Most women have a complicated relationship with money. As a result, our economic power is massively underestimated when in reality it is exploding! We now control about a third – or $10 trillion – of total US household assets – and that number is expected to triple over the next ten years. With that power we drive nearly all of the daily spending choices – 85 percent – and we make 80 percent of healthcare spending decisions for our families. Numbers that — according to the World Economic Forum — are being driven in part by increased workforce participation, education, and wage growth, in spite of the continuing gender pay gap.
This trend shows no signs of slowing either. As women gain economic strength, they’re starting more businesses than their male counterparts. They’re building personal wealth, climbing the career ladder, and they’re matching or exceeding their husbands’ income in 45 percent of heterosexual marriages. Plus, in solo households, they own more homes.
Dr. Nancy says that like so many areas of our culture, attitudes about women and money need reframing, and it needs to start with women themselves. “Many women do not seem to understand their self-worth and the impact it has in terms of their success in work and on their lives. Acting with confidence when asking for raises, negotiating salaries, or advancing to better positions is troublesome for many women, but that’s where the money is. Knowing your value is key.”
A great wealth transfer is also predicted to be coming soon. Investopedia reports that $30 trillion in wealth is set to change hands in the next decade – passed down from the baby boomer generation – and according to McKinsey & Company, women may benefit the most.
This kind of wealth in women’s hands could in fact, change the world. Sallie Krawcheck, CEO of Ellevest was recently quoted in The Washington Post saying, “When women have the majority of the money and when they step into their power — I don’t want to say be empowered — but when they recognize the power that money gives them, everything changes.”
One way that change could happen is by increasing support for other women and girls. Women don’t just spend differently; they give differently too. The Women’s Philanthropy Institute reports that women are more likely to give and give more than their male counterparts. They give based on empathy for others, with female-headed households more likely to give to international, community, religious, healthcare, and youth/family organizations. Women-dominant giving circles tend to support women and girls, and education.
An increase in giving is always needed too, especially to organizations that support women and girls. The 50,000 organizations in the U.S. dedicated to women and girls currently receive only a sliver—1.9 percent of total charitable giving – despite women’s and girls’ issues coming more to the forefront in recent years. This shocking statistic compiled by the Women & Girls Index (WGI) highlights the pressing need and inadequate funding.
Money makes things happen. Especially when it’s used to help others. Dr. Nancy says, “Money is a vehicle and will take you where you want to go. Getting comfortable with this idea helps women open doors and get things done. We know that women are problem solvers in their homes, their jobs and in their communities. Once they understand the power that money has to address issues and make changes, it becomes a tool to help them solve problems in those areas.”
Money makes women uncomfortable. Dr. Nancy says that asking for what you want and deserve is often something that women dread. But getting comfortable with being uncomfortable can and will help you get over it. “When women are comfortable with their money, things will change. The numbers of women who will sit at Fortune 500 companies will increase dramatically, and they will be in the position to give more, and really make change.”
Money can also equal freedom. When women take charge of their finances, the impact can benefit everyone across the board. A recent Ellevest survey found that 86 percent of women say investing makes them feel powerful, but those who don’t invest for the future face greater financial risks in the long term.
As women, our relationship with money is changing. It’s not about holding on to it; it’s about building a future that’s fair, just, and empowering. It’s about furthering causes and dreams – especially for women and girls. When we become comfortable using our voices, asking for what we want, supporting issues we care about, and fully exploring the options that we have to create wealth and use it solve problems, we will understand that we can create a brighter, more equitable future, one smart financial decision at a time.