Women have been making major strides in personal finance. A recent LendingTree analysis found that single women now own more homes than single men, and women CEOs now lead over 10% of Fortune 500 companies, as reported by Fortune.com. Despite these achievements, the gender pay gap endures, and women remain less likely to invest than men - despite data showing they often outperform men in investment returns. A recent GOBankingRates survey of over 1,000 women found that only 7% of those aged 18-24 feel on track with their financial goals, and less than 10% of women aged 25-34 share that confidence.
Many women have ambitious financial goals but struggle with how to achieve them. The same survey revealed that 6% of women identify a lack of knowledge as their primary obstacle, while another 18% point to both a lack of knowledge and insufficient funds as their main barriers. On the financial end, we feel it’s helpful to know more about why GenZ really do have it worse, in our feature article: “How Gen Z Can Catch Up to Previous Generations”.
In this article, we will discover how Gen Z women can have actionable advice on the knowledge end and learn how they can turn things arounds.
Why Is It Even Harder for GenZ Women?
Gender Pay Gap
Despite progress in many areas, the gender pay gap persists, with women typically earning less than men for the same work. This disparity means that Gen Z women have less income to save and invest, exacerbating their financial challenges. According to a study by Payscale, women in 2023 earned about 82 cents for every dollar earned by men, and this gap can be even wider in some industries and regions.
Despite progress in many areas, the gender pay gap persists, with women typically earning less than men for the same work. This disparity means that Gen Z women have less income to save and invest, exacerbating their financial challenges. According to a study by Payscale, women in 2023 earned about 82 cents for every dollar earned by men, and this gap can be even wider in some industries and regions.
Higher Student Loan Debt
Gen Z women are more likely to take on student loans and often graduate with higher debt than their male peers. This financial burden can delay other financial goals, such as buying a home or saving for retirement. A report by the American Association of University Women (AAUW) highlights that women hold nearly two-thirds of the outstanding student debt in the United States, partly because they are more likely to pursue higher education and advanced degrees.
Gen Z women are more likely to take on student loans and often graduate with higher debt than their male peers. This financial burden can delay other financial goals, such as buying a home or saving for retirement. A report by the American Association of University Women (AAUW) highlights that women hold nearly two-thirds of the outstanding student debt in the United States, partly because they are more likely to pursue higher education and advanced degrees.
Career Interruption and Unpaid Labor
Women are more likely to take career breaks or work part-time to manage family responsibilities, which can limit their career advancement and earnings potential.
This situation is compounded by the fact that women often undertake a disproportionate share of unpaid labor, such as childcare and household chores. This unpaid labor, while essential, does not contribute to their financial security or retirement savings. In France, the term “charge mentale”, translated to English as "mental load”, is now commonly used and analyzed by economists as an additional burden to women’s economic endeavors and well-being, according to the CNRS. This term refers to the cognitive and emotional burden associated with managing household tasks, planning, and organizing family life. It often falls disproportionately on women and includes the ongoing, invisible work required to keep a household running smoothly, such as remembering to buy groceries, scheduling appointments, and managing family members' needs and schedules.
Women are more likely to take career breaks or work part-time to manage family responsibilities, which can limit their career advancement and earnings potential.
This situation is compounded by the fact that women often undertake a disproportionate share of unpaid labor, such as childcare and household chores. This unpaid labor, while essential, does not contribute to their financial security or retirement savings. In France, the term “charge mentale”, translated to English as "mental load”, is now commonly used and analyzed by economists as an additional burden to women’s economic endeavors and well-being, according to the CNRS. This term refers to the cognitive and emotional burden associated with managing household tasks, planning, and organizing family life. It often falls disproportionately on women and includes the ongoing, invisible work required to keep a household running smoothly, such as remembering to buy groceries, scheduling appointments, and managing family members' needs and schedules.
Lower Investment Participation
Gen Z women are less likely to invest compared to men, often due to a lack of financial literacy and confidence in managing investments. This can result in missed opportunities for wealth growth and long-term financial security. Studies show that while women are generally better investors when they do invest, they participate in the stock market at lower rates than men, partly due to societal norms and financial education gaps .
Gen Z women are less likely to invest compared to men, often due to a lack of financial literacy and confidence in managing investments. This can result in missed opportunities for wealth growth and long-term financial security. Studies show that while women are generally better investors when they do invest, they participate in the stock market at lower rates than men, partly due to societal norms and financial education gaps .
Health and Safety Concerns
Financial instability can be exacerbated by health and safety concerns unique to women, such as higher healthcare costs related to reproductive health and a greater risk of gender-based violence, which can lead to additional medical and legal expenses. These issues can create unexpected financial burdens that hinder their ability to save and invest .
Financial instability can be exacerbated by health and safety concerns unique to women, such as higher healthcare costs related to reproductive health and a greater risk of gender-based violence, which can lead to additional medical and legal expenses. These issues can create unexpected financial burdens that hinder their ability to save and invest .
Addressing these challenges requires targeted efforts, including policy changes to close the gender pay gap, increased financial education, support for affordable childcare, and initiatives to encourage women to invest and manage their finances confidently.
10 Tips From Top Female Money Influencers That Gen Z Women Can Use to Improve Their Finances Right Now
Rachel Cruze, author of “Know Yourself, Know Your Money,” believes that every woman should be investing. “Invest early and consistently,” she said.
Liz Claman, host of "The Claman Countdown," emphasized that every woman, regardless of her age, should be actively building her investments.
Liz Claman, host of "The Claman Countdown," emphasized that every woman, regardless of her age, should be actively building her investments.
She advises taking a fixed amount and investing it every month, regardless of market conditions. How much? She suggests looking at your monthly income, choosing a dollar amount you could subtract without impacting your ability to pay rent, mortgage, and bills, then adding a little more to make it slightly uncomfortable. Finally, you should set up a monthly deduction that goes directly into a stock fund.
Always invest in yourself
"Shark Tank" star Barbara Corcoran advises women to always invest in themselves. “Money is meant to be spent — and the best way to spend it is by investing in yourself,” she said. “I used my first $340 commission check to buy a brand new coat from Bergdorf Goodman, which boosted my confidence and helped me dream big! So, spend a little extra on a new outfit to look the part of the person you aspire to be, or invest in a course that can teach you new skills and set you up for a promotion at work.”
"Shark Tank" star Barbara Corcoran advises women to always invest in themselves. “Money is meant to be spent — and the best way to spend it is by investing in yourself,” she said. “I used my first $340 commission check to buy a brand new coat from Bergdorf Goodman, which boosted my confidence and helped me dream big! So, spend a little extra on a new outfit to look the part of the person you aspire to be, or invest in a course that can teach you new skills and set you up for a promotion at work.”
Rachel Rodgers, author of “We Should All Be Millionaires,” emphasizes that female entrepreneurs and freelancers should avoid undervaluing themselves. “One crucial money rule is to determine your desired price and then — DOUBLE IT,” she advised. “Yes, you heard that right. You’ve likely been significantly undercharging, and it’s time to change that!”
Investing in yourself also means that, if you feel you can do it as well or better than your fellow male CEO/founder, don’t doubt yourself! Do it. And what the heck? You may just be surprised by the (positive) results.
Investing in yourself also means that, if you feel you can do it as well or better than your fellow male CEO/founder, don’t doubt yourself! Do it. And what the heck? You may just be surprised by the (positive) results.
Pay yourself first
Danetha Doe, the founder of Money & Mimosas, emphasized that women should prioritize their personal short- and long-term financial needs before allocating funds elsewhere. “I believe in the principle of paying yourself first,” she said. “Whether it’s increasing your savings, investing, or focusing on your wellness, ensure you use your money to take care of yourself first.”
Danetha Doe, the founder of Money & Mimosas, emphasized that women should prioritize their personal short- and long-term financial needs before allocating funds elsewhere. “I believe in the principle of paying yourself first,” she said. “Whether it’s increasing your savings, investing, or focusing on your wellness, ensure you use your money to take care of yourself first.”
Automate your life
Tori Dunlap, the founder of Her First $100K, advocates for automation as a crucial element of financial success.
“Automate your financial life — from your bills to your savings to your investments,” she advises.
Tori Dunlap, the founder of Her First $100K, advocates for automation as a crucial element of financial success.
“Automate your financial life — from your bills to your savings to your investments,” she advises.
Track your spending and saving
Chelsea Fagan, co-founder of The Financial Diet, stresses the significance of tracking your spending and saving. “What gets measured gets managed,” she said. “Regardless of your income, if you don’t track and understand your money, you will always be chasing after it.”
Paula Pant, host of the “Afford Anything” podcast, advises women to "mind the gap. Focus on the difference between what you earn and what you spend,” she said. “Make this gap as large as possible, invest the difference, and keep repeating the process". "There are only three ways to ‘grow the gap’: earn more, spend less, or a combination of both,” Pant continued. “Avoid the mindset that you need a specific savings rate. Instead, concentrate on actions that significantly increase the size of your gap.”
Become financially literate
Barbara Ginty, host of the “Future Rich” podcast, emphasizes that every woman should strive for financial literacy. “Your money will never be as important to anyone else as it is to you, so making personal finance a priority is essential,” she said.
Barbara Ginty, host of the “Future Rich” podcast, emphasizes that every woman should strive for financial literacy. “Your money will never be as important to anyone else as it is to you, so making personal finance a priority is essential,” she said.
Don’t let other people spend your money
Erin Lowry, author of the “Broke Millennial” book series, offers a key piece of advice: “Don’t let other people spend your money.”
“This might seem simple, but it’s often challenging,” she said. Social and familial pressures frequently urge us to spend on others, whether it’s attending weddings, bachelor/bachelorette parties, holidays, birthday dinners, baby showers, or retirement parties".
“I’m not suggesting you stop investing emotionally and financially in your friendships and family,” Lowry continued. “However, you need to establish boundaries regarding how much you can afford to spend on others while honoring your own financial limitations and goals. Communicate your boundaries early and openly to avoid constantly saying ‘no,’ and suggest alternatives that allow you to participate within your budget.”
Erin Lowry, author of the “Broke Millennial” book series, offers a key piece of advice: “Don’t let other people spend your money.”
“This might seem simple, but it’s often challenging,” she said. Social and familial pressures frequently urge us to spend on others, whether it’s attending weddings, bachelor/bachelorette parties, holidays, birthday dinners, baby showers, or retirement parties".
“I’m not suggesting you stop investing emotionally and financially in your friendships and family,” Lowry continued. “However, you need to establish boundaries regarding how much you can afford to spend on others while honoring your own financial limitations and goals. Communicate your boundaries early and openly to avoid constantly saying ‘no,’ and suggest alternatives that allow you to participate within your budget.”
Set up an Emergency Fund
Jill Schlesinger, host of the “Jill on Money” podcast, offers her “big three” pieces of money advice: “First, accumulate six to 12 months of living expenses in an emergency reserve fund,” she recommends. “Second, pay down consumer debt. Third, maximize contributions to your retirement plan. Prioritizing these three goals will help you build a strong financial foundation.”
Jill Schlesinger, host of the “Jill on Money” podcast, offers her “big three” pieces of money advice: “First, accumulate six to 12 months of living expenses in an emergency reserve fund,” she recommends. “Second, pay down consumer debt. Third, maximize contributions to your retirement plan. Prioritizing these three goals will help you build a strong financial foundation.”
Manage Your Team Like a Proper Gal
Take inspiration with the women who have over-achieved in typically men-dominated environments. Women chefs like Hélène Darroze, 3-star Michelin, and Stéphanie Le Quellec, 2-star Michelin, don’t need to imitate their fellow male chefs to outperform. Darroze has consecutively won 3 seasons of Top Chef France whisking a blur of firmness, gentleness and utter competence, all at the same time. Le Quellec is renowned for her gentleness and pristine technicality, the sole female winner of the envied food contest so far and one of the few female chefs to have ever achieved the two-star mark. Food for thoughts?
Take inspiration with the women who have over-achieved in typically men-dominated environments. Women chefs like Hélène Darroze, 3-star Michelin, and Stéphanie Le Quellec, 2-star Michelin, don’t need to imitate their fellow male chefs to outperform. Darroze has consecutively won 3 seasons of Top Chef France whisking a blur of firmness, gentleness and utter competence, all at the same time. Le Quellec is renowned for her gentleness and pristine technicality, the sole female winner of the envied food contest so far and one of the few female chefs to have ever achieved the two-star mark. Food for thoughts?
Invest Your Own Partner
To double down on Le Quellec, her husband, David Le Quellec, has been instrumental in her own success. Fanny Rey, her immensely talented contester back in 2012, is now associated with her husband Jonathan Wahid and reaches for additional stars. Does it mean that you necessarily need to associate with your partner? Not really. But you can put him/her/they to work to support you and your personal and professional endeavors. And remember that, however you choose to do it, it should be best for YOU.
To double down on Le Quellec, her husband, David Le Quellec, has been instrumental in her own success. Fanny Rey, her immensely talented contester back in 2012, is now associated with her husband Jonathan Wahid and reaches for additional stars. Does it mean that you necessarily need to associate with your partner? Not really. But you can put him/her/they to work to support you and your personal and professional endeavors. And remember that, however you choose to do it, it should be best for YOU.