Right here at Ellevest, we’re pondering so much about what the “Feminization of Wealth” can imply. And, truthfully, it’s fairly nice stuff.
What’s the “Feminization of Wealth,” chances are you’ll be asking?
It’s a time period we coined to explain a world by which girls have more cash. And this world isn’t only a daydream. It’s a world we’ll probably usher in due to fairly highly effective mega-trends in movement proper now.
Considered one of these mega-trends is the Great Wealth Transfer, which we’ve researched and written about in our 2024 Women and Wealth Survey. To TL;DR this historic occasion, it’s the title given to the following 20 or so years when girls will more and more inherit cash (straight from boomer males who will go away their wealth to their wives—who stay longer than they do—after which to their youngsters).
Nevertheless it’s additionally greater than that. One other mega-trend resulting in the “Feminization of Wealth” is that girls are rising their incomes energy. This may occur as a pure results of girls now making up the majority of college and postgrad graduates (setting them as much as earn more cash) and with women starting more businesses (ditto). It will probably occur because the increased diversity of boards could also be driving a tipping level in girls CEOs at large corporations.
The “Feminization of Wealth” can be an consequence of ladies getting married later and so sustaining management over their cash. Or girls maintaining control over their money even after they get married. It can be an consequence of extra single girls buying homes, and of increasingly women investing, each of which might help her construct her wealth. (Love this final one significantly.)
And what’s a key attribute of a lady who’s constructing her wealth?
Confidence.
(That’s not our opinion. That’s what our research tells us.)
And what does a assured lady do?
She leaves a foul marriage. After which she builds a greater life for herself and her youngsters, on her personal phrases.
She quits the dead-end job that fills her with dread each Sunday evening. You understand, the one the place she’s forced to return to the office or lose out on a promotion. And she or he goes to work as a substitute at a contemporary firm that understands that flexibility at work is an advantage. And that diversity drives better performance.
She spends more cash on her youngsters: coding programs, dance classes, sports activities gear, and discipline journey spending cash. And she or he could assist financially assist different members of the family whereas starting to build generational wealth.
She buys the f***ing latte—or goes to the Beyoncé concert along with her buddies or takes the journey to Europe (full with souvenirs)—with out the entire guilt-driven, shame-centered inner monologue about over-spending.
She donates to nonprofits that align along with her values. Like preventing local weather change. Like supporting different girls and ladies. And, in doing so, she doesn’t insist that her title is plastered throughout their headquarters or that they’ve a giant gala for her.
She donates to political candidates who assist laws that helps her and her household, like paid household go away and a stronger social security web.
She invests to make a positive impact—directing cash into the fingers of corporations dedicated to addressing issues disproportionately affecting women. It’s a cash transfer that may strengthen our communities, our economy, and our climate, all whereas driving monetary returns.
We all know we are saying it on a regular basis, however for these within the again: Nothing unhealthy occurs when girls have more cash.
It is a world—pushed by the “Feminization of Wealth”—that we’re set on seeing quickly.
This article initially appeared in Ellevest and is reprinted with permission.