Defeating the Gender Pay Gap
March is Women’s History Month—a time to celebrate the achievements of women, acknowledge the progress toward gender equality, and double down on commitments to maintain that progress where it seems to be backsliding.
Despite earning more degrees and participating in the workforce at record levels, for many women financial equity remains an elusive goal. Women still encounter the gender pay gap and obstacles to career advancement, as well as facing longer life expectancies and career interruptions due to caregiving responsibilities.
These hurdles make it even more critical that women make full use of the resources that are available to them. One of the most powerful ways women can take control of their financial futures is through investing. Investing is not just a tool for wealth accumulation; it is a means of empowerment, independence, and long-term security. Additionally, women have the potential to be powerful ethical investors, using their financial choices to support companies and causes that align with their values, promoting sustainability, gender equality, and corporate accountability.
The gender pay gap is well-documented, but the lesser-known gender wealth gap is even more troubling. Studies show that women retire with significantly less wealth than men, putting them at greater financial risk in their later years.1 One major reason is that women are less likely than men to invest their savings. Many hesitate due to a lack of confidence, or a preference for cash over riskier, growth-oriented investments in the stock market. Yet women also tend to live longer than men, so they need their money to not just last, but to grow. Relying solely on savings is not enough. Inflation erodes the value of cash over time, making investment in assets that will grow faster than inflation a necessity rather than a luxury.
A common myth is that investing is too complex for the average person. But the truth is, anyone can learn to invest. Studies have shown that women tend to be disciplined and competent investors, trading less frequently and making thoughtful, long-term financial decisions—qualities that lead to stronger investment returns.2
The first step to overcoming the fear of investing is education. Financial literacy is essential, yet is rarely emphasized in traditional schooling. Women must proactively seek financial education and luckily, resources are plentiful. Books, podcasts, and online courses abound. Joining a supportive community of financially informed women, such as investment clubs or online chat groups,can also provide encouragement and practical insights. Financial professionals like planners and advisors can help fill the gaps.
Financial independence is a cornerstone of empowerment. When women take control of their finances, they gain more choice about their careers, families, and lifestyles. An investment portfolio can provide security during unexpected life events, or can be used to seed a new business, buy a home, or to support charitable causes.
Investing gives women a voice in shaping the economy. As more women invest, they can leverage their financial power to influence corporate policies on gender equality, diversity in leadership, ethical business practices, and commitments to environmental sustainability. Women are more likely than men to align their investments with their values, and in doing so, they can drive positive change and uplift other women.
Ethical investing is more than a trend; it is a movement that empowers women to use their money as a force for good.
This Women’s Month, let’s challenge the narrative that investing is only for the wealthy, for men, or for the financially savvy. Let’s encourage more women to take control of their financial destinies and recognize investing as a necessity, not just an option. Women who invest today will shape a more equitable and prosperous future for themselves and for generations to come.
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[1] https://home.treasury.gov/news/featured-stories/spotlighting-womens-retirement-security
[2] https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/about-fidelity/FidelityInvestmentsWomen&InvestingStudy2021.pdf