5 Shocking Financial Facts About Women and Money

How much do you really know about women and money?

Women are at a significant financial disadvantage compared to men. However, there has been notable progress in the fight for financial equality. Looking back at history and being aware of the financial struggles women face today can inspire women to make progress in their own lives. Below are some facts about women and money that are worth knowing.

1. More women are investing in recent years

Investing is an excellent way to build wealth. Unfortunately, women are behind men when it comes to investing. But there are some good stats that show progress is being made. More women are investing today compared to years past. That's excellent news -- especially since women live longer than men.

A 2021 Fidelity Investments study found that 67% of women now invest outside of retirement, a 44% increase from 2018. Women also get better results when compared to men. The same study found that women outperformed their male counterparts by 0.4% over 10 years.

2. Women couldn't get their own credit cards until 1974

Today, many women use credit cards. But you may be shocked to learn that not too long ago, women in the U.S. couldn't get their own credit cards. The 1974 Equal Credit Opportunity Act changed that. This legislation originally prohibited lending discrimination based on sex or marital status and allowed women to take out loans and credit cards in their own names.

In 1976, the law was amended to include more protections. Today, the law prohibits lending discrimination based on race, color, religion, national origin, age, the receipt of public assistance income, or exercising one's rights under certain consumer protection laws.

3. Only 10.6% of Fortune 500 companies are led by women

The Fortune 500 list is an annual list that ranks 500 of the largest U.S. corporations by total revenue. The 2023 list features 53 female CEOs. That means only 10.6% of Fortune 500 companies are led by women.

While this may be disappointing to read, that number has been growing in recent years, and this is the first year that women lead more than 10% of Fortune 500 companies. Even if it's a small win -- it's a notable win that will hopefully spark continued change.

What's interesting about these stats is research has shown that women have more leadership capabilities than men. A Harvard Business Review study found that women outscored men on 17 of 19 capabilities that differentiated excellent leaders from average or poor leaders.

Below are a few areas where women scored significantly higher:

• Displays high integrity and honesty
• Inspires and motivates others
• Resilience
• Takes initiative
• Champions change

4. Women make $0.82 for every $1 earned by men

Unfortunately, the gender wage gap continues to exist globally and in the United States. Based on 2022 data, the average American woman makes $0.82 for every $1 earned by men. According to the National Women's Law Center, it's estimated that women who work full-time, year-round, stand to lose out on nearly $400,000 throughout a 40-year career based on current gender wage gap statistics. That number is much higher for women of color.

5. Mothers earn $0.58 for every $1 earned by fathers

Many women see wages drop after having children. According to the American Association of University Women, mothers earn $0.58 for every $1 fathers earn. The high cost of childcare in the United States pushes many women out of the workforce for lengthy periods. Many mothers also struggle to re-enter the workforce after taking time away to raise their children.

Knowledge is power

The above stats are important to know. Women can continue fighting for change by learning more about finances. Many free online resources offer guidance on essential financial topics like saving and investing. If you want to learn more and prepare financially for the future, check out these personal finance resources.