There is currently a significant economic shift happening that will result in more women having access to greater financial resources than ever before. It is common knowledge that money equates to power, and the year 2023 was designated as The Year Of The Woman due to the influential impact of several high-achieving women on our society and economy. Noteworthy examples include Taylor Swift’s Eras Tour, which not only brought joy and excitement but also contributed nearly $6 billion to the U.S. economy. From Beyoncé’s Renaissance World Tour supporting local businesses with the “Beyoncé Bump” to the success of “Barbie” as the top-grossing film of the year, these instances highlight the significant economic influence of women.
Simultaneously, a major economic transformation is currently underway that will empower a larger number of women with greater financial resources than ever before: According to a recent Washington Post article, women are set to control a significant portion of the $30 trillion Baby Boomer wealth, almost equivalent to the annual U.S. GDP. Termed “The Great Wealth Transfer,” this shift will not only impact the lives of women but also have broader societal implications.
The Potential Impact of Increased Financial Resources for Women
An aspect of this shift may be related to gender differences in how money is utilized, as research indicates that women tend to exhibit more altruistic tendencies than men. For instance, studies have shown that women experience an increase in the feel-good hormone dopamine when sharing reward money, while men experience this increase when keeping the reward money for themselves.
While not universal, this trend is exemplified by prominent high-net-worth women who have made substantial donations, such as MacKenzie Scott, Laurene Powell Jobs, and Melinda French Gates. Additionally, there are lesser-known women who are setting examples of philanthropy, like Ruth Gottesman, who donated $1 billion to Albert Einstein College of Medicine, providing free tuition to all students indefinitely. This act of generosity, as highlighted by Ginia Bellafante in The New York Times, is remarkable not only for its magnitude but also for the absence of vanity associated with it.
“A society where women hold more power and wealth signifies a more inclusive and equitable society,” says Tori Dunlap, the founder of Her First $100K and the author of Financial Feminist. “There is a natural inclination towards altruism. Women have been conditioned to be selfless and prioritize others. The emergence of altruism with women gaining financial resources can have both positive and negative implications, as it may lead to neglecting self-advocacy while prioritizing communal welfare. If this wealth transfer to women materializes, it will have a significant impact on the world.”
Dunlap emphasizes the importance of women being equipped to manage their increasing wealth by prioritizing self-care, financial literacy, and strategic planning. “Altruism is effective only when you prioritize your own well-being,” she notes.
This entails not just charitable giving but also investment. Women tend to direct their investments towards socially responsible companies. The Ellevest Women and Wealth Survey 2024: Great Wealth Transfer survey reveals that investing for impact ranks among the top five financial priorities for women of all generations who come into wealth.
An Individual’s Journey to Financial Independence
Nancy Tsuei, a 46-year-old single mother residing in New York City, exemplifies a woman who has intentionally pursued financial independence in order to contribute positively to society. After two decades of leading public companies in the home industry, including West Elm, and generating billions in revenue, Tsuei has transitioned to a phase where she focuses on serving others and empowering leaders to create meaningful impact. This shift required sacrifices, wise financial decisions, and perseverance.
Tsuei’s upbringing significantly influenced her financial outlook: Her parents, immigrants from China to Taiwan, eventually settled in the U.S. seeking a better life. Despite her father’s success as a renowned quantum physicist, Tsuei acknowledges the financial challenges her family faced. Her mother, who learned English through TV shows, took charge of their limited finances, saving diligently to invest in real estate. The family engaged in property management, renovations, and strategic selling to accumulate wealth that secured Tsuei’s education without debt.
Having inherited a down payment for an apartment in New York City, Tsuei built upon this foundation by investing in additional properties through savings from her career earnings. Today, she owns four investment properties in the city, providing her with multiple income streams. For Tsuei, financial independence equates to empowerment for women, enabling them to make choices that align with their values and goals. This freedom granted her the ability to exit an unsatisfactory marriage and support her daughter independently.
Aligning Financial Empowerment with Women’s Empowerment
Financial empowerment plays a crucial role in achieving gender equality by affording women control over their future in various aspects of life. Gender disparities, such as the wage gap and motherhood penalty, hinder women’s wealth accumulation and economic progress.
Recognizing these systemic challenges is essential for overcoming them and fostering gender equity. Jennifer Justice, CEO of The Justice Department, emphasizes the need for women to advocate for themselves in financial matters and support women-owned businesses to effect tangible change. Justice stresses the importance of fair compensation, asserting that every woman deserves equal pay and recognition for her contributions. She encourages women to draw confidence from their dedication to loved ones when asserting their worth in professional settings.
Encouraging Open Discussions About Finances
Syama Bunten, a 40-year-old entrepreneur based in San Francisco, aims to facilitate conversations around money by launching a podcast called “Getting Rich Together” to empower women to share their financial experiences. With a background in the fashion industry and a successful consultancy firm, Bunten emphasizes the importance of personalizing financial strategies and investments based on individual values and goals.
She urges women embarking on their investment journey to prioritize financial security and tailor their investment approach to align with their risk tolerance and long-term objectives. While the outcomes of empowering women with greater financial resources remain to be seen, Justice believes that equalizing access to capital for women will lead to a more equitable and conscious capitalist society, ultimately benefiting the world at large.
हिन्दी 