As we celebrate Women’s History Month, it’s important to recognize the financial challenges and triumphs that women face on their journey toward empowerment and independence. The increasing financial responsibility that women are taking on is a noteworthy aspect of this progress.
Today, nearly half of all women (49%) consider themselves the chief financial officers (CFOs) of their households, a significant increase from 41% just two years ago, according to Allianz Life’s Women, Money, and Power Study. Additionally, the number of women identifying as primary breadwinners has surged to 43%, reflecting the ongoing shift in financial dynamics within households. This change in financial roles signals a growing sense of independence and leadership in personal finance.
However, this empowerment does not come without its challenges. One significant issue women face is their longer life expectancy. With women generally living longer than men, they need to plan for more years of retirement. As a result, it’s crucial for women to start investing early, including maximizing contributions to retirement accounts, especially if their employer offers matching contributions. A 2024 Women & Investing Study by Fidelity Investments shows a significant shift in women’s participation in the stock market, with 71% of women now investing, up from 60% in 2023. According to the Fidelity Study, the increase is largely driven by younger generations, with Gen Z women investing over 10% of their paychecks on average, outside of retirement. This trend highlights a growing confidence among women in managing their finances and planning for their future.
While women are making significant strides in taking charge of their financial futures, they still face barriers that hinder their ability to achieve financial equality. One persistent challenge is the gender pay gap. According to the Institute for Women’s Policy Research, in 2024 women still earn, on average, 84 cents for every dollar earned by men, meaning women are often forced to work longer and save more to achieve the same financial security. This wage discrepancy is compounded by factors like career interruptions for caregiving responsibilities, which can affect long-term earning potential and contribute to lower savings. According to the Pew Research Center however, in recent years we are seeing younger women (ages 25 to 34) early in their work lives, edging closer to wage parity with men, earning 90 cents to the dollar or more, compared to men of the same age.
Despite these hurdles, women are increasingly seeking ways to close the financial gap. A growing number are turning to education, both formal and informal, to boost their financial literacy. According to a 2024 survey by Bankrate, nearly 60% of women now report feeling more confident in their ability to invest and manage their finances, compared to just 49% in 2021. This shift reflects a broader trend of women engaging in education related to personal finance, whether through online resources, workshops, or professional guidance.
As we reflect on the progress women have made, it’s clear that the journey toward financial equality is ongoing. While challenges remain, the increasing participation of women in the workforce, in the financial markets, and in financial education signals a bright future ahead. This Women’s History Month, let us celebrate these strides, recognizing that women today are more empowered than ever to achieve greater independence and financial security.