The gender gap is real. I have observed it in the business world and in corporate cultures. Women must work harder than men to be taken seriously in the business world, and as business owners, it is especially true.
Only 2.3% of capital venture funding went to women in 2020, which is DOWN from previous years of 2.7%. Why is so little funding going to women?
Why is money such a volatile subject for women? Women and money can be emotionally charged topics for many.
This article will explore the different issues that often arise between women and money, and we’ll look at ways to tackle this issue and get to the other side.
Transform your relationship with money and step into the financially confident woman you can be, in your business finances AND personal finances.
If you want to up your game in finances, check out my course page to see the course that is the right fit for you. It’s my mission to get women feeling great about their finances. Women and money is a topic that I hold dear to my heart because I see so many women who don’t know how to navigate their finances and they keep losing money rather than building their wealth.
Women and money: why it’s important for you to gain control
Financial freedom is important to women. Women and money is a healthy topic to speak about. Being free of financial stress and worries is a key indicator that you have a handle on your finances. Not foolishness and disregard for your financial health, but to get into your money and understand your financial health and what’s going well and where you need to improve, that’s essential information.
There is a relationship between health and money. If you are stressed out about your finances, then your health will suffer. The effects of stress on the body are damaging and put you at risk for health issues.
Money is the most emotionally charged subject, and women and money bring it to a new level. There are feelings of frustration. We all have a money story that affected our relationship with money. If you don’t tackle those issues, clear the money mindset blocks, and start living your best financial life, you will be putting your financial future at risk.
When it comes to managing money and investing, time is on your side. The earlier you take charge, you will start building your wealth and reaping the rewards. Take the time to learn about women and money and how you can change your money story.
It’s ok if you need help in managing your finances. If you are working with an accountant to guide you and/or a financial advisor. These professionals are highly qualified and there is a lot of benefit to engaging in their services, but what I am adamantly opposed to is giving your financial power away and letting these professionals make all your financial decisions for you.
It is never ok to check out your financial management. For your business and personal finance management, you need to be involved and understand the decisions you are making.
Nobody will care about your money as much as you do. Never give your financial power away.
There is never an acceptable excuse to check out of your money management, and women tend to do it often. You need to understand how women and money works. You need to have enough financial knowledge to understand conversations with your accountant and financial advisor. If either of these professionals speaks down to you or won’t change their language so you understand the conversation, that is disrespect, and you need to find someone who will be better suited for the job. YOU are the client. YOU have control.
It is irresponsible as a business owner and owner of the money to not have a basic education around money and how to manage it. And it’s especially important for women and money. If you are earning money, you owe it to yourself to manage that money well and build your wealth.
Women and money statistics
When we look at women’s behaviours, 85 percent of women control their families’ day-to-day finances, but few control long-term financial planning decisions. Through my own observations, I see that my girlfriends make the day-to-day money decisions of the house. They are responsible for all the shopping they make the decisions on what to buy and when and leave the bigger decisions up to their male partners.
Women are decision makers when it comes to the house to buy, how to decorate that house, and cars to drive, etc. but the men seem to be responsible for the larger purchasing arrangements such as the mortgage and investment decisions.
Nearly one-third of the gender financial literacy gap is attributed to women’s lower confidence levels versus a knowledge gap. As I explore further in this article, I’m not entirely sold on the fact that lack of confidence is the issue. I believe that knowledge is power and when you take the time to invest in understanding money management then your confidence grows. I have seen it with all my clients. There is an undeniable transformation when you take the time to invest in learning what you need to know to manage your finances. Women taking control of their finances is a beautiful thing.
That transformation is confidence.
Are you looking for financial direction? Check out my course offerings to help you learn and understand how to manage your money.
On average, women reach their peak earning potential at the age of 44 with a median salary of $66,700. Are you ok with that? I’m not.
I went to school and earned my degree then my professional accreditation not because I believed I was going to help people, I invested in myself because I wanted that monetary return for my career. I am also well aware of the socioeconomic impact for women and money.
Women are leading the way in post-secondary education against men these days. In my opinion, investing heavily in your education should have a large return on investment. Your salary should increase.
I worked hard to get my education and I worked hard in my employment to do a good job and expected fair compensation. I wasn’t grateful for the salary that my employer paid me. It was a fair exchange and they paid me the market value of what I was worth. I know my worth as an individual and as a woman and money is important to me.
Why women should want to build their wealth
Women have a third of the world’s wealth under their control, and projections show it is on an incline in years to come. Managing that wealth is a responsibility. You need to have an awareness and basic skills of money management to maintain your level of wealth.
Money mismanagement will dilute the wealth.
We are in a position to create more wealth for ourselves. We’ve never been more educated and independent. We are starting new businesses and changing the world. Women and money is an important topic to excel at.
We MUST be fairly compensated for that work.
Take control of your wealth and don’t be ashamed to want more. I want more money. I work for more money. I am looking for that balance of freedom that I don’t get from being an employee while I am still helping others with my skills and knowledge. But I also know that my years of education and experience need to be fairly compensated.
I know how to manage my money and build my wealth. I have invested the time in learning these skills and have worked on my money mindset blocks.
If you are just starting out and are ready to invest the time in learning how to build your wealth, check out How to Get Rich From Nothing: The Guide. This is the beginning of the exciting journey of building your wealth.
Why women need to be financially empowered
Women are starting their own businesses more so now than ever before. After being largely affected by the recent recession, women took the brunt of the layoffs, leaving them at a fork in the road to decide if they wanted better for themselves. So it makes sense for women and money to make peace with the other. Money does not need to be a struggle or difficult topic.
When you are a business owner, it is ever so important to understand your money management in that business. Most businesses fail due to a cash flow issue. Knowing how to manage your finances in your business is vital information.
When you succeed in business and earn money you also need to learn how to manage that money for your personal finances as well.
Does your partner take care of the finances? Are you comfortable with this arrangement?
It’s ok to have trust in your partner, but what happens if you are left on your own suddenly? I know it’s a scary thought, but life can be unpredictable. Money affects your life every day and if your bank accounts are frozen or you don’t know where the money is invested, or so many other questions that arise through devastating life events.
It’s always better to be prepared than deal with finances through an already stressful situation. And it’s unfair in relationships to leave the care of the money to one person. If you are sharing your financial life together, you should both be involved in making financial decisions.
Women and money confidence
As mentioned earlier, nearly one-third of the gender financial literacy gap is attributed to women’s lower confidence levels versus a knowledge gap. How do we change that? How can women increase their confidence in financial literacy?
I am of personal belief that with knowledge comes confidence, so I’m not sure how this study reflects the lack of confidence over the lack of knowledge.
I have met the richest of women over the course of my career and I am surprised to hear them tell me that when it comes to managing their investments that they are insecure. They are managing multi-million-dollar corporations yet when it comes to investing their money, they feel utter resistance and uncertainty.
Regardless of what level of wealth you are at, know that you are not alone. These feelings of uncertainty and fear around money are common no matter if you are starting to build your wealth or have millions of dollars. Women and money is a complex issue, but we are breaking through the barriers.
We all share human factors that connect us. And when it comes to women and managing our money, you are in good company.
It’s important for women to gain the financial confidence that they deserve and to start planning for their financial future. Creating money goals and a plan to achieve those goals is imperative to build financial confidence.
Women and money quotes
There are tons of amazing quotes that women have offered over the years, and I want to share some of my favourites with you.
It is ok for me to have everything I want.
I am worthy of all the richness I desire.
Every phase of your life and career will require a different you.
I enjoy multiple streams of income.
I am a wealthy woman.
It’s not the money I am after. It’s the freedom. My goal is to live life on my own terms.
I am worthy of financial security.
A man’s money will never excite an independent woman. (this is my personal fave)
I can be both a good person and make a lot of money.
Women with money – where are they?
There are many women with money, seeing as 1/3 of the wealth is held by women. But that is not enough. My question is if you are part of that one third, have you given your control away for someone else to manage your money?
Women populate more than 50% of the world, so to hold only 1/3 of the wealth is unacceptable to me. We need to do better.
Financial savviness for women needs to be more socially acceptable and encouraged. I speak with many of my friends about investing our money and creating more wealth for ourselves. Yes, it’s a given considering what I do for a living. But it wasn’t always like that. I was the conversation starter.
You could be the conversation starter too. There are many reasons it benefits women to speak openly about their finances and talk about their business and personal finance challenges.
Conclusion
The bottom line is for women to break those money mindset issues that are holding them back, they need to address the issues and increase their financial knowledge. Talking about women and money needs to be as natural of a topic as any.
I am a firm believer that action is the antidote to fear. When you step into the fear and start owning your crap, that is when true progress is made.
You do need to work through money mindset issues by being self-aware of what is limiting you, but when you take action on understanding your financial position while you are working through your mind limiting beliefs, you will reach your goal of financial confidence a lot quicker.
Are you ready to take control of your business and/or personal finances? Check out my course page and see what the best route is for you to take. Have questions? Reach out. I’m here to answer all your questions.
