Some women may still carry more responsibility than men do for taking care of their children, home, or elderly parents; however, society has made a tremendous improvement in engaging both sexes in raising a family. It does not mean that men are not involved, but data from various social research institutions have shown this phenomenon. This phenomenon aligns with certain challenges that women often confront.

How to

According to the U.S. Bureau of Labor Statistics (BLS), these are a few of the financial challenges specific to women.

Women earn less over a lifetime. In 2021, women earned 80 cents for every one dollar earned by men.
Women spend approximately 11-13 years out of work mostly raising the children and taking care of family matters. This spending leads women to accumulate fewer assets over a lifetime.
Women carry a similar debt balance as men, but the ratio of debt to income is higher due to lower income. It takes a higher percentage of their net income to satisfy the debt.
50% of marriages end up in divorce. Most women keep the mortgage and the house for the children's sake instead of a pension or retirement income.
Women live almost 8% on average longer than men.
Due to a lower income, women end up with little, if any, nest egg.
The high cost of childcare forces many women to leave the workforce, which effects retirement, saving, investing, and, in most cases, reclaiming a professional status upon return to work.
13.2% of senior women end up in poverty.

Practice

Now that you know some of the financial challenges that women face, think of paying it forward and discuss your findings with a friend or a family member.

Congratulations! You can move on to Chapter 2. Are student loans a women's issue?

To review the full module on Financial literacy for women, click here.