Fun Fact: Women-Founded Startups Generate More Money Than Male-Founded Startups

Women overcome multiple challenges when it comes to money matters, including the gender wage gap and a lack of financial education opportunities.

Sixty-one percent of American women would prefer to discuss their own death than talk about money, according to research from Age Wave. With the female population outnumbering the male population two to one by the age of 85, having conversations about women and money is an important element in growing women’s financial independence and success.

Improving women’s financial circumstances through higher salaries, workplace leadership positions, trusted investment advice and financial literacy education are just some of the steps necessary to improve the lives of women overall.

The statistics shared below in the infographic provide an entry point to understanding the realities of the modern woman’s relationship with money and finances. Here are some key highlights:

  • The current gender wage gap shows that women earn $0.82 for every $1 that a man makes.
  • 42% of women are scared they’ll run out of money by the age of 80.
  • For every dollar of VC funding received, women-founded startups generate $0.78, while male-founded startups generate only $0.31.
  • 61% of women in the workforce would prefer getting a pay increase over additional time off.

The Pay Gap

Wage inequality in the workplace is a global challenge that consistently negatively impacts women, reflected through gender pay gap statistics. The damaging ripple effect of unequal pay stretches across families, generations and global economies. Research has shown that the pay gap is a contributing factor in higher poverty rates for women and their children and less savings and government assistance for women in retirement.

Women and Financial Empowerment

Recent decades have seen women’s role in managing finances grow across many households and industries. This empowering shift in financial responsibilities continues to evolve, nudging more and more women to learn financial literacy earlier.

Women and Money Confidence

A study titled Women, Money and Confidence revealed that 48% of women feel confident in managing their finances. That confidence is a valuable asset in improving women’s wealth in America. Increased educational opportunities around financial learning is the key to creating new generations of confident and successful women.

Women in the Workplace

The Bureau of Labor Statistics reports that 57.4% of all American women participate in the labor force. Recent years have seen some improvements in gender equality in the workplace, but there remains a lot of work to be done. Achieving equity in the workplace will lead to increased opportunities for leadership positions, decision-making power and financial freedom for women.

Obstacles to Closing the Confidence Gap

A variety of factors play a role in the challenges of eliminating both the gender wage gap and the confidence gap, the concept of women lacking confidence in comparison to men. Women are distributed among the American workforce across a broad scope of occupations and industries, but jobs done mostly by women tend to pay less on average than jobs done predominately by men. Adding to this, persistent gaps in pipelines to leadership roles and inequitable racial disparities impact the earning potential of women.

With one in three women recently admitting they have considered downshifting their careers or leaving the workforce entirely (partially attributed to burnout), these factors continue to play a part in the hurdles toward financial success for women.

The Impact of Money on Women’s Health

Studies continually show correlations between personal wealth and health, as individuals with higher incomes are healthier than people with lower incomes. Pair that with the fact that most women will find themselves serving as the sole decision-maker in household financial matters at some point in their lifetime. When we take a closer look at the impact of women managing their finances, a woman’s physical and mental health are often tied to her financial health.

There is no denying that women face more hurdles in achieving financial independence and building wealth through personal finances. But, as this collection of statistics reveals, progress is being made to improve their odds of success.

To learn more about the evolution of women and money, check out the infographic below and read the full report HERE.

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