It is no surprise that, historically speaking, women have had less money than men. But in the 21st century, the problem still persists. What is at the root of this gender finance gap, one may ask? And how can it be addressed?
In this article, we will explore why women of all ages tend to have less money than their male counterparts and how we can help bridge the gap. Without any further ado, let’s get started:
What Causes the Gender Finance Gap?
There are a variety of factors that contribute to the financial disparities between men and women. Some of these include:
Gender Stereotypes
Women are often stereotyped as being “financially irresponsible” or “not good with money.” This oftentimes leaves women feeling hesitant to take risks in the financial arena. Consequently, this can result in missed opportunities for investments and other avenues for wealth accumulation.
Lack of Representation
Women are still a minority population when it comes to finance and investment roles. In most cases, men hold higher positions of power within these industries, ultimately leaving women at a disadvantage in career advancement and salary negotiation.
Inequitable Pay Scale
The gender pay gap is still alive and well today. On average, women make 80 cents for every dollar that men earn. This discrepancy has resulted in an income gap between genders that could easily contribute to lower overall net worth.
How to Bridge the Gender Finance Gap?
It is clear that a great deal of progress needs to be made in order to bridge the gender finance gap. And to create financial parity between men and women.
Here are some steps we can take to work towards this goal:
Increase Representation & Empowerment
Women should strive for increased representation in finance and investment positions. How? Well, by actively pursuing these roles and speaking out about workplace inequity. And, of course, by advocating for greater visibility.
When more women are empowered to make decisions at higher financial levels, everyone benefits. Not just women. but finances as a whole will become healthier due to an increase in diverse perspectives.
Decrease Stereotypes
Gender stereotypes about women and money must be challenged at every opportunity. By educating ourselves about financial literacy investing, and other key aspects of finance, we can help to dispel myths about “women not being good with money.” Additionally, we can also demonstrate that everyone has the potential to succeed in this arena.
Close the Pay Gap
Women should also fight for equal pay from their employers. This could take the form of researching the average salary for a position before interviewing or negotiating better wages with current employers. It is important to remember that closing the pay gap is not just beneficial for individual women. But also for society as a whole.
When more people are paid equitably, it leads to greater economic growth and stability. Thus, it is clear that there is still a great deal of work to be done in order to close the gender finance gap and create financial parity between men and women.