How can we close the gender wealth gap?
Welcome to the bi-weekly update (#148) where we dive deeper into key topics, themes or issues specific to women and their lived experience.
We continue with the gender wealth gap topic this week. You can read last week’s article on the gender wealth gap and why it exists below:
The gender wealth gap
The amount of wealth owned by women compared to men can vary significantly depending on the country and the specific population being studied.
In general, however, men tend to have more wealth than women due to a variety of factors such as the gender pay gap, occupational segregation, and the fact that women are more likely to take time out of the workforce to care for children or other family members.
During their working life, British women will earn £223K+ less than the average man, while for an American woman the figure is $500,000+.
There are a number of measures that can be taken to close the gender wealth gap:
Reducing the gender pay gap: One of the primary drivers of the gender wealth gap is the difference in earnings between men and women. By addressing the pay gap, women can build up their savings and investments over time, helping to close the wealth gap.
Promoting women's economic empowerment: This can include measures such as providing access to education and training opportunities, as well as promoting women's entrepreneurship and leadership in the business world.
Encouraging work-life balance: Policies such as paid family leave and flexible work arrangements can help women and men to more easily balance work and family responsibilities, allowing women to build up their wealth over time. By men taking on more of the household chores and childcare, women can continue working and earn more income they can save and invest.
Addressing occupational segregation: Women are often concentrated in certain occupations that tend to pay less than those dominated by men. Encouraging women to enter higher-paying fields and addressing the discrimination that can prevent them from doing so can help to close the wealth gap.
Providing financial education and resources: Providing financial education and resources can help women to make informed decisions about their finances and build wealth over time.
The financial services industry becoming more inclusive: Financial planners, wealth managers and other client facing professionals in the industry need to engage with women and female clients differently. Women engage with their money based on goals and their values.
Let us know what you think? How do we close the gender wealth gap? Leave a comment or tweet us @jointhepurse or janicka.
Join us this Thursday for the online event with Vicky Pryce and Victoria Ross where we will talk about about how to close the gender wealth gap & managing your money (during uncertainty).
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