the funding gap by putting dollars behind venture capital firms that support women and minorities. We can also help close this funding gap by shopping at the women-owned and minority-owned businesses that impact our communities and align with our values.
Overcoming the gaps
Overcoming these gender gaps and becoming financially independent is possible. A strong support system in our communities and a relatable financial advisor can help pave the way toward financial independence. SWM stands ready to assist you.
Let’s overcome the gender gaps together! Connect today