Shifting Tides: Women's Rising Influence in Finance and Business
2/18/2024Men are still paid more than women are for the same job. But the situation is changing, and women are becoming more and more prominent players in both business and the economy as a whole. Since women generally outlive men, much wealth is expected to transfer to them. By 2030, American women could be controlling much of the $30 trillion in assets held by baby boomers, writes Washington Post personal finance columnist Michelle Singletary.
The United States is not the whole world. In many countries, the role of women is unenviable. There are still wildernesses where women are deprived of any rights in business, and their entire role is limited to the kitchen and bedroom. International organizations such as the IMF and the World Bank pay a lot of attention to women's economic rights around the world.
Today, just 14 countries — all high-income economies — have laws that give women the same rights as men. Worldwide, nearly 2.4 billion women of working age still do not have the same rights as men. Closing the gender employment gap could raise long-term GDP per capita by nearly 20% on average across countries, according to World Bank’s Women, Business and the Law index.
But stereotypes about women in the economy remain even in the most developed countries, such as the United States. Singletary lists myths about women and money that still exist. Here are some of these false stereotypes:
- Women are the reckless spenders (nope). Contrary to popular belief, data from a LendingTree analysis reveals that single men outspend single women in various categories. While women may indulge in clothing, men surpass them in expenses like alcohol and entertainment.
- Women have lower salaries because they do not know how to negotiate (no). Research shows that women are as likely as men to negotiate for higher pay, yet they still start behind, perpetuating the pay disparity. Both men and women often settle for initial salary offers.
- Women are worse at trading on the stock exchange (nonsense). Women's risk-averse nature in investing may work to their advantage. Studies of Fidelity Investments company suggest that women tend to outperform men in investment returns, attributed partly to their less frequent trading habits.
Interestingly, women are more likely to seek help and take proactive steps to manage their finances, according to Fidelity studies. Despite facing greater emotional strain, women actively enhance their financial literacy and seek guidance when needed.
Nevertheless, there is at least one stereotype that research confirms. A report conducted by Wells Fargo revealed that women exhibit a lesser degree of comfort compared to men when it comes to divulging information regarding their financial matters, a trend that persists even as they advance in their professional careers.
“As women, we are conditioned to believe that talking about money is rude, but the best way to learn about anything is to talk about it — and we aren’t talking about it enough,” Krista Phillips, executive vice president, Wells Fargo, said in January. “This mindset ends up restricting women’s financial growth, investment opportunities, and earning potential.”
