Women’s Equality Day - Earning, Saving, and Investing Challenges for Women

Money and success – just how far have women come?

Women’s Equality Day is celebrated every August 26th. Starting in 1971, it’s meant to observe the certification of the 19th Amendment, passed on August 26, 1920. The Amendment gave women the right to vote. It’s a great day to celebrate the great strides made in women’s rights since the passage of the law.

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Wages

Then: Low Wages – Prior to women’s right to vote, women made a quarter to a third of the wages a man made for the same job. Without health benefits or time off, some women gave birth on the floors of the factories where they worked. Of course, men had few benefits too, but with vastly different health concerns, the need for time off was more pressing for women of childbearing age.

Now: Closer to Equal – The Equal Pay Act of 1963 helped women fight for better pay, but women still do not earn the same wages as men. According to the Pew Research Center, women (including those working both full and part time) earn 84 percent of men’s wages for the same work. Young women have it better than old. Young women earning 93 percent of men’s earnings. The fact that women must take breaks from their careers to bear children is a fact of the natural world that likely influences the wage gap. In addition, women are far more likely than men to take extended time off to care for a child or family member. These reasons explain much of the pay gap.

Work

Then: No Right to Work – Before the right to vote, discrimination against women in the workplace was rampant. Women were expected to marry, stay home, and raise children. Although many women went to work during wartime to support the national effort, they were quickly displaced back to their homes as veterans returned from the war.

Now: More Women Working – Today, women don’t just have a choice between working and staying home to raise the children, they are often expected to work and raise children. They are also more likely to be the breadwinner of the family more than at any other time in history.

Wealth

Then: Few Women Held Independent Wealth – One area where the right to vote did not helped women is the ability to build wealth. In 1920, women could own property and had the right to keep their own wages, but most women gained wealth only by marrying.

Now: A Gap Persists – The wealth gap between single men and women remains high. Although the workforce is 47 percent female, the wealth of single women accounts for only six percent of the wealth of single men. As a result, women often marry for economic security, only to find themselves financially dependent on their husbands. This makes it harder for women to leave poor marriages. In addition, women fare much worse after divorce than men do, even though assets are supposed to be divided equally.

Success?

Although women have come far and fare much better than they did when they did in 1920, there are still worrisome obstacles to equality. It is hoped that the youngest generation of women, now earning nearly as much as men, will find ways to overcome the gender wealth gap.