I was sitting in a presentation last Saturday with some of my colleagues who were sharing some rather frightening statistics about Women and Money. I felt drawn to share them with you here.
I have always been career oriented and for a baby boomer that was not the normal thing to do. When I was completing my CPA final studies there was only one other woman in our group and there were about 50 men- so a little male dominated 🙂
I then went on to become a financial planner and again at that time the industry was very male oriented. During those years I knew women often did not educate themselves as much as men about money. I thought times had changed so I was very alarmed to hear some of the stats that were shared on Saturday.
Shocking Stats for Women & Their Finances.
- 47% of women over 50 are single;
- Women’s retirement income is less than that of men because a woman is away from work force an average of 14.7 years as compared to 1.6 years for men;
- 50% of marriages end in divorce and in the first year after a divorce a women’s standard of living drops an average of 73%;
- Of the elderly living in poverty 3 out of 4 are women;
- 58% of female baby boomers have <$10,000 in retirement;
- Nearly 7 out of 10 women will at some time live in poverty;
- Get paid less than men for the same job;
- Get passed over for promotions (less women in top jobs).
If we think about it historically, or even traditionally, women have not always been smart about money. Many women have:
- Married or stayed in bad relationships because of money
- Left the financial decisions to men or “experts”
- Think they are not smart enough with money so stay passive in money and money management areas
- Chose jobs or careers for flexibility with their children
- Prioritize their husband’s career and therefore not reach their own full income potential.
- Often choose security over money
In Kim Kiyosaki’s book she says “The next economic boom will not be from the Internet, nor China or India, but from Empowering Women.” We seem to be moving in the right direction to do just that with these encouraging stats in Australia which show thing may be changing.
Current Stats for Women in Australia:
- Women own 585,000 of the 1.9 million small businesses.
- Women own almost half of all home-based businesses and one-third of businesses operating from other locations.
- Women setting up business from home is the fastest growing sector of the Australian economy.
- 46% of women run their businesses from home – a 20% increase in the last five years.
- Women make or influence 80% of all purchasing decisions.
- Women owned businesses have less external debt, are more profitable and profitable much earlier than those owned by men.
Source: Women’s Network Australia
What I would like to see in these trends is that the income these women are earning be passive or residual. I have written about residual income here.
The other encouraging stat here for me is the increase in home based businesses for women. I have shared before that my one regret looking back is that I never spent enough time with my daughter when she was young. You never get that time back.
A home based business allows women to be with their children and also build a passive income.
Of course men can do the same. It makes my heart sing to see some of the young men in Network Marketing being able to go to kids sports and pick them up from school. There are choices for us all if we are open to see them.
Please leave me your comments below. What do you think of these stats for women? Do you think things are changing?