the quest for financial independence
Women face more financial roadblocks, and strive harder to overcome them and achieve financial independence.
Throughout history, the barriers to financial independence for women have been especially tough—if not impossible. For example, it was technically legal for banks to refuse credit and loans to unmarried women—and to require married women to get their husband’s permission for credit and loans—until 1974, when the Equal Credit Opportunity Act was passed.
Fortunately, things are improving. But there are still obstacles to overcome—including the struggle for equality in finances. For example, the latest earnings comparisons available from the U.S. Bureau of Labor Statistics reveal that full-time female workers earn only 82 percent of what their male counterparts earn.1
Other obstacles to financial independence for women include:
- Motherhood: Women are more likely than men to take time away from work or reduce their work hours because of caregiving responsibilities The American Association of University Women (AAUW) contends that this creates “the Motherhood Penalty,” causing mothers to make “only 58 cents for every dollar paid to fathers.”2
- Financial literacy: Men are twice as likely to take courses that lead to careers in finance.
- Life expectancy: According to the U.S. Centers for Disease Control, the average lifespan for an American male is 76, while the average woman in America will live to be 81.
How women define financial independence
Bank of America surveyed more than 3,500 women ages 22 and older about their thoughts on financial independence. The top three indicators of financial independence, based on that survey, included:
- Being debt-free: Paying down debt provides more financial flexibility.
- Having an emergency fund: Being able to access savings when you’re in dire need provides peace of mind.
- The ability to support yourself without any financial help: Inflation, stagnating wages, and debt can make it tough to keep up with everyday expenses. It’s important to cut back on spending, rather than asking family members or friends to help out.
Nevertheless, she persisted
Despite the obstacles women have faced—or maybe because of them—the number of women investors is growing rapidly, and doing well! Based on a 2021 study by Fidelity, 67 percent of women are now investing outside of their retirement accounts, compared to 44 percent in 2019. To top it off, Fidelity’s analysis of more than 5 million customers showed that women outperformed men by an average of 40 basis points annually—or 0.4 percent— over the past ten years.3
In its article about women and investing, Bankrate said that women hold incredible potential, and shared the following predictions:3
- By 2030, women in America are expected to control much of the $30 trillion in financial assets that baby boomers possess today.
- A 2021 study by BNY Mellon showed there would be an extra $3.22 trillion of assets under management from private individuals if women invested at the same rate as men.
- The same BNY Mellon study also found that women are more likely to make investments that have positive impacts on society and the environment. This would tack on an extra $1.87 trillion of additional inflows into socially responsible investments if women invested at the same rate as men.
- The number of female investors is surging. A 2022 global survey from social trading and investment company eToro found that of the 9,500 female investors surveyed, 48 percent of them were new to markets over the past two years. Based on these predictions, women and their quest for financial independence could be one of the best investments we make!
Get in touch with us today
Work on gaining financial independence. Check the background of investment professionals associated with this site on FINRA’s BrokerCheck.
*LPL Financial Representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.
Securities and advisory services offered through LPL Financial (LPL) a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products offered through LPL Financial or its licensed affiliates. Evans Bank and Evans Investment Services are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Evans Investment Services, and may also be employees of Evans Bank. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, Evans Bank or Evans Investment Services. Securities and insurance offered through LPL or its affiliates are:
| Not FDIC Insured | No Bank Guarantee | May Lose Value |
| Not A Deposit | Not Insured By Any Federal Government Agency |
*No information provided on this site is intended to constitute an offer to sell or a solicitation of an offer to buy shares of any security, nor shall any security be offered or sold to any person, in any jurisdiction in which such offer, solicitation, purchase, or sale would be unlawful under securities laws of such jurisdiction. The LPL Financial Registered Representatives (doing business as Evans Investment Services) associated with this website may discuss and/or transact business only with residents of the states in which they are properly registered or licensed. No offers may be made or accepted from any resident of any other state
Please visit https://www.lpl.com/disclosures/is-lpl-relationship-disclosure.html
Your Bank (Evans Bank) provides referrals to financial professionals of LPL Financial LLC (“LPL”) pursuant to an agreement that allows LPL to pay the Financial Institution for these referrals. This creates an incentive for the Financial Institution to make these referrals, resulting in a conflict of interest. The Financial Institution is not a current client of LPL for advisory services.
