Broker Check

Women and Wealth

March 09, 2021
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Women’s History Month is a time to celebrate the many accomplishments of women, and encourage positive steps to help relieve money stress and help build financial security. A rarely discussed aspect of the American economy is the unpaid work of women in the home. In 2019, the estimated value of this work was:

  • $1.2 Trillion
  • 5% of the U.S. GDP
  • About the same as the value of retail industry

The actual value of this unpaid work may be even higher if you consider the out-of-home cost of childcare, adult daycare, and maid service!

During the 20th century, more women began to work outside the home for pay. In 1970, 43 percent of women were in the labor force, and by 2014 that number increased to 57 percent. About 13.5 percent, or $2 trillion, of economic growth is attributed to women’s increased participation in the labor force and hours worked since 1970.

Notably, women’s achievements in education and at work translated into significant income gains for their families. However, the full potential of women in the labor force has yet to be tapped. Increasing the number of women in the workforce could accelerate economic growth by 5 to 10 percent over a few decades and add about $5.9 trillion to the global stock market over a single decade.

It’s no secret – women are economic powerhouses – and their approaches to wealth and financial security is just as wide-ranging as their economic contributions.

For many women, wealth is a financial resource that can be accessed in emergencies, drawn on to pay for college, saved and invested for retirement, and passed on to future generations.

Building wealth means taking control of your money. The journey toward wealth begins with goal setting. What do you want money to do for you or your family? Once you’ve decided, you can take action. Your financial goals may include:

  • Paying down your credit cards or student loans
  • Educating your children about money
  • Setting aside money for emergencies
  • Caring for aging parents
  • Saving for a major purchase, such as a home
  • Saving and investing to meet financial goals, including a comfortable retirement

Too often women are so busy doing for others they overlook the importance of doing for themselves. Never forget, when you are financially secure, your loved ones are financially secure.

If you would like to learn more about reducing financial stress and growing wealth, please get in touch with us. We want to be sure you to feel empowered and confident when it comes to your financial plan.

Sources:

1 https://annehelen.substack.com/p/other-countries-have-social-safety
2 https://fredblog.stlouisfed.org/2020/03/calculating-the-value-of-womens-unpaid-work/
3 https://fred.stlouisfed.org/graph/?g=qimy
4 https://fred.stlouisfed.org/series/GDP
5 https://www.statista.com/statistics/247991/value-added-to-the-us-gdp-by-industry/
6 https://obamawhitehouse.archives.gov/sites/default/files/docs/2015_erp_chapter_4.pdf (or go to https://resources.carsongroup.com/hubfs/Source-Carson_Coaching/Mar_2021_WhiteHouseArchives-2015_The_Economics_of_Family-Friendly_Workplace_Policies-Chapter_4-Footnote_6.pdf)
7 https://www.spglobal.com/en/research-insights/featured/the-key-to-unlocking-u-s-gdp-growth-women
8 https://nwlc.org/wp-content/uploads/2021/01/December-Jobs-Day.pdf
9 https://iwpr.org/wp-content/uploads/2020/09/Gender-Wage-Gap-Fact-Sheet-2.pdf
10 https://www.merriam-webster.com/dictionary/wealth

Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services offered through Raymond James Financial Services Advisors, Inc.  Stonegate Financial is not a registered broker/dealer and is independent of Raymond James Financial Services. Any opinions expressed are those of Lauren Tompkins and not necessarily those of Raymond James.  Investing involves risk and you may incur a profit or loss regardless of strategy selected. CFP Board owns the CFP® marks in the United States.