When March rolls around, Women's History Month is celebrated as a time to honor women's achievements throughout history, particularly in the face of adversity. However, one critical area of that adversity that often flies under the radar is the ongoing struggle against women's financial inequality.
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Despite progress in workforce representation and educational attainment, women - particularly those who are asset limited, income constrained, employed (ALICE) - continue to face barriers that threaten their economic independence and wealth-building opportunities compared to men. Understanding these factors is essential for addressing injustices and offering women more tools for financial equity and economic security.
The Gender Pay Gap: Persistent and Costly
The gender pay gap remains one of the most significant barriers to women's financial equity. As of 2022, women in the United States earned, on average, 82% of what men earned. For women of color, the disparity is even greater, with Black, Latina, and Indigenous women earning far less than white men.
This pay gap doesn't just limit immediate income; it compounds over a lifetime, impacting women's retirement savings, Social Security benefits, and investment opportunities. Women are also more likely to work in lower-paying fields - often because of gender stereotypes about "appropriate" or "natural" careers for women, or because of industry cultural bias - and face discrimination that results in slower career advancement.
As one example, many employers still covertly avoid hiring women they believe are likely to need maternity leave, and many women enter or return from family leave to find they have been replaced and are now out of a job.
The Gender Wealth Gap: accumulating Disadvantage
The wealth gap between men and women is even more pronounced than the pay gap. Recent data highlights that, on average, women own just 32 cents for every dollar of wealth owned by men. Wealth disparities are driven not only by lower wages, but also by women's disproportionately greater caregiving burdens and higher likelihood of career interruptions.
This lack of wealth accumulation affects women's ability to weather financial emergencies, invest in opportunities like homeownership, and build generational wealth. Policies that support wealth-building for women - such as affordable childcare, improved paid family leave, and financial literacy programs - could help close this gap while boosting economic growth.
The Pink Tax: The Hidden Costs of Being a Woman
Another financial burden unique to women is the popularly termed "pink tax", which refers to the higher prices women often for products and services marketed specifically to them. Items like personal care products (such as razors), clothing (including dry cleaning costs), and even medical services are often priced higher for women than for men.
In addition, the fact that physical attractiveness remains a major factor in how society values women drives a disproportionate number of female consumers to spend more time, energy, and money on appearance-related products than men, a fact long exploited by skincare, cosmetics, and clothing industries. Over a lifetime, these additional costs can amount to thousands of dollars.
The pink tax, coupled with lower earnings, leaves women with less disposable income and fewer opportunities for saving and investing. Advocating for gender-neutral pricing and greater consumer awareness is essential to eliminating this unjust practice.
Gender Roles and Childcare Responsibilities
Caregiving responsibilities disproportionately fall on women, with research showing that mothers spend nearly twice as much time on unpaid childcare as fathers. This unequal distribution of labor often forces women to take on part-time work, leave the workforce altogether, or accept jobs with more flexibility but lower pay.
The impact of caregiving on women's finances is substantial. Beyond lost wages, career interruptions limit women's access to promotions, employer-sponsored retirement plans, and other essential benefits, like healthcare coverage. Additionally, social preconceptions about gender roles often result in men not sharing caregiving duties equally. To address these inequities, policies like subsidized childcare, paid parental leave for both parents, and workplace flexibility are critical.
The Unique Burdens of Single Motherhood
Single mothers face some of the steepest financial challenges. More than four in five single-parent households in the U.S. are headed by women, and these families are more likely to live in poverty than households with two parents.
Single mothers often lack access to affordable childcare, which limits their ability to work full-time or pursue higher education. Additionally, without a second income, they face greater difficulty saving for emergencies, retirement, or their children's education. Expanding access to affordable housing, childcare subsidies, and career training programs can provide much-needed support for single mothers striving for financial stability.
Breaking Down Barriers to Women's Financial Equity
Women's History Month is an opportunity to celebrate the strides women have made in every sphere of life - but it's also a time for society as a whole to confront the structural barriers that continue to hamper women's financial security and economic independence.
By advocating for equitable policies and supporting organizations dedicated to women's empowerment, we can ensure that the next generation of women has the tools and opportunities to achieve lasting financial security and independence. After all, when women thrive, so do families, communities, and economies.
Achieve Financial Equity for Women With United Way of York County
United Way of York County in Pennsylvania assists hardworking households on their journey toward financial stability. To meet the needs of the ALICE population, we are embarking on an issue-focused campaign to create a transformational impact for workers. We are focusing on two key barriers: childcare and transportation.
We offer many other resources — including tools and support for women’s financial security — through PA 211, a free confidential health and human services information and referral hotline. Learn about how to use PA 211 to access resources such as financial literacy assistance, employment and reentry assistance, and more. Contact us today to get the services you need for a financially successful future!
With one donation, you can help your ALICE neighbors and friends. Gifts to the United Way of York County Impact Fund are dollars that stay in York County and impact lives where you live and work. Please consider giving today!