Closing The Gap
Women earn 83¢ for every $1 earned by men.¹
The median annual salary for men is around $61,100. At 83¢ for every $1 earned by a man, the median annual salary for women is around $50,700.² For someone taking care of a family, how significant do you think that extra $10,000 would be?
By the time a woman reaches age 65, she will have earned $900,000 less than a man who stayed continuously in the work force.³ Consequently, retired women receive only 80% of what retired men receive in Social Security benefits.⁴
Women tend to be the primary caregivers for their children, parents and partners.¹ So women end up taking time away from their careers to care for loved ones. These career interruptions can significantly impact women’s chances to climb the corporate ladder – promotions, raises, bonuses and full retirement benefits.³
Since women earn less, we have less money to set aside for our financial goals. Of the Americans who live paycheck to paycheck, is it a surprise that 85% are women?⁵ As a result, women own just 55¢ for every $1 owned by men. We accumulate only half of the wealth accumulated by men.⁶
We may not see the gender pay gap or the gender wealth gap close in our generation. But women can change the financial trajectory of their lives by learning how money works and applying the 7 Money Milestones. By understanding and paying attention to all of the things that make up our financial picture – Financial Education, Proper Protection, Emergency Fund, Debt Management, Cash Flow, Build Wealth, and Protect Wealth, we have the power to take control over our financial future and create equal wealth for ourselves.
And, women need to think about their career decisions. We should consider choosing a career that pays more to women and men equally. With a company that doesn’t penalize women for time spent taking care of loved ones. A place where women can create equal pay for ourselves.
Women have made a lot of progress in pursuing higher education and professional careers, but we’ve only made incremental progress in our finances. If we want to bring about profound change, we have to make it happen for ourselves. We have the power to close the gap in our lives for ourselves and our families.
— Kim Scouller
“It’s Equal Pay Day. The gender pay gap has hardly budged in 20 years. What gives?,” Stacey Vanek Smith, NPR, Mar 14, 2023
“Usual Weekly Earnings Of Wage And Salary Workers, Fourth Quarter 2022,” Bureau of Labor Statistics, Jan 19, 2023
“Women lose out on $900,000 in earnings in their lifetime due to pay gap,” Aimee Picchi, CBS News, Mar 14, 2023
“How does gender equality affect women in retirement?” Grace Enda and William G. Gale, Brookings Institute, Jul 2020
“Women Live Paycheck to Paycheck Roughly 5 Times as Often as Men – Here’s Why,” CNBC Make It, Oct 2019.
“Gender Wealth Gaps in the U.S. and Benefits of Closing Them,” Ana Hernández Kent, Federal Reserve Bank of St. Louis, Sep 29, 2021