Gender Financial Gap

Written by Ella Gupta ‘27; Edited by Jessica Hua ‘26

Women trail men when it comes to financial literacy and confidence. According to a report from Merrill Lynch, 61% of women prefer to discuss their own death over money.

The gender financial confidence gap begins as early as age 13. Inequality starts at a young age; on average, girls receive less pocket money than boys. The gap between men and women when it comes to financial knowledge and confidence is a multifaceted and nuanced issue. Social and cultural narratives in which men are breadwinners who control household finances contribute to the mindset of women when it comes to money. While massive strides have been made towards gender parity, significant hurdles remain. Looking at history helps to contextualize how these narratives have developed. Before the Equal Credit Opportunity Act was enacted in 1974, women were unable to obtain loans or credit cards without a male co-signer. Furthermore, around this time, women were not legally allowed to own their own property. Many women in the workforce also face discrepancies in pay as compared with their male counterparts due to the gender pay gap.

It is more critical than ever that women are empowered to manage their own finances. For one, the Great Wealth Transfer will occur over the coming years in which younger generations will inherit assets and money from older generations. Women are also more likely to outlive men, making it imperative they are able to operate confidently and independently. In some instances, inability to manage finances can tether women to abusive or otherwise controlling relationships. 

Paradoxically, while women invest at a lower rate than men, we actually tend to be better investors due to our careful consideration of risk, illustrating the extent to which a lack of confidence plagues women. Nearly half of women lack a financial role model. Beyond empowering women through financial education and democratizing access to resources, for change to occur, it is critical to break the silence. It has traditionally been considered taboo to talk about money, but we must overcome psychological hurdles such as “I’m not good at math” and engage in open dialogue. Closing this financial gap is an essential step to achieving true gender parity.