"If the consumer economy had a sex, it would be female"(Forbes)...and the outrageous Pink Tax!
"If the consumer economy had a sex, it would be female"(Forbes)...and the outrageous Pink Tax!
#001 - Barriers women have to overcome and why women (& minorities) need to build their investor muscle more than anyone else
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What you will find here today (< 5 min read):
Society sees women as Consumers first : How this impacts our capacity to build wealth?
The pink tax documentary with shocking revelations (Share it to spread the word and help raise awareness!)
Your investing routine of the week : Uncover the blind spots of your “money story” to become a better investor
This statement hit me.
If the consumer economy had a sex, it would be female.
Women drive 70-80% of all consumer purchasing, through a combination of their buying power and influence. Influence means that even when a woman isn’t paying for something herself, she is often the influence or veto vote behind someone else’s purchase. (Forbes)
I realized that society sees women as Consumers first :
Social media encourage us to buy new products all the time to live up to anti-aging and beauty standards.
Most media do not showcase women as investors or CEOs and women are underrepresented in the finance industry. Check out the Wall Street Journal or Barron magazine, do they appeal to you and do they showcase leaders you can relate to?
In addition to the media space, women have to overcome so many challenges when it comes to money:
the gender salary gap : on average women earn 18% less than men,
the pink tax (check the video below!) : women pay more than men 42% of the time for the same product. The same product is more expensive in pink than in blue !
Women live longer than men by 5 years on average,
Women tend to have more career breaks for maternity leave or to educate their kids. This gap is not recognized or rewarded by the society,
Women tend to be less educated about finance and business.
As a result, there is multi-trillion dollars gap between men and women wealth.
The gender wealth gap is even more concerning than the wage gap.
More women are business leaders than ever, yet only 33% of them feel confident in their ability to make investment decisions (Fidelity survey 2021).
And data prove that :
INVESTING is THE difference between “having a great job” and “having a great future”.
Being the queen of budgeting is not enough in our day and age.
Women need to invest more than ever to protect their hard-earned dollars against inflation, constitute a safety net for their retirement or protect their family against hardships.
That’s why we need to change the narrative : Women are investors too !
They deserve to receive financial education and inspire each other in their journey to build wealth.
Mind blowing documentary on the pink tax !!! I hope this will convince you to take action as it did for me. Let’s spread the word around us !
1/ Understand where you stand : know your numbers
Most financial advisor will ask you to set your goals, but it’s not easy if you don’t know where you stand and what are your numbers today such as your income, monthly expenses, current debt, current assets, net worth (=assets - liabilities)…
First get clear on your starting point, then define your goals.
2/ Detect your blindspots : Understand your story around money
In everything you do, especially when you’re out of your comfort zone, it’s key to identify your blindspots and any potential negative stories or emotions around money. This could be a roadblock in your journey so let’s reflect on what is your relationship with money.
Do you shy away from money conversation?
Do you feel like you’re not educated enough about money?
Do you think that other women are doing better with their money than you are ?
Do you think talking about money is way too personal ?
If you answered yes to one of those questions, maybe it’s time to reframe your thoughts around money.
Take the time to write your answers and reflect on the following questions. You might find some gem that will help you reframe your money mindset for good.
How did your parents deal with their money ?
What were the positives and negatives around money when growing up?
What is the one money memory that stuck with you to this day?
What about money makes you anxious or stressed ?
Once you’ve done a thorough reflection, write down 1 to 3 key actions you can take NOW to overcome your roadblocks and assign a timeframe to take action.
Use the S.M.A.R.T framework : an objective should be specific, measurable, achievable, relevant, and time-bound.
Tell us more about your challenges with money below and we’ll address them in a future newsletter.
“Money is really viewed by most women as sort of the guy’s thing. One example I’ll put out there is all the shame around money.” Sallie Krawcheck
“When women work, they invest 90 percent of their income back into their families, compared with 35 percent for men.” (Stat from United Nations) Talk about gender gap!
“For women, financial independence is a matter of necessity.” Carrie Schwab-Pomerantz, board chair and president of Charles Schwab Foundation
If you learnt something, share it with your loved ones !
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