Benefits and Compensation

The Importance of Economic Empowerment for Women

Economic empowerment is the principle of financial independence for women. Coupon Chief tackled this issue with an infographic that covers the current state of women’s finances and how women can leverage employer benefits to improve their financial status. Check it out below!

When it comes to women and money, the statistics aren’t very bright. In fact, women make 81 cents for every dollar men make. For women in medicine and law, that gap is even larger (around 70 cents for every dollar).

Economic inequality is a serious issue for women who are already fighting against discrimination, lack of support, and significantly fewer opportunities to grow into leadership roles. While the wage gap and gender inequality are prevalent, there might be another contributing factor negatively affecting women’s financial futures.

According to a study conducted by wealth management company UBS Global in March 2019, more than 50% of women prefer to leave long-term financial planning to their spouses. In fact, 82% of women cite their reason for this being that they believe their spouses know more about finances and financial planning than they do.

While it might be easier to leave the tough financial decisions to a partner, opting out of long-term financial planning could have serious implications for women, especially if they eventually divorce their partner or if their partner dies. Alarmingly, one in five women drop below the poverty line after a divorce.

Women’s Financial Habits

The world has taken huge steps forward in the fight against gender inequality, especially in the workplace. Today, more companies than ever are actively promoting diversity initiatives in hiring, internal operations, and employee benefits.

Despite these progressive actions, women are still more likely to take periodic breaks from their career to care for children, manage family matters, and act as caregivers for older parents and relatives. It is partially for this reason that, according to the U.S. Department of Labor, women have lower lifetime retirement savings than their male counterparts. This is especially concerning given the fact that women live longer on average than men.

Women also invest more conservatively than men, according to data from several studies. This may be affecting women’s ability to grow their wealth.

The Bottom Line

Taking an active role in long-term finances helps men and women provide financially prosperous futures for themselves and their families. Check out the infographic below to see how company benefits like tuition reimbursement, mentorship programs, and career development classes can help women improve their financial status.

Marielle Lea is a content marketer and writer who works to grow her clients’ brand awareness through content creation and promotion. She currently writes for Coupon Chief on topics related to e-commerce, personal finance, and small business strategy. 

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