In a world that increasingly recognizes the significance of diversity and inclusion, the concept of financial empowerment for women takes center stage. More than just a buzzword, it represents the transformative journey that women undertake to gain control over their financial destinies, enabling them to participate equally in existing markets, control their own time, and contribute to economic decision-making.
According to UN Women, statistics validate that women’s economic empowerment not only boosts productivity and economic diversification but also enhances income equality, with gender gaps costing the economy an estimated 15% of GDP (Cuberes, D., & Teignier 2016).
Financial empowerment for women transcends mere monetary value; it fosters independence, confidence, and decision-making autonomy.
It is the key to breaking free from traditional constraints and shaping a future where women actively influence their financial destinies. This empowerment creates a ripple effect, influencing not only individual lives but also contributing to the advancement of society as a whole.
Breaking Down Financial Barriers
Despite recent progress, women still face financial challenges, including the persistent gender pay gap (which ranges between 18-28% in the UK) and limited access to resources (with companies founded solely by women receiving less than 3% of ALL venture capital investments).
And I believe that financial education and empowerment serve as powerful tools to dismantle these gaps.
Globally, women make up almost half of the workforce, around 50%.. However, they continue to grapple with challenges such as wealth gaps, maternity penalty, and limited representation in leadership roles. It’s worth noting that companies with three or more women in senior management functions score higher in all dimensions of organizational performance (McKinsey & Company).
On the flip side, women are gaining prominence in terms of wealth ownership. Some estimates suggest that women are expected to inherit around $30 trillion in wealth over the next several decades. This underscores the importance of women stepping into their financial power, navigating a traditionally male-dominated financial landscape, and strategically managing and investing their money.
Impact on Well-being and Quality of Life
The benefits of financial empowerment for women cannot be overstated. When women are in control of their finances, they are more likely to make informed decisions about their health, education, and career. Financially empowered women have the freedom to pursue their passions and invest in their future, ultimately benefiting their families, communities, and society at large.
Furthermore, financial independence gives women the confidence to speak up and advocate for themselves in all areas of their lives. They are less likely to tolerate abusive relationships, discrimination, or workplace inequality. Financially empowered women are also better equipped to handle unexpected life events, such as illness or divorce.
Practical Steps Toward Financial Empowerment: My Top 4 Tips
- Boost Your Financial Literacy: Improve your financial literacy by learning the fundamentals of budgeting, investing, and debt management. With this education, empower yourself to not only understand these concepts but also become an ACTIVE participant in managing your own & your household finances.
- Set Clear Goals & Budget Accordingly: Set Clear Goals & Budget Accordingly: Establish well-defined financial goals that align with your dreams, risk tolerance, and values, then meticulously budget to achieve them. Whether it’s owning a home, launching a business, or exploring the world, setting realistic and achievable goals provides the roadmap for your financial journey, ensuring you stay on course with purpose and precision.
- Build a Strong Support System: Surround yourself with mentors, peers, or financial experts who can offer guidance and encouragement. Having a robust support network is invaluable; it provides not only insights into financial strategies but also emotional support.
- Invest in Your Growth: Enhance your earning potential by investing in new skills , pursuing further education, or hiring a coach. Investing in yourself not only opens doors to new opportunities, but also strengthens your financial foundation for the long-term.
In summary, the pursuit of financial empowerment for women goes beyond personal gain; it’s an effort towards inclusivity and equality. By dismantling financial obstacles, women can carve a path for themselves where they have the means and independence to lead enriching lives.
Friends, remember that every step you take brings us all closer to a brighter and more equitable future for everyone.
Anna Orenstein-Cardona is a Financial Coach, NFEC-Certified Financial Educator (CFEI), and Author who empowers individuals and businesses to grow their money knowledge and step into their financial power through education . She worked on Wall Street and in the City of London for over two-decades, before launching her financial education business, Wear Your Money Crown®.
Find out more about Anna by visiting https://www.careeringintomotherhood.com/coach/anna-orenstein-cardona/
November 1, 2023