Whether it comes to buying household essentials or paying for a mortgage, women have the ability to make wise financial decisions for themselves and as heads of households throughout the U.S. For those who are considering a loan or looking for a way to save, the following are some of the most interesting purchasing power of women statistics for 2024.
Women and Discretionary Spending
Women will own 75% of all discretionary spending by 2028, according to Nielsen. That means that they are the greatest influencers on how money is spent in the U.S. That means women will influence many of the decisions in homes.
The same survey indicates that women value:
- Investments that give her back her time (making life easier or accomplishing tasks faster)
- Improve health, including improving faster and easier health decision-making.
- Brands that help her to achieve her goals without any stereotypes about what those goals are.
The same survey found that 89% of women around the globe share or have primary responsibility for daily shopping, food prep, and household chores.
Financial Stress and Mental Health
Across the U.S., women say that increasing financial stress, including being responsible for more of the income earning and management in households, contributes to a much higher level of mental health complications.
A survey from Ellevest found that 49% of women feel they are impacted by higher levels of stress due to holding a higher percentage of financial management. Specifically, many women note that financial wellness is often undervalued compared to other forms of wellness, leading to a higher demand for time and energy.
The same survey found that 36% of women worry about their financial well-being every single day, taking a toll on their overall mental health.
Women and Earnings Gaps
Directly impacting purchasing power for women is the wage-earning gap. That is, men tend to earn more within the same roles than women do.
Though a concerted effort has been placed on finding ways to reduce these differences, they continue to play a role in the overall impact of financial management in many households. A Pew Research Study found that, in 2022, American women were paid just 82 cents for every dollar that is earned by a man.
While that has improved from 2002, when women earned only 80 cents per dollar of men, that is still a huge difference that impacts spending power, decisions for discretionary income, and savings. Key reasons why the gender gap continues to be present include:
- Many women begin their careers with the same basic earning level as men but lose ground over time due to fewer promotions.
- Fewer women hold C-suite level and leadership positions in larger companies than men, which impacts their earnings.
- More men graduate from college than women, though this is not considered a strong indicator of earning power.
- Parenthood continues to be one of the most impactful factors. Women are more likely to leave the workforce between the ages of 25 and 44 when they have children, whereas men continue to work the same number of hours. Women still shoulder more of the responsibility of raising a family than men.
- Women with children at home are less engaged in the workplace than fathers, even if both are working at the same overall level.
What Can Women Do to Increase Purchasing Power and Financial Stability?
One study found that women hold 60% of the country’s personal wealth today, and they own 51% of all stocks. Consider the following:
- Women contribute $7 trillion to consumer and business spending in the U.S.
- 91% of women believe that advertisers for company products and services do not understand them or their needs.
- Women will have over 66% of consumer wealth in the next 10 years.
- Half of all products marketed to men are purchased by women.
- 85% of all purchases are influenced by women in some way.
Considering this, it is crucial that we hold organizations accountable for providing services and products that fit women’s needs and that truly showcase their ability to support women. Education, training, and college degrees aside, prioritize organizations that support equal pay for women, especially given their impact on the day-to-day decisions made across the country.
