\n<\/p>\n
March is Women’s History Month, a time for celebrating the social, economic, cultural, and political achievements of women. But it\u2019s also a chance to recognize the work that still needs to be done when it comes to women\u2019s equality.<\/p>\n
For example, a survey by Yahoo Finance and Marist Poll found that most Americans were dissatisfied with the amount of money they saved over the past year, but women are far more likely to be \u201cvery dissatisfied\u201d or \u201ccompletely dissatisfied\u201d with their savings than men \u2014 40% vs. 28%, respectively.<\/p>\n
New York Life\u2019s 2023 Wealth Watch survey also found that in 2022, women reportedly saved an average of $3,146, while men saved more than double that figure: $7,007.<\/p>\n
Why does this disparity exist? Despite making major strides in education, leadership, and entrepreneurship, women continue to face unique financial challenges that make saving money harder than it should be. From the gender pay gap to the cost of caregiving to systemic barriers in wealth-building opportunities, the road to financial security is often steeper for women.<\/p>\n
Although the burden of fixing this problem shouldn\u2019t fall solely on women\u2019s shoulders (meaningful change will require a collaborative effort from the government, employers, financial institutions, and others), recognizing these obstacles can put women in a better position to overcome them.<\/p>\n
In 2024, women earned an average of 85% of what men earned, according to a Pew Research Center analysis of median hourly earnings of both full- and part-time workers. In other words, for every dollar men earn, women earn just 85 cents, on average. And not much has changed in the past 20 years \u2014 in 2003, women earned 81% as much as men.<\/p>\n
\u201cThat means a higher portion of their income has to cover their \u2018today\u2019 needs, and therefore, a smaller portion is available for savings and \u2014 equally important \u2014 for investing,\u201d said Bobbi Rebell, a certified financial planner and personal finance expert at BadCredit.org. \u201cIf a woman is earning 85 cents for every dollar a man earns, they have 15% less to allocate toward their financial goals.\u201d<\/p>\n
The good news: There are steps we can take as women to advocate for ourselves. For example, the next time you\u2019re interviewing for a new job or up for a promotion, take that opportunity to negotiate a higher salary based on market research and the skill set you bring to the table. At mid-level positions, for instance, there’s typically a negotiation range of 10% to 20%. You\u2019ll leave money on the table if you don\u2019t ask for it.<\/p>\n
Also, don\u2019t shy away from having open and honest conversations about salaries at work. This helps make your salary expectations and goals clear with your boss and allows you to understand how to best position yourself for a raise or bonus in the future. Plus, it encourages compensation transparency across the organization, which can help level the playing field for everyone.<\/p>\n
Studies show that women are more likely than men to adjust their careers to take on caregiving responsibilities, such as raising children or caring for elderly family members. These career interruptions can have a domino effect that negatively impacts long-term earning potential and the ability to save.<\/p>\n
According to the AARP Public Policy Institute, close to 70% of caregivers experience work-related difficulties as a result of their caregiving responsibilities and risk losing up to $300,000 in job-related benefits.<\/p>\n
\u201cEven if a woman beats the odds and \u2018catches up\u2019 to that pay level a few years later, those lower earning years still cost in terms of compound interest and savings growth over time,\u201d Rebell said.<\/p>\n
This is an area where employers can step up to better support women through initiatives such as paid leave, flexible time-off policies, and childcare subsidies.<\/p>\n
Women in the U.S. outlive men by more than five years on average, according to the National Center for Health Statistics. That longer life expectancy means women need to save even more for retirement than men. And 65% of women worry they will outlive their retirement savings.<\/p>\n
This is why it\u2019s crucial to start saving as soon as possible for your golden years. The earlier you start saving for retirement, the more time your money has to earn compound returns. If you\u2019re saving for retirement in an employer-provided retirement plan, look into whether your employer matches contributions and be sure you\u2019re contributing enough to get that full match.<\/p>\n
You\u2019ll also want to check in on your retirement savings periodically and adjust the amount you\u2019re contributing as your income and financial circumstances change.<\/p>\n
Read more: <\/em>What is compound interest, and how is it calculated?<\/em><\/p>\n Inflation isn\u2019t the only culprit when it comes to higher costs. On top of already elevated prices for everyday goods, women tend to pay a premium for certain products and services, such as deodorant, haircuts, and dry cleaning, simply because they\u2019re \u201cfor women.\u201d<\/p>\n \u201cThe so-called \u2018pink tax\u2019 remains a real cost for women,\u201d said Rebell. \u201cProducts that are comparable to those marketed to men are often priced higher when marketed to women.\u201d<\/p>\n Next time you\u2019re out shopping for your everyday goods, compare prices and see if you can find a generic version of the product you\u2019re looking for or a version that isn\u2019t specifically targeting women \u2014 think: swapping pink-packaged razors for a unisex or men\u2019s version.<\/p>\n Many Americans face hefty student loan balances, but women shoulder a greater percentage. According to the Education Data Initiative, 63.6% of all student loan debt belongs to women. Higher levels of debt can make it incredibly difficult to save and invest for the future.<\/p>\n If you struggle with a large student loan balance, look for ways to make monthly payments more manageable. Income-driven repayment plans, for instance, can lower your payments to a small percentage of your income. Also, it may be worth pursuing a forgiveness program, such as Public Service Loan Forgiveness (PSLF), which cancels any remaining debt after you\u2019ve made 120 payments while working at an eligible employer.<\/p>\n Experts also say that understanding and managing your monthly bills alongside your future goals starts with a clear financial plan.<\/p>\n \u201cBeing informed and making intentional decisions about your money and your investment goals is a smart strategy,\u201d Rebell said. \u201cIt can feel overwhelming, so consulting a financial professional for both information and accountability is often well worth the investment.\u201d<\/p>\n Read more: <\/em>Your complete guide to budgeting for 2026<\/em><\/p>\n